Ozaukee Cnty. Dep't of Human Servs. v. S. S. Z. (In re S.S.Z.)

2018 WI App 66, 921 N.W.2d 524, 384 Wis. 2d 414
CourtCourt of Appeals of Wisconsin
DecidedSeptember 19, 2018
DocketAppeal No. 2017AP1393
StatusPublished

This text of 2018 WI App 66 (Ozaukee Cnty. Dep't of Human Servs. v. S. S. Z. (In re S.S.Z.)) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ozaukee Cnty. Dep't of Human Servs. v. S. S. Z. (In re S.S.Z.), 2018 WI App 66, 921 N.W.2d 524, 384 Wis. 2d 414 (Wis. Ct. App. 2018).

Opinion

PER CURIAM.

¶1 Eighty-year-old S.S.Z. changed her power-of-attorney (POA) designation from her daughter, J.M., to her son, T.Z. Long-standing sibling discord fed allegations of financial mismanagement and undue influence. The Ozaukee County Department of Human Services (the County) petitioned for guardianship over S.S.Z.'s estate and person and for her protective placement. T.Z., as POA, objected. After protracted proceedings, the circuit court dismissed the petitions and ordered the County to pay $97,746.25 in attorneys' fees to S.S.Z.'s and T.Z.'s attorneys.1 We affirm the order in that regard.

¶2 T.Z. cross-appeals the order, contending the court erred in denying him the reasonable costs and fees he incurred in litigating the fee motion. We agree and reverse that part of the order. We also agree with T.Z. that he should be granted costs and attorneys' fees for successfully defending the appeal. On remand, we direct the court to determine the reasonable costs and fees he incurred in litigating the fee motion and the appeal.2

¶3 After being diagnosed with dementia in 2012, S.S.Z. executed a POA naming J.M. and her other son, R.Z., as her primary co-agents. On July 31, 2015, alleging S.S.Z. was incompetent, J.M. petitioned for temporary guardianship of S.S.Z.'s person and estate and nominated herself as guardian. On the same day, S.S.Z., through private counsel, executed durable and medical POAs, naming T.Z. as primary agent and R.Z. as substitute, telling her attorney that J.M. "was being very nasty to her." J.M. withdrew her petition. Soon after, the court granted the County's petition to appoint a corporate guardian as temporary guardian of S.S.Z.'s estate.

¶4 On August 25, the County petitioned for permanent guardianship over S.S.Z.'s person and estate. Contending the POAs were invalid because S.S.Z. was incompetent when she executed them and, perhaps, unduly influenced by T.Z., the County nominated a corporate guardian and filed a second petition for S.S.Z.'s protective placement in an assisted living facility. T.Z. again objected to the petitions, arguing that her advance planning documents made a guardianship unnecessary and should be enforced.

¶5 In November 2015, a lengthy hearing was held on the petitions. In a fifty-three-page oral decision, the circuit court recapped the testimony of all twenty-two witnesses, made extensive findings, addressed the conflicting evidence, and explained the law that informed its ruling. The court concluded that the County failed to prove by clear and convincing evidence that S.S.Z. did not have the capacity to execute the POAs and further concluded that her advance planning made a guardianship unnecessary. See WIS. STAT. § 54.46(1)(a)2. The court denied the petitions, vacated its earlier order for temporary guardianship, and revoked the corporate guardian's letters of temporary guardianship.

¶6 The parties then went to battle over attorneys' fees. The court awarded fees to S.S.Z.'s and T.Z.'s counsel but denied T.Z.'s claim for those he incurred in litigating the fee motion. This appeal and cross-appeal followed.

I. The Appeal

¶7 The County opens with a challenge to the award of attorneys' fees.3 We choose to first address whether the circuit court erroneously exercised its discretion in denying the County's guardianship petition despite the POAs. The County asserts that the POAs were invalid because S.S.Z. either lacked the mental capacity or was unduly influenced to execute them.

A. Mental Capacity/Competency

¶8 As case law specifically addressing mental capacity vis-à-vis POA execution is lacking, we turn to cases addressing it in the context of capacity to execute a valid will. Testamentary capacity requires that an individual have the mental capacity "to comprehend the nature, the extent, and the state of affairs of his [or her] property." O'Brien v. Lumphrey , 50 Wis. 2d 143, 146, 183 N.W.2d 133 (1971). "A perfect memory is not an element of a testamentary capacity," but the person "must have a general, meaningful understanding of the nature, state, and scope of his [or her] property ...." Id. Where lack of testamentary capacity is alleged and the court sits without a jury, the court's finding on that issue will be affirmed unless it is clearly erroneous. See Swartwout v. Bilsie , 100 Wis. 2d 342, 354, 302 N.W.2d 508 (Ct. App. 1981) ; see also Noll v. Dimiceli's, Inc. , 115 Wis. 2d 641, 643, 340 N.W.2d 575 (Ct. App. 1983) ("clearly erroneous" and "great weight and clear preponderance" tests essentially the same).

¶9 As the circuit court often used "competency" and "capacity" interchangeably, we consider the concept of competency under WIS. STAT. § 54.10(3). At a hearing on a guardianship petition based on alleged incompetency, the petitioner must prove by clear and convincing evidence that the proposed ward is incompetent within the meaning of § 54.10(3)(a). The circuit court's factual findings will not be overturned on appeal unless clearly erroneous. WIS. STAT. § 805.17(2) ; see also Coston v. Joseph P. , 222 Wis. 2d 1, 22, 586 N.W.2d 52 (Ct. App. 1998). Whether the evidence meets the legal standard for incompetency presents a question of law that we review independently. Cheryl F. v. Sheboygan Cty. , 170 Wis. 2d 420, 425, 489 N.W.2d 636 (Ct. App. 1992).4

¶10 The court expressly noted S.S.Z.'s advance planning through establishing the POAs. The County contends it improperly focused on that single factor without regard to the other fifteen. The court's decision belies that notion.

¶11 The court's decision also comports with the statute. First, upon a finding of incompetency, the circuit court may appoint a guardian but, before doing so, "shall consider" sixteen factors. WIS. STAT. § 54.10(3)(a), (c). The court "shall dismiss the petition," however, if it finds that, contrary to the allegations of the petition, the proposed ward is not incompetent. WIS. STAT. § 54.46(1)(a) 1.a. The court did not find that S.S.Z. was incompetent.

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Bluebook (online)
2018 WI App 66, 921 N.W.2d 524, 384 Wis. 2d 414, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ozaukee-cnty-dept-of-human-servs-v-s-s-z-in-re-ssz-wisctapp-2018.