Opinion ID: 1161211
Heading Depth: 1
Heading Rank: 4

Heading: Extraordinary Compensation of Executor and Executor's Attorneys for Defense Against Contests

Text: The principal judgment rejecting contestants' exceptions to the executor's account included provisions (1) reserving jurisdiction to determine the value of the extraordinary services of the executor's attorneys in defending against the contests, (2) awarding the executor $2,500 for extraordinary services in such defense, and (3) ordering that all extraordinary compensation awarded the executor and its attorneys for such defense be charged against contestants' shares of the testamentary trust. Subsequently a petition of the executor's attorneys for extraordinary compensation of $23,665 was filed and heard by the court, which thereupon awarded them $14,500 for their defense of the contests. Contestants have appealed from this order as well as from the principal judgment. (12) Contestants' initial objection to these awards is that the costs of defense should have been borne by the executor itself without reimbursement from the estate on the theory that such defense benefitted the executor and not the estate. The expenditures were for the purpose of protecting the executor from unjust surcharge for conduct in the administration of the estate which the present proceeding has determined to have been perfectly proper. Such expenditures for an executor's or administrator's successful defense against exceptions to his account are chargeable against the estate. ( Estate of Beirach (1966) 240 Cal. App.2d 864, 866-868 [50 Cal. Rptr. 5]; Estate of Raphael (1954) 128 Cal. App.2d 92, 97 [274 P.2d 880].) (13) Contestants question the amounts of the extraordinary compensation awards. The trial court's findings state that the award of $2,500 to the executor was for answering interrogatories, attending depositions of five witnesses (three of whom were bank employees), conferring with attorneys in preparation for depositions, interrogatories, and trial, and attending the six-day trial. The executor's attorneys were a partner and an associate of a law firm. The award to them of $14,500 was based not only on the trial court's observation of the contest proceedings but also upon an evidentiary hearing at which the attorneys submitted time records itemizing the services of their firm in the matter and showing that they would be entitled to compensation of over $24,000 based on hourly rates of $70 for the partner, $40 for the associate, and $15 for law student research clerks. In fixing the amount of extraordinary compensation for the executor and its attorneys the court could properly consider not only the time spent but also such factors as the value of the estate, the skills exercised, the amount in dispute, and the results obtained. ( Estate of Lanza (1964) 229 Cal. App.2d 720, 726-727 [40 Cal. Rptr. 528]; Estate of Walker (1963) 221 Cal. App.2d 792, 795 [34 Cal. Rptr. 832]; Estate of Merritt (1950) 98 Cal. App.2d 70, 76 [219 P.2d 40].) The awards must be upheld unless they appear so clearly out of proportion to the services performed as to be an abuse of discretion. ( Estate of Taylor, supra, 66 Cal.2d 855, 860; Estate of Turino (1970) 8 Cal. App.3d 642, 649 [87 Cal. Rptr. 581].) The amounts of the present awards were within the court's discretion.