Probate: Feuding Co-Trustees Properly Awarded Fees Based On Not Providing Complete Accounting Disclosures

Awards Of Probate Fees And Costs, Which Are Equitable In Nature, Are Hard To Overturn.

             In Healy v. Donnelly, Case Nos. G060968 et al. (4^th Dist., Div. 3 Jan. 17, 2023) (unpublished), co-trustees got into various trust accounting disputes, eventually settling on the eve of trial and agreeing that the probate judge could entertain motions for attorney’s fees and costs.  Co-trustee Healy sought $116,097.90 in fees and $6,697.89 in costs, but the probate court only awarded $49,492.50 in fees.  Co-trustee Donnelly sought $211,471.25 in fees and $9,256.90 in costs, all of which were awarded.  Both sides appealed, claiming they did not get enough in fees or fees should not have been awarded at all.

            The 4/3 DCA, in an opinion authored by Acting Presiding Justice Moore, affirmed all the orders.  Both co-trustees had accounting disclosure issues, although co-trustee Healy had more given how he exacerbated the litigation and was even more at blame for not providing a complete accounting as to Trust B.  The lesson here is that probate fee/costs awards are equitable in nature, with it being hard to overturn how a probate judge viewed things as far as ultimately awarding fees and costs when acrimonious proceedings are involved.