In re Estate of Cramer

69 N.E.2d 204, 46 Ohio Law. Abs. 521, 1946 Ohio Misc. LEXIS 203
CourtOhio Probate Court of Franklin County
DecidedOctober 17, 1946
DocketNo. 113867
StatusPublished
Cited by1 cases

This text of 69 N.E.2d 204 (In re Estate of Cramer) is published on Counsel Stack Legal Research, covering Ohio Probate Court of Franklin County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Estate of Cramer, 69 N.E.2d 204, 46 Ohio Law. Abs. 521, 1946 Ohio Misc. LEXIS 203 (Ohio Super. Ct. 1946).

Opinion

OPINION

By McClelland, j.

This matter comes before this court upon the application of J. E. Kinney, Administrator of the Estate of Carrie Cramer, deceased, for allowance to him as compensation for extraordinary services rendered by him in litigation growing out of the disallowance of two claims presented to him as such administrator. One claim is in the amount of $8146.00, and another in the amount of $4617.74. These claims were presented to. the administrator and rejected by him. Within_ the statutory time after the rejection, actions on both of said claims were filed in the Common Pleas Court. One case was tried, which resulted in a judgment of approximately $8000.00 against the administrator. The other case was prepared for trial but was never tried. During the interval in which an appeal could be perfected, a suggestion was made that both of said claims be submitted to arbitrators. This was done. The arbitrators made a finding in each one of the cases, which was approved by the Court.

The application alleges, and the testimony discloses that the administrator employed an attorney to defend him in the trial of the two cases above mentioned, and that thereafter the administrator employed another attorney to assist his attorney employed in the defense of said cases. The testimony discloses that the administrator is an attorney-at-law, but that he is not now and has not been engaged in the general practice of law; that he is President of two financial [523]*523institutions, and devoting his time and services to those institutions.

The testimony discloses that the administrator assisted in the interviewing of witnesses, and sat with his counsel in the trial of the one pase, and also sat part of the time with his counsel in the presentation of the cases before' the arbitrators. After stating certain facts in the application, the prayer thereof reads as follows:

“WHEREFORE, your appellant prays that the Court may determine the amount due to him as such administrator as compensation for extraordinary service rendered as such administrator and to determine the value of the services rendered by his counsel herein as set forth in the foregoing application.”

On the hearing of this application another Judge sitting as Acting Probate Judge, allowed the sum of $1000.00, as compensation to the two attorneys employed as herein-before stated.

At the hearing of this matter the administrator took the witness stand and made a statement ot the services which he had rendered to the estate in the investigation of said claims, the defense of one case in the Common Pleas Court, and in the presentation of the defense before the arbitrators. This testimony disclosed that the administrator did conduct some negotiations with the claimants prior to the time the claims were rejected. He also interviewed some witnesses, and sat in the trial of the one case, but did not participate in the legal conduct of the case.

The sole and only question therefore before this Court is whether the administrator, being a member of the bar, could compensate himself for legal services rendered in the estate.

The Court’s attention has been called to a reported decision in re: Maas Estate, reported in 38 New York Supplement, 2nd Series, at page 261, in which decision the Court declares that in the absence of statute, a fiduciary, who is an attorney, may not take compensation for legai services rendered by him as such administrator.

Upon examination of Vol. 21 American Jurisprudence, page 532, we find the following language:

“In the absence of statute, the general rule is that where a lawyer becomes executor or administrator, his compen[524]*524sation as such is in full for his services, although he exercises his professional skill therein; and even if he performs duties which he might properly have hired an attorney to perform, he is. not entitled to attorneys’ fees. * *
524

„ The Maas case above referred to however.does inform us that in 1914 the Surrogate’s Court Act was amended and liberalized. The Court uses the following language at page 267:

“The public policy which absolutely forbade an attorney-fiduciary to' receive compensation for legal service to his trust continued unchanged until the general revision of the practice- in the surrogates’ courts made in 1914. In that revision the text of former section 2730 of the Code of Civil Procedure was carried into a new and enlarged section 2753 of that Code. The new matter then added gave power to the surrogate to allow the attorney-fiduciary compensation for legal service rendered in connection with his official duties.”

It is therefore now the rule in New York that a fiduciary who is an attorney, may, upon proper application receive compensation for services which he has rendered to himself.

An excellent review of the decisions of courts of last resort of other states is contained in 36 A. L. R. page 748, and continued in 49 A. L. R. page 1033. On page 748, Vol. 36, we find the following language:

“The general rule is that where a lawyer becomes executor or administrator his compensation as such is in-full for his services, though he exercises his professionanl skill therein; and, even if he performs duties which he might properly have hired an attorney to. perform, he is not entitled to attorneys’ fees.”

It is to be noted that the above rule applies in the absence of any statute effecting the same. Then on page 751, the editor calls our attention to decisions of courts of last resort of states which have statutes pertaining to situations now before this court. It refers to cases decided by the courts of Alabama, California, Colorado, Georgia, Michigan, Nebraska, New York, Wisconsin and Ohio. With reference to the Ohio statute, the editor uses the following language:

“OHIO. The statute of Ohio fixing the' rate of compensa[525]*525tion for executor? and administrators provides for such further allowance as the court shall consider just and reasonable, ‘for their actual and necessary expenses, and for any extraordinary services not required of an executor or administrator in the common course of his duty;’ and under that statute, extra compensation may be awarded, if extraordinary services have been performed.
Under this act it has been held that an executor may be allowed extra compensation for legal services performed by him. Chatfield v. Swing, (1878) 6 Ohio Dec. Reprint, 666.”

It therefore becomes quite obvious that statutes allowing a fiduciary, ^who is an attorney, compensation for legal service to. himself as such fiduciary constitute an exception to the general rule.

The statute of Ohio pertaining to such a situation is 10509-193 GC which reads as follows:

“Such further allowance shall be made as the court considers just and reasonable for actual and necessary expenses, and for extraordinary services not required of an executor or administrator in the common course of his duty. When an attorney has been employed,in the administration of the estate, reasonable attorney fees paid by the executor or administrator shall be allowed as a part of the expenses of administration.

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In Re Estate of Secoy
484 N.E.2d 160 (Ohio Court of Appeals, 1984)

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Bluebook (online)
69 N.E.2d 204, 46 Ohio Law. Abs. 521, 1946 Ohio Misc. LEXIS 203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-cramer-ohprobctfrankli-1946.