Succession of McLean

651 So. 2d 920, 1995 WL 81278
CourtLouisiana Court of Appeal
DecidedMarch 1, 1995
Docket26,566-CA
StatusPublished
Cited by6 cases

This text of 651 So. 2d 920 (Succession of McLean) 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 McLean, 651 So. 2d 920, 1995 WL 81278 (La. Ct. App. 1995).

Opinion

651 So.2d 920 (1995)

SUCCESSION OF Marjorie Palmer McLEAN.

No. 26,566-CA.

Court of Appeal of Louisiana, Second Circuit.

March 1, 1995.
Rehearing Denied April 6, 1995.

*921 James A. Van Hook, for appellant, Mary McLean Obering.

R. Cody Mayo, Jr., for appellee, J. Frost Merriott as Trustee for Harvey McLean Trust.

Before MARVIN, HIGHTOWER, and WILLIAMS, JJ.

MARVIN, Chief Judge.

In this litigation between the two residuary legatees of a $4.8 million estate that arose when the final accounting was sought to be homologated and approved, the daughter-legatee appeals a 1994 judgment insofar as it limited her executor's fee to $60,000 already advanced, notwithstanding that a 1992 judgment approving her fourth annual accounting as executor fixed the amount of her executor's fee at $150,000 and declared or decreed that the balance of $90,000 "shall be paid ... upon homologation of the final account ..."

The other residuary legatee is Harvey D. McLean, Jr., the brother of the executor, whose bequest was placed by the testator in a spendthrift trust. McLean's sister, Mrs. Obering, qualified as trustee of that trust in 1989 and as the executor of the succession in 1988. Mrs. Obering resigned as McLean's trustee on January 27, 1993, but continued to serve as executor. Mrs. Obering served her annual accountings, respectively as trustee and as executor, on McLean, and her final accounting in April 1993, as executor, on McLean and J. Frost Merriott, who succeeded her in January 1993 as the trustee of *922 McLean's spendthrift trust. Merriott, as trustee, opposed payment of the $90,000 balance of the executor's fee in the trial court and appears here as appellee.

Mrs. Obering contends the 1992 judgment that fixed the amount of her executor's fee bars relitigation of that issue. Alternatively, she contends she is statutorily entitled to at least $120,000 under CCP Art. 3351, which sets the minimum fee of a succession representative at 2½ percent of the gross estate. Her collateral complaint is that the trial court denied her request in the final accounting to pay "such amounts as become due to [the succession's attorney and accountant] at their customary rates" for services rendered on the succession's behalf after January 31, 1993.

At the hearing on this request, held in July 1993, Mrs. Obering did not appear. We have no evidence of the time or work expended for the succession by the attorney and the CPA after January 31, 1993, or of their respective customary hourly charge for work. McLean's trustee has no general opposition to the payment of reasonable attorney and accountant fees incurred on behalf of the succession, but argues simply that the specific amount of the fees claimed by Obering should be proved.

Before resigning as trustee of the McLean Trust, and anticipating that she would have difficulty securing trust funds with which to pay succession debts after her tenure as trustee ended, Mrs. Obering transferred over $60,000 in funds belonging to the trust to a succession bank account. She apparently did this to make the funds inaccessible to the successor trustee, and to create a reserve for paying the trust's share of the debts and charges for closing the succession, including the executor, attorney and accountant fees at issue in this appeal.

When Mrs. Obering filed her final accounting as executor, she asserted that she still held about $56,000 in trust funds and sought court approval to retain these funds to pay the trust's share of the outstanding debts and charges, which share, by her calculations, totaled about $69,000. Merriott claimed the trust's share of the debts was considerably less than $56,000 and sought an order requiring Mrs. Obering to return the trust funds in her possession to him.

After finding that the trust owed only about $24,000 toward the outstanding succession debts, the trial court authorized Mrs. Obering to retain this amount in the succession bank account and ordered her to deliver the balance of the trust funds in that account to Merriott. In the event this court determines that the various fees awarded by the trial court should be increased, Mrs. Obering seeks authority to use as much of the $56,000 as may be necessary to pay the trust's share of the fees.

In opposition to Mrs. Obering's request to pay herself the balance of the executor fee fixed by the October 1992 judgment, Merriott alleged that Mrs. Obering obtained that judgment by using her joint positions as executor and trustee to effectively wrongly coerce and prevent McLean, the trust beneficiary, from opposing her request for an executor fee in excess of the standard 2½ percent. Citing In re Liquidation of Canal Bank & Trust Co., 185 La. 34, 168 So. 485 (1936) and Succession of Marcour, 173 So. 587 (Orl.App.1937), Merriott asserted that a finding of fiduciary misconduct would allow the prior judgment to be revisited, even if the judgment would otherwise be deemed preclusive. Compare "ill practices," in CCP Art. 2004 and cases cited thereunder as grounds to nullify a judgment. See Homer Nat. Bank v. Nix, 566 So.2d 1071 (La.App. 2d Cir.1990), writ denied.

The trial court's ruling that the October 1992 judgment did not bar reconsideration of the amount of the executor fee was based solely on an erroneous interpretation of the law, which we shall discuss hereafter. The mixed question of law and fact—whether the alleged fiduciary misconduct was of such magnitude that McLean was wrongly prevented from opposing the October 1992 judgment—was not squarely addressed by the trial court.

If further evidence, pro and con, on the coercion issue does not allow the conclusion that McLean was wrongly coerced not to oppose the $150,000 executor fee, we are of the opinion that the 1992 judgment has preclusive *923 effect as to the amount of the fee. Moreover, we are of the opinion that CCP Arts. 3351 and 3351.1 mandate that the minimum executor fee which "shall be allowed" Obering, who is not an attorney, is 2½ percent of the gross value of the estate.

The trial court's conclusory comment that Obering unreasonably or unduly "delegated" some of her duties as executor to her attorneys and CPA's was not factually specific and was not made in the light of the obvious general duty of an executor of a million dollar estate to obtain competent counsel from an attorney and a CPA. On the face of the succession record filed in this appeal, at this juncture we find no factual or legal support for the trial court's "delegation" statement.

In any event, and in light of the clear provisions of CCP Arts. 3351 and 3351.1, discussed infra, the issue of Obering's alleged undue delegation of her duties may be addressed on remand only if the trial court finds that the preclusive effect of the October 1992 judgment has been vitiated by Obering's coercive conduct, and if Obering reasserts her claim for a fee in excess of the statutory minimum in the trial court.

FACTUAL BACKGROUND

Mrs. Mary Amanda McLean Obering, and her brother, Harvey D. McLean, Jr., are the children of Marjorie Palmer McLean, a widow who died testate on March 10, 1988, in Caddo Parish. Obering and McLean qualified as co-executors, as named in the will, five days later. After McLean formally resigned as co-executor on April 12, 1989, Obering was authorized and has since served as sole executor. More detailed facts than are here summarized may be found in two reported cases, each entitled Succession of McLean, 580 So.2d 935 (La.App. 2d Cir.1991), writ denied, and at 607 So.2d 918 (La.App. 2d Cir.1992).

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Bluebook (online)
651 So. 2d 920, 1995 WL 81278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/succession-of-mclean-lactapp-1995.