Estate of Pozsonyi
23CA0650
Colo. Ct. App.Dec 12, 2024Background
- Erika Pozsonyi died in 2011, leaving behind her second husband, Mark Denison, and her first husband, Anthony Pozsonyi.
- Under a divorce agreement, Pozsonyi was entitled to 70% of the estate if not made a beneficiary, leading him to submit a claim after Pozsonyi’s will left key property to Denison.
- New York and Colorado courts became involved due to the location of estate assets (notably a Denver commercial property).
- Courts ultimately ordered Denison to return the Denver property to the estate, and Melissa Schwartz was appointed as special administrator to manage and sell it.
- Schwartz was awarded fees and costs for her administration and subsequent litigation, which Denison repeatedly challenged.
- Denison appealed a probate court order assessing $84,617.75 in costs and fees against him and his share of the estate; the Court of Appeals affirmed the lower court’s decision.
Issues
| Issue | Denison's Argument | Schwartz's Argument | Held |
|---|---|---|---|
| Authority for Schwartz’s appointment | Appointed under section requiring creditor (Pozsonyi) to pay | Appointed under section to preserve the estate | Appointment valid under §15-12-614(1)(b) |
| Lack of compensation disclosure | Missing fee documentation makes appointment invalid | Denison did not object timely; fees disclosed eventually | Objection waived; any error harmless |
| Expiration of Schwartz’s authority post-settlement | First final settlement ended her authority | Authority continued as settlement was contested | Settlement order conditional; authority remained |
| Fees for defending prior fee awards | Cannot charge estate for fees litigating fees | Statute allows recovery of such fees | Statute permits fee recovery in such cases |
| Timeliness of second fee/cost request | Fees request untimely under court rules | Request was timely and included itemized costs | Fees and costs were timely requested |
| Bad faith finding | No express finding of bad faith | Court described Denison’s conduct as vexatious | Sufficient findings to support fees under statute |
Key Cases Cited
- Freedom Colo. Info., Inc. v. El Paso Cnty. Sheriff’s Dep’t, 196 P.3d 892 (Colo. 2008) (standard for de novo review regarding legal standards)
- Brown v. Silvern, 141 P.3d 871 (Colo. App. 2005) (waiver of appellate arguments not raised below)
- Hill v. Boatright, 890 P.2d 180 (Colo. App. 1994) (methods to close an estate under Colorado law)
- In re Marriage of Hatton, 160 P.3d 326 (Colo. App. 2007) (adverse legal rulings do not establish judicial bias)
- People in Interest of S.G., 91 P.3d 443 (Colo. App. 2004) (standard for disqualification based on bias)
