State Of Washington, V. Helga Kahr

CourtCourt of Appeals of Washington
DecidedAugust 16, 2021
Docket80848-6
StatusUnpublished

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Bluebook
State Of Washington, V. Helga Kahr, (Wash. Ct. App. 2021).

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STATE OF WASHINGTON, ) No. 80848-6-I ) Respondent, ) ) DIVISION ONE v. ) ) HELGA KAHR, ) ) UNPUBLISHED OPINION Appellant.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 No. 80848-6-I/2

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.

-2- No. 80848-6-I/3

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.

-3- No. 80848-6-I/4

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.

-4- No. 80848-6-I/5

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

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