Opinion ID: 1849092
Heading Depth: 1
Heading Rank: 1

Heading: Mark and the other appellants first assign as error the court's failure to allow the full $13,500 claimed for Mark's attorneys.

Text: It is important to keep in mind this is a probate action not reviewable de novo here. The trial court's findings have the force and effect of a jury verdict and are conclusive upon us if supported by substantial evidence. Rule 334, Rules of Civil Procedure, 58 I.C.A.; In re Lorenz' Estate, 244 Iowa 338, 339, 56 N.W.2d 884, 886, and citations; In re Pierce's Estate, 245 Iowa ___, 60 N.W.2d 894, 899. Since this controversy involves fact questions to a considerable extent it is apparent the familiar rule just stated places a rather heavy burden upon appellants. In re Estate of Myers, 238 Iowa 1103, 1106, 1107, 29 N.W.2d 426, 427, 428, reviews a probate order allowing fees to an administrator's attorney. After considering earlier precedents on the subject these rules are stated and citations for each of them given. We have frequently said such a proceeding as this is reviewable on assignment of errors and not de novo in this court. We will interfere with a probate order regarding attorney fees that lacks adequate or sufficient support in the evidence. The amount allowed by the probate court will be reduced by us if clearly excessive. It would seem to follow that such an allowance will be increased by us if manifestly inadequate, since we should treat claimants for attorney fees as fairly as we do objectors to such claims. We have frequently held the trial court has considerable discretion in the allowance of compensation to administrators and their attorneys. But the exercise of such discretion must be reasonable. The burden of showing the services rendered and the value thereof rests upon the claimant. See also In re Trust of Larkins, 243 Iowa 322, 326, 327, 51 N.W. 2d 396, 398, which cites the Myers case. We find insufficient basis for increasing the trial court's allowance for Mark's attorneys. The widow first consulted Lundy, Butler & Lundy about a month after testator died. When Mr. Barry was first consulted does not appear. Apparently he lived in Oklahoma, where some of Myrta's side of the family reside, before moving to California. Myrta, her two sons and a daughter evidently employed the Lundy firm and Mr. Barry to look after their interests in the estate which, including realty, was of the approximate value of $100,000. Myrta, Mark, Dale and Lydia made separate written contracts with the Lundy firm and Mr. Barry dated October 8, 1952. This was three years and one month after the will was probated. The equity action had then been tried and decided in the district court and was pending here upon appeal. The will contest had been dismissed March 19, 1952. The fees claimed for the Lundy firm and Mr. Barry are for their services in these two cases. The contract with Lundy, Butler & Lundy states the original employment was at $15 an hour and charges then exceeded $4,600 but Myrta, her sons and daughter agreed to pay the firm $5,000 for all their services, including such applications as the firm should deem proper to charge Elmer or the estate with all legal expense. The contract with Mr. Barry fixes $5,500 as the amount to be paid him plus $2,000 for defending the appeal in the equity action. Barry was to pay the Lundy firm half this last amount. There is evidence the Lundy firm put in altogether 568 hours pursuant to their employment by Myrta, et al. Its statement says briefing was done on 48 different days. Some of this was long after we decided the equity case and appears to have been in connection with the controversy now before us. The showing as to what Mr. Barry did is fragmentary and unsatisfactory. It consists largely of this narrative appended to the statement submitted by the Lundy firm: John Barry participated in two or more conferences in the office, was present and participated in each of the trials, prepared the first draft of the brief in the supreme court and furnished citations of authorities. The statement in appellants' brief that Mr. Barry participated in the will contest and equity action trials is obviously incorrect since there was no trial of the will contest. Mr. Leming, an attorney from Hampton, expressed the opinion the services of the Lundy firm and Mr. Barry were of the value of between $15,000 and $20,000. This was on the basis of $20 an hour for all time spent. As we have indicated, there is no showing of the time spent by Mr. Barry. Then too the Lundy firm had agreed to work for $15 an hour. The difference between $15 and $20 an hour for the 568 hours the Lundy firm says it put in is $2,840. The court was not bound to accept Mr. Leming's opinion as a verity. Obviously it purports