Estate of Amundson
2015 ND 253
| N.D. | 2015Background
- Donald G. Amundson died in 2011; his will left his estate to the Donald G. Amundson Trust, which held farmland and other assets. Debra Magers eventually became sole personal representative and trustee. John Widdel, Jr., an attorney, represented the estate/trust and charged substantial fees.
- Beneficiaries petitioned (Aug 2013) challenging the reasonableness of fees paid to Magers and Widdel and seeking settlement/distribution.
- District court found administration was not complex, identified many non‑probate or separately handled assets, and concluded Widdel’s fees were excessive and unreasonable. The court ordered Widdel to reimburse $95,000.
- Widdel sought to substitute his professional corporation (Law Offices – North Dakota) as the judgment defendant; district court denied substitution, held Widdel personally liable, and later entered a joint-and-several judgment against Widdel and the corporation.
- Widdel appealed, arguing the fee reduction and personal liability rulings were abuses of discretion and that he was denied a hearing on substitution; the Supreme Court affirmed.
Issues
| Issue | Plaintiff's Argument (Widdel) | Defendant's Argument (Beneficiaries/Trust) | Held |
|---|---|---|---|
| Reasonableness of attorney fees | Court ignored Widdel’s hourly records and misweighed evidence; fees were justified by time billed and a 3% fee basis | Fees were disproportionate to the uncomplicated administration; expert testimony showed much lower customary fees | Court did not abuse discretion; substantial record support that fees were unreasonable and $95,000 refund was appropriate |
| Motion to substitute professional corporation on judgment | Widdel argued his professional corporation should be named and shield him from personal liability; he requested a hearing | Beneficiaries argued individual attorney remains liable for unreasonable legal fees and no separate hearing was required | Denial affirmed: Widdel received a hearing and failed to timely request separate oral argument; substitution denied |
| Personal liability of attorney practicing via professional corporation | Widdel claimed corporate form limits personal liability for corporate obligations | Beneficiaries asserted professional‑corp doctrine and ND law do not shield attorneys from liability for professional misconduct or unreasonable fees | Held: North Dakota law and professional‑practice principles prevent using a professional corporation to avoid personal liability for unreasonable professional fees; attorney remains personally liable for misconduct-related obligations |
Key Cases Cited
- Estate of Cashmore, 2010 ND 159 (district court has discretion and is expert in assessing reasonable estate attorney fees)
- Estate of Peterson, 1997 ND 48 (standard for reviewing personal representative compensation)
- Olson v. Olson, 2000 ND 120 (presumption that trial court considered the evidence)
- Woodworth v. Chillemi, 1999 ND 43 (motion-to-amend-judgment discretion standard)
- Coughlin Constr. Co. v. Nu-Tec Indus., Inc., 2008 ND 163 (corporate officers generally not personally liable for corporate debts)
- In re Florida Bar, 133 So. 2d 554 (professional corporation does not shield lawyers from professional responsibility and personal liability for misconduct)