Joy Roy/Sam Dawkins v. W.T. Diamond

Procedural entryThis page is a short order in Joy Roy/Sam Dawkins v. W.T. Diamond. Read the opinion of the Court — 1999 Tenn. App. LEXIS 748
Court of Appeals of Tennessee·Decided October 30, 1999·No. 02A01-9809-CV-00247·Published

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT JACKSON

FILED

JOY DAWKINS ROY and SAM ) October 30, 1999 D. DAWKINS, et ux, )

) Cecil Crowson, Jr.

) Appellate Court Clerk Plaintiffs/Appellees, ) Madison Circuit No. 61907 T.D.

)

VS. ) Appeal No. 02A01-9809-CV-00247 )

W. T. DIAMOND, JR., )

)

)

Defendant/Appellant. )

APPEAL FROM THE CIRCUIT COURT OF MADISON COUNTY AT JACKSON, TENNESSEE

THE HONORABLE J. STEVEN STAFFORD, JUDGE

LLOYD R. TATUM TATUM & WEINMAN Henderson, Tennessee Attorney for Appellant

J. HOUSTON GORDON Covington, Tennessee Attorney for Appellees

AFFIRMED

ALAN E. HIGHERS, J.

CONCUR: W. FRANK CRAWFORD, P.J., W.S. DAVID R. FARMER, J.

In this legal malpractice case, W.T. Diamond Jr. appeals from a jury verdict entered against him in the Circuit Court of Madison County awarding plaintiffs Joy Dawkins Roy and Sam D. Dawkins $68,800 in compensatory damages and $25,000 in punitive damages.

Facts and Procedural History This case involves claims against W.T. Diamond Jr. (“Diamond” or “Appellant”)

arising from Diamond’s role as executor and attorney for the estate of Jennie Ida Buck (“Buck” or “Deceased”). The proceedings which are pertinent to this appeal took place over several years in both the probate section of the General Sessions Court of Madison County and the Madison County Circuit Court, as well as a disciplinary proceeding against Diamond conducted by the Board of Professional Responsibility.1

I. Probate Court Proceedings The long and confusing history of this case began with the death of Jennie Ida Buck on March 21, 1992. Buck left a holographic will in which, among other things, she appointed Diamond as executor. On April 10, 1992, Diamond admitted Buck’s will to probate in common form and was issued letters testamentary. Following a three year period of alleged inaction and misuse of estate funds, Sam Dawkins, a named beneficiary, filed a petition in probate court seeking to remove Diamond as executor. The petition alleged, inter alia, that Diamond had notified none of the estate’s heirs of the probate proceedings, filed no inventory of the estate, failed to maintain the residence, and misappropriated the estate’s funds. In May 1995, administrators of the estate of Earl Dawkins, also a named beneficiary, filed a motion to compel inventory and accounting against Diamond. An accounting revealed that Diamond had made approximately $60,100 in disbursements to his law firm from the estate of the deceased without approval of the probate court. The probate court ordered Diamond to reimburse the estate. After several failed attempts at reimbursement, Diamond eventually tendered a cashier’s check in an

1 As a result of his actions in handling the estate of Jennie Ida Buck, Mr. Diamond was the subject of a Petition for Discipline brought by the Board of Professional Responsibility. A Hearing Panel made various findings of fact, and recommended that Mr. Diamond be disbarred. The only issue raised by the disciplinary proc eed ing re lates to its u se as evide nce in Dia mo nd’s ma lprac tice s uit.

amount sufficient to repay the estate for money he had removed.

In July 1995, the petition to remove Diamond as executor was granted, and Sam Dawkins and Joy Roy (“Co-administrators” or “Plaintiffs”) were appointed as co- administrators of Buck’s estate.2 Diamond subsequently filed a petition, to which the new co-administrators excepted, seeking fees and expenses for his services rendered. In March and April 1996, hearings were held in the probate court, at which time the co- administrators sought payment of $13,317.50 in attorney fees and $17,566.50 in administrators fees. They also asserted that Diamond should reimburse the estate for fees and expenses incurred by the co-administrators in trying to get Diamond to account for his receipts and disbursements.

On August 21, 1996, the Probate Court issued a memorandum opinion, which indicated that the fees Diamond claimed were excessive and the time upon which he based his fees was wasteful. As to the fees claimed by both parties, the probate court stated, “the fees to which the executor (i.e., Diamond) would have been allowed by the court for services rendered to the estate would be approximately equal to that incurred by the personal representatives and their attorney, so that there is no recovery by either party on that issue.” The opinion further stated, “[t]he court makes no finding as to damages incurred by the estate due to the alleged malfeasance of the Executor and the resulting waste and deterioration cost thereby, since it is the subject of a separate action pending in the Circuit Court of Madison County, Tennessee.” The probate court entered an order of final judgment on February 27, 1997.

II. Circuit Court Proceedings In April of 1995, Sam Dawkins and Elizabeth Dawkins commenced a pro se action against Diamond in Madison County Circuit Court for damages resulting from his failure to perform his duties as attorney and executor for Buck’s estate. Subsequently, on October 18, 1995, Joy Roy and Sam Dawkins commenced a legal malpractice action

2 Roy was the niece of the deceased.

against Diamond for “malfeasance” in his capacity as attorney and executor for Buck’s estate. Diamond sought dismissal of the second case because the previous pro se suit against him was still pending.

On August 14, 1997, an order was entered non-suiting the first circuit court action.

On that same date, the court denied Diamond’s motion to dismiss the second action. The second action went to trial and a jury awarded the plaintiffs $68,800 in compensatory damages and $25,000 in punitive damages. Diamond filed a motion for a new trial claiming, inter alia, that the court erred in failing to dismiss all claims for damages for “additional fees and expense charged to the estate of Jennie Ida Buck” because such claims were previously litigated before the probate court. Alternatively, Diamond asked that the Circuit Court reduce the award to $32,800.3 Diamond’s motions were denied and he appealed to this court presenting the following issues for determination:

1) Whether the trial court erred by refusing to dismiss the plaintiffs’ damage claim for additional fees and expense charged to the estate of Jennie Ida Black.

2) Whether the trial court erred in denying Diamond’s motion to dismiss for prior suit pending.

3) Whether the trial court erred in permitting plaintiffs’ counsel to introduce into evidence the findings of fact and judgment from a professional responsibility disciplinary proceeding.

4) Whether the punitive damages award was supported by the evidence.

Law and Analysis

I. Damage claim for administration fees and attorney fees The jury awarded the plaintiffs $68,800 in compensatory damages, which were broken down into two components. Thirty-two thousand dollars ($32,000) represented damages for the “deterioration and waste of the assets of Jennie Ida Buck” caused by the Defendant, and $36,000 was awarded for damages “resulting from additional fees and expense charged to the Estate of Jennie Ida Buck.” It is the latter amount of $36,000 which the Appellant challenges. Appellant claims that the trial court erred in allowing the

3 This figure represents the amount of the total judgment, $93,800, minus the punitive damages aw ard of $25,000 and the award of $36,000 for attorney’s fees and administrator’s fees incurred by the p laintiff s in the execution of the estate.

jury to consider the plaintiffs’ claim for additional fees and expenses. Appellant argues that this issue was fully litigated in the probate court and was, therefore, barred by either res judicata or collateral estoppel.

The Tennessee Supreme Court described res judicata and its related counterpart, collateral estoppel, as follows:

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Joy Roy/Sam Dawkins v. W.T. Diamond, (Tenn. Ct. App. 1999).

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