to be only an approximate estimate. Van Gorden v. Lunt, 234 Iowa 832, 840, 13 N.W.2d 341, 345, and citations; State ex rel. Weede v. Bechtel, 244 Iowa 785, 834, 56 N.W.2d 173, 200, and citations. Nor, as appellants conceded upon the trial, was the court required to allow the amounts they had contracted to pay their attorneys. The attorneys were entitled only to a just and reasonable allowance. Section 638.25, Code, 1954, I.C.A.; In re Estate of Munger, 168 Iowa 372, 150 N.W. 447, Ann.Cas.1917B, 213, Ladd, J.; In re Estate of Murphy, 209 Iowa 679, 684, 228 N.W. 658; Glynn v. Cascade State Bank, 227 Iowa 932, 937, 289 N.W. 722. See also State ex rel. Weede v. Bechtel, supra, 244 Iowa 785, 833, 56 N.W.2d 173, 199; In re Schield's Estate, Mo.Sup., 250 S.W.2d 151, 156. The trial court found Lundy, Butler & Lundy and Mr. Barry were entitled to $3,500 for preparing to defend the will contest (dismissed before trial), and their services in the equity action, insofar as they benefited the estate, were reasonably worth $5,333.33. As stated, the total amount charged to the estate was $8,833.33. As we have indicated, this allowance is based on findings of fact which have substantial support in evidence. It does not appear any erroneous rule of law of which appellants may complain was applied in disposing of this issue. The court held count 1 of the equity action was at least in part a contest between the individual claimants to the land, a portion of the whole estate, in which the executors as such were not interested. However, count 3 of the equity action, see Rorem v. Rorem, supra, 244 Iowa 980, 59 N.W.2d 210, in which Gaylord asked an accounting for funds claimed to belong to Elmer and him was held to be like any other claim against the estate which, along with count 2, the executors were interested in resisting. We are not persuaded it was an abuse of discretion or otherwise erroneous to hold the individual litigants should bear part of the attorney fees in the equity action on the theory it was at least in part primarily a contest between them. See In re Estate of Jenkins, 245 Iowa ___, 65 N.W.2d 92, and citation; In re Estate of Leighton, 210 Iowa 913, 919-923, 224 N.W. 543; In re Estate of Colburn, 186 Iowa 590, 607, 173 N.W. 35, Ladd, C. J.; In re Officer's Estate, 122 Iowa 553, 98 N.W. 314; Annotation, 79 A.L.R. 521. See also 33 C.J.S., Executors and Administrators, § 225, page 1215 et seq. We have no occasion to consider whether the allowance against the estate was excessive since neither Elmer nor Gaylord has appealed and appellants make no such contention. Nor are we called upon to consider whether there was any necessity to employ an attorney to assist the Lundy firm who lived 2,000 miles from Hardin and Hamilton counties. II. We find no error in the court's refusal to charge Elmer with the fees allowed Lundy, Butler & Lundy and Mr. Barry. Appellants' argument on this point is in effect that Elmer acted in bad faith in conspiring with Gaylord to commence the will contest and equity action, knowing they were without merit, and the expense of defending them is a loss to the estate which Elmer should bear. The rule of law relied upon is that an executor is liable for losses resulting from his bad faith. 33 C.J.S., Executors and Administrators, § 247. Other related rules are also asserted. We need not discuss them because of our conclusion upon this phase of the case. The trial court found Gaylord started the will contest and equity action without instigation by or consultation with Elmer.    the court is clear Elmer neither fomented the lawsuits nor gave Gaylord any aid or comfort whatever in promoting either of them.    Indeed Elmer unsuccessfully tried to prevent them. The conclusions of law state There is absolutely no basis for tying the lawyers' fees of Mark et al. to Elmer.    The most that can be said is that Elmer did little actively to defend the litigation. But this caused no loss. Had he defended it he would be asking for the fees claimants now ask. There is substantial evidence to support the above findings. It is true much of it comes from Elmer as a witness. But the court had a right to believe Elmer. Evidence, such as the letter exhibit 20 on which much reliance is placed, tending to show the equity action or will contest was without merit is insufficient to charge Elmer with the fees of attorneys for Mark et al. unless, as appellants claim, Elmer promoted the litigation. It is true there are some circumstances that cast suspicion upon Elmer, such as his paying Gaylord half the printing costs in this court in the equity action. The conclusion is justified, however, this was without prearrangement and was an act of generosity for which Elmer was not obligated. The trial court considered this and