Opinion ID: 1280645
Heading Depth: 3
Heading Rank: 3

Heading: Expenditures After Authority Lapsed

Text: Gudschinsky was assessed $1,834.38 for unapproved payments made for work done on estate property in Fairbanks after the court had issued an order requiring court approval. Although Gudschinsky paid out $2,334.38, the master allowed $500 for reasonable janitorial services as permitted under the court order. Gudschinsky argues that none of the necessary findings for imposing this surcharge were ever made. Again, the master did not specify the legal basis for imposing this surcharge. Hartill contends that the surcharge was based on AS 13.16.395. [10] As discussed above, to impose liability based on § 395 requires that there be findings of (1) an improper exercise of power, (2) damage or loss, and (3) breach of a fiduciary duty. Not all of these findings were made. The master implicitly found that there was an improper exercise of power. [11] However, there was no finding of damage or loss to the estate resulting from the payments. [12] As Gudschinsky notes, the entire benefit of these payments went to the estate. There was no finding that Gudschinsky appropriated any of the benefit from these payments to herself. Nor was there any finding concerning the breach of a fiduciary duty. Given the state of the record, we reverse the superior court's order to the extent it affirms the surcharge for expenditures after authority lapsed. We remand to the superior court with directions to remand to the master to make specific findings on the issues discussed above.