Opinion ID: 1237726
Heading Depth: 1
Heading Rank: 4

Heading: Executor's attorney fees.

Text: Larsen claims that Executor is not entitled to any attorney fees following Goetz' withdrawal as attorney for Executor. He argues that Executor's actions following Goetz' withdrawal were primarily aimed at proving the validity of Goetz' claim to protect himself, and not for the benefit or interests of the estate. In Engebretson I, this court stated that an executor or administrator is entitled to: [A]ttorneys' fees necessarily incurred in the administration of his trust or in litigation for the benefit of the estate of his decedent, conducted in good faith and with reasonable care and prudence. (emphasis added). Id., 1 N.W.2d at 353. In re Engebretson's Estate ( Engebretson II ), 68 S.D. 572, 577, 5 N.W.2d 57, 59 (1942), clarified the rule for reimbursement of an executor for attorney fees: This rule is stated in the alternative, and should be understood as meaning that if the fees for services of an attorney employed by the administrator are necessarily incurred in the administration of the trust, that this is sufficient to authorize their allowance without a showing of benefit to the estate. Under Engebretson I and Engebretson II, the administrator must show that the attorney fees were necessarily incurred in the administration of the estate or for the benefit of the estate, and that it was done in good faith and without negligence. Based on Braley's report, the court found that Executor should not have paid Goetz' claim, as it was not proven by clear and convincing evidence. Following the ruling, Executor made a motion for a new trial. Larsen argues that by taking such action Executor was acting in his own behalf, rather than on behalf of the estate. A review of the motion for new trial reveals that Executor did not contest the court's ruling that Executor should not have paid Goetz' claim. Rather, Executor contested the court's ruling that Larsen was entitled to the 1982 and 1983 rental payments. Based on Executor's motion, the court amended its order and held that Executor was entitled to the 1982 and 1983 rental payments to pay estate debts. The trial court found that Executor acted in good faith and without negligence. The court also found that the attorney fees on behalf of Executor were fair and reasonable, and necessary for the administration of the estate. Based on these findings and the rule in Engebretson I and Engebretson II, the court granted Executor's attorney fees. The record supports the court's findings and we affirm the award of attorney fees to Executor. Executor also makes a motion for attorney fees on appeal in the amount of $6,500, plus $390 tax and $271.88 expenses. A breakdown of the motion shows that approximately sixty-three hours or $3,020.25 of the $6,500 are for legal proceedings before the trial court. The remaining $3,479.75 are attorney fees for this appeal. We approve payment by the estate of attorney fees, tax, and costs for the appeal, but remand to the trial court to consider the attorney fees, tax, and costs incurred in the trial court.