other circumstances in making his findings. There is insufficient basis for us to interfere. III. The trial court held the fees allowed the executors and their attorneys should be paid from the corpus of the estate and since the personalty is inadequate to satisfy the debts and charges a sufficient portion of the land should be mortgaged or sold for that purpose by Mark, the remaining executor. See section 635.23, Code, 1954, I.C.A. (Elmer tendered his resignation as executor in his final report.) The court also held the estate should remain open during the widow's life with authority to Mark as executor to possess the personalty, pay his mother the income and such portion of the corpus if any as may be necessary for her support. He was required to account annually to the court and obtain its authority before invading the corpus of the realty for Myrta's support. Appellants argue it was error not to grant Myrta the right to sell or mortgage the realty to make the amount of her attorney fees in defending the will contest and equity actionit is said the will confers such right upon her. Complaint is also made of the order keeping the estate open. It is said Myrta is entitled to possess the personalty and to sell or mortgage the realty herself without court order whenever she determines it is necessary for her comfortable care, support and maintenance. Just why Myrta wants to sell or mortgage the realty to make the amount of her attorney fees rather than have her son Mark as executor sell or mortgage it to satisfy all debts and charges, including her attorney fees, as the court ordered and section 635.23 contemplates, is not apparent. Nor is it evident that this part of the judgment is prejudicial to the widow. Both Myrta and Mark have the same attorneys who will doubtless handle the matter for the most part since mother and son live in Oklahoma. In any event we think the court properly ordered the executor to sell or mortgage the land. It is his duty to satisfy debts and charges and the estate is not settled until this is done. It would seem unwise and to involve unnecessary expense and duplication of effort for Myrta to sell or mortgage land to raise her attorney fees and for Mark also to sell or mortgage to satisfy other claims and charges, even if such piecemeal procedure were permissible. However, our statutes and decisions contemplate sale or mortgage of realty of an estate only after the full amount of debts and charges has been ascertained and for the purpose of making a sum sufficient to pay all of them. Code section 635.23; Soppe v. Soppe, 232 Iowa 1293, 1297, 8 N.W.2d 243, 245; In re Estate of Spicer, 203 Iowa 393, 395, 212 N.W. 689; Rabbett's Estate v. Connolly, 153 Iowa 607, 617, 133 N.W. 1060. The will does not indicate the testator intended the widow, at least during the settlement of the estate, to sell or mortgage realty to make the amount of a single charge such as her attorney fees. We find no error in the court's failure to grant such relief. Nor are we persuaded it was error, under the circumstances here, to permit Mark as executor to possess any personalty there may be, pay his mother the income and such portion of the corpus as may be necessary for her support and obtain court authority before invading the corpus of the realty for such support. We do not understand any considerable amount of personalty will be left in the estate after payment of debts and charges. The court found a full accounting had been made of the disposition of the personal assets and they are inadequate to satisfy claims and charges. This is not challenged. Realty may be sold or mortgaged only to pay debts for the payment of which the personal estate is inadequate. Section 635.23; In re Estate of Pitt, 153 Iowa 269, 272, 133 N.W. 660, and citations; Rabbett's Estate v. Connolly, supra, 153 Iowa 607, 617, 133 N.W. 1060. See also Soppe v. Soppe, supra, 232 Iowa 1293, 1297, 8 N.W.2d 243, 245. We may assume substantially all the personal estate has been, or will be, before realty is mortgaged or sold, used to satisfy debts and charges. It appears Mark owes the estate a past-due note of $4,500 (the court's findings erroneously say it does not appear whether this debt is due). Dale also owes a note for $7,500 due sometime in 1954. Mark was ordered to collect these notes when due. The order that the executor have possession of the personalty may have been intended to apply only to these notes or the proceeds thereof. The point we make is that the widow is not being deprived of the possession of much if any personalty after payment of debts and charges. Aside from what we have just said, we are not persuaded it was an abuse of discretion not to deliver possession of the personalty to Myrta. It does not appear what it