Keading v. Keading CA1/3

CourtCalifornia Court of Appeal
DecidedApril 28, 2023
DocketA153628
StatusUnpublished

This text of Keading v. Keading CA1/3 (Keading v. Keading CA1/3) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keading v. Keading CA1/3, (Cal. Ct. App. 2023).

Opinion

Filed 4/28/23 Keading v. Keading CA1/3 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION THREE

KENTON KEADING, Defendant and Appellant, A153628 v. HILJA KEADING, (Contra Costa County Super. Ct. No. MSP16-00402) Plaintiff and Respondent.

Kenton Keading,1 appearing in pro per, appeals from a postjudgment order of the trial court awarding attorney fees and costs to Hilja Keading after she prevailed at trial on her Probate Code 2 section 850 petition to remove Kenton as trustee of the family trust and recover trust assets. We find no abuse of discretion and affirm. FACTUAL AND PROCEDURAL BACKGROUND A detailed discussion of the factual and procedural history of the dispute between siblings Kenton and Hilja, which we adopt and incorporate by reference, is set out in our partially published opinion in Keading v. Keading (2021) 60 Cal.App.5th 1115 (Keading I) and in our unpublished

1 Due to the commonality of the Keading last name, we refer to the Keading family members by their first names. No disrespect is intended. 2 Further unspecified section references are to the Probate Code.

1 opinions in Keading v. Keading (Mar. 30, 2021, A157476) (nonpub. opn.), Keading v. Keading (July 30, 2021, A158590) (nonpub. opn.), and Keading v. Keading (Sept. 21, 2022, A159795) (nonpub. opn.). We set forth only those background events that are relevant to the issues raised in this appeal. Kenton and Hilja were the beneficiaries of a family trust created by their parents, Lucille and Lewis. The trust was amended several times over the years, including in October 2015 when surviving settlor Lewis executed a final amendment to the trust providing for an equal division of the trust assets between the siblings. (Keading I, supra, 60 Cal.App.5th at p. 1120.) After Lewis passed away, in March 2016, Hilja filed an ex parte petition under section 8503 seeking Kenton’s removal as trustee, appointment of a successor trustee, and recovery of trust assets under theories of intentional interference with expected inheritance; fraud; conversion; and elder financial abuse. The petition identified the trust’s assets as follows: real property at 60 Laurel Lane, 50 Laurel Lane, and 21 Laurel Lane, in El Sobrante (hereafter the residence); two bank accounts; and various tangible personal property including automobiles, furniture, jewelry and artwork. According to the petition, in January 2016, as Lewis lay on his deathbed, Kenton fraudulently executed and recorded a deed purporting to transfer the residence from the trust to himself and Lewis as joint tenants. Kenton allegedly signed the deed as Lewis’s attorney-in-fact even though he knew that Lewis had previously appointed Hilja to serve in this capacity. Kenton also allegedly forced Lewis to sign over a stock certificate to him and,

3 The petition was also brought under section 17200, which permits a trustee or trust beneficiary to petition the trial court concerning the internal affairs of the trust (§ 17200, subd. (a)), and section 4541, which authorizes a petition to determine various matters concerning powers of attorney.

2 after Lewis’s death, sold the settlors’ 2008 Chrysler vehicle and kept the proceeds for himself. Regarding the claim of elder abuse, Hilja alleged that Kenton occupied the settlors’ home “as a squatter, obstructed their access to health care services, verbally abused them, chastised them for their frailty, consumed their prescribed dietary supplies, monitored and controlled their communications with third parties, and neglected their hygiene.” He further “procured his appointment as the settlors’ attorneys in fact” and “neglected their finances, self-dealt with their assets for his personal benefit and concealed financial information from them.” A trial was held on Hilja’s petition in June and July 2017. In August 2017, the trial court issued its statement of decision finding Kenton liable for elder abuse and breach of fiduciary duty. According to the court, Hilja proved by a preponderance of the evidence that the transfers of the residence and the shares of Freedom Motors stock were the result of elder abuse and breaches of fiduciary duty, and that no justification had been presented for the transfer of the Chrysler. The court ordered that the successor trustee, Elizabeth Soloway, receive immediate possession of “the premises commonly known as 60, 50, and 21 Laurel Lane,” and that the January 2016 transfer of 99,678 shares of Freedom Motors stock from Lewis to Kenton be invalidated.4

4 However, the trial court found that because it was unclear whether the stocks were trust assets or Lewis’s separate property, “[t]he trustee may need to move to confirm the stock as an asset of the trust, if she concludes that is necessary and appropriate.” The court also noted that because Hilja did not request any relief with regard to the personal property at the residence, “it will be up to [the current trustee] to address proper inventory of the personal property, including whether any property was disposed of in such a manner that it does not belong to the trust.”

3 The trial court awarded the trust double recovery under section 859 as follows: $1,523,330 (twice the stipulated value of the residence) and $17,000 (twice the value of the Chrysler). The court directed Hilja to file a motion for attorney fees within 30 days of the statement of decision becoming final.5 Hilja moved for $598,158.93 in attorney fees and $18,704.25 in costs. She argued that the trial court’s elder abuse findings mandated a fee award under Welfare and Institutions Code section 15657.5, subdivision (a), and that fees need not be apportioned between the elder abuse claim and the other theories of relief alleged in the petition because they all involved the same facts constituting Kenton’s elder abuse. Alternatively, Hilja argued that the court had discretion to award attorney fees and costs under section 859 because Hilja prevailed on her claim under section 850. In opposing the motion, Kenton contended the trial court should hold an evidentiary hearing to resolve disputes regarding the amount of fees incurred. Kenton further argued that the number of hours upon which the fee motion was based was excessive; the fees claimed for successor trustee Soloway were overstated, without merit, and double-billed; and a fee award was excessive, unreasonable, and unnecessary because Hilja was represented by her counsel under a contingency fee agreement. On November 13, 2017, the trial court heard the fee motion. A minute order (hereafter the November 13 minute order) reflects the court’s tentative ruling to grant fees to Hilja under Welfare and Institutions Code section

5 In Keading I, we affirmed the judgment in favor of Hilja, concluding that substantial evidence supported the trial court’s finding of elder financial abuse under Welfare and Institutions Code section 15610.30, and that the award of double damages under section 859 was proper without a separate finding of bad faith. (See Keading I, supra, 60 Cal.App.5th at pp. 1126– 1131.)

4 15657.5, subdivision (a). As the court explained, “In her motion, Hilja argues that a fee award is mandatory under Welfare and Institutions Code section 15657.5(a), and that the fees on the separate claims are so intertwined that it is not possible to separate work done on one claim from work done on another.

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Keading v. Keading CA1/3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keading-v-keading-ca13-calctapp-2023.