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

CourtMississippi Supreme Court
DecidedSeptember 23, 2021
Docket2019-IA-01265-SCT
StatusPublished

This text of 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) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
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).

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)).

2 ¶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.

3 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

4 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.

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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, Counsel Stack Legal Research, https://law.counselstack.com/opinion/obert-law-group-pa-and-keith-d-obert-v-janet-t-holt-in-her-capacity-miss-2021.