Opinion ID: 1308212
Heading Depth: 1
Heading Rank: 5

Heading: The Pre-trial Conference and Trial Before Judge McKibben

Text: On November 22, 1977, Judge McKibben convened a pretrial conference to discuss what issues should be heard, and how they should be heard, in order to resolve contentions previously generated by and before Judge Waters' successor. Flangas appeared with John Stone as his counsel; Ross, with Drake DeLanoy. The executor, Ralph Herrmann, appeared with Casey Vlautin, who had been substituted as his attorney in place of Martillaro. Thomas R.C. Wilson, III, appeared as the court-designated attorney for absent heirs Estep, Franklin and Coulthern, who did not personally attend. (The absent heirs already had been paid their special legacies.) Fern Herrmann did not appear, either personally or through counsel. As the conference proceeded, it was established that, despite elaborate pre-trial investigation, Mr. Vlautin and Mr. Wilson had found no credible evidence to justify the successor judge's suspicions that Walter Herrmann had been induced to execute his probated last Will as a result of undue influence applied through a corrupt conspiracy. In fact, Mr. Wilson acknowledged, it would not even have been in the interest of the non-resident heirs to contend such a thing. They were pleased with the probated Will. As Mr. Wilson observed: The prior Will would not have given the absent heirs anything. Furthermore, it was admitted that there had been no justification for the successor judge's fears that Walter Herrmann had not truly been a domiciliary of Nevada, but of California, and that the counsel initially serving in the Estate of Herrmann had corruptly conspired to assert a fraudulent domicile here. As Mr. Vlautin summed up this issue: I don't think anybody really had a problem with the domicile of the decedent with the exception of [the successor judge]. The absent heirs, apparently, don't. The Executor doesn't. There was real property held by the Estate in both States. Therefore, probate had to occur in both States... . Various other issues raised by the successor judge likewise were eliminated from concern. The executor, Herrmann, removed the fees Judge Waters had awarded to him from contention, by waiving them. Again, the issue concerning the value of the executor's services, which the successor judge had raised sua sponte, had little practical consequence; for the Will constituted Ralph Herrmann the sole trustee and recipient of the trust corpus. Thus, issues left for trial ultimately resolved principally to those related to attorneys' fees. Even though Ralph Herrmann was in accord with Martillaro as to the amount of his fees, Judge McKibben decided to go into this question anyhow. [13] The fees of Flangas and Ross were challenged by Vlautin and Wilson as unreasonable, and Judge McKibben identified them to be subjects of the trial. In doing so, Judge McKibben explicitly recognized that serious legal doubts existed concerning his own jurisdiction to proceed, stating: I am sure at some point in time, depending upon what the Ruling of this Court would be after a Hearing, the Supreme Court will ultimately review this question including the question of whether or not a District Judge has the right to review an earlier Order of another District Judge with respect to the payment of fees. I don't suggest that you haven't reserved your rights to raise that at any point in time, but I would suggest that I do intend to go ahead with the Hearing ... Before concluding the pre-trial conference, Judge McKibben expressed uncertainty about what kind of a proceeding the successor judge's orders had placed before him. It's a different kind of proceeding, he said. There's no doubt about it. This is not the usual type of adversary proceeding. In connection with these comments, Judge McKibben decided the burden of proof should be on Mr. Vlautin, as counsel for the Estate: I am going to expect the Estate to proceed first. The way I view this case, there is an existing Order of Judge Waters setting fees. That Order as far as my mind is concerned right now is a valid Order until it's established that it is not a valid Order. ... I do think as long as there is an Order that there must be some presumption that the Judge knew what he was doing at the time he entered the Order. There should be some obligation on somebody to come in and show that is not proper. This, then, was the basis on which Judge McKibben explicitly ruled that trial should proceed: the executor, Herrmann, would be permitted to challenge Judge Waters' order of fees to Flangas and Ross; however, the burden would be upon him to show that Judge Waters' order was insupportable. Whether the executor would be obliged to carry that burden by clear and convincing evidence or by a preponderance of evidence was not then clarified. Indeed, even during trial, Judge McKibben continued to puzzle openly over what standard should be applied in deciding whether or not the executor had carried his burden of proof in this admittedly different kind of proceeding. The trial commenced on February 13, 1978. Upon opening court, Judge McKibben announced that the trial was proceeding under the order of the successor judge, pursuant to a Motion to Amend Order dated April 11, 1975, challenging