ESTATE OF McLEMORE v. McLemore
63 So. 3d 468
Miss.2011Background
- William F. McLemore appointed Colleen McLemore and Gerald McLemore as coexecutors and cotrustees of his will and trusts; after his death, disputes arose over ownership, loans, and compensation among the four sons and the remnants of the trusts.
- The Elvis Ranch property became a focal point, with competing sale proposals and contested funding of the family and marital trusts; multiple proposed sales were never consummated.</n>
- Colleen continued administering the estate, providing funds to Dennis and Shannon, while Gerald challenged ownership and sought removal and accounting; Colleen later died, rendering her estate the substitute plaintiff while Gerald remained executor and trustee pending removal issues.
- The living trust split William’s assets into a marital trust and a family trust; the marital trust was to fund Colleen’s lifetime income and taxes, with the family trust funding distributions to the four sons, and funding deficiencies left unresolved at William’s death.
- Post-death litigation included substantial attorney-fee petitions, fiduciary commissions, and various post-trial orders regarding transfers, accounting, and enforcement actions, culminating in estate-closing orders in 2009.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Attorney-fee awards were proper. | Autry’s fees were beneficial to the estate and Colleen’s interests. | Fees lacked statutory/ testamentary authority and benefited non-estate interests. | Fees awarded; supported by Becht-like principles and estate-benefit. |
| Rule 60 motion to reduce Autry’s fees and disgorgement was proper. | Newly discovered fee agreement justified higher award; no fraud found. | Non-disclosure warrants reduction and disgorgement. | Rule 60 order affirmed; disgorgement upheld. |
| Rule 11 sanctions against Autry were proper. | Autry’s conduct could be sanction-worthy due to misleading fee-practice. | Sanctions not warranted; case highly contentious. | Sanctions denial affirmed. |
| Colleen’s Estate fiduciary compensation as coexecutor | Colleen’s services benefited the William estate; compensation appropriate. | Colleen’s alleged maladministration nullifies compensation. | Compensation awarded to Colleen’s estate; Gerald estopped from challenging. |
| Transfer of Elvis property from the family trust | Transfer was necessary to protect beneficiaries and finalize the estate. | Gerald, as interim trustee, had limited authority; transfer unwise. | Chancellor did not abuse discretion; transfer ordered with protections. |
Key Cases Cited
- Lowrey v. Lowrey, 25 So. 3d 274 (Miss. 2009) (standards for reviewing chancellor findings and de novo review of legal conclusions)
- Becht v. Miller, 273 N.W.2d 294 (Neb. 1937) (allowance of guardian/estate expenses to beneficial non-fiduciary stewards when services benefitted the estate)
- In re Estate of Gillies, 830 So.2d 640 (Miss. 2002) (attorney-fee entitlement limits for nonstatutory award in estate disputes)
- In re Estate of Thomas, 28 So.3d 627 (Miss. Ct. App. 2009) (benefits to estate can justify attorney-fee awards to beneficiaries when necessary)
- Upchurch Plumbing, Inc. v. Greenwood Utils. Comm'n, 964 So.2d 1100 (Miss. 2007) (prejudgment-interest discretion and when it is appropriate)
