In re Keele

305 A.D.2d 145, 760 N.Y.S.2d 24, 2003 N.Y. App. Div. LEXIS 4965
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 6, 2003
StatusPublished
Cited by1 cases

This text of 305 A.D.2d 145 (In re Keele) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Keele, 305 A.D.2d 145, 760 N.Y.S.2d 24, 2003 N.Y. App. Div. LEXIS 4965 (N.Y. Ct. App. 2003).

Opinion

Order, Supreme Court, New York County (Edward Lehner, J.), entered September 19, 2001, which, to the extent appealed from as limited by the brief, granted the fee request of appellant Diahn McGrath, an attorney, for services rendered in this Mental Hygiene Law article 81 guardianship proceeding, only to the extent of awarding her $5,000, affirmed, without costs. Appeal from a decision, dated June 1, 2001, dismissed, without costs, as taken from a nonappealable paper.

The court properly declined to award appellant additional fees for services rendered prior to February 18, 1998 since she was fully compensated for such services pursuant to the parties’ stipulation, the result of vigorous motion practice and eve-of-fee-hearing settlement negotiations.

Also barred by the stipulation was the “premium” legal fee sought by appellant for finding an almost $2 million Swiss bank account belonging to Ms. Keele, the subject of this Mental Hygiene Law article 81 proceeding. Nor does it avail appellant to claim entitlement, on a quantum meruit basis, to a legal fee for over 400 hours of unbilled time, since where, as here, an attorney stipulates to her compensation, there can be no legitimate expectation on the attorneys part of additional compensation (see Landcom, Inc. v Galen-Lyons Joint Landfill Commn., 259 AD2d 967, 968 [1999]). We note in addition that, absent a written contingency fee agreement, appellant is not entitled to a “bonus” based on a favorable outcome (see Liner Tech. v Hayes, 213 AD2d 881 [1995]).

According to the order appointing them coguardians, Messrs. Nevin and Tedeschi alone were entrusted with locating and marshaling Keele’s assets. However, when they could not continue their duties, appellant assumed the role of the incapacitated person’s de facto guardian. Such an assumption, resulting in the charge of legal fees for services of a nonlegal sort, was, however, precisely what the court sought to avoid when it denied appellant’s initial application to be named co-guardian, and compensation to her for acting as coguardian, to the extent not barred by the stipulation, was properly denied as unauthorized.

The remaining items in appellant’s affidavit of services for the period ending October 20, 1999, setting forth appellant’s legal work in pursuance of various fee applications on her own behalf, were not compensable.

Despite Ms. McGrath’s admittedly diligent efforts on Ms. [146]*146Keele’s behalf, the dissent agrees with Justice Lehner that Ms. McGrath’s request for a premium fee of $200,000 is unsupported, but feels that it is unfair to cut Ms. McGrath’s fee request because the coguardians’ statutory fees were increased because of Ms. McGrath’s efforts in finding additional assets and because Ms. Keele’s estate will probably escheat to the State. However, neither the amount of the coguardians’ statutory fees nor the ultimate beneficiary of Ms. Keele’s estate should have any bearing on Ms. McGrath’s fee. As correctly found by the court, the only legal services for which appellant had not yet been compensated and for which she was entitled to an award were those rendered by her in connection with the final accounting of the coguardians during the period October 20, 1999 through October 30, 2000. Contrary to appellant’s contention, no hearing was required prior to the fee award, since the coguardians’ final accounting was uncontested and relatively uncomplicated, posing no novel legal issues, and no issue was raised as to appellant’s services in connection therewith, or respecting her experience, ability and reputation (cf. Bankers Fed. Sav. Bank v Off W. Broadway Devs., 224 AD2d 376, 378 [1996]; Kumble v Windsor Plaza Co., 128 AD2d 425 [1987], lv dismissed 70 NY2d 693 [1987]).

We have considered appellant’s remaining contentions and find them unavailing. Concur — Nardelli, J.P., Tom and Andrias, JJ.

Saxe, J., dissents in a memorandum as follows: This appeal concerns a drastically limited award of compensation for an attorney, Diahn W. McGrath, who performed extraordinary services extraordinarily well on behalf of an incapacitated person. Although she was initially retained simply to commence the guardianship proceeding on behalf of the petitioner’s fiancée, Ms. McGrath ultimately found it necessary to step into the breach on behalf of her client and his fiancée, and perform tasks which, under ordinary circumstances, would have been handled or overseen by a guardian. The parsimonious counsel fee awarded to this attorney, and now affirmed by this Court, runs contrary to all concepts of fairness. Because I believe that under these unusual circumstances, justice requires that Ms. McGrath be compensated at her usual billing rate for the hours she spent, I dissent.

McGrath was hired by the 87-year-old petitioner, John Nevin, to commence a Mental Hygiene Law article 81 guardianship proceeding on behalf of his 91-year-old fiancée, Judy Keele, who, after a 44-year relationship with him, was suffering from dementia. The court appointed Mr. Nevin as a guardian for [147]*147Ms. Keele, but due to Mr. Nevin’s recent heart attack, determined that a coguardian would be necessary. Despite Mr. Nevin’s request that Ms. McGrath be appointed, the court declined to do so, based upon its unsupported belief that it would be inappropriate to appoint petitioner’s attorney as coguardian. Instead, it appointed an attorney unknown to the parties, Thomas Tedeschi, to serve as coguardian.

Nevertheless, it was Ms. McGrath, rather than either of the coguardians, who quickly became the person everyone relied upon to handle the substantial work necessary to hilly attend to Ms. Keele’s personal and financial interests. Mr. Nevin was admitted to a nursing home following his heart attack; Mr. Tedeschi, while making himself available to Ms. McGrath, agreed with Mr. Nevin that Ms. McGrath should continue to take such actions as were necessary on Ms. Keele’s behalf.

Ms. McGrath’s efforts were extraordinary, as were the results she obtained. She became the contact person for the facility caring for Ms. Keele, speaking frequently to staff and visiting often. She spent hundreds of hours poring over old papers of Mr. Nevin’s and Ms. Keele’s that had been designated for the trash, seeking information that might help in locating Ms. Keele’s will or any other assets. Indeed, while none of Ms. McGrath’s ongoing efforts to locate a will were successful, she did, remarkably, locate a Swiss bank account containing $1,695,000, increasing Ms. Keele’s estate from $223,000 to almost $2 million. Ms. McGrath also made a trip to London in late August 1997 to wrap up Ms. Keele’s finances there; Mr. Tedeschi had been unable to make the trip at that time, due to other professional obligations. While in London, Ms. McGrath negotiated the termination of Ms. Keele’s lease on a London flat, removed Ms. Keele’s personal property and arranged for the consignment sale of some items by Christie’s, including a Henry Moore sculpture that had been sealed inside a bricked-up fireplace in the flat, which Ms. McGrath recovered, based upon information from Mr. Nevin. The result of Ms. McGrath’s London trip was the addition to the estate of over $125,000, derived from the nearly $100,000 realized from the sale by Christie’s, the sum of $7,500 paid by a liquidator, $18,600 collected from a London NatWest account, and a refund of National Health premiums in the amount of $2,500.

Mr. Nevin died on May 26, 1998, at which time Mr. Tedeschi became the sole guardian of Ms. Keele; Ms. Keele herself died on October 10, 1998.

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Bluebook (online)
305 A.D.2d 145, 760 N.Y.S.2d 24, 2003 N.Y. App. Div. LEXIS 4965, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-keele-nyappdiv-2003.