In Re Guardianship of Lauder

780 N.E.2d 1025, 150 Ohio App. 3d 277
CourtOhio Court of Appeals
DecidedNovember 12, 2002
DocketNo. 01AP-1180, No. 01AP-1181, No. 01AP-1182 (REGULAR CALENDAR)
StatusPublished
Cited by6 cases

This text of 780 N.E.2d 1025 (In Re Guardianship of Lauder) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Guardianship of Lauder, 780 N.E.2d 1025, 150 Ohio App. 3d 277 (Ohio Ct. App. 2002).

Opinion

Lazarus, Judge.

{¶ 1} Appellant, Bryan B. Johnson, former guardian for Lucille Lauder and Helen Bryan, and former attorney-in-fact for Helen Bryan, appeals from the October 3, 2001 entry regarding fees and exceptions to accounts filed by the Franklin County Court of Common Pleas, Probate Division. For the reasons that follow, we reverse and remand with the recommendation that, upon remand, the trial judge voluntarily recuse himself from further proceedings to enhance the appearance of impartial consideration of the issues.

{¶ 2} In April 1998, appellant received a referral from Linda Kaye, a social worker at Winchester Place Nursing Home, concerning the financial exploitation of two elderly sisters, Lucille Lauder and Helen Bryan. Appellant is an experienced probate attorney who had served as a part-time magistrate for the probate court for nine years. Kaye had become acquainted with appellant because he had served as a guardian for other patients in the facility, and she believed that he had the ability to handle a case of that nature.

{¶ 3} Kaye informed appellant that attorney Karen Bond had taken advantage of the sisters and embezzled substantial amounts of money from them. Kaye also advised appellant that Lucille Lauder was mentally incompetent and in need of a guardian, but that Helen Bryan was mentally competent and desired assistance through a power of attorney. The sisters were in rather dire straits, having recently had their Medicaid eligibility terminated, their nursing home and pharmacy bills unpaid and in arrears, and no assets with which to pay their bills, or to pay an attorney.

{¶ 4} Appellant and an associate drove to the nursing home and interviewed the sisters. They were able to discuss the situation with Helen Bryan but were unable to have a meaningful discussion with Lucille Lauder because of her diminished capacity. Appellant determined that there was reason to believe that Karen Bond had financially exploited both women.

*279 {¶ 5} Helen Bryan executed a durable power of attorney appointing appellant as her attorney-in-fact on April 14, 1998. Appellant filed an application to be appointed guardian for Lucille Lauder on April 16, 1998, and by means of an expedited hearing in the probate court, appellant was appointed guardian of the person and the estate for Lauder on April 20, 1998. At that hearing, appellant disclosed his status as attorney-in-fact for Bryan to the magistrate.

{¶ 6} Appellant pursued concealment of assets actions against Karen Bond and her family in his capacity as both guardian and attorney-in-fact. As part of this litigation, appellant was required to file a land sale proceeding in Lauder’s guardianship to sell her interest in a house appellant had recovered from Karen Bond. On August 31, 1998, the probate court approved an agreed judgment entry that allocated litigation proceeds disproportionately between Bryan’s power of attorney and Lauder’s guardianship. The judge’s order specifically ordered appellant to continue to investigate and pursue the concealment of assets action.

{¶ 7} On June 10, 1999, appellant was appointed guardian of the person and the estate for Bryan. Appellant also remained Bryan’s attorney-in-fact under the durable power of attorney. Appellant filed an inventory in the guardianship of Bryan on June 11, 1999. The inventory indicated that the assets consisted of a Bank One checking account in the sum of $1,000. - At the bottom of the page was a footnote indicating there were other assets managed by appellant as attorney-in-fact that were not part of the guardianship.

{¶ 8} Between April 1998 and June 2000, appellant applied for and received payment of fees from the Lauder guardianship in the amount of $35,392.50, the majority of which were for litigation efforts related to the misappropriation of assets by Karen Bond. From April 1998 through December 1999, appellant received fees in the amount of $60,866 through Bryan’s power of attorney. In October 2000, appellant applied for and subsequently withdrew an application for fees from the Bryan guardianship in the amount of $16,571.50. Appellant filed an application for fees in the sum of $23,071.50 in the guardianship of Lucille Lauder in October 2000. That application was rejected by the magistrate and the chief magistrate, and referred to the probate judge.

{¶ 9} The probate judge questioned whether any fees were billed to Helen Bryan and, upon further investigation, inquired as to how the fees were split between the two wards. He requested that all of the fee applications be brought current along with a full disclosure of all fees previously paid in the guardianships and the power of attorney, in order to provide the court with the “big picture.”

{¶ 10} As of November 2000, appellant’s law firm had been paid approximately $96,000 in prior billings and appellant was seeking additional amounts of approximately $58,000. Thus, the aggregate fees paid and applied for from the three entities, the Bryan power of attorney, the Bryan guardianship, and the *280 Lauder guardianship, totaled $155,137.50. Appellant had billed his time at an average rate of $131 per hour. Appellant had successfully recovered assets totaling $290,017, including automobiles, real estate, and $100,000 from the Clients’ Security Fund. Appellant was not successful in obtaining any recovery against Karen Bond’s malpractice carrier, or Helen Bryan’s California banks.

{¶ 11} On December 18, 2000, the probate judge called appellant in to discuss the pending application for fees. According to appellant, the judge accused appellant of breaching his fiduciary duty, conflict of interest, misrepresenting facts to the court, deliberately shopping for different magistrates to have fee billings approved, and perpetrating a fraud upon the court. The judge stated that he believed that the fees were excessive and that appellant should have been able to handle all of the legal matters involved for a fee of approximately $30,000 to $40,000.

{¶ 12} On December 19, 2000, the judge telephoned Linda Kaye, the social worker who initially referred appellant to Lauder and Bryan. Kaye swore in an affidavit that she and the judge had an extensive dialogue about her former patient, Helen Bryan. The judge wanted to know why Kaye had contacted appellant. He seemed very suspicious of Kaye’s professional relationship with appellant and suspicious of her involvement with appellant in the circumstances surrounding the signing of the power of attorney by Helen Bryan. The judge gave Kaye the distinct impression throughout the conversation that she had done something wrong by referring Helen Bryan to appellant. Kaye also stated that, at no time during this telephone conversation, did she ever state that Bryan was incompetent in any manner.

{¶ 13} The probate judge disputes this account and indicated that Kaye stated that Bryan was not competent to hire a lawyer.

{¶ 14} On December 20, 2000, the judge telephoned appellant to inform him that he had set a hearing on his own motion to have appellant removed as guardian. Appellant agreed to resign voluntarily so that a successor guardian could be appointed. Appellant prepared his resignation and walked it over to the judge for his signature.

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Cite This Page — Counsel Stack

Bluebook (online)
780 N.E.2d 1025, 150 Ohio App. 3d 277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-guardianship-of-lauder-ohioctapp-2002.