In Re: Estate of Joseph Elbert Cheeley, Jr.
A25A0035
| Ga. Ct. App. | Jul 1, 2025Background
- Joseph Elbert Cheeley, Jr. died in 2013, leaving a will that named his son Joseph (the executor) and his sister Dorothy as co-executors, with all property to his five children.
- Disputes arose over ownership of two properties between Dorothy and Joseph, leading to litigation in both Gwinnett and DeKalb County Superior Courts.
- After Dorothy's death, her son William, as executor of her estate, pursued claims that Dorothy’s estate was creditor to the Decedent’s estate and Joseph had breached fiduciary duties as executor.
- The probate court found that while executors owe fiduciary duties to creditors, only beneficiaries and heirs have standing to sue for breach of those duties, dismissing William's petition for lack of standing.
- Both William and Joseph appealed: William challenged the standing ruling; Joseph challenged the holding that fiduciary duties run to creditors at all.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does an executor owe fiduciary duty to estate creditors? | Yes, fiduciary duty owed | No, duty owed only to beneficiaries | Yes, duty owed to all interested parties including creditors |
| Do creditors have standing to sue for breach of that duty? | Yes, via general tort law | No, only heirs/beneficiaries have standing | No, only heirs/beneficiaries may sue for damages; creditors may seek other remedies |
| Can creditors recover attorney fees under OCGA § 13-6-11 if standing is lacking? | Yes, if underlying claim is valid | No, must have standing for underlying claim | No, attorney fees claim fails if underlying breach claim dismissed |
| Is there a statutory/non-statutory basis for creditor damages action? | General tort statute creates cause | Probate Code precludes such actions | No, Probate Code is exclusive; no damages action for creditors |
Key Cases Cited
- In re Estate of Davis, 243 Ga. App. 58 (estate creditors have right to lawful administration and removal proceeding is proper remedy)
- Bearden v. Longino, 183 Ga. 819 (executor must act impartially among beneficiaries, not precluded by conflicting interests)
- Liner v. North, 188 Ga. App. 677 (fiduciary relation extends to all parties interested in the estate)
- Ray v. Nat. Health Investors, Inc., 280 Ga. App. 44 (action by creditor was for removal, not damages for breach of duty)
- Bloodworth v. Bloodworth, 260 Ga. App. 466 (heirs can bring breach of fiduciary duty claims against executor)