In Re The Estate Of: Denny Douglas Titus

CourtCourt of Appeals of Washington
DecidedSeptember 14, 2020
Docket79760-3
StatusUnpublished

This text of In Re The Estate Of: Denny Douglas Titus (In Re The Estate Of: Denny Douglas Titus) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re The Estate Of: Denny Douglas Titus, (Wash. Ct. App. 2020).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

In the Matter of the Estate of No. 79760-3-I DENNY DOUGLAS TITUS, (consolidated with 79660-7-I)

Deceased. DIVISION ONE

EMILY R. HANSEN, UNPUBLISHED OPINION

Respondent,

v.

FRED V. CHRISTIANSON,

Appellant.

SMITH, J. — The court appointed Emily Hansen as guardian ad litem

(GAL) for Denny Douglas Titus in two actions where the State sought to protect

Titus from financial exploitation by Robert Crawford. In this Trust and Estate

Dispute Resolution Act (TEDRA), ch. 11.96A RCW, petition, the trial court

granted summary judgment in favor of Hansen, finding Fred Christianson, a

former personal representative of Titus’s estate, liable for Hansen’s creditor’s

claims flowing from her appointment as GAL and awarding her fees incurred as a

result of the TEDRA petition. The court also imposed sanctions against

Christianson and his attorney.

Because Christianson breached his fiduciary duty by failing to act as a

reasonably prudent person in the management of the estate and because

Hansen was unable to collect her claims from the estate due to Christianson’s

Citations and pin cites are based on the Westlaw online version of the cited material. No. 79760-3-I/2

actions, Hansen was entitled to judgment against Christianson personally.

Additionally, pursuant to RCW 11.96A.150, Hansen was entitled to the fees she

incurred as a result of the TEDRA petition. We therefore affirm the trial court’s

order on summary judgment. However, because Christianson did not receive

adequate notice that Hansen sought sanctions against him personally, we

reverse the award of sanctions.

FACTS

In 2015, Titus twice signed powers of attorney to Crawford. Additionally,

in August 2015, Titus executed a quitclaim deed transferring “all right, title, and

interest” in his home (property) located in Seattle, Washington, to Crawford’s

company, Marathon Legal Services Inc. Titus and Crawford also signed a “Letter

of Agreement Re Employment Agreement” (agreement). Therein, Marathon

agreed to pay Titus $75,000 within 30 to 90 days of the agreement and a $3,000

monthly salary “as a Marathon contractor.” Marathon also agreed to assume rent

and utilities for Titus’s office space, and title to the property was to revert back to

Titus in 2017, after Titus’s “two year tenancy at $1.00 per year.”1 The Real

Estate Excise Tax Supplemental Statement noted that the property was a “gift”

without consideration and that Titus would “continue to make 100% of the

payments on [the] total debt of $165,000.02.”

Shortly after Crawford and Titus executed the agreement, Titus’s pastor,

Sharon Bush, filed a complaint with the State alleging that Crawford was

Title should have reverted to Titus’s estate on August 4, 2017. In fact, 1

Marathon retained title until the property was foreclosed upon in 2018.

2 No. 79760-3-I/3

exploiting Titus. On this basis, the State brought a guardianship petition alleging

that Titus was incapacitated (guardianship petition). The State also brought an

action under the abuse of vulnerable adults act (AVAA), ch. 74.34 RCW, to have

Titus declared a vulnerable adult (AVAA petition). The court issued a temporary

order of protection—or Vulnerable Adult Protection Order (VAPO)—against

Crawford, restraining the sale of the property and ordering an account of every

dollar that “came into or out of Mr. Titus’ estate since [Crawford] became

attorney-in-fact.”2 Pursuant to these petitions, the court appointed Hansen as

GAL and Kameron Kirkevold as Titus’s attorney.

In her role as GAL, Hansen spoke with Titus. During their conversation,

Titus stated that he received neither the $75,000 owed to him pursuant to the

agreement nor a monthly payment from Crawford. Specifically, Titus “insisted

that Mr. Crawford had no obligation to pay him until the sale of his house.” Titus

“threatened to end his life” and said that “[h]e only need[ed] Mr. Crawford to take

care of him and his tremendous debt.”

In her GAL report, Hansen determined that Titus was a vulnerable adult in

need of protection from Crawford’s financial exploitation. She concluded that

Titus was “unable to handle any of his financial affairs” and could not adequately

care for his medical needs. Hansen found that “Crawford persuaded [Titus] to

transfer title to five (5) vehicles to him,” including titles to four classic vehicles,

“estimated at $20-25,000 in the aggregate.” Crawford sold the vehicles, but Titus

neither knew of the amount received as payment nor received any payment.

2 The record does not contain the protection orders.

3 No. 79760-3-I/4

Furthermore, Titus had “no idea whatsoever the extent of his assets and income

expended by Mr. Crawford,” and did not “have any interest in an accounting.”

Hansen concluded that because of “cognitive impairment resulting from serious

medical conditions, [Titus’s] decision-making was significantly impaired,” and he

was unable “to comprehend [Crawford’s] egregious self-dealing.”

On July 2, 2016, Titus died intestate. Thereafter, the court struck the trial

for the guardianship petition and dismissed the petition. In August 2016, the

probate court appointed Christianson as personal representative of Titus’s

estate. Christianson served under court supervision. The court did not require

Christianson to post a bond for the estate. However, the court ordered him to

“advise the court on the known assets and liabilities of the estate” within 60 days

in order to determine whether a bond was necessary to protect the estate.

Christianson did not comply and never secured a bond for the estate’s protection.

In May 2017, Christianson and Crawford entered into an agreement for

payment of $65,000 to the estate “upon the sale of Marathon’s property”

(settlement). The settlement agreement “release[d] and discharge[d] Marathon

and all principals, officers, agents, attorneys, employees . . . of Marathon, from

any and all claims, demands, causes of action known or unknown which the

Estate may now have or may hereafter have in relation to any matter between

the Parties.” The estate never received the promised payment.

In August 2017, after the court had approved two previous creditor’s

claims for $17,147.45 and $9,961.84, Hansen filed a second amended creditor’s

claim requesting a principal judgment amount of $15,837.22 against the estate.

4 No. 79760-3-I/5

The court approved her claim and added it to the two prior awards, including an

“interest at the rate of 12% per annum . . . until paid in full.” At the same time,

Christianson secured the rescission of the VAPO and dismissal of the AVAA

petition without prejudice.3 In the order dismissing the AVAA petition and the

VAPO, the court awarded fees to Hansen.

In April 2018, the mortgagee foreclosed on Titus’s property because the

mortgage had not been paid since June 1, 2016. The mortgagee’s complaint

showed that despite the VAPO enjoining Crawford from the sale or encumbrance

of Titus’s residence, in September 2016, Crawford had recorded two deeds of

trust: (1) $350,000 to his business associate, Anita Frick, and (2) $250,000 to

Louis J. Berg.

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