Tom Benson had 'unilateral power' to remove Saints, Pelicans from heirs' trusts,

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Benson had "unilateral power" to remove shares in the Saints and Pelicans from his estranged family's trust funds in exchange for promissory notes and other assets last year, a federal judge ruled Monday (May 16).

The lawsuit over the trade, scheduled for trial June 20, will now focus on confirming that the assets being traded are of equal value, U.S. District Judge Jane Triche Milazzo wrote.

Benson, 88, sued to remove shares in the NFL and NBA franchises from trust funds created for his daughter Renee Benson and grandchildren Rita and Ryan LeBlanc, part of his plan to disown his would-be heirs and leave the teams to his wife of 11 years, Gayle Benson, instead.

The trustees guarding the funds, San Antonio lawyers Robert Rosenthal and Mary Rowe, have attempted to block that exchange. The trustees

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The trustees guarding the funds, San Antonio lawyers Robert Rosenthal and Mary Rowe, have attempted to block that exchange. The trustees asked Milazzo to rule in their favor without a trial, which the judge denied.

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Milazzo wrote that the trusts "clearly" grant Benson "the power to effect a substitution without approval" with evidence the assets are equal.

The trustees have the right to challenge whether the assets are equal, the judge wrote, but they don't have the authority to delay the exchange, which occurred on Jan. 24, 2015. Any dispute over value of assets must be sorted out in court.

"While the exchange must be of equivalent value, these substitution provisions likewise do not allow the trustee to block the exchange pending a determination of equivalent value," Milazzo wrote.

Benson offered promissory notes due in 2039, forgiven debt and real estate to remove the Saints and Pelicans stock, and he hired Empire Valuation Consultants to perform of valuation of the assets.

The judge seemed to disagree with the trustees' argument that Benson's deal based on promissory notes amounted to a loan, rather than an exchange of assets. Milazzo wrote that a final ruling on that issue will have to be decided at trial.

"There is no provision in the trusts prohibiting the use of a promissory note, which certainly has value, in a substitution," the judge said.

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The legal dispute doesn't involve any power over the teams. The estranged heirs' trust funds hold 60 percent of the Saints and 95 percent of Pelicans, all of which is non-voting stock. Tom Benson has maintained sole control of the teams by owning all of the voting stock.

The trustees have also asked Milazzo to rule against Benson based on the argument that the billionaire doesn't have NFL and NBA approval for the deal. That issue is scheduled for a hearing May 25.

Benson pushed many of his assets into trust funds when he planned to leave his pro sports franchises and car dealership empire to Renee, Rita and Ryan, a financial maneuver to avoid paying estate taxes. But in January 2015, Benson announced he wants to leave the teams to his Gayle, and he's now attempting to untangle the ownership shares. He fired Renee, Rita and Ryan from the teams and his other businesses and vowed never to speak to them again.

Renee Benson and Rita and Ryan LeBlanc continue to argue that Benson is in mental decline and being manipulated by his wife and Saints executives.

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