In Re Krueger Estate

438 N.W.2d 898, 176 Mich. App. 241
CourtMichigan Court of Appeals
DecidedApril 3, 1989
DocketDocket 101748
StatusPublished
Cited by10 cases

This text of 438 N.W.2d 898 (In Re Krueger Estate) is published on Counsel Stack Legal Research, covering Michigan 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 Krueger Estate, 438 N.W.2d 898, 176 Mich. App. 241 (Mich. Ct. App. 1989).

Opinion

Murphy, J.

Appellant, Gary Binder, personal representative of the estate of Anthony Gerhardt, deceased, who was the former appellant, appeals as of right from an order of the probate court granting personal representative and attorney fees in regard to the estate of William T. Krueger, deceased, of approximately $85,000. 1

William T. Krueger died on October 5,1982, leaving an estate valued at approximately $500,000 after payment of taxes and debts. A copy of Krueger’s will, the original of which had been lost, was admitted to probate on December 6, 1982. Herbert Ramage was named the executor and also acted as the personal representative._

*244 Ramage hired the firm of Sempliner, Thomas, Tiplady and Boak of Plymouth, Michigan, on or about October 5, 1982, to assist him in the administration of the estate. Ramage submitted his first account in March, 1984, with the assistance of William Sempliner, who was the attorney for the estate at the time. Sempliner continued to act as attorney for the estate until his death in April, 1985, just before the second accounting of the estate. J. Michael Smith, an attorney with the same firm, took over for Sempliner as attorney for the estate. Smith assisted Ramage with the second accounting which was submitted in August, 1985. Ramage submitted a third and final accounting in March, 1987.

Appellant did not object to the first two accountings and they were approved. However, appellant objected to the third accounting because he felt that the attorney fees and personal representative fees were excessive. A total of $14,000 for attorney fees and $8,000 for personal representative fees was paid over the first two accounting periods. The third accounting requested an additional $15,938 for attorney fees and $12,000 for personal representative fees.

On April 13, 1987, a hearing was held to resolve appellant’s objections. Appellant alleged that the bulk of the work was performed during the first two accounting periods, while the bulk of the attorney and personal representative fees were charged in the third accounting period. Appellant also noted that the first two accounts specified the total time that was spent on the matter while the third account did not. Appellee, the estate, by its personal representative and attorney, argued that the first two accountings were not intended to be a total billing but only a payment on account and that the estate was extremely complex. The court *245 asked the personal representative and the attorney to try to compile an itemized statement as best they could. That statement was to be submitted to appellant’s counsel for review. Ramage and Smith complained that such a statement would be difficult and time-consuming to compile, and that appellant was the type of person who would never be satisfied. The court responded:

Well, I think that he has the right to object and he has a right to ask that you show what the attorney’s fees are for.

The court then stated:

I think that they should have a better breakdown as to what work was done and the amount of time that was spent.

The hearing was then adjourned until May 11, 1987.

Three days before the second hearing, Smith sent correspondence to the court and to appellant indicating that he estimated that his firm had spent over two hundred hours working for the estate. In addition, Smith noted that he hired an expert to review the third and final accounting and it was the expert’s opinion that the fees requested by the attorneys and personal representative were reasonable and that the expert would testify to that effect if called to do so.

At the ensuing hearing, the parties attempted to resolve appellant’s objections. Appellant stated that he had seen Smith’s letter but was still requesting an itemized billing as the court had previously ordered. The court adjourned until June 12, 1987, for an evidentiary hearing.

At the following hearing, appellant was provided *246 approximately ten to fifteen minutes before the hearing with an estimated itemized statement of the hours spent on the estate. Appellant’s counsel requested an adjournment to review the itemized statement with appellant who was unable to attend the hearing due to his poor health and car problems. The court denied appellant’s counsel’s request and proceeded with the evidentiary hearing.

Smith’s expert witness testified that, given the amount of time required, the complexity of some of the problems with the estate and the results obtained, an attorney fee of $30,000 and a personal representative fee of $20,000 was reasonable. However, the expert admitted that he could not tell by reading the third accounting what work the personal representative performed. He arrived at a personal representative fee by evaluating the nature of the estate and taking two-thirds of the attorney fee. The expert then testified that the usual practice in these cases is to submit partial billings and then review all of the work done in settling the estate at the final accounting to determine the total fee. The personal representative, Herbert Ramage, then testified to the work he performed for the estate.

In its findings the court noted that it had indicated to appellee that an itemized statement would be helpful. However, it felt that appellant had sufficient opportunity to go over the file with his attorney and an expert if he wanted. The court stated that appellant failed to support his objections with any evidence. The court felt that the evidence showed that appellant "was probably more than well aware of the work that went into the estate and that the objections were merely for the purpose of pressuring appellee to reduce their fees.”

*247 The court then explained that it was bothered with ruling on the requested fees, not because it found them unreasonably high but, rather, because it found them unreasonably low. The court stated that attorneys usually underbill and work numerous hours for which they never are paid. The court assumed that the attorneys had saved the estate in excess of $200,000 and further noted that if this were a personal injury case the attorney fees would be over $60,000, and if this were a contract case of equal complexity the attorney fees would easily be $100,000. The court then noted Smith’s itemized billing claiming two hundred hours work on the estate. The court assumed that Smith was charging $150 per hour.

The court rejected appellee’s requested fees because it felt they were too low and stated that its power to declare the fees too low followed from its power to declare them too high. The court then increased the attorney fees to $50,000 from the requested $29,938.50 and increased the personal representative fee to $30,000 from the requested $20,000. The court next assessed appellant’s share of the estate an additional $4,500 to be split by the attorney and personal representative for handling appellant’s objections and also assessed a $400 expert witness fee. Appellant now appeals as of right from the probate court’s order.

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Bluebook (online)
438 N.W.2d 898, 176 Mich. App. 241, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-krueger-estate-michctapp-1989.