consists of other than the notes of Mark and Dale or the proceeds thereof. We do not know whether it is money or other assets. As stated, Myrta has only a life estate in the personalty with remainder to the surviving heirs of the testator's body. The personalty was bequeathed in general terms, not by description or in specie. Myrta lives most of the time in Oklahoma. Presumably any assets delivered to her would be located there. She is elderly she and Austin were married 60 years ago. Apparently she is without business experience or capacity. There is strife and ill feeling between her side of the family and Elmer and Gaylord, two of the five remaindermen if Myrta were to die now. Theoretically some of the remaindermen may yet be unborn. Myrta would be inclined to be lenient toward her two sons who owe the estate substantial sums. Under these and other circumstances the trial court might properly have required the life tenant to give reasonable security for the protection of the remaindermen before she would be entitled to possess the personalty. Scott v. Scott, 137 Iowa 239, 114 N.W. 881, 23 L.R.A.,N.S., 716, 126 Am.St.Rep. 277, Ladd, C. J., Heintz v. Parsons, 233 Iowa 984, 988, 9 N.W.2d 355, 357; In re McDougall, 141 N.Y. 21, 35 N.E. 961; Long v. Lea, 177 S.C. 231, 181 S.E. 6, 101 A.L.R. 266; 3 Woerner, American Law of Administration, section 456, page 1558; 31 C.J.S., Estates, § 134c, pages 155-158. The method of protecting the remaindermen employed by the trial court seems to be used less frequently than the requirement of security from the life tenant but there is respectable authority for it. Marvick v. Donhowe, 191 Iowa 214, 218, 182 N.W. 182, recognizes the propriety of continuing the executor as trustee to protect remainder interests in personalty bequeathed to the widow for life or until remarriage. See also in support of the trial court's judgment on this point Hetfield v. Fowler, 60 Ill. 45, cited with approval in Scott v. Scott, supra, at page 241 of 137 Iowa, 114 N.W. 881; Smith v. Field, 98 N.J.Eq. 532, 131 A. 521; Ott v. Tewksbury, 75 N.J.Eq. 4, 7, 71 A. 302; In re Frost, 179 App.Div. 431, 165 N.Y.S. 980, 983; 3 Woerner, American Law of Administration, section 456, page 1558; 31 C.J.S., Estates, § 134a, pages 153, 154, which states:    where there is a general bequest for life, usually the property should be held    by the executor or trustee and the interest or income paid to the life tenant   , the principal being kept for the remainderman, unless the will shows a contrary intention on the part of testator.    Effect of right to encroach on principal.    in the case of a residuary bequest of personal property with right of the life beneficiary to use the income and to consume such portion of the principal as he shall need, it has been held that the executor is entitled to hold the fund:  . No complaint seems to be made because of the fact Mark is directed to possess the assets as executor rather than as trustee. Appellants' argument challenges the requirement that court authority be obtained before invading the corpus of the realty for Myrta's support. The principal contention at this point is that Myrta's judgment is final, if exercised in good faith, as to whether it is necessary for her support to invade the corpus of the realty. Hamilton v. Hamilton, 149 Iowa 321, 128 N.W. 380; In re Estate of Worman, 231 Iowa 1351, 4 N.W.2d 373, and some other precedents are cited. The argument is broader than the assignments of error considered in this division. We think the assigned errors are answered by what we have said. However, we are not disposed to hold it was reversible error to require court authority before invading the corpus of the realty. Under any view of the power to invade the corpus the will grants Myrta, her judgment is subject to judicial review at least on the question of her good faith. Lovrien v. Fitzgerald, 242 Iowa 1258, 49 N.W.2d 845; Watkins v. Dean, 243 Iowa 599, 52 N.W.2d 498. The power vested in the widow by the wills in the Lovrien and Watkins cases was broader than in the Rorem will. Yet Lovrien v. Fitzgerald affirms a requirement of the trial court that it approve any allowance from the corpus of the estate. At page 1269 of 242 Iowa, at page 851 of 49 N.W.2d, the opinion states: If this (income) is insufficient for her proper needs, and when she has exhausted the sum now available to her as the proceeds of past income, she may properly make application for an allowance from the corpus of the estate. Watkins v. Dean, supra, approves Lovrien v. Fitzgerald. This part of the court's decision here seems to be based on these recent pronouncements. See also In re Estate of Ullrich, 189 Iowa 868, 873, 874, 179 N.W. 176; In re Frost, supra, 179 App.Div. 431, 165 N.Y.S. 980, 983.