Estate of Johnson v. Kranitz

168 S.W.3d 84, 2005 Mo. App. LEXIS 1094, 2005 WL 1719094
CourtMissouri Court of Appeals
DecidedJuly 26, 2005
DocketNo. WD 63732
StatusPublished
Cited by8 cases

This text of 168 S.W.3d 84 (Estate of Johnson v. Kranitz) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Johnson v. Kranitz, 168 S.W.3d 84, 2005 Mo. App. LEXIS 1094, 2005 WL 1719094 (Mo. Ct. App. 2005).

Opinion

JAMES M. SMART, JR., Judge.

Theodore M. Kranitz appeals an order of commitment entered in connection with a judgment of contempt for willful refusal to repay attorney’s fees. We affirm.

[88]*88Theodore Kranitz is the senior member of the law firm of Kranitz & Kranitz, P.C., in Buchanan County. Mr. Kranitz was the attorney for the personal representative of the estate of Ross E. Johnson, Sr., in the probate court of Nodaway County. Mr. Johnson, the proprietor of a funeral home business, died intestate in March 1997. One of his sons, Ross E. Johnson, Jr., was appointed personal representative in April 1997, when letters of administration were issued. There were four funeral homes that were owned by Ross Johnson, Sr., either solely or in joint ownership with his two sons. Theodore Kranitz was the attorney for the personal representative throughout the next six years until the personal representative was removed by court order on July 23, 2003.

In July 1998, about one year after the estate was opened, Kranitz and the personal representative filed an application for allowance of compensation. The personal representative and Kranitz requested partial fees in the amount of $20,000 each. They also requested fees for a certified public accountant in the amount of $18,460.1 In that application, signed by both the personal representative and Kranitz, the personal representative stated that he had “performed all services required by law in respect of the estate.”

Two months later, a document entitled “Agreement of Heirs” was filed with the probate court. In that document, the heirs (Ross Johnson, Jr., and his brother, Robert Johnson) agreed that the decedent’s business should continue to operate and that the earlier requested partial fees should be paid.

Despite the fact that no annual settlement had yet been approved, the court granted the requests for $20,000 partial compensation to both the personal representative and Kranitz. With regard to the “agreement” to continue the business, the court noted that whether or not the heirs agreed, the personal representative would need to seek a court order to continue the business.

As of two years later (November 2000), no approvable annual settlements had been filed in accordance with the requirements of section 473.540.2 Also, no order to continue the business had been applied for. The court issued an order to show cause why the personal representative should not be removed and why he and his attorney, Theodore Kranitz, should not be surcharged for fees previously allowed in the estate, for:

1. Failing to discharge official duties as personal representative of the estate by not filing and obtaining Court approval of annual settlements in 1998, 1999, and 2000, and by not taking the initiative to wind up the administration of the estate; and
2. Failing to apply for and obtain an order of the Court authorizing continuation of the business of the decedent, as required by Section 473.300 RSMo.

The court also appointed the Respondent, Zel M. Fischer, as administrator ad litem with regard to the order to show cause.

The court held a hearing on the show-cause order on January 4, 2001. At the conclusion of that hearing, the court took the matter under advisement after receiving assurances that the annual settlements soon would be filed and action would be taken to wind up the estate. From January 4, 2001, through July 23, 2003, while the court held the matter under advisement on the representation that settle-[89]*89mente would be filed, neither the personal representative nor Mr. Kranitz filed a single pleading or settlement.

On July 23, 2003, which was six years after the estate had been opened, the court found after another hearing that none of the actions required by the show cause order, and agreed to by the parties, had been “fully or satisfactorily addressed.” The court entered judgment on the order to show cause. That judgment ordered: (1) that Ross E. Johnson, Jr., be removed as personal representative of the estate; (2) that he file his final settlement accounting on or before 9-1-03; and (3) that “for the gross failure to comply with [probate code] requirements ... concerning the administration of this decedent’s estate as set out above, the Court does surcharge Ross E. Johnson, Jr., and Theodore M. Kranitz, his attorney, for partial fees previously allowed ... of $20,000.00 each ... to be paid over to the administrator ad litem ... on or before 9-1-03.”3 That judgment also directed that the Missouri Supreme Court Rules of Civil Procedure would apply to all proceedings in the estate.

The personal representative and Kranitz jointly filed a motion to set aside the July 23 Judgment. After a hearing, the court denied the motion. Kranitz then requested leave to withdraw as attorney for Mr. Johnson, who already had been removed as the personal representative. The court granted the request. A week later, Kran-itz filed a motion to reconsider the motion to set aside. That motion was also denied.

Kranitz did not refund the $20,000 compensation. Kranitz took no action at that time to appeal the judgment ordering repayment. Kranitz applied to this court for a writ of prohibition against the judge in the probate case. The writ application was denied.

On October 17, while the writ application was pending, Respondent Fischer filed motions for an order to show cause and for contempt against both the personal representative and Kranitz for their refusal to comply with the July 23 Order. Separate orders to show cause were entered, directing the personal representative and Kran-itz to appear before the court on October 31 at 9:00 a.m. The court ordered Kranitz to appear and show cause why the court should not find and hold him personally in contempt for failure to obey the July 23 Order in the following respects:

1. Failing to insure that the personal representative file an accurate annual settlement for those years that you represented the personal representative prior to being allowed to withdraw....
2. Failing] to pay over to ... [the] administrator ad litem, $20,000 on or before September 1, 2003, which was previously allowed to you as partial attorneys fees.

At the October 31 hearing, Kranitz requested a continuance and the right to employ an attorney to represent him. Both were granted. In November, at a status hearing on the order to show cause, counsel for Kranitz entered his appearance.4 The hearing on the motion for contempt was scheduled for January 2004.

Although the estate had been opened in 1997, as of January 2004, no bank account had been established for estate funds and transactions. No excuse for this failure [90]*90was offered. The reason given for the failure to file settlements was that the estate tax return was being audited. Mr. Kranitz conceded, however, that settlements were due even if the estate tax return was under audit.

On January 27, the parties appeared for the contempt hearing. Kranitz, who appeared with counsel, filed an application for change of judge prior to commencement of that hearing on the ground that the judge was biased. The court denied the application for change of judge and also took up and denied Kranitz’s earlier motions to stay and to quash.

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168 S.W.3d 84, 2005 Mo. App. LEXIS 1094, 2005 WL 1719094, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-johnson-v-kranitz-moctapp-2005.