Estate of Eubanks v. Eubanks

197 So. 3d 878, 2014 WL 211730, 2014 Miss. App. LEXIS 35
CourtCourt of Appeals of Mississippi
DecidedJanuary 21, 2014
DocketNo. 2012-CA-00030-COA
StatusPublished
Cited by7 cases

This text of 197 So. 3d 878 (Estate of Eubanks v. Eubanks) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Eubanks v. Eubanks, 197 So. 3d 878, 2014 WL 211730, 2014 Miss. App. LEXIS 35 (Mich. Ct. App. 2014).

Opinions

: CARLTON, J.,

for the Court:

¶ 1. This case arises from a wrongful-death action brought in the Jackson County Chancery Court resulting from the death of sixteen-year-old Dane Eubanks. Dane died as the result of an automobile accident in 2006, and his mother, Cecilia Borries (hereinafter referred to as the Ad-ministratrix) was named administratrix of his Estate.

¶2. As a procedural matter, we first recognize that the record reflects that pri- or to the wrongful-death .action, the Ad-ministratrix entered into a legal contract, which was approved by the chancellor, with attorney David E. Kihyat Sr. to represent Dane’s Estate. Kihyat, on behalf of the Administratrix, filed a petition for probate of the Dane’s Estate in February 2007, stating that Dane was survived by the Administratrix; his father, David Eu-banks Sr.; his brother, Seth Eubanks; and his half-brother, Aiden Borries. The Administratrix then filed a motion to preclude Dane’s biological father, David Sr., from receiving any damages recoverable for Dane’s death, since David Sr. had failed to support Dane or engage in a relationship with Dane since Dane was four years old.

¶ 3. The chancellor ultimately ordered that David Sr. would not share in any wrongful-death proceeds. Kihyat then pursued two wrongful-death actions on behalf of the Administratrix and the Estate, which we discuss in full later in this opinion. First, Kihyat pursued a claim against the driver (tortfeasor) of the pickup truck that caused Dane’s death. The driver of the pickup truck possessed $100,000 in liability insurance with Allstate Insurance Company (Allstate), and Kihyat obtained a settlement for the policy limit of $100,000.

¶ 4. After filing the first wrongful-death claim against the driver’s (tortfeasor) insurance company, Allstate, the Administra-trix learned that David Sr. fathered two children with Kathy May Huber — David Eubanks Jr. and Allison Eubanks. The Estate then sought joinder by Huber as the natural mother and next friend of Dane’s two half-siblings, David Jr. and Allison. In September 2010, attorney Jane Perry entered an appearance in chancery court on behalf of Huber to represent the interests of David Jr. and Allison.

¶ 5. The chancellor approved the first wrongful-death settlement in the amount of $100,000, and divided the proceeds among all five wrongful-death beneficiaries — the Administratrix, Seth, Aiden, and David Sr.’s two children with Huber, David Jr. and Allison. The chancellor also awarded attorneys’ fees to Kihyat as provided for in his court-approved contract with the Administratrix. We acknowledge that this $100,000 settlement, and the related attorneys’ fees, are not contested in the present appeal.

¶ 6. Next, Kihyat, on behalf of the Ad-ministratrix, presented a separate claim to Allstate for uninsured-motorist benefits under the insurance policy of Dane’s stepfather, Kenneth Borries. Allstate responded by filing a declaratory-judgment action against Dane’s estate and the Ad-ministratrix in the Ünited States District Court for the Southern District of Mississippi. ' Due to complexity of the issues, Kihyat associated with attorney Vincent Castigliola to defend the suit against the estate and the Administratrix. Both parties participated in a settlement conference in August 2010, resulting in Allstate agreeing to a settlement of $250,000, subject to chancery court approval.

