In Re the Estate of Thz Fo Farm

37 Haw. 447, 1947 Haw. LEXIS 22
CourtHawaii Supreme Court
DecidedFebruary 7, 1947
DocketNo. 2618.
StatusPublished
Cited by8 cases

This text of 37 Haw. 447 (In Re the Estate of Thz Fo Farm) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court 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 Thz Fo Farm, 37 Haw. 447, 1947 Haw. LEXIS 22 (haw 1947).

Opinion

*448 OPINION OP THE COURT BY

PETERS, J.

This is a motion by the former attorney of an executor to have the circuit judge at chambers fix a fair and reasonable attorney’s fee for the professional services theretofore rendered by him on behalf of the executor in the matter of the estate of which the latter Avas the legal representative. At the time the motion was filed, the attorney had been discharged and the matter of the estate was still pending before the circuit judge at chambers to whom the motion was addressed.

The motion itself is merely in the form of a prayer “to determine and fix a fair and reasonable attorney’s fee for services rendered on behalf of the Executor.” Neither the particulars of the professional services rendered nor their estimated reasonable value is set forth in the motion. In the absence of objection thereto the motion Avas heard as filed. While a motion in the form of a prayer might be appropriate in a summary proceeding to recover an attorney’s fee Avhere all the professional services for which compensation is prayed Avere directly or indirectly Avithin the knowledge of the judge to Avhom the motion was addressed, Avhere as here the services rendered included services performed out of the presence of the judge and of which the latter had no personal knoAvledge direct or indirect, the motion should at least make appropriate reference to the particulars of the latter service and their reasonable value.

It developed, upon hearing of the motion, that there had been no express contract of employment between the attorney and the executor fixing the compensation of the former for services rendered or to be rendered on its behalf. Hence, the attorney for the executor Avas entitled *449 to recover the reasonable value of the services necessarily rendered by him on behalf of the executor in the matter of the estate. The attorney’s services included both the ordinary professional services in the probate of a Avill and the settlement of the decedent’s estate and also special services in the matter of the estate, some of the latter of Avhich Avere rendered before the circuit judge at chambers in probate and some out of his presence and not Avithin his knowledge either directly or indirectly. With the services performed in his presence and with which he was consequently familiar, the judge in fixing the allowance could act upon his own knowledge of their character and value. 1

For want of anything better, the following particulars of the special professional services rendered are quoted from appellee’s brief: “1. Filing petition for partial distribution and order of notice of hearing and a hearing thereon. 2. Filing petition for allowance of secured claim and a hearing thereon. 3. Drafting of five (5) deeds for the estate to convey lands which were sold on an agreement of sale executed by the decedent during his lifetime. 4. Consultation with Mr. White of the Hawaiian Trust Co., Ltd., on the matter of an inter vivos transfer of a dairy by the decedent in order to aid Mr. White in determining Avhat the gross estate of the decedent was at the time of his death. 5. Services rendered regarding the transfer of decedent’s interest in the 'JEWEL BOX’, a co-partnership. 6. Rendering of opinion upon the exercise of the option by the lessee to purchase regarding, a deposit of $1,000.00 deposited by the lessee of the decedent for security. 7. Collection of about $19,700.00 due the estate from En Oi Farm, brother of the decedent, under circumstances where the Executor Avas unable to effect collection and had to refer the matter to the appellee. In the col *450 lection of this item the appellee attended two or three conferences at the office of the Executor. As an incident to this collection, the appellee drew the necessary mortgage instruments and note covering the secured obligation of En Oi Farm to the estate.”

For all the services rendered by the attorney for the executor, both ordinary and special, the circuit judge allowed him the sum of $4,500. The executor appealed upon the ground that the amount allowed was excessive.

The ordinary professional legal services involved in the probate of a will and the settlement of the testator’s estate are too well known to require enumeration. The proceedings in the instant case were true to type except that, pending administration, the executor petitioned for partial distribution to itself as ultimate trustee of certain real property of which the testator died seized, producing little or no income, so as to enable it by the sale thereof to realize sufficient funds to pay taxes, bequests and expenses of administration instead of selling closely held family corporation stock and the executor also petitioned the court for the allowance of a secured claim against the estate held by the Liberty Bank. The subjects of the exceptions are hereinafter discussed in connection with the special professional services performed. There is also evidence to the effect that the attorney for the executor prepared and filed the election of the widow to take under the will.

For the ordinary services performed by him in the probate proceedings, the attorney for the executor, when a witness on his own behalf in support of the motion, asked $2,500. In this request he was supported by three members of the bar who testified as experts on the value of the services rendered. One of the attorneys gave it as his opinion that $4,000 would be a reasonable normal fee; another that a reasonable fee would be one half of the *451 executor’s fees, or approximately $3,000, and another that the fee should be the same in amount as the aggregate statutory commissions allowed executors in this jurisdiction.

It appears, however, from the evidence that in probate proceedings where a trust company is the executor it is at present customary for the Honolulu bar, in the absence of an express contract fixing compensation, to charge for the ordinary legal services involved in the probate of a will and the settlement of the testator’s estate an amount equal to from one third to one half of the local statutory commissions allowed executors upon the principal of estates of decedents. The statute allows a graduated percentage upon the principal of the estate of five per centum for the first thousand dollars, four per centum for the next nine thousand dollars, three per centum for the next ten thousand dollars, two per centum for the next thirty thousand dollars and one per centum for all over fifty thousand dollars. 2

Apparently the customary charge for such legal services has attained the dignity of a standard rate and is observed generally by the Honolulu bar irrespective of the professional standing of the attorneys employed. Moreover, this method of determining the compensation allowable to attorneys for executors has been uniformly followed in the first judicial circuit in estates the principals of which were of similar amount. 3

*452

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Cite This Page — Counsel Stack

Bluebook (online)
37 Haw. 447, 1947 Haw. LEXIS 22, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-thz-fo-farm-haw-1947.