Obert Law Group, P.A. and Keith D. Obert v. Janet T. Holt, in Her Capacity as for the Estate of Dr. Edwin L. Holt, Jr. and Premier Trust, Inc., as Trustee for the Minor Beneficiaries

Mississippi Supreme Court·Decided September 23, 2021·No. 2019-IA-01265-SCT·Published

Opinion

IN THE SUPREME COURT OF MISSISSIPPI NO. 2019-IA-01265-SCT

OBERT LAW GROUP, P.A., AND KEITH D. OBERT

v.

JANET T. HOLT, IN HER CAPACITY AS EXECUTRIX FOR THE ESTATE OF DR. EDWIN L. HOLT, JR., AND PREMIER TRUST, INC., AS TRUSTEE FOR THE MINOR BENEFICIARIES

DATE OF JUDGMENT: 07/19/2019 TRIAL JUDGE: HON. JAMES CHRISTOPHER WALKER TRIAL COURT ATTORNEYS: JAMES MATTHEW TYRONE PATRICIA PETERSON SMITH

KEITH D. OBERT

PHILIP W. GAINES

JOSHUA BRIAN STRETCH

WILLIAM F. BROWN

CLARK CLIFTON LUKE

M. JUDITH BARNETT

ROBERT DAVID MARCHETTI

TRAVIS T. VANCE, JR.

JEFFREY TODD WAYCASTER

JERRY CAMPBELL

COURT FROM WHICH APPEALED: MADISON COUNTY CHANCERY COURT ATTORNEYS FOR APPELLANTS: KEITH D. OBERT WILLIAM F. BROWN

ATTORNEYS FOR APPELLEES: JAMES MATTHEW TYRONE CLARK CLIFTON LUKE

NATURE OF THE CASE: CIVIL - WILLS, TRUSTS, AND ESTATES DISPOSITION: AFFIRMED - 09/23/2021 MOTION FOR REHEARING FILED: MANDATE ISSUED:

EN BANC.

MAXWELL, JUSTICE, FOR THE COURT:

¶1. To collect attorney’s fees from an estate, court approval is required.1 So if an attorney is paid from an estate without court approval, he “takes the fee subject to the peril of having it disapproved later by the chancellor.”2 That is what happened here. Obert Law Group collected more than $180,000 in attorney’s fees from Dr. Edwin Holt’s estate. But it did so without first seeking court approval. After a two-day hearing, the chancellor determined only $96,951 of the attorney’s fees in the estate matter were reasonable. So he ordered Obert Law Group reimburse the estate $84,945.

¶2. “It is well-settled that the amount allowable as attorney’s fees for services rendered in the administration of an estate rests within the sound discretion of the chancery court.”3 The chancellor’s decisions in these cases are reviewed for abuse of discretion, and it is improper under our law to conduct a de novo review. Here, the record shows the chancellor carefully considered Obert Law Group’s evidence and the factors for reasonable attorney’s fees set forth in Mississippi Rule of Professional Conduct 1.5. After doing so, the chancellor determined almost $100,000 in collected fees was reasonable. Applying our required standard of review, we cannot say the chancellor abused his discretion. We affirm.

Background Facts & Procedural History

1 In re Will of McCaffrey v. Fortenberry, 592 So. 2d 52, 63 (Miss. 1991).

2 Id. (citing Harper v. Harper, 491 So. 2d 189, 200 (Miss. 1986)).

3 Harper, 491 So. 2d at 200 (citing Brown v. Franklin, 166 Miss. 899, 145 So. 752 (1933); Schwander v. Rubel, 221 Miss. 875, 75 So. 2d 45 (1954)).

¶3. At the time of his death, Dr. Holt was finalizing a divorce in Texas and seeking to have his dental license reinstated in Mississippi. Dr. Holt had hired first-year attorney Joshua Stretch to represent him in the dental-licensure matter. Due to his inexperience, Stretch associated more seasoned attorneys at Obert Law Group, Keith Obert and William Brown. When Dr. Holt died, Stretch still held $73,000 as a yet-to-be-earned retainer on the licensure issue.

