In Re Estate of Friedman

177 P.3d 290, 217 Ariz. 548, 523 Ariz. Adv. Rep. 18, 2008 Ariz. App. LEXIS 22, 2008 WL 366587
CourtCourt of Appeals of Arizona
DecidedFebruary 12, 2008
Docket1 CA-CV 06-0723
StatusPublished
Cited by16 cases

This text of 177 P.3d 290 (In Re Estate of Friedman) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona 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 Friedman, 177 P.3d 290, 217 Ariz. 548, 523 Ariz. Adv. Rep. 18, 2008 Ariz. App. LEXIS 22, 2008 WL 366587 (Ark. Ct. App. 2008).

Opinion

OPINION

KESSLER, Judge.

¶ 1 Dennis Friedman (“Dennis”) appeals from a probate court judgment requiring that a special administrator’s fees and costs for an investigation of a claim of elder abuse and breach of fiduciary duty against the trustee/personal representative be paid from trust bequests to the beneficiaries who brought the claim. We hold that those fees and costs may have been administrative expenses to be paid by the estate rather than by the individual beneficiaries if the claims against the personal representative were not malicious, i.e., their primary purpose was to determine if there had been elder abuse. We remand this matter to the probate court to apply this test and determine whether the elder abuse claim was malicious. We also hold that Dennis does not have standing to appeal the trial court’s decision concerning interest and taxes on Libby Friedman’s (“Libby”) bequest.

FACTUAL AND PROCEDURAL BACKGROUND

¶ 2 This matter arises out of the Estate of Victor B. Friedman (‘Victor”), who died in 2003 at the age of 91. Evelyn J. Friedman, Victor’s wife, predeceased him in 1995. Libby is Victor’s sister. Victor and Evelyn had two children, Dennis Friedman and Jo Ann Friedman Burgess (“Jo Ann”). Jo Ann is the Personal Representative of the Estate of Victor B. Friedman and the trustee of various trusts created by her father, including the Friedman Family Trust.

¶ 3 In 2003, Dennis and Libby filed a petition for formal probate and, inter alia, removal of the trustee. Dennis and Libby later filed an amended petition which for the first time accused Jo Ann of elder abuse in violation of Arizona Revised Statutes (“A.R.S.”) section 46456(A) and (B) (2005) 1 K A dispute then arose between the parties whether Dennis and Libby had standing to bring a claim under A.R.S. § 46-456. Based on the parties’ stipulation to be bound by the findings of a special administrator, the court appointed a special administrator to investigate the claims of financial exploitation under A.R.S. § 46-456. Had Dennis and Libby’s claims of elder abuse been proven, Jo Ann would have lost all benefits with respect to *551 her father’s estate. A.R.S. § 46-456(C) (2005).

¶ 4 The special administrator filed a lengthy report finding that Jo Ann had not violated A.R.S. § 46-456. Her report states, “Ms. Burgess appears to have complied with her duties to her father as we would like all such fiduciaries to act.” The report also contains the following observation:

In my opinion, Dennis Friedman’s allegations are based on his desire to find some evidence that his father did not intend to almost completely disinherit him, on [sic] his desire (or perhaps psychological or emotional need) to find some evidence that his father felt kindly towards him despite the serious disappointment Mr. Friedman felt about how his son’s life turned out, and his desire to find some way to forfeit Ms. Burgess’ inheritance so he can receive the trust estate. In my opinion, Libby Friedman joins these allegations because of her belief that her brother would not have favored Ms. Burgess over Dennis Friedman (despite obvious evidence to the contrary), on her closer emotional ties to her nephew and her evident disdain of her niece.

¶ 5 In its minute entry, the court recounted the special administrator’s finding that there was no basis for the abuse claim and ordered that Dennis and Libby had to pay the special administrator’s costs. Jo Ann then moved for sanctions under Rule 11, Arizona Rules of Civil Procedure (“Rule 11”), claiming in part that the petition alleging abuse or neglect was groundless and filed in bad faith and for harassment. In a separate minute entry, the court rejected Jo Ann’s motion for Rule 11 sanctions, finding the claim had “a basis” and “was not groundless”. The court stated:

Even though the Court ultimately found that the Trustee committed no wrong-doing in this case, the Trustee’s admission that she removed $38,500 from Victor’s home at a time when he was physically disabled; the hiring of her husband to maintain the Friedman Trust properties; and the Trustee receiving an interest in the Victor Friedman Partnership, provides a basis for raising the claim and an appointment of a Special Administrator to determine whether the claim had merit. Therefore, the claim was not groundless.

¶ 6 The court entered final judgment in favor of Jo Ann on Dennis and Libby’s petition. The judgment provides that because Libby delayed distribution, any income tax paid by the trust on that interest would be deducted from Libby’s bequest. The judgment also provides that $27,500 in costs incurred by the special administrator were payable from the trust bequests to Dennis and Libby.

¶7 Only Dennis filed a notice of appeal. We have jurisdiction pursuant to A.R.S. § 12-210KJ) (2003) 2

ANALYSIS

I. Interest and Taxes on Libby’s Bequest

¶8 Dennis appeals the trial court’s decisions concerning interest and taxes on Libby’s bequest. We do not reach the merits of this issue because Libby did not appeal and Dennis lacks standing to appeal this issue on Libby’s behalf.

¶ 9 An appeal may only be taken by a party aggrieved by the judgment. Ariz. R. Civ.App. P. 1; Ellman Land Corp. v. Maricopa County, 180 Ariz. 331, 335, 884 P.2d 217, 221 (App.1994). A party is “aggrieved” if the judgment “denies that party some personal or property right or imposes on that party some substantial burden or obligation.” Kerr v. Killian, 197 Ariz. 213, 216, ¶ 10, 3 P.3d 1133, 1136 (App.2000) (citing Matter of Gubser, 126 Ariz. 303, 306, 614 P.2d 845, 848 (1980)). With limited exceptions not applicable here, see infra, part II discussing exceptions, “a party aggrieved by only part of a judgment can appeal only that part adversely affecting him.” Thompson v. Better-Bilt Aluminum Prods. Co., 187 Ariz. 121, 126, 927 P.2d 781, 786 (App.1996). The imposition of a financial burden necessary to constitute an *552 “aggrievement” from the judgment “must flow directly from the judgment and not [result] merely from applying the legal principle established in [one] judgment to another proceeding.” Kerr, 197 Ariz. at 216, ¶ 10, 3 P.3d at 1136. See also In re Roseman’s Estate, 68 Ariz.

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Bluebook (online)
177 P.3d 290, 217 Ariz. 548, 523 Ariz. Adv. Rep. 18, 2008 Ariz. App. LEXIS 22, 2008 WL 366587, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-friedman-arizctapp-2008.