State Of Washington, V. Helga Kahr

Court of Appeals of Washington·Decided August 16, 2021·No. 80848-6·Unpublished

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

STATE OF WASHINGTON, ) No. 80848-6-I )

Respondent, )

) DIVISION ONE

v. )

)

HELGA KAHR, )

) UNPUBLISHED OPINION Appellant. )

)

MANN, C.J. — Helga Kahr was convicted of one count of theft in the first degree and one count of theft in the second degree for using funds of her ward, Jeffrey Barrett, to satisfy her home mortgage. Kahr appeals and argues: (1) that there was insufficient evidence to prove her guilt, (2) that the trial court erred in excluding evidence of her repayment of the Barrett’s funds, and (3) that the trial court erred in allowing Barrett to testify despite a prior finding of incompetency. We disagree on all grounds and affirm.

FACTS

On October 11, 1995, a drunk driver crossed the center line of the road and hit Barrett head on. Barrett suffered a traumatic brain injury and spent several months in a coma prior to moving into a rehabilitation facility. After regaining consciousness, Barrett had to re-learn how to speak, walk, and use the bathroom. He was also unable to

recognize his wife and children. Barrett eventually moved in with his parents where he became under their care.

On April 22, 1997, the Snohomish County Superior Court appointed Barrett’s oldest brother, John Jr. 1 Barrett, as limited guardian of person and estate. John Jr. hired Kahr to represent Barrett in his marriage dissolution and in a civil suit to recover damages for his injuries. After lengthy litigation, including a successful appeal to the Washington Supreme Court, Kahr recovered a nearly one million dollar settlement against the bar that overserved the driver that struck Barrett. See Barrett v. Lucky Seven Saloon, Inc., 152 Wn.2d 259, 96 P.3d 386 (2004). Due to Barrett’s disability, the family hoped to keep his living expenses low so that he could sustain himself off of the settlement for as long as possible before relying on public assistance.

In 2014, due to increased work responsibilities, John Jr. became unable to continue being Barrett’s guardian. As a result, John Jr. asked Kahr if she would assume his role of guardianship, to which she agreed. The Snohomish County Superior Court appointed Kahr as Barrett’s guardian in October 2014. At the time of Kahr’s appointment, Barrett continued to live with his mother; his father had passed away earlier that year.

Unbeknownst to Barrett and his family, Kahr was having financial troubles.

Between 2009 and 2012, Kahr had only made one mortgage payment on her Seattle home. Kahr hired an attorney to mediate foreclosure on her home and secure a loan modification. Still, Kahr could not afford payments.

1We refer to Jeffery Barrett’s brother by his first name for clarity purposes and intend no disrespect in doing so.

In 2015, Barrett had $657,451.89 between two bank accounts. Both accounts were blocked and required court authorization for Kahr to spend more than $3,000. Citing the cumbersome nature of dealing with the blocked accounts, the “pathetic” interest earned on the accounts, and the inconvenience of traveling to Snohomish County to request spending permission, Kahr moved to unblock Barrett’s funds. In her motion, Kahr stated that she had been “consulting with financial planners and investment advisors and [believed Barrett] would be best served by diversifying his assets into liquid savings and other investment vehicles, e.g., a stock index fund, mutual fund, bonds, etc.” The court unblocked Barrett’s funds for investment, requiring that, in addition to Kahr’s annual financial reporting requirements, she file a quarterly financial update during any period “in which more than 10% of the guardianship assets have been allocated to a specific investment.”

In January 2016, Barrett’s mother’s health worsened. The family moved her into an assisted living facility. On January 6, 2016, after exploring alternatives, Barrett moved into the basement of Kahr’s home. Beginning in May 2016, Kahr failed to file the required period status reports for Barrett’s guardianship.

During this time, Kahr remained unable to pay her mortgage, receiving pre-

foreclosure notices from the company managing her loan, Select Portfolio Servicing, Inc. (SPS). SPS scheduled a foreclosure auction date for September 9, 2016. On August 31, 2016, Kahr requested a payoff quote and money-wiring information from SPS. On September 7, 2016, Kahr promised SPS she would pay her loan in full by the following day.

On September 3, 2016, Kahr authorized a wire transfer of $280,673.50 from Barrett’s account to SPS. On September 7, 2016, Kahr transferred $2,002.40 for additional fees. These transfers satisfied the entirety of Kahr’s mortgage and SPS cancelled the foreclosure auction the day before it was scheduled. Kahr did not inform the court or any of Barrett’s family members of the wire transfers.

In August 2017, the court assigned Tom Deacon, a volunteer with Snohomish County’s Guardianship Monitoring Program, to follow up on Kahr’s report delinquency from the prior year. On August 17, 2017, Kahr filed the reports in response to Deacon’s request. Of the 24-page submission, a single line reported a $282,673.90 expenditure labeled “Interest in Real Estate Investment Trust” (REIT). In response to a question on the report “have you (the Guardian) used the incapacitated person’s property, had financial dealings with the ward or obtained any benefit from the ward during the period covered by this report?” Kahr answered: “Yes, while living in and occupying the ground floor of [Kahr]’s house, [Barrett] paid rent of $412.50, an amount less than half the market value of the space.”

After attempted phone calls, Deacon e-mailed Kahr asking if she had provided any documentation to the court related to the “withdraw of significant funds” from Barrett’s accounts. Kahr responded:

Some of [Barrett]’s cash assets have been invested in a Seattle-based real estate investment trust to allow the guardianship estate to benefit from the appreciating Norwest real estate market without having the responsibility of property maintenance. That investment has been doing well. I do not have the entire file in front of me at the moment, some of it is with the accountant for review. The information on the REIT should be of record in the court file; if for some reason it has not made it to the court file, I will see that it gets filed.

Deacon could not locate any documentation regarding the REIT.

Deacon escalated the use of Barrett’s funds to a program manager and requested that the court appoint a guardian ad litem (GAL) to further investigate the guardianship. Kahr objected, asserting that appointing a GAL would be costly to Barrett’s estate. The court nonetheless appointed Paul Gill as the GAL to investigate.

Gill requested that Kahr provide REIT documentation, to which she responded that she was caring for an ill relative in Oregon, but that she would respond by September 14, 2016. The deadline passed and Gill moved that the court authorize further investigation into Barrett’s guardianship.

On November 1, 2017, Kahr filed a response to Gill’s motion, asking that the court deny his request for investigation. Kahr explained that Barrett did not want an investigation and that, due to much effort on her part, Barrett still had resources and independence. In her answer, Kahr did not mention the funds that she wired to satisfy her mortgage.

The court granted Gill’s motion, after which Gill wrote to Kahr requesting copies of Barrett’s bank records and “full particulars with respect to the ‘Interest in Real Estate Investment Trust.’” Shortly thereafter, Kahr retained attorney Sarah Atwood. Atwood informed Gill that she and Kahr were not willing to speak to him. On December 1, 2017, Atwood notified Gill that Kahr would be resigning as Barrett’s guardian effective December 31, 2017. As a result, the court ordered Kahr to provide Gill with Barrett’s guardianship records by December 31, 2017; Kahr provided the records two weeks late.

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