Opinion ID: 1376005
Heading Depth: 3
Heading Rank: 3

Heading: Rice Estate Fees

Text: Foley also appeals the trial court's finding that there was no justification for collateral attack on the final fee award to Morse & Mowbray in the estate of Candace Daly Rice. Candace Daly Rice died in a car accident in Oregon in June, 1981. The firm was hired to handle the administration of the estate, which had assets of approximately $8.7 million, and William R. Morse was named in the will as a co-executor of the estate. In addition, during the administration of the estate, Morse was appointed as the guardian for Rice's orphaned son, the sole heir of the estate, Marcus Daly Lamb, who was adopted by Morse's son. Also, Morse was a trustee of the testamentary trust together with Valley Bank and another party. In sum, Morse served in four different capacities with respect to his work for the Rice estate: as co-executor, trustee, guardian, and attorney for the estate. Foley claims that the final fee the firm requested ($325,000.00) for work done on the estate was far below the 5% rule, [2] and that the district court, using the grounds of res judicata and collateral estoppel, improperly excluded evidence that Morse & Mowbray breached its fiduciary duty to Foley when it requested only one-third of the fees to which it was entitled. In an order dated February 28, 1986, Judge Leavitt settled the fifth and final accounting and awarded $325,000.00 in fees from the $8,743,163.59 Rice estate to Morse & Mowbray. Foley was entitled to approximately $54,000.00 in fees under the separation agreement of June 14, 1984. Seeking to collaterally attack the judge's award in the total amount of $325,000.00, Foley claims that a reasonable fee should have been between $900,000.00 and $1,100,000.00. Foley cites no statute or case to support the 5% rule and concedes it is a rule of thumb. Even if it were mandatory that it apply, taking into account all of the fees paid to other attorneys involved in the administration of the estate, the total fees paid to Morse & Mowbray ($325,000.00) and other attorneys ($462,613.45) were more than five percent of the value of the estate's assets. We conclude that Foley's claim that he is due a percentage of a higher fee on the Rice estate because of the 5% rule is meritless. The district court found that Foley should have intervened and appealed the award in February, 1986, when the Rice estate closed. However, because the district court refused to admit any evidence or testimony on the Rice estate claim, the finding that Foley had the opportunity to intervene and appeal is not supported by any evidence in the record. Whether Foley could have intervened and appealed is a question of fact and law. Since the Rice estate is closed, Foley may not assert a claim against it. See NRS 147.040(2) (even if a claimant did not have statutory notice, the claim against an estate must be filed before the filing of the final account). However, Foley may have a claim against Morse or against Morse & Mowbray for his share of the fees that Foley claims were waived, on the basis that Morse or the firm breached a fiduciary duty or exceeded actual authority. Therefore, we reverse and remand this matter to the district court for an evidentiary hearing and findings as to whether Foley could have intervened and appealed as an interested party in the Rice probate proceedings and whether he is thereby precluded from now collaterally attacking the claimed waiver of the administration fees.