100 So. 3d 38
Fla. Dist. Ct. App.2011Background
- Sloan, as trustee, sold the Keysville Road Grove for $1.5 million in Feb 2007; Greentree then sold to Tai-pan for $4.5 million.
- Plaintiffs Bell and Daniel Hemphill (trust beneficiaries) allege breach of fiduciary duty and improper trustee/attorney fees.
- Trial court awarded a $3,226,044.99 surcharge, including the $3 million purported loss and fees; it denied attorney/trustee fees claims.
- Documentary stamps on the deed suggested $4.5 million, but Sloan testified she believed the sale price was $1.5 million and provided contract/settlement statements supporting that.
- On appeal, the court reverses, finds no competent evidence of a breach related to the sale, and remands for a revised judgment including a limited trustee fee of $40,000; Sloan died during the appeal and Ortmann substituted as appellant.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Breach of fiduciary duty proven? | Sloan breached by selling for $1.5M vs. $4.5M. | No compensation-relevant breach; contract and testimony show $1.5M. | Not proven; no competent evidence of breach. |
| Do documentary stamps prove the sale price or value? | Stamps prove $4.5M sale price and higher value. | Contract and testimony rebut stamp-based presumptions; two buyers; no proof Sloan knew. | Stamps do not prove price or value; contract controls. |
| Royalty/fees: trustee and attorney fees proper? | Sloan liable for excess fees to the Trust; denial of fees was error. | Some fees may be proper; expert suggested $40,000 reasonable; trial court erred in total denial. | Remand to allow trustee fee of $40,000; reduce repayable fees to $487,425.37. |
| Amount of surcharge and related expenses were properly determined? | All $83,041.44 of disputed attorney fees should be charged to Sloan. | Burden on trustee to prove necessity; much was unsupported; some charges proper. | Approve $