the order and decree of distribution entered November 19 [sic], 1973, by the late Judge Waters. Under Judge McKibben's announced interpretation of that motion, in which the parties present and their counsel all acquiesced, the executor, Ralph Herrmann, was recognized to be the moving party in this matter. Accordingly, Judge McKibben directed Mr. Vlautin, Ralph Herrmann's counsel, to proceed. [14] Although Vlautin and Wilson attempted to disprove it, at trial Flangas and Ross adduced considerable evidence to establish that Judge Waters' award of fees had been supportable. For example, DR 2-106 of the A.B.A. Code of Professional Responsibility, which Supreme Court Rule 203 adopted by reference in 1971, recites that one factor to be considered, in determining a just fee, is the amount involved and the results obtained. Flangas and Ross produced two admittedly well qualified real estate appraisers, who testified that the zoning change effected through the attorneys' efforts had dramatically enhanced the value of the Lyon County ranch. Indeed, even an appraiser hired by Wilson acknowledged that the ranch's value had been substantially increased; however, utilizing a different appraisal technique, Wilson's expert contended for a smaller increment in value. In making his ruling, of course, Judge Waters had been entitled to take judicial notice of the zoning litigation, and of its impact on the financial condition of the Herrmann Estate as known to him. See, e.g., In Re Pailhe's Estate, 114 Cal. App.2d 658, 251 P.2d 76, 79 (1952). And, as the finder of fact, Judge Waters had been free to draw any rational inferences, including those mentioned by the experts who testified for Flangas and Ross. Thus, in short, the trial before Judge McKibben showed that it had been justified for Judge Waters to determine that, because of the amount involved and the results obtained, Flangas and Ross should receive a larger fee than might otherwise have been warranted solely on the basis of time expended. In arriving at a just fee, DR 2-106 also states that the fee customarily charged in the locality for similar legal services should be considered. Flangas and Ross introduced the testimony of two respected local attorneys, one of whom is now a district judge, evidencing that Judge Waters' award was consistent with then prevailing custom in the area. DR 2-106 further recognizes that an attorney's special experience or skill should be taken into account; and the record shows that, at least for the unique concerns of the Herrmann Estate, Flangas and Ross possessed special credentials which Judge Waters properly could and evidently did consider. Additionally, according to DR 2-106, other factors  e.g. the prospect of uncertain or delayed payment, and the fact that their employment was not for an established and constant client  were proper for Judge Waters to weigh in their favor when deciding what fee to award Flangas and Ross. Moreover, Nevada law specifically provides that a judge, in making an award to attorneys for non-resident heirs, may consider the value of their services to the general estate, and may award fees from the general estate, so that the legacies to the absent heirs are not affected. See NRS 150.060. This Judge Waters had done, at the express request of respondent Herrmann. In sum, the trial established that substantial evidence was available to justify Judge Waters' award, but Judge McKibben nevertheless endeavored to award Flangas and Ross only $6,000, instead of $70,000 as previously ordered by Judge Waters. In reaching this result, Judge McKibben's approach to weighing and analyzing the evidence directly contradicted the central principles on which he had directed trial to proceed. In the order setting forth his own ruling, filed March 17, 1978, Judge McKibben for the first time announced the view that Judge Waters' order was entitled to no recognition, and that Judge McKibben was entirely free to consider the matter de novo. As Judge McKibben articulated his revised viewpoint: the burden is on the attorney to prove, by preponderance of the evidence, both the services rendered, and the reasonable value thereof. See Kimball v. Pub. Ut. Dis. # 1 of Douglas Cty., 64 Wash.2d 252, 391 P.2d 205 (1964). The court therefore believes that it was incumbent upon both the attorneys for the absent heirs [Flangas and Ross] and the attorney for the Executor [Martillaro] to establish by a preponderance of the evidence to this Court the reasonableness of the value of the services rendered to the estate. [15] Obviously, Judge McKibben's belated switch in perspective was an important event in the history of this litigation. It not only may have undercut the manner in which appellants presented their case, but also drastically altered the ways in which evidence actually adduced could be viewed. If Judge McKibben had truly possessed jurisdiction to reconsider the issue of fees, it would make a great deal of difference whether he properly could consider that issue de novo, rather than according to Judge Waters' decision a presumption of validity. As it occurs, however, we need not address such concerns because, in the facts of this case, we believe Judge McKibben had no jurisdiction whatever to interfere with, or to ignore, Judge Waters' order.