Guardianship of Moylan

Opinion

FILED

SUPERIOR COURT

OF GUAM

EU?' .5¥JN 15 PM 3* DE? CLERK OF COURT

IN THE SUPERIOR COURT OF GUAM BY: --»~..*. ».

IN THE MATTER OF THE Superior Court Case No. SP0106-07 GUARDIANSHIP Related Case Nos. sp0104-07. SPOl05-07.

sp0107-07. SP0110-07. and sp0111-07 OF

YUK LAN MOYLAN, DECISION AND ORDER RE ATTORNEY'S FEES

An Adult,

In re Guardianship of Moylan, 2018 Guam 8 (Moylan III),reversed the SuperiorCourt's

prior decision denying the payment of attorney's fees for Richard Moylan's litigation efforts that

resulted in the return ofTCDs to the Wards, Francis Moylan and Yuk Lam Moylan. On remand,

this Court now considers the appropriate amount of attorney's fees for that claim. Moreover, the

same opinion vacated and remanded all odder claims for attorney's fees tim the trial court's July

26, 2016 decision related to litigation in In re Guardianship of Moylan, 2017 Guam 28 (Moylan

11). The Court now considers whether Richard may recover attorney's fees under the substantial

benefit doctrine for litigation eftbrts that resulted in a holding that there was no enforceable oral

transfer of property from the Wards to the present Limited Guardian, Lina Leialoha Alston

("Princess").

1. Background

Attorney Douglas Moylan is the grandson of the Wards and the son of Richard Moylan

In 2007, a series of guardianship petitions were filed concerning Mr. and Mrs. Moylan, Richard,

through Attorney Moylan, entered appearances and litigated various issues in:

o SPOl04-07 - Petition filed Princess and Francis L. Moylan, Jr, on June 22, 2007, over Mr. Moylan's person

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SPOl06-07 DECISION AND ORDER RE ATTORNEY'S FEES Page 2

o SP0105-07 - Petition filed by Kurt Moylan on June 22, 2007, over Mr. Moylan's estate o SP0106-07 _ Petition filed by Kurt on June 22, 2007, over Mrs. Moylan's estate

O SP0107-07 - Petition filed by Princess and Jr. on June 22, 2007, over Mrs.

Moylan's person

o SP0110-07 - Petition tiled by Richard on June 26, 2007, over Mr, Moylan

o SP011l-07 ._ Petition filed by Richard on June 26, 2007, over Mrs. Moylan

The issues presented in these petitions were tried and then appealed in CVA08~016. In

2011, the Guam Supreme Court resolved various guardianship issues In re Guardianships of

Moylan, 2011 Guam 16 (Moylan 1). The Court incorporates here the factual and procedural

background discussed therein.

Following the issuance of Moylan I and Moylan II, Richard moved to recover his

reasonable attorney's fees and costs. In denying the motion, the Court found that under 15 GCA

§ 4101, a party must be a guardian in order to apply for attorney's fees. Dec, and Order (Jul. 26,

2016). Since Richard was not a guardian and did not satisfy any exception to the American rule

regarding litigation expenses, the Court found that he could not recover attorney's fees and costs.

Upon Richard's appeal, the Guam Supreme Court vacated the Decision and Order to the

extent that it resolved Richard's claim for attorney's fees based upon litigation subject to the

court's opinion in Moylan II. Moylan III, 20]8 Guam 8, The Guam SupremeCourt partially

vacated and partially reversed the trial court's Decision and Order and remanded the matter to

this Court,

II. Law and Discussion

A. The Scope of Issues on Remand

As an initial matter, the Court must determine the scope of the issues on remand. The

Guam Supreme Court instructs that "[o]n remand, a trial coin must comply with the mandate of

5 t HEEENA L , E sp0106.07 DEc1s1on AND ORDER RE ATTORNEY'S FEES Page 3

the appellate court. Thus, in determining how to proceed on remand, the trial court must examine

both the mandate and the opinion and proceed in accordance with the views expressed therein."

