Succession of Kilpatrick v. First National Bank of Shreveport

422 So. 2d 483, 1982 La. App. LEXIS 8274
CourtLouisiana Court of Appeal
DecidedOctober 25, 1982
DocketNo. 15026-CA
StatusPublished
Cited by4 cases

This text of 422 So. 2d 483 (Succession of Kilpatrick v. First National Bank of Shreveport) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Succession of Kilpatrick v. First National Bank of Shreveport, 422 So. 2d 483, 1982 La. App. LEXIS 8274 (La. Ct. App. 1982).

Opinions

NORRIS, Judge.

The First National Bank of Shreveport (hereinafter referred to as the “Bank”) appeals a judgment ordering the homologation of a tableau of distribution in this succession proceeding.

We feel it unnecessary to detail again the entire factual posture of this case other than to point out that it concerns the validity of a bitterly contested nuncupative will by private act executed by Willard Kilpa-trick dated January 16, 1977, which in effect revokes a prior will of September 16, 1976, in which the Bank was named trustee and executor of the bulk of Mr. Kilpatrick’s estate for an educational foundation. The present co-executors’ appointment depends on the validity of the January, 1977 will which was upheld by the lower court and is the subject of another pending appeal before this court, an opinion in that matter being handed down this same date in Succession of Kilpatrick, 422 So.2d 464 (La. App. 2d Cir.1982).

We have previously held that the Bank both as executor and trustee under the 1976 will has a justiciable interest in the action to annul the 1977 will and in having the 1976 will recognized and probated. Succession of Kilpatrick, 356 So.2d 1083 (La.App. 2d Cir.1978).

After the lower court upheld the validity of the will, the following events occurred which are material to this appeal.

On March 1,1982, attorneys for co-executor, Arnold Kilpatrick, prepared and presented to the trial court an ex parte motion for authority to pay certain attorneys’ fees and expenses in the amount of $114,000. The judge signed this order on the same day; however, it was never filed.

On March 16, 1982, Harper Terrill, the other co-executor filed a motion or pleading in the proceedings seeking an order from the trial court authorizing the payment of certain debts and charges, which totaled approximately $580,935.84, and directing that any publication, advertisement or notices required to be made by the Code of Civil Procedure be waived and dispensed with. Included in these debts and charges was the sum of $396,450.85 for attorneys’ fees, estate taxes in the amount of $181,590 and a debt to the Jonesboro Insurance Agency in the amount of $2,894. On the same date, an order was signed by the trial [485]*485court ordering the Bank to show cause on the 18th day of March, 1982 why the executors should not be authorized to borrow money on behalf of the estate in order to pay the above listed debts and charges and why such charges and debts should not be paid without following the prescribed procedures of notice, service, advertisement and hearing.

On March 18, 1982, the Bank filed an opposition to Terrill’s motion, a motion to stay proceedings, and an alternate motion for continuance. The Bank’s opposition contended among other things that the request for payment of fees, expenses and charges had been filed in derogation of law and failed to comply with the procedures required for the payment of succession debts and charges set forth in La.C.C.P. Art. 3301 et seq.; the portion of the request for attorneys’ fees and other charges sought to be paid from succession funds was not actually owed by the succession; the payment of such fees and expenses could not be made without giving proper notice, advertisement, hearing and specified delays; and both executors had not joined in the filing of the motion as required by La.C.C.P. Art. 3192. It was further contended that the payment of the fees, expenses and charges should not be made pending a determination of the issues on appeal and the making of such payments would improperly dissipate the estate funds which could not later be recovered in the event the case was overturned on appeal. Finally, the bank contended that there were insufficient funds to pay the alleged debts and charges, and the proposal to borrow would encumber the remainder of the estate.

At the hearing on March 18, 1982, the court sustained the opposition of the Bank, finding that the motion failed to comply with the requirements of the Code of Civil Procedure, both executors had not joined in the motion, and there had been no authorized waiver of the notice and advertisement requirements.

Thereafter, on March 24, 1982, both co-executors filed a Petition for Homologation of Tableau of Distribution seeking a judgment of homologation authorizing the payment of the following attorneys’ fees and an appraisal fee:

1) Attorneys’ fees and expenses to Brown, Wicker and Amman $ 87,500
2) Attorneys’ fees and expenses to Larry Johnson 43,750
3) Attorneys’ fees and expenses to John Landrem 43,750
4) Attorneys’ fees and expenses to Whitten and Blake 16,000
5) Appraisal fee to Herman L. Bass 750 TOTAL: $191,750

It is significant to note that where the Motion of March 16, 1982, alleged that there were insufficient funds to pay the debts and charges listed in that motion, the petition of March 24,1982 alleged the existence of sufficient funds to pay the charges therein listed in full. It is even more noteworthy that the pleading filed made no reference to other known outstanding debts and charges, provided no ranking or order of priority of payment and provided no listing of the assets of the succession from which the other known debts and liabilities could be satisfied.

The Bank again filed an Opposition to the Petition for Homologation of Tableau of Distribution, and on April 6,1982, the Court issued an order setting the matter for evi-dentiary hearing on April 13, 1982. This opposition again asserted certain procedural defects and contended that the debts and charges sought to be paid were not actually owed by the succession, should not be paid prior to a final determination of the issues of the case presently on appeal, and that the making of such payments prior to that time would dissipate the estate of funds which would not be recoverable at a later time and would result further in the encumbering of the remainder of the estate.

After the hearing on the opposition, the district court rendered a decision ordering the homologation of the Tableau of Distribution as requested in the petition filed March 24, 1982, as well as an additional charge of $4,219 for insurance premiums due and owing Commercial Union on property belonging to the succession which had not been included prior to the hearing.

[486]*486Judgment was signed by the trial court on April 15, 1982, and a suspensive appeal was taken from this judgment by the Bank1 which assigns the following errors of the trial court:

1) In failing to hold that the payment of the attorneys’ fees and expenses should not be made until a final determination on the merits of the will challenge;
2) In failing to hold that at least a substantial portion of the attorneys’ fees and expenses were incurred for the personal benefit of the executors and not for the benefit of the estate;
3) In failing to hold that a portion of the attorneys’ fees and expenses sought to be paid were not for services rendered to the succession of Willard H. Kilpatrick; and
4) In failing to hold that the request for payment of certain attorneys’ fees and expenses were unreasonable and grossly excessive when considered in the context of the time, manner, and purpose for which they were allegedly rendered.

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Related

In re the Succession of Reno
202 So. 3d 1147 (Louisiana Court of Appeal, 2016)
Succession of Moffat
577 So. 2d 1210 (Louisiana Court of Appeal, 1991)
Succession of Kilpatrick
429 So. 2d 126 (Supreme Court of Louisiana, 1983)

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Bluebook (online)
422 So. 2d 483, 1982 La. App. LEXIS 8274, Counsel Stack Legal Research, https://law.counselstack.com/opinion/succession-of-kilpatrick-v-first-national-bank-of-shreveport-lactapp-1982.