Gallagher v. Graham (In Re Estate of Graham)

301 Neb. 594, 919 N.W.2d 714
CourtNebraska Supreme Court
DecidedNovember 16, 2018
DocketS-17-1296.
StatusPublished
Cited by353 cases

This text of 301 Neb. 594 (Gallagher v. Graham (In Re Estate of Graham)) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gallagher v. Graham (In Re Estate of Graham), 301 Neb. 594, 919 N.W.2d 714 (Neb. 2018).

Opinion

Freudenberg, J.

*718 NATURE OF CASE

The designees of the decedent's estate appeal the county court's determination that the evidence was insufficient to prove damages for the conversion of estate property purportedly caused by the personal representative who was removed **596 for breaches of fiduciary duties. They also assert that the personal representative should have been surcharged for the attorney fees and successor personal representative fees because of his breaches of fiduciary duties and alleged frivolous defense to his removal. We affirm.

FACTS

REMOVAL OF PERSONAL REPRESENTATIVE AND PERSONAL PROPERTY DAMAGES

Gregory G. Graham (Graham) was the designated personal representative of the estate of Hilda M. Graham, who died on September 5, 2013. In accordance with the decedent's last will and testament, Graham's appointment as the personal representative followed.

A dispute developed between Graham and two interested parties in the estate, Merle Gallagher and Linda Clarke. Both Gallagher and Clarke were to inherit from the decedent's will. Specifically, Clarke was to receive a "Peanuts collection" of figurines and Gallagher was to inherit full ownership of the decedent's home, as well as the residual estate. After Graham distributed the personal property pursuant to the decedent's will, Gallagher and Clarke alleged that they did not receive the entirety of what was bequeathed to them. As a result, they sought to have Graham removed as personal representative.

After a hearing, Graham was removed as personal representative of the estate and a successor personal representative, Edward Kasl, was appointed by the county court. Graham subsequently appealed that decision, and in case No. S-14-804, an unpublished memorandum opinion dated May 21, 2015, we reversed. We held that the county court erred in removing Graham as personal representative without having heard his evidence and testimony. We also held that the court erred in awarding damages when such relief was not requested. We remanded the matter, ordering a new hearing and directing that the case be reassigned to a new judge.

**597 At the hearing on remand, exhibit 101 was offered, but the county court sustained Graham's relevancy objection to exhibit 101 and did not receive it into evidence. Exhibit 101 consists of the entire bill of exceptions for the proceedings leading up to the order that we reversed in our memorandum opinion.

Gallagher and Clarke again presented evidence in support of Graham's removal. They also moved for the court to assess damages against Graham for the alleged conversion, damage, or loss of estate property. Gallagher and Clarke testified that *719 Graham maintained exclusive control over the real estate, as well as its contents, for a period in excess of 90 days after the decedent's death and failed to properly inventory the contents of the residence or provide an accounting of how the nonprobate estate assets were disposed of during that time. 1

In support of their claims that certain items were stolen, damaged, or lost, Gallagher and Clarke offered testimony from various witnesses that the decedent, at some point before she died, had at least three jewelry boxes full of "expensive" jewelry. Gallagher and Clarke testified that the decedent had several items of "nice" clothing, various tools, and a number of documents in her home before her death. All of these items were absent from the decedent's home at the time the keys to her home were finally transferred to Gallagher.

The court also received into evidence pictures of the decedent wearing certain pieces of jewelry from her collection. Additional testimony was received that, while attending the decedent's funeral, Gallagher observed Graham's wife wearing a pendant and a locket allegedly owned by the decedent.

Clarke testified that she had seen the decedent's figurine collection in the past. She stated that it filled an entire hallway closet. When she arrived at Graham's attorney's office to retrieve the figurines she was to inherit, some were broken while others were completely missing.

**598 Graham testified that he was out of town for work during the months following the decedent's death. As a result, Graham was unable to transfer the keys to the home to Gallagher. But he claimed that he had told Gallagher to contact Graham's attorney for further information about obtaining the keys.

Graham attested that he emptied the entire contents of the decedent's home and transferred the property to his home for safekeeping. He then transferred some of the property to his attorney's office for distribution, but donated many articles of the decedent's clothing. Graham testified that he delivered all property that was to be distributed to interested parties to his attorney's office.

An inventory document was prepared by Graham's attorney which set forth the items of personal property retrieved by Gallagher and Clarke at his office. Both Gallagher and Clarke signed this inventory document to indicate that they had received the items that were bequeathed to them. However, Gallagher and Clarke took exception to the contents of that inventory document, claiming Graham failed to list several items owned by the decedent that were in her home at the time of her death.

Graham maintained that the property he distributed was all that remained in the decedent's home after her death. It was undisputed that Graham and Gallagher were both at the home near the time of the decedent's death, but neither made a list of what was in the home. Both testified that hospice workers were also in and out of the home during the decedent's final days.

On April 25, 2016, the court removed Graham as personal representative with an additional order that his status was terminated rather than discharged so he would remain responsible for any misdeeds he may have committed while acting as personal representative. The county court found that Graham had acted negligently and improvidently in denying access and then in failing to either protect or inventory the contents of the residence which he *720 maintained under his exclusive control. **599 Thus, the court found that he had breached his fiduciary duty as a personal representative as it related to the filing of an inventory concerning personal property when he took control of nonprobate assets. Graham did not appeal within 30 days of the April 25 order.

In a subsequent order on September 26, 2017, the court denied Gallagher and Clarke's motion to assess damages against Graham for his conversion, damage, or loss of estate property. The court reasoned that, based on the evidence presented, it could not determine beyond mere speculation whether or not Graham had converted, damaged, or lost assets of the estate.

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Cite This Page — Counsel Stack

Bluebook (online)
301 Neb. 594, 919 N.W.2d 714, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gallagher-v-graham-in-re-estate-of-graham-neb-2018.