In Re The Guardianship Of: Arthur D. Hays, App. v. Rebecca Castilleja, Res.

Court of Appeals of Washington·Decided August 26, 2013·No. 68419-1·Unpublished

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON In the Matter of the Guardianship of ] NO. 68419-1-1

ARTHUR D. HAYS. j DIVISION ONE r-o

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ARTHUR D. HAYS, j UNPUBLISHED OPINION 25 a'~7',..

Appellant, ]

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REBECCA CASTILLEJA, CO "-;-'-'.

Respondent. i FILED: August 26, 2013

Leach, C.J. — In this contested guardianship proceeding, Arthur Hays seeks review of three issues concerning the trial court's award of attorney fees and costs to the successful petitioner, Rebecca Castilleja. He challenges the reasonableness of the fee award, the court's decision to assess the entire award against his estate, and the court's decision to enter its judgment immediately. He also moves to supplement the record with the guardian's inventory report and budget. Because the trial court did not abuse its discretion in approving Castilleja's fee petition and in giving the guardian discretion to apportion the fee award and Hays did not timely appeal the court's decision to enter its judgment immediately, we affirm. Because Hays's motion to supplement the record fails to meet RAP 9.11(a)'s requirements, we deny his motion.

FACTS

Arthur D. Hays accumulated substantial wealth operating a wholesale distributing business and acquiring real property to store his merchandise. He is the trustee and beneficiary of the Hays Family Trust. When his wife died in 1980, her estate was transferred into this trust. He has been the manager of Hays Elliott Properties LLC (HEP) since he created it in 1999. HEP owns and manages real property. In 2000, Hays created three irrevocable trusts. Each trust owns shares of HEP. Castilleja, Hays's daughter, became the successor trustee of each trust in 2008. Hays also maintains a collection of vintage vehicles and owns the Hays Distributing Corporation, a wholesale distributing business. Additionally, he owns property in Suquamish, Washington, that is part of the Hays Millers Bay Limited Partnership; a residence in the Magnolia neighborhood in Seattle; a condominium in the Alki area; and real estate on West Commodore Way. The case involves assets valued at approximately $28 million.

In March 2011, Castilleja filed a petition seeking the appointment of a guardian of Hays's estate. Hays's son Howard supported the guardianship, but Hays and his son Robert opposed it. On November 18, 2011, after a six-day bench trial, the trial court found Hays incapacitated as to his estate. The court

appointed an independent professional guardian, finding, "There is family conflict and all of Mr. Hays' children at any given time could stand to benefit from any decision or error that Mr. Hays might make, thus making appointment of a guardian independent of the family necessary."

In the November 18 order, the court also concluded that Castilleja should recover her reasonable costs and attorney fees incurred bringing the guardianship action. The court's order provides for the determination of the reasonableness of these fees "under the lodestar measure by separate motion." The court ordered the guardian to file an inventory of Hays's property within three months.

On February 1, 2012, the trial court entered a judgment in favor of Castilleja for $380,592.92, representing $352,755.36 in attorney fees and $27,837.56 in costs. The judgment authorized the guardian to pay it and provided for payment from "the guardianship estate and/or any other asset/entity in which Mr. Arthur Hays has a beneficial interest."

On February 29, Hays filed a notice of appeal, seeking review of both the February 1, 2012, order and designated portions of the November 18, 2011, order. On May 7, 2012, Hays filed a motion to supplement the record.

STANDARD OF REVIEW

We apply a two-part standard to review a trial court judgment awarding attorney fees: "(1) we review de novo whether there is a legal basis for awarding attorney fees by statute, under contract, or in equity and (2) we review a discretionary decision to award or deny attorney fees and the reasonableness of any attorney fee award for an abuse of discretion."1 The parties do not dispute the statutory basis2 for the court's authority to award attorney fees. Thus, we apply the second part of this review standard.

When reviewing a trial court's decision for abuse of discretion, we will uphold the decision unless it is "'manifestly unreasonable, or exercised on untenable grounds, or for untenable reasons.'"3 A court makes a manifestly unreasonable decision if it falls outside the range of acceptable choices, given the facts and the applicable legal standard; a court bases its decision on untenable grounds if the record does not support the court's factual findings; a

1 Gander v. Yeaqer, 167 Wn. App. 638, 647, 282 P.3d 1100 (2012); see RCW 11.96A.150 (trial court and appellate court have discretion to order costs, including reasonable attorney fees, to be awarded to any party in guardianship matters); see also In re Estate of Black, 153 Wn.2d 152, 173, 102 P.3d 796 (2004) ("[RCW 11.96A.150] leaves the award of attorney fees to the discretion of the court, and we will not interfere with a trial court's fee determination unless 'there are facts and circumstances clearly showing an abuse of the trial court's discretion.'" (quoting In re Estate of Larson, 103 Wn.2d 517, 521, 694 P.2d 1051 (1985))).

2RCW11.96A.150.

3 Black, 153 Wn.2d at 172 (internal quotation marks omitted) (quoting State v. Downing, 151 Wn.2d 265, 272, 87 P.3d 1169 (2004)).

court bases its decision on untenable reasons if it uses an incorrect standard or the facts do not meet the correct standard's requirements.4 ANALYSIS

Hays claims that the trial court abused its discretion "(1) [b]y concluding that all of the petitioner's fees were reasonable; (2) by failing to properly articulate the basis for its decision; and (3) by failing to properly consider all relevant factors, including[] whether the particular actions taken by the petitioner's counsel benefitted Mr. Hays." We disagree.

Hays challenges the reasonableness of the attorney fee award on three grounds: (1) the court failed to make findings showing that it considered the factors in RPC 1.5(a), (2) the court failed to perform a lodestar analysis, and (3) the court failed to respond adequately to Hays's objections. We reject these arguments.

First, Hays claims that the trial court should have stated how the factors enumerated in RPC 1.5(a) affected its fee decision. RPC 1.5(a) states, in relevant part,

The factors to be considered in determining the reasonableness of a fee include the following:

(1) the time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly;

4 In re Marriage of Littlefield. 133 Wn.2d 39, 47, 940 P.2d 1362 (1997)

(citing State v. Rundguist, 79 Wn. App. 786, 793, 905 P.2d 922 (1995)).

(2) the likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer;

(3) the fee customarily charged in the locality for similar legal services;

(4) the amount involved and the results obtained;

(5) the time limitations imposed by the client or by the circumstances;

(6) the nature and length of the professional relationship with the client;

(7) the experience, reputation, and ability of the lawyer or lawyers performing the services;

(8) whether the fee is fixed or contingent; and (9) the terms of the fee agreement between the lawyer and the client, including whether the fee agreement or confirming writing demonstrates that the client had received a reasonable and fair disclosure of material elements of the fee agreement and of the lawyer's billing practices.[5]

Specifically, Hays asserts that the court failed to apply the first, third,

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In Re The Guardianship Of: Arthur D. Hays, App. v. Rebecca Castilleja, Res., (Wash. Ct. App. 2013).

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