¶ 7. After a series of attempts by Kihyat and Castigliola, on behalf, of the Adminis-tratrix, to exclude David Jr. and Allison from recovering in any of the $250,000 Allstate settlement proceeds, as set forth [881]*881in further detail below, the chancellor issued a judgment distributing the settlement proceeds equally between the wrongful-death beneficiaries: the Administratrix, Seth, Aiden, David Jr., and Allison. The chancellor also awarded the attorneys a fee based on forty percent of the settlement proceeds distributed to each of the beneficiaries, again including the Adminis-' tratrix and the unrepresented heirs, David Jr. and Allison.

¶ 8. Huber, guardian and parent of minors David Jr. and Allison, now appeals the chancellor’s award of attorneys’ fees from the ’Allstate' settlement proceeds awarded to David Jr. and Allison, because the Administratrix and the attorneys pursued legal claims adverse to the miiiors and because the Administratrix and her attorneys proceeded without the informed consent of the unrepresented heirs.1 Finding error, we reverse the judgment and remand for further proceedings consistent with this opinion;

FACTS

¶ 9. On February 28, 2006, sixteen-year-old Dane was killed in a single-vehicle car accident. As stated, in February 2007, the Administratrix, Dane’s mother, petitioned to probate Dane’s estate in chancery court, and the chancellor named her administra-trix. On January 13, 2007, the Adminis-tratrix retained attorney Kihyet to pursue a wrongful-death lawsuit, arising from the death of her son, against Allstate, the insurer of the driver at fault in the accident causing Dane’s death. The Administratrix entered into a contingency-fee contract with Kihyat, which provided for a forty percent fee from any recovery obtained for the Administratrix.

¶ 10. During the course of asserting the first wrongful-death claim against Allstate, the Administratrix and her counsel discovered the existence of David Jr. and Allison as wrongful-death beneficiaries and sought joinder by Huber, on behalf of David Jr. and Allison. Prior to this time, the Ad-ministratrix was' unaware that her ex-husband and Dane’s father, David Sr., had two children, David Jr. and Allison, with Huber. As a result, on December 12, 2008, Huber, the mother of David Jr. and Allison, joined the Administratrix’s Petition for Probate of Estate, Appointment of Ad-ministratrix, Issuance of Letters of Administration, and Determination of Heirship, on behalf of her minor children. Kihyet subsequently negotiated a wrongful-death settlement in' the amount of $100,000 with Allstaté on behalf of the driver of the truck involved in the accident.

¶ 11. In September 2009, the Jackson County Chancery Court approved the $100,000 settlement with the truck driver’s insurer, Allstate, and ordered that proceeds be distributed equally among Dane’s adjudicated wrongful-death beneficiaries— the Administratrix; Seth (Dane’s brother); Dane’s two half-brothers, Aiden and David Jr.; and Dane’s half-sister, Allison.

¶ 12. Then, the Administratrix asserted a second claim for benefits arising from Dane’s death against her ex-husband Kenneth’s 2 Allstate Indemnity Company commercial-vehicle insurance policy. In response, Allstate, filed a complaint for a declaratory judgment in the United States District Court for. the Southern District of Mississippi on December 10, 2008, alleging that Kenneth’s Allstate policy .at issue failed to cover Dane, the decedent, as an [882]*882insured. As acknowledged, due to the complexity of the issues, the Administra-trix and Kihyat then sought the assistance of Attorney Castigliola to defend both Dane’s estate and the Administratrix against Allstate’s complaint for the declaratory judgment and to also pursue a counterclaim against Allstate for uninsured-motorist coverage for Dane. On January 12, 2009, Kihyat and Castigliola then filed an answer to Allstate’s complaint and also asserted a counterclaim alleging that Allstate had wrongfully denied coverage, and seeking recovery of $2.9 million in damages.

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Related

Cecilia Eubanks v. Kathy May Huber
251 So. 3d 734 (Mississippi Supreme Court, 2018)
Kathy May Huber v. Cecilia Eubanks
197 So. 3d 861 (Mississippi Supreme Court, 2015)

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Bluebook (online)
197 So. 3d 878, 2014 WL 211730, 2014 Miss. App. LEXIS 35, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-eubanks-v-eubanks-missctapp-2014.