“Contest” To An Accounting To Be Read Liberally Under Probate Code Section 17211(b).
In Estate of Wizel, Case No. B237990 (2d Dist., Div. 3 Sept. 16, 2013) (unpublished), trustee--who was eventually found to have breached his duties--filed an original accounting which was objected to by some trust beneficiaries. Trustee filed a supplement to the original account. The lower court found that trustee’s opposition to the accounting objections were unreasonable, surcharging him $204,901.50 in fees related to his opposition to the accounting objections.
He appealed this determination, along with others not involving fee issues.
He lost all of his challenges on appeal.
Probate Code section 17211(b) does allow the court discretion to award successful beneficiaries fees if the trustee’s opposition to their accounting objections was without reasonable cause and in bad faith. However, trustee argued that his supplement to the original account effectively mooted the prior objections so no “contest” existed.
The appellate court disagreed. “Contest” under section 17211(b) is to be read liberally, with beneficiaries’ objections to the original account being alive, well, and viable as to the supplemental accounting filed by trustee. Fee surcharging affirmed.
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