A high-stakes legal battle is unfolding in a Spokane County courtroom, placing the vast real estate empire of the late Harlan Douglass at the center of a bitter dispute between his children. The trial examines allegations of undue influence and manipulation surrounding a 2019 will that largely disinherited one son, Harley Douglass, while distributing a fortune estimated between $600 and $700 million to his two siblings, Lanzce Douglass and Stacey Douglass Boies.
At the heart of the case is the mental state of Harlan Douglass, who was diagnosed with vascular dementia and Alzheimer's disease before his death in 2023. The court must now determine whether the patriarch, who built a financial empire from the ground up, was of sound mind when he dramatically altered his estate plan, leaving one son with a mere $1,000 and the others with hundreds of millions.
Key Takeaways
- A lawsuit challenges the 2019 will of late Spokane real estate magnate Harlan Douglass, valued at over $600 million.
- The will allocates 65% of the estate to son Lanzce Douglass and 35% to daughter Stacey Douglass Boies, leaving eldest son Harley Douglass with $1,000.
- The lawsuit alleges that Lanzce and Stacey took advantage of their father's declining mental health, including a diagnosis of dementia and Alzheimer's, to influence the will change.
- This is the second legal defeat for Lanzce regarding the family inheritance; a court previously voided a deed he orchestrated to alter his mother's estate.
The Disputed Will and Allegations of Influence
The current legal proceedings in Spokane County Superior Court focus on a series of events in the spring of 2019. During this period, Harlan Douglass, accompanied by Lanzce and Stacey, made significant changes to his financial and estate plans. These changes occurred after a decade-long estrangement between Harlan and these two children.
On April 22, 2019, Harlan signed documents gifting Lanzce and Stacey promissory notes worth $45.9 million each. Additional notes provided $13.9 million to each of their five children. In total, these notes amounted to $155 million, payable upon Harlan's death. He also granted Lanzce and Stacey durable powers of attorney.
Shortly after, in May 2019, a new will was executed. This document replaced a 2018 will that had planned for an equal, three-way split of the estate among all his children. The new will instead allocated the vast majority of the fortune to Lanzce (65%) and Stacey (35%), effectively removing Harley from any significant inheritance.
A Rapid Shift in Family Dynamics
Court records indicate that Harley Douglass had worked alongside his father for years in building the family business. The sudden reconciliation between Harlan and his other two children, Lanzce and Stacey, coincided with Harlan cutting contact with Harley. This shift in relationships is a central theme in the ongoing trial.
The Plaintiff's Claims
Harley Douglass's legal team argues that these changes were not the wishes of a clear-minded man but the result of a calculated plan. Attorney Steven Hassing stated in court filings that Lanzce and Stacey exploited their father's cognitive decline.
"In his diminished state, Harlan could no longer distinguish the truth from the lies Lanzce and Stacey were telling," Hassing wrote. "By exploiting his cognitive impairment, Lanzce and Stacey succeeded in turning their father against the one child with whom he had consistently shared a genuine and enduring relationship."
The lawsuit seeks to invalidate the 2019 will and revert to the 2018 version, which would restore the equal inheritance split among the three siblings.
A Family History of Conflict and Success
Harlan Douglass, who passed away in November 2023 at 86, was described as a self-made man. He and his late wife, Maxine, who died in 2016, built an empire of several hundred properties that reportedly generate millions of dollars in monthly rental income. Born in Electric City, Washington, Harlan came from humble beginnings, with his father helping to build the Grand Coulee Dam.
Testimony during the trial painted a picture of Harlan as a formidable and demanding businessman. His son, Lanzce, described him as more passionate about business than affectionate with his family.
"He was not a really affectionate person," Lanzce testified. "He took things very personally." Lanzce also noted his father's competitive nature, stating, "He definitely was not someone you wanted to slight or have him perceive a slight. He would do whatever he needed to do to crush you."
This intense dynamic led to Lanzce establishing his own separate real estate company, Lanzce Douglass Properties, and purposefully seeking projects outside of Spokane to avoid direct competition with his father.
A Decade of Estrangement
Both Lanzce Douglass and Stacey Douglass Boies testified to long periods of estrangement from their father. Harlan fired Stacey from the family business in 2008, and Lanzce had a falling out with him that same year. They did not communicate for roughly a decade until reconnecting in the years leading up to the will change.
A Pattern of Legal Challenges
This court battle is not the first time Lanzce Douglass has been accused of attempting to alter the family's inheritance plans. A previous lawsuit centered on Maxine Douglass's will, which had designated 50% of her share of the estate to Harley, 40% to Stacey, and 10% to Lanzce.
In August 2019, Lanzce orchestrated the creation of a document known as the "Hamilton Deed." This deed, signed by an ailing Harlan who witnesses said was falling asleep during the process, effectively transferred much of Maxine's estate to Lanzce and Stacey, removing Harley as a beneficiary.
In 2023, Superior Court Judge Raymond Clary ruled in favor of Harley, voiding the deed. The judge's ruling was stark.
"Lanzce Douglass, with the help of his attorney... conceived of a plan to disinherit Harley Douglass," Judge Clary wrote. "The scheme was not only shown by the totality of the evidence, but it was clear, convincing, and inescapable."
An appeals court recently upheld that ruling while the current trial was underway, also approving approximately $600,000 in attorney fees for Harley's legal team. The defense for Lanzce and Stacey maintains that the 2019 will reflects Harlan's true intentions, arguing it accounted for substantial lifetime gifts already given to Harley. The trial continues as the court works to unravel the complex final chapter of a Spokane real estate dynasty.
