Shaffer v. Williams

711 N.E.2d 37, 1999 Ind. App. LEXIS 733
CourtIndiana Court of Appeals
DecidedMay 13, 1999
DocketNo. 20A03-9601-CV-14
StatusPublished
Cited by1 cases

This text of 711 N.E.2d 37 (Shaffer v. Williams) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shaffer v. Williams, 711 N.E.2d 37, 1999 Ind. App. LEXIS 733 (Ind. Ct. App. 1999).

Opinion

OPINION

KIRSCH, J.

This is a consolidated appeal of orders entered in a guardianship action by the Elk-hart Superior Court and later, on transfer, by the Kosciusko Circuit Court. Mary Lou Williams and Jacqueline Lung appeal the Elkhart court’s finding that they failed to act in good faith in their capacity as attorneys-in-fact. Kim Shaffer appeals the Kosciusko court’s order ratifying actions taken by Williams and Lung and granting their attorney fee petition. The consolidated appeal presents four issues:1

I. Whether the Elkhart trial court abused its discretion by finding that .the attorneys-in-fact failed to act in good faith;
II. Whether the Kosciusko trial court abused its discretion by ratifying the actions of the attorneys-in-fact in view of the Elkhart court’s finding that the attorneys-in-fact failed to act in good faith;
III. Whether the Kosciusko trial court abused its discretion by granting the fee petition submitted by the attorneys-in-fact;
IV. Whether the Kosciusko trial court erred by holding Shaffer personally hable for the fees of the attorneys-in-fact.

We affirm on issues I through III, and reverse on issue IV.

FACTS AND PROCEDURAL HISTORY

This appeal arises from a family dispute among the relatives of Earl Shaffer, an elderly man afflicted with Alzheimer’s disease. On one side of the dispute are Earl’s stepdaughters, Mary Lou and Jacqueline, whom Earl named as his attorneys-in-fact in 1993. On the other side is Earl’s granddaughter, Kim. Kim and her father (Earl’s son) were displeased with some of the actions taken by the attorneys-in-fact, particularly the' sale of a Rake cottage Earl had promised to Kim’s father. Accordingly, Kim and her father petitioned the Elkhart Superior Court to appoint them as Earl’s guardians.2 The attorneys-in-fact opposed the petition. The Elk-hart judge granted the guardianship petition and determined that the power of attorney appointing the attorneys-in-fact was invalid. Record at 100. The judge also found that the attorneys-in-fact failed to act in good faith in selling the lake cottage. Record at 200. The judge ordered the attorneys-in-fact to file an accounting and inventory for all of Earl’s property.

The attorneys-in-fact filed the requisite accounting and inventory, including a request for attorney fees. The guardian (Kim) filed objections to the accounting and to the fee request. The Elkhart judge held a hearing on the objections, then determined that the matter presented legal issues requiring further analysis. After making that determination, the Elkhart judge recused and transferred the case to the Kosciusko Circuit Court (referred to herein as the second judge).

The second judge requested that the parties submit an Agreed Statement of Facts to educate him on the prior proceedings. In the Agreed Statement, the parties identified the legal issue before the court as: “when a power of attorney is subsequently declared invalid, what is the status of actions taken by the named attorneys in fact under the document.” Supp. Record at 14. After reviewing the Agreed Statement the second judge entered an order ratifying all of the actions of the attorneys-in-fact. Supp. Record at 49. The order did not address the attorneys-in-[40]*40facts’ accounting or their request for attorney fees.

During these proceedings, Earl died. The guardian accordingly petitioned for termination of'the guardianship, including a request that Earl’s estate pay her attorney fees and pay a guardian fee to her. The second judge approved her requests and entered a final order terminating the guardianship. The judge also approved the inventory and accounting of the attorneys-in-fact, and approved their request for attorney fees. In addition, the judge ordered, that in the event the estate did not pay the fees of the attorneys-in-fact, the guardian would be held personally liable for those fees.

On appeal, the guardian claims that the second judge erred in ratifying the actions of the attorneys-in-fact and in approving their attorney fees. In the cross-appeal, the attorneys-in-fact claim that the Elkhart judge (referred to herein as the first judge) erred in finding that they failed to act in good faith.

DISCUSSION AND DECISION

I. Ratification Order and Good Faith of Attorneys-in-Fact

The parties’ dispute concerning the conduct of the attorneys-in-fact centers on Finding No. 11 in the first judge’s order. The finding, which is part of the order granting the guardianship petition, states:

“11. That [the attorneys-in-fact] had failed to act in good faith while exercising the power purportedly granted under the durable power of attorney, in that they knew that upon the death of Virgil Earl Shaffer the lake cottage was to go to Donald Earl Shaffer and at the time the-cottage was sold they did not need the money for the upkeep of Virgil Earl Shaffer but nevertheless sold the cottage and placed the proceeds in the name of Virgil Earl Shaffer, payable on his death to Donald Earl Shaffer. That these acts were contrary to Virgil Earl Shaffer’s intent that the cottage should go to his Son, Donald Earl Shaffer, and were committed at a time when Virgil Earl Shaffer was not competent to- make his own decision about selling the lake cottage.”

Record at 200.3

The guardian contends that the second judge’s order ratifying the actions of the attorneys-in-fact is in direct conflict with Finding No. 11, and that as such the second judge’s' order must be reversed. In response, the attorneys-in-fact claim that Finding No. 11 is erroneous and that the first judge’s order must be reversed.

We find no conflict- between the two judges’ orders, because Finding No. 11 was not central to the Elkhart judge’s order. Nothing in the order or in the guardianship petition required' or requested a finding concerning the good faith of the attorneys-in-fact. Rather, the petition required resolution of only two issues: whether the power of attorney was valid and if not, whether a guardianship was necessary. The judgment on the petition contained only three enforceable orders: that the power of attorney be invalidated, that Kim be appointed as Earl’s guardian, and that the attorneys-in-fact be required to render an accounting. None of these orders turned on Finding No. 11. Instead, the orders turned on the first judge’s finding that Earl was incompetent at the time he signed the power of attorney. Once the judge determined that Earl'was incompetent at the time he signed the power, the first judge properly determined that the power was invalid. Having deemed the power of attorney invalid, the judge properly, determined that a guardianship was the necessary legal mechanism to manage Earl’s affairs. The judge’s finding that the attorneys-in-fact failed to act in good faith was thus surplusage and had no preclusive effect on matters later addressed by the second judge. See Kahn v. Cundiff, 533 N.E.2d 164, 166 (Ind.Ct.App.1989) aff'd 543 N.E.2d 627 (Ind.1989) (findings that are irrelevant to trial court’s legal conclusion are harmless error).

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Related

In Re Guardianship of Shaffer
711 N.E.2d 37 (Indiana Court of Appeals, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
711 N.E.2d 37, 1999 Ind. App. LEXIS 733, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shaffer-v-williams-indctapp-1999.