Town House Depot Stores, Inc. u Ahn, 2003 Guam 61] 16. The Guam SupremeCourt has further

cautioned that "trial courts are not to construe remand orders 'so narrowly as to prohibit the

court from considering matters relevant to the issues upon which further proceedings are

ordered." Moylan II, 2017 Guam 281129 (citing Lamb v. Hoffman, 2011 Guam 131122).

In Moylan Ill, the Guam Supreme Court mandated the following;

For the reasons discussed above, we VACATE that portion of the trial court's July 26, 2016 Decision and Order to the extent that it resolved Richard's claim for attorney's fees based upon litigation that was the subject of the court's opinion in Moylan ll, 2017 Guam 28. We REMAND those issues and direct the Superior Court to dismiss that portion of Richard's motion without prejudice or, upon final resolution of those issues, determine whether Richard is entitled to attorney's fees in accordance with the legal principles enunciated by the court in this Opinion. Additionally, we REVERSE that portion of the trial court's July 26, 2016 Decision and Order regarding the payment of attorney's fees for Richard's litigation efforts that resulted in the return of the TCDs to the Wards and REMAND the matter to the Superior Court so that it may calculate the appropriate arnowit of attorney's fees in the first instance.

2018 Guam 8 1]33, In remand proceedings, Richard indicated that the scope of fees and costs

that he seeks to recover includes:

o work associated with eftbrts to recover over $l.5M in life savings deposits to names of Wards alone

o recovery of real estate (the house occupied by Princess),

O defense of Judge Barrett~Anderson's determination that the Wards are entitled to recovery of monies (a loan) owed by F.L. Moylan Corp.,

o protection of the late FL. Moylan and Yuk Lan Moylan's civil liberties such as the sealing of their cases, and O legal work related to recover compensable fees and costs.

Legal Brief Re: 8/17/18 Supreme Court of Guam Mandate (Dec, 2, 2019).

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Moylan 111 instructs this Court to calculate the appropriate amount of attorney's fees

associated with Richard's efforts that resulted in the return of the TCDs to the Wards.

Furthermore, Moylan III directs this Court to review Richard's litigation efforts: (i) in

maintaining title in the name of the Wards to the residence where Princess currently resides, and

(ii) in recovering shareholder loans payable to the Wards--in other words, the two issues

addressed in Moylan II. Since no further action has been taken on these issues, the Coup finds

that both are ripe for the Court to determine whether Richard is entitled to attorney's fees in

accordance with the legal principles enunciated by Moylan III.

As to other issues, Richard does not specify which issue he seeks review for his efforts to

protect the Wards' civil liberties. He submits billing entries for work done in association with

his litigation efforts to unseal all guardianship records, see Moylan L 2011 Guam 16 1]55 and

Order (Jan. 24, 2012), and his efforts to contest the appointment of Princess as a special guardian

for which she failed to have adequate notice, see Moylan V, 2018 Guam 21. However, Richard

fails to present the Court with a legal argument regarding the award of attorney fees for these

issues. Accordingly, the Court declines to consider whether to award Richard attorney's fees for

his efforts to unseal all guardianship records and contest the appointment of Princess as a special

guardian.

Richard also seeks attorney fees for his efforts to recover compensable fees and costs.

Again, he fails to present to the Court a legal argument as to why it should award him attorney

fees. Since this issue also falls outside the scope of the Moylan III mandate, the Court declines

to consider it here.

In sum, the Court strictly complies with the scope outlined in Moylan III-~that is, whether

the substantial benefit doctrine entitles Richard to an award of attorney's fees for his litigation

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efforts: (i) in maintaining title in the name of the Wards to the residence where Princess currently

resides, and (ii) in recovering shareholder loans payable to the Wards. The Court will also

calculate the appropriate amount of attorney's fees associated with Richard's efforts that resulted

in the return of the TCDs to the Wards and for the other issues Mat satisfy the substantial benefit

doctrine.

