Estate of Gebhardt
24CA0424
Colo. Ct. App.Mar 20, 2025Background
- Carol S. Gebhardt was appointed personal representative of her mother's estate and also served as trustee under her mother’s will.
- The estate’s main assets were five properties; the heirs (Carol Gebhardt, Linda Erickson, and David Gebhardt) negotiated a stipulation for their distribution.
- Gebhardt purchased one property (Catamount) for substantially less than the amount set in the stipulation, paid herself for estate management, and failed to adequately document these transactions.
- Erickson moved to remove Gebhardt, alleging breach of fiduciary duty, mismanagement of estate funds, and improper self-dealing.
- The district court found Gebhardt in breach, imposed a surcharge, ordered payment, and found her in contempt, but denied her motion for reconsideration as untimely.
- Gebhardt appealed on multiple procedural and substantive grounds.
Issues
| Issue | Gebhardt's Argument | Erickson's Argument | Held |
|---|---|---|---|
| Timeliness/Extension | Court erred in denying extension of time for reconsideration | No error, Gebhardt missed deadlines | Court abused discretion, denial reversed but harmless since merits considered |
| CPA Testimony | Testimony inadmissible as CPA not listed as expert | Gebhardt knew CPA’s role, no prejudice | Admit as expert testimony despite mislabeling, no prejudice, no exclusion required |
| Presumption of Fiduciary Breach | Presumption shouldn’t apply as actions authorized | Actions were not authorized or reasonable | Any error harmless; factual findings supported breach independently |
| Surcharge for Compensation | Payments to self were compensation; lack of backup ≠ damage | Payments undocumented, not proven to benefit estate | Surcharge appropriate; court not obliged to accept unsubstantiated claims |
| Contempt Procedure | Contempt order procedurally improper under Rule 107 | Issue not preserved | Order vacated for failure to provide proper notice/procedure |
Key Cases Cited
- In re Estate of Foiles, 2014 COA 104 (applies presumption of breach upon certain fiduciary acts)
- In re Estate of Heyn, 47 P.3d 724 (Colo. App. 2002) (rebuttable presumption of breach for unauthorized fiduciary transfers)
- Lawry v. Palm, 192 P.3d 550 (Colo. App. 2008) (appellate deference to trial court’s fact findings in bench trials)
- Dooley v. Dist. Ct., 811 P.2d 809 (Colo. 1991) (contempt order void when proper notice not given)
- People v. Razatos, 699 P.2d 970 (Colo. 1985) (notice requirements for contempt proceedings for acts outside court’s presences)