In Re: Estate of Devoe, R.
In Re: Estate of Devoe, R. No. 1551 MDA 2016
Pa. Super. Ct.Jun 30, 2017Background
- Decedent Richard A. DeVoe died intestate in 2009, survived by his parents; he co-owned a residence with his domestic partner James B. Mooney.
- The residence was encumbered by a mortgage used to purchase a commercial property titled in Decedent’s name; Co-Administrators (Keith DeVoe and M. Corrine Mahla) refused to continue mortgage payments and later sold the commercial property.
- Mooney filed a claim seeking equitable subrogation for mortgage satisfaction; the Superior Court previously held Mooney was entitled to equitable subordination and remanded several issues to the Orphans’ Court.
- On remand the Orphans’ Court accepted Mooney’s claim in part, found Co-Administrators delayed liquidation of estate assets, and imposed surcharges for failures (including not selling certain interests at appraised value).
- Co-Administrators thereafter filed a Second and Final Accounting; Mooney objected and the Orphans’ Court sustained parts of the objections and imposed additional surcharges and reductions of legal fees.
- This appeal challenges those surcharges and disallowance/reduction of certain attorney fees and storage/administration expenses; the Superior Court affirmed.
Issues
| Issue | Mooney's Argument | Co-Administrators' Argument | Held |
|---|---|---|---|
| Surcharge for storage, packing, and vehicle storage fees | Cooney (Mooney) argued Co-Administrators mishandled personalty, delayed liquidation, and thus should be surcharged for resulting losses | Co-Administrators said heir (Mrs. DeVoe) wanted in-kind distribution, storage was reasonable and charged to her share, and they lacked access earlier | Court affirmed surcharge — fiduciary breached duty of care (negligence standard); record supported Orphans’ Court findings that administrators failed to properly dispose of assets |
| Surcharge for prior legal fees paid (Attorney Grover & O’Toole) | Mooney argued some legal fees were improper and should be surcharged | Co-Administrators argued fees were for legitimate estate litigation, previously defended successfully, and already unchallenged on appeal | Court affirmed disallowance/surcharge decision — Orphans’ Court reasonably found fees improper/excessive for estate to bear |
| Surcharge equal to shortfall between appraised values and sale proceeds for personalty and vehicle | Mooney relied on appraisals showing higher value and argued shortfall resulted from administrators’ mismanagement | Co-Administrators said they lacked access to commission independent appraisal and sale shortfall not shown to be due to negligence/bad faith | Court affirmed — administrators had possession long enough to obtain appraisals; Orphans’ Court valuation supported and negligence standard satisfied |
| Disallowance/reduction of $22,692 in legal fees listed in Second and Final Accounting | Mooney contended these fees were excessive or not properly incurred for estate benefit | Co-Administrators contended fees were necessary for post-remand administration and litigation, not frivolous | Court affirmed reduction — Orphans’ Court reasonably determined portions of fees were excessive or not properly chargeable to the estate |
Key Cases Cited
- In re Fiedler, 132 A.3d 1010 (Pa. Super. 2016) (standard of review for Orphans’ Court decrees and legal errors)
- In re Estate of Westin, 874 A.2d 139 (Pa. Super. 2005) (surcharge standard; executor duty to preserve estate and negligence standard)
- Estate of Stephenson, 364 A.2d 1301 (Pa. 1976) (applying negligence standard to executor surcharge)
- In re Estate of Mumma, 125 A.3d 1205 (Pa. Super. 2015) (deference to Orphans’ Court valuation and expert evidence)
- In re: Estate of DeVoe, 74 A.3d 264 (Pa. Super. 2013) (prior Superior Court decision recognizing Mooney’s equitable subordination claim)