In Re Conservatorship of Mansur

367 N.W.2d 550, 1985 Minn. App. LEXIS 4144
CourtCourt of Appeals of Minnesota
DecidedMay 7, 1985
DocketC2-84-1854
StatusPublished
Cited by7 cases

This text of 367 N.W.2d 550 (In Re Conservatorship of Mansur) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Conservatorship of Mansur, 367 N.W.2d 550, 1985 Minn. App. LEXIS 4144 (Mich. Ct. App. 1985).

Opinion

OPINION

SEDGWICK, Judge.

This appeal was taken by the conserva-tee from the allowance of a final accounting. Appellant contends the trial court improperly allowed excessive fees charged by the prior conservator and attorneys. The attorneys filed a notice of review from the trial court’s disallowance of $3,162.49 incurred in transferring the estate to the successor conservator and attorneys. We affirm the accounting and reverse the dis-allowance of the transition period attorney fees.

FACTS

The conservatee, a 57-year-old attorney, was injured in an automobile accident in April 1980. In August 1982 he consulted attorney Theodore Collins (Collins) of the Collins, Buckley, Sauntry & Haugh law firm (the firm) for representation on a pending professional responsibility complaint. Eventually, Collins and the firm assumed representation of Mansur in his dissolution, an additional professional responsibility complaint, a mortgage foreclosure matter in Eden Prairie, a separate law suit brought by one of the professional responsibility complainants, multiple suits arising from various real estate dealings with Richard Vogel, a dispute concerning the Apache Medical Center, and the preparation of income tax returns which had not been filed. Without detailing the nature of the many pending lawsuits, it is fair to say that conservatee was involved in substantial complex litigation.

At the suggestion of Collins, Mansur petitioned for the appointment of a conservator with limited powers in March 1983. His petition for the appointment of respondent Homer Bonhiver was granted in May 1983. Bonhiver is a CPA with 20 years experience as a trustee and receiver in complex legal matters. He considered his main function to be the reconstruction of business records and transactions which applied to the many pending matters. Collins continued to act as Mansur’s attorney.

In November 1983, Mansur sought to remove Collins and Bonhiver. Bonhiver sought court instructions on how to proceed further. On December 6, 1983, the trial court ordered Bonhiver to continue as conservator, authorized him to retain Collins to pursue Mansur’s legal matters, and disallowed payments to the substitute counsel chosen and hired by Mansur. Bon-hiver was authorized to compromise and settle lawsuits as he thought best, but all settlement payments were to be approved by the trial court. Mansur objected to settlement of one lawsuit and sought to discharge Collins.

In March 1984 Mansur moved for appointment of a successor conservator and Bonhiver petitioned to withdraw. By order dated March 21, 1984 the trial court substituted Duane Peterson as successor conservator and authorized Peterson to retain Jeffrey Keyes as counsel for Mansur. Bonhiver was ordered to submit his final account and bills for fees and expenses incurred to date.

Mansur objected to the filed account, arguing the fees charged by Bonhiver, Collins and their associates were excessive. After a two day hearing, the trial court allowed the account, except for a $3,162.49 claim from the Collins firm, which was disallowed without a stated reason. Appellant conservatee appeals from the September 12, 1984 order allowing the final account and respondent firm seeks review of the disallowance of their claim for $3,162.49.

ISSUES

1. Did the trial court properly allow the fees of the conservator, conservatee’s attorneys, and their associates?

2. Did the trial court properly disallow a claim for attorney fees incurred in trans *552 ferring the estate to the successor conservator and attorneys?

ANALYSIS

1. Conservators and attorneys may recover reasonable fees for services which inure to the benefit of the estate. Minn.Stat. § 525.515 (1984), In re Estate of Baumgartner, 274 Minn. 337, 144 N.W.2d 574 (1966). The allowance of fees is largely a matter of discretion and the reasonable value of services is a question of fact. Baumgartner. Review of the probate court’s determination of factual questions is governed by Minn.R.Civ.App.P. 52.01 and a finding of reasonableness will not be set aside unless clearly erroneous. In re Estate of Serbus, 324 N.W.2d 381 (Minn.1982). We will give due deference to the court’s opportunity to observe the witnesses and evaluate their credibility. Id,., In re Probate Court, Hennepin County, 293 Minn. 94, 198 N.W.2d 260 (1972). However, the trial court’s discretion does not permit the allowance of exorbitant fees which would dissipate the estate. In re Weisberg’s Estate, 242 Minn. 150, 64 N.W.2d 370 (1954).

The probate court allowed fees totaling $61,190.77 for services performed by Bon-hiver and his associates, Edward Buckmas-ter and Shirley Juve. Bonhiver testified he calculated his fees at $75 per hour. No witness testified that hourly rate was unreasonable. Bonhiver delegated various matters to Edward Buckmaster, a CPA who rented office space from him. Buck-master is an independent contractor and he billed $35 per hour for his services, which frequently included dealing directly with Mansur. Shirley Juve, also an independent contractor, met with Mansur, performed the bookkeeping for the estate, maintained the checkbook, made necessary deposits and payments, managed the investments and performed occasional secretarial services as needed. She charged $15 per hour.

The services of Bonhiver, Buckmaster and Juve were billed at their respective hourly rates, without an itemization of the specific services performed each hour. Bonhiver testified Mansur and Collins approved this method of billing. On appeal, the conservatee argues the trial court could not conclude the conservator’s services inured to the benefit of the estate without detailed documentation of the services performed. We do not agree.

The fees of the executors of the Archibald Bush estate were allowed, despite the lack of detailed descriptions of the work done. In re Estate of Bush, 304 Minn. 105, 230 N.W.2d 33 (1975). The management of the Bush estate was inexorably intertwined with the affairs of the Bush Foundation and matters involving the one inevitably involved the other. Bush, 304 Minn, at 118, 230 N.W.2d at 41. Here, it was also impossible to identify the particular business for which each task was performed since, as Collins testified, virtually all of Mansur’s affairs were related. The Bush estate was unusual because of its size, the bitter hostility which faced the executors, and the lengthy and complex litigation involved. Id. Collins testified Bonhiver’s job was made more difficult by Mansur’s frequent objections and because the transactions and business affairs involved were especially complex.

At trial, the conservatee called Jerome Rice who testified a January 1984 trip Bon-hiver made to Florida was unnecessarily expensive. He told the court a paralegal should have gone.

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Bluebook (online)
367 N.W.2d 550, 1985 Minn. App. LEXIS 4144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-conservatorship-of-mansur-minnctapp-1985.