B . The Substantial Benefit Test Applied

I n Moylan III, the Guam Supreme Court held that the "substantial benefit" exception to

the American Rule applies in Guam and may be utilized in the context of guardianship

proceedings. The Guam Supreme Court instructed that when using the substantial benefit

exception, the "relevant question iswhether a substantial benefit has been conferred on an

ascertainable class, which is generally decided on a case-by-case basis." Id., 2018 Guam 81130.

Furthermore, in deciding whether a substantial benefit has been conferred, the Court is to

consider whether "one individual's action has obtained a decision providing substantial

pecuniary benefits to other persons Id. 1126, In such instances, "the trial court determines

whether the interests ofjustice require those who received a benefit to contribute to the legal

expenses of those who secured the benefit." Pipefirzers Local No. 636 Defined Benefit Plan v.

Oakley, Inc., 104 Cal. Rptr. ad 78, 81 (App, 2010). Underlying the rule is the broad equitable is

principle "of encouraging persons acting in good faith in the interests of an incompetent

Moylan III, 2018 Guam 81]28.

Richard has undoubtedly conferred a "substantial benefit" on the Wards through his

litigation eiTorts that resulted in reversing "the trial court's determination that Princess be 711

transferred 'whatever fee interest the Wards' [sic] held in Princess's current residential property.

Moylan 11,2017 Guam 281123 (citing Dec. & Order, Dec, 1, 2015). The Wards are clearly

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SPOi06-07 DECISION AND ORDER RE A'r1'o RnEy's FEES Page 6

identifiable and plainly benefited from their Estate retaining the title to Lot No. 2053A-3-I

located in Matte, Guam and nullifying an alleged conveyance that violated the Statute of Frauds,

The reasonable attorney's fees expended by Richard in his effort to have the property returned

are therefore properly shifted to the Wards .

As for Richard's efforts in recovering shareholder loans payable to the Wards,Moylan II

upheld the trial court's determination that it would be futile to decide the loan issue. 2017 Guam

28 1138. As a result, the portion of the Findings of Fact that found FL. Moylan Corp. owed the

Wards $I,983,772.75 was effectively vacated. See id, 1i 38 (citing In re Moylan, 2011 Guam 16

111] 56-59 and Finds, Fact & Conch. L., (Nov, 10, 2008)), Accordingly, since the Wards do not

stand to recover any fiends from Richard's litigation efforts, the Court does not find that the

efforts on the loans conferred a "substantial benefit" on the Wards,

C. Award of Attorney's Fees

The U.S, Supreme Court has found that "[t]he most useful starting point for determining

the amount of a reasonable fee is the number of hours reasonably expended on the litigation

multiplied by a reasonable hourly rate." Hensley u Everhart, 461 U.S. 424, 433 (1983). This is

known as the "lodestar figure," which is a "presumptively reasonable fee." Gonzalez v City of

Maywood, 729 F,3d 1196, 1202 (9th Cir. 2013). Under the lodestar method, the court calculates

the fee award by multiplying the number of hours reasonably spent by a reasonable hourly rate.

Paul, Jonson, Alston & Hunt v Graulty, 886 F,2d 268, 272 (9th Cir. 1989). The court may then

adjust the lodestar figureupward or downward based on the factors outlined inKerr that are not

subsumed in the lodestar calculation.' Gonzalez, 729 F.3d at 1202.

1 The Kerr factors are as t`ollowsi (1) the time and labor required, (2) the novelty and diflicuity of the questions, (3) the skill requisite to perform the legal service properly, (4) the preclusion of other employment by the attorney due to acceptance of the case, (5) the customary fee, (6) whether the fee is fixed or contingent, (7) time limitations imposed by the client or the circumstances, (8) the amount involved and the results obtained; (9) the experience, reputation, and ability of the attonieys, (10) the "undesirability" of the case, (l l) the nature and length of the

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1. The Applicable Rate

Attorney Moylan seeks approval for an hourly rate of $300. In determining a reasonable

hourly rate, courts look to the prevailing rate in the community. 81um v Stemson, 465 U.S. 886,

895 n.11 (1984). A $300 hourly rate is not uncommon in Guam. See, e.g., Gange et al. u Gov 't

of Guam, CV1461-10 (Dec. and Order at 19 (July 22, 2015) (approving a $300 hourly rate)),

Palmer u Mariana Stones Corp, CV0709-13 (Dec. and Order (Dec. 17, 2018) (approving hourly

rates between $200 and $400)).

The Court agrees with Attorney Moylan that the work for these cases has been complex.

The issues have been wide-ranging and of first impression for the Guam courts. It also agrees

that the $300 hourly rate is comparable to the rate utilized by the ward's Guardian Ad Liter and

community rates. The Court therefore approves Attorney Moylan's requested hourly rate of

$300.

2. The Number of Hours

Time is reasonably expended on the litigation when it is "useful and of a type ordinarily

necessary to secure the final result obtained from the litigation." Webb v. Ba, Of Educ. of Dyer

County, 471 U.S. 234, 242 (1985). Counsel has the burden to demonstrate that the number of

hours spent was reasonably necessary to the litigation. Hensley, 461 U.S. at 437, Further,

counsel bears the burden of submitting detailed time records justifying the hours claimed to have

been expended. Id. The court may reduce hours where documentation of the hours is

inadequate, if the case was overstaffed and hours are duplicated, if the hours expended are

deemed excessive or otherwise unnecessary. Id. at 433-34. The court may also reduce hours

professional relationship with the client, and (12) awards in similar cases. Kerr v Screen Extras Guild, Ire., 526 F.2d 67,70 (9th Cir. 1975), cert denied, 425 U.S. 950 (1976).

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unreasonably spent, or where excessive time is spent on a particular task, or where there is

redundant and/or ambiguity in the billing. Id.

The Court has reviewed Attorney Moylan's time records which span twelve years of legal

work. The time records do not segregate the time he expended on the litigation efforts that

resulted in the return of the TCDs to the Wards or his efforts that resulted in the retention of the

title to the residential property occupied by Princess, Instead, he provides the Court with a linear

breakdown of all fees and costs expended in all matters related to the Guardianship of Yuk Lam

Moylan. The Limited Guardian objects, arguing that Attorney Moylan may recover fees only for

time reasonably incurred for the substantial benefit of the Ward.

The Court agrees with the Limited Guardian and shall only award fees for work that can

be attributed to efforts to return the TCDs or the property In careiiilly reviewing the time

records, the Court finds four categories of hours billed relating to the TCDs and the property: (l)

work done solely on recovering the TCDs, (2) work done solely on the issue of transfer of

property to Princess, (3) general guardianship litigation, and (4) work done on CvA20l5-030

(which resulted in Moylan II). The Court's review of the time records is attached hereto as

Addendum A.

For categories one and two, the Court is satisfied that the description of the services

rendered is sufficient to apportion the hours to work done on either the return of the TCDs or in

transferring the title. The Court finds that Attorney Moylan spent a total of 171.8 hours on work

done solely on recovering the TCDs. For work done solely on the transfer of the title to

Princess's residential property back to the Wards, the Court finds that Attorney Moylan spent a

total of 56.35 hours.

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For category three, the Court finds that Attorney Moylan spent time working on the

TCDs and property transfer issues in association with general guardianship litigation work

before the issuance of Moylan I. Specifically, Attorney Moylan billed time related to his

appearances at hearings and the trial, preparing motions, responding to motions, and working on

the appeal leadingup to Moylan I. In total, the Court Ends that Attorney Moylanspent a total of

85715 hours on these issues. Because the recovery of the TCDs and the transfer of property

only madeup a portion of the issues covered in Moylan 1, the Court finds it reasonable to reduce

the hours by 50%, Accordingly, the Court finds that Attorney Moylan spent a total of 428.58

hours working on the TCDs and property transfer that is enveloped in the time billed for general

guardianship litigation prior to the issuance ofMoylan L The Court also finds it reasonable to

apportion the time equally between work done on the TCDs and work done on the property

transfer. Of the 428,58 hours, the Court apportions 21429 hours to each task.

Lastly, for category four, the Court finds that Attorney Moylan spent 91.45 hours on work

related to CVA2015-030, Similar to category three, CVA2015-030 concerned multiple issues--

namely, the transfer of the title to the property and whether F.L. Moylan Company owed the

wards $l,983,772.75. Since the Court is only awarding Attorney Moylan for work done on the

property transfer, the Court finds it reasonable to reduce the hours in this category by 50%.

Accordingly, the Court finds that Attorney Moylan spent a total of 45.73 hours working on the

property transfer that is enveloped in the time billed for work related to CVA2015-030.

In sum, the Court finds that Attorney Moylan spent 386.09 hours on litigation efforts that

resulted in the return of the TCDs to the Wards, At a rate of $300 per hour, the Court awards

$1 I5,827 in attorney's fees. The Court further finds that Attorney Moylan spent 316.37 hours on

litigation efforts that resulted in transferring Princess's residential property back to the Wards. At

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SP0106-07 DECISION AND ORDER RE ATTORNEY'S FEES Pa g e 10

a rate of $300 per hour, the Court awards $94,911 in attorney's fees, In total, the Court finds

Richard entitled to an attorney's fee award of $210,738.00.

3 . Interest

Attorney Moylan asks that the payment of attorney's fees not be required until after Mrs.

Moylan passes but before the guardianship case closes. He also asks that statutory interest be

applied, though he does not identify which statute applies.

Section 47106 of Title 18 of the Guam Code Annotated provides a 6% annual interest

rate upon the rendering of judgment, The Limited Guardian opposes the imposition of interest

but does not explain why section 47106 fails to apply to an attorney's fee award. While no

Guam Supreme Court case touches upon the applicability of statutory interest to an attorney's fee

award, other jurisdictions find that attorney's fee awards are indistinct from damages awards

when it comes to post-judgment interest, MidAmerica Fed. Say. & Loan Ass 'n v

Sh earson/American Exp., Inc., 962 F.2d 1470, 1476 (9th Cir, 1992), Associated Gen, Contractors

of Ohio, Inc. \L Drabik, 250 F.3d 482, 494-95 (6th Cir. 2001).

While Attorney Moylan asks that the Court permit the delayed payment of the attorney's

fee award on the condition of the assessment of interest, a delay of payment offers may still be

to the detriment of the ward. The Court does not have enough information as to whether the

ward will incur a greater loss by the immediate withdrawal of the attorney's fees amount or by

the delayed payment with interest paid upon the ward's passing. Now that the parties have the

Court's calculation of awarded fees, the Court asks the Limited Guardian and Attorney Moylan

to brief whether the immediate payment of attorney's fees causes a greater detriment to the estate

rather than a delayed payment with interest.

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D. Attorney Moylan's Request for Costs

Attorney Moylan asks for costs, including for filing fees and research, Under CVR 54.1,

an application for costs is first submitted to the Clerk of Court, who then taxes costs in

accordance with that rule. An application may be filed by the prevailing party within thirty days

airer the entry ofjudgment.

The Court will issue a Judgment awarding attorney's fees upon finalizing the interest

issue discussed above. By the discussion herein, Richard Moylan is deemed to be the prevailing

party on the TCD issue and the property transfer issue. When the Judgment is issued, Attorney

Moylan may apply for costs related to these issues as set forth in CVR 54.1,

111. Conclusion

The Court finds that Richard is entitled to an attorney's fee award of $210,738.00

Within thirty days of this Decision and Order, the parties may submit a brief on the issue of

whether the ward's estate will suffer a greater detriment if immediate payment of the award is

ordered versus payment of the award plus interest paid upon the ward's passing.

SO ORDERED this 15th day ofjune 202I .

HON E. YZE M. IRIART E Judge, Superior Court of Guam

Attachment: Addendum A

Appearing Attorneys: Jacqueline Taitano Terlaje, Esq., Law Office of Jacqueline Taitano Terlaje, for Petitioner Lina Leialoha M. Alston Douglas B. Moylan, Esq., Law Offices of Douglas B, Moylan, and Gary Wayne Francis Gumataotao, Esq., Law Offices of Gumataotao & Pole, P.C., for Richard E. Moylan

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