¶4. Dr. Holt died tragically by his own hand at age forty-five. He left five minor children. Stretch drove Dr. Holt’s mother, Janet Holt, to the funeral. According to Janet, on the way back from the funeral, Stretch approached her “about the estate.” Two days later, Stretch emailed Janet, who became the estate’s executrix. He told her he wanted to handle the matter but he would need to bring in Obert for his expertise in estate matters. Stretch, Obert, and occasionally Brown began working immediately on estate matters. Their efforts included locating and protecting estate assets and dealing with Dr. Holt’s ex-wife, who strenuously asserted the divorce was never finalized so she was Dr. Holt’s heir and not her five minor children.4

¶5. Stretch did not return the remainder of the prior dental-licensure retainer to Dr. Holt’s estate. Instead, he submitted this money to Obert Law Group, which in turn used this money to pay its first $73,000 in bills to the estate. After exhausting this money, Obert Law Group

4 Apparently, before he died, Dr. Holt and his ex-wife had entered into a final divorce settlement agreement. But this agreement had not been entered into the court record in Texas—hence his ex-wife’s claim they were not divorced. Eventually, the Texas court ruled the settlement agreement was enforceable and controlled. In this agreement, Dr. Holt’s ex- wife relinquished any right to inherit under Dr. Holt’s will, making their five minor children Dr. Holt’s sole heirs.

billed the executrix. The attorneys did not seek prior court approval of their attorney’s fees. Nor did they advise the executrix the bills should be court-approved before she paid them. Instead, because Janet believed she had no reason to question the invoices, she simply wrote checks from the estate to pay the invoices submitted to her—totaling $110,800. In seventeen months of representing the estate, Obert Law Group collected $181,896 in attorney’s fees.

¶6. Their representation of the estate ended when Janet petitioned the court to replace Stretch, Obert, and Brown with new counsel. At this point, their motion for final accounting and attorney’s fees had yet to be approved by the court. And before approval, the trustee of the revocable trust established by Dr. Holt, to which he had bequeathed the residuary of his estate for the benefit of his family, petitioned the court for the return of all the fees they had collected. The trustee asserted Obert Law Group had never sought preapproval of its attorney’s fees and had never advised Janet of her duty to first seek court approval before paying Obert Law Group with estate assets. The trustee also alleged Obert Law Group padded its bills and mismanaged the estate.

¶7. The chancellor heard both the motion for accounting and the petition for the return of the attorney’s fees in the same two-day hearing. At the hearing, Obert Law Group presented for the court’s consideration a previously unsubmitted bill for almost $20,000. The chancellor questioned Stretch and Obert carefully about the $73,000 dental-licensure retainer and specific billing entries. Obert was very forthcoming and admitted he was surprised at the amount of hours billed for routine matters. Obert admitted he would have done things

differently in hindsight—especially as it related to the unearned portion of the dental- licensure retainer.

¶8. At the end of the hearing, the chancellor determined the attorney’s fees collected from the estate were “not even remotely reasonable.” The chancellor entered a detailed order in which he considered the factors set forth in Mississippi Rule of Professional Conduct 1.5 for reasonable attorney’s fees. The chancellor concluded the reasonable amount of attorney’s fees was $96,951. Because Obert Law Group had collected $84,945 more than the chancellor deemed reasonable, he ordered Obert Law Group to reimburse the estate that amount.

Interlocutory Appeal

¶9. This Court granted Obert Law Group’s petition for interlocutory appeal. In the interim between this Court’s grant of interlocutory appeal and the parties’ briefing, this Court handed down Rogers v. Estate of Pavlou (In re Estate of Pavlou), 308 So. 3d 1284 (Miss. 2021). In Pavlou, this Court clarified that, based on Braxton v. Johnson (In re Estate of Philyaw), 514 So. 2d 1232, 1234 (Miss. 1987), and its progeny, an order granting the disbursement of attorney’s fees from an estate qualified as a final, appealable judgment. Pavlou, 308 So. 3d at 1288. Applying Pavlou, we find the order in this case surcharging the attorney’s fees collected against Holt’s estate was likewise a final, appealable judgment. Thus, while Obert Law Group followed the procedures of Mississippi Rule of Appellate Procedure 5 to appeal by permission, an appeal as of right under Mississippi Rules of Appellate Procedure 3 and 4 was also allowed.

Discussion

¶10. Turning to the merits of Obert Law Group’s appeal, we affirm.

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Obert Law Group, P.A. and Keith D. Obert v. Janet T. Holt, in Her Capacity as for the Estate of Dr. Edwin L. Holt, Jr. and Premier Trust, Inc., as Trustee for the Minor Beneficiaries, (Mich. 2021).

Obert Law Group, P.A. and Keith D. Obert v. Janet T. Holt, in Her Capacity as for the Estate of Dr. Edwin L. Holt, Jr. and Premier Trust, Inc., as Trustee for the Minor Beneficiaries (Obert Law Group, P.A. and Keith D. Obert v. Janet T. Holt, in Her Capacity as for the Estate of Dr. Edwin L. Holt, Jr. and Premier Trust, Inc., as Trustee for the Minor Beneficiaries) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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