In re Estate of Reeder

2020 IL App (3d) 180739-U
CourtAppellate Court of Illinois
DecidedOctober 7, 2020
Docket3-18-0739
StatusUnpublished
Cited by1 cases

This text of 2020 IL App (3d) 180739-U (In re Estate of Reeder) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois 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 Reeder, 2020 IL App (3d) 180739-U (Ill. Ct. App. 2020).

Opinion

NOTICE: This order was filed under Supreme Court Rule 23 and may not be cited as precedent by any party except in the limited circumstances allowed under Rule 23(e)(1).

2020 IL App (3d) 180739-U

Order filed October 7, 2020 ____________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

THIRD DISTRICT

In re ESTATE OF RONALD A. REEDER, ) Appeal from the Circuit Court Deceased ) of the 10th Judicial Circuit, ) Peoria County, Illinois, (Gery R. Gasick, Executor, ) ) Petitioner-Appellant and Cross-Appellee, ) Appeal No. 3-18-0739 ) Circuit No. 14-P-423 and ) ) The People of the State of Illinois ex rel. ) Kwame Raoul, Attorney General, ) Honorable ) Katherine S. Gorman, Intervenor-Appellee and Cross-Appellant). ) Judge, Presiding. ___________________________________________________________________________

JUSTICE HOLDRIDGE delivered the judgment of the court. Justices Carter and Wright concurred in the judgment. ____________________________________________________________________________

ORDER

¶1 Held: The circuit court abused its discretion when it (1) found the executor rate to be excessive, (2) failed to specify which fees were ordinary executor fees and which should have been delegated to contractors at a reduced rate for the benefit of the estate, (3) failed to apply a contractor rate to tasks that it found should have been delegated to contractors, and (4) failed to make findings relating to $50,592.99 in checks the executor wrote himself from the estate. The court did not abuse its discretion when it reduced the requested attorney fees by $4,400 and found the $400 hourly attorney fee rate to be reasonable. ¶2 The executor of Ronald A. Reeder’s estate, Gery R. Gasick, filed a petition for $119,300

in fees before the circuit court. The Attorney General, as intervenor, opposed the petition. The

court awarded Gasick $82,800 in fees and ordered him to reimburse the estate $36,500. Gasick

and the Attorney General both filed motions to reconsider. The court granted Gasick’s motion to

reconsider in part, to correct mathematical errors, but denied the remainder of his motion and

denied the Attorney General’s motion to reconsider entirely. This cross-appeal followed.

¶3 I. BACKGROUND

¶4 In June 2005, Reeder executed his last will and testament, leaving his estate valued over

$3 million to 27 charitable entities. He named Gasick, his attorney, as primary executor with

authority to independently administer the estate. Reeder’s will provided:

“I nominate and appoint my attorney, GERY R. GASICK, as Executor of this

Will and further direct that no security on Executor’s bond be required of Mr.

Gasick. I fully understand that by naming my attorney as Executor, his fees for

those activities as Executor will be compensated at his then current hourly rate for

services rendered as an attorney.”

¶5 A. Independent Administration

¶6 In July 2014, Reeder died with neither a spouse nor descendants. In September 2014,

Gasick petitioned to probate Reeder’s will, which the circuit court granted and appointed him as

executor for independent administration. In May 2016, Gasick filed his final report. He stated that

the estate’s distributable amount totaled $3,013,562.91, which was to be distributed to 27

charitable institutions based on predetermined percentages. Gasick also stated that there were no

claims filed against the estate. The report provided that the expenses, fees, and liabilities of the

estate had been paid and a summary accounting was forwarded to all 27 charities.

2 ¶7 In June 2016, the National Multiple Sclerosis Society, a charitable residual legatee, filed

an objection to Gasick’s report, stating that it was denied repeated requests for documentation to

support the accounting of the administration. Specifically, documentation from any financial

institution related to Reeder’s accounts and support for the $119,300 in fees.

¶8 In August 2016, the Attorney General filed a petition to intervene, raising objections to

Gasick’s final report and requesting the court order him to produce time sheets and justification

for his fees, which the court granted. Thereafter, the Attorney General filed a petition to terminate

independent administration. The Attorney General asked the court to terminate Gasick as

independent administrator; convert the estate to supervised administration; and direct Gasick to

file an inventory, petition for approval of fees, and provide a verified accounting of his actions

since taking office with receipts and disbursements made during the pendency of the estate. Gasick

opposed the Attorney General’s petition and asked the court to find that he satisfied section 28-

11(e) of the Probate Act of 1975 (Probate Act) (755 ILCS 5/28-11(e) (West 2014)), deny the

petition; and, if necessary, find that the Attorney General failed to establish good cause to terminate

the independent administration (755 ILCS 5/28-4(a)(1) (West 2014)).

¶9 In May 2017, the circuit court found that good cause existed to terminate the independent

administration. The court terminated the independent administration and the estate was converted

to supervised administration. The court ordered Gasick, within 75 days, to (1) provide an

inventory; (2) petition for approval of attorney fees supported by time records; and (3) provide a

verified accounting stating with specificity all receipts and disbursements made during the

pendency of the estate, which could be satisfied by producing all Wells Fargo records during the

pendency of the state and a complete U.S. Department of Housing and Urban Development (HUD)

statement for the sale of Reeder’s home.

3 ¶ 10 B. Supervised Administration

¶ 11 In June 2017, Gasick filed a petition for approval of fees totaling $119,300. Gasick also

noted that he forwarded all the Wells Fargo records during the pendency of the estate and the HUD

statement to the Attorney General’s office. His petition included eight billing statements covering

the time of Reeder’s death to the initial summary accounting from April 2016.

¶ 12 In July 2017, the Attorney General objected to Gasick’s petition for approval of attorney

fees on five grounds: (1) excessive time spent on tasks; (2) lack of specificity in time entries;

(3) work billed at an attorney rate for executor tasks that did not require the skill of an attorney,

resulting in an excessive hourly rate; (4) unnecessary work performed; and (5) lack of

contemporaneously made time records. The Attorney General argued that the petition failed to

specify which services were rendered as executor and which were as the attorney because $400

per hour was charged for all tasks and $400 per hour is too high for the expertise required for the

services rendered. It also noted that Gasick wrote himself $50,592.99 in checks from Reeder’s

account, separate from his $119,300 fee request, and argued that if these checks were for Gasick’s

capacity as power of attorney as suggested, he was required to file a claim against the estate

documenting such authority and entitlement to compensation for those services and notice should

have been provided to beneficiaries with an opportunity to object.

¶ 13 C. Circuit Court’s Ruling on Petition for Fees

¶ 14 The circuit court found that, although the estate was large in value, it was not complicated

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Related

In re Estate of Reeder
2023 IL App (3d) 210361 (Appellate Court of Illinois, 2023)

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2020 IL App (3d) 180739-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-reeder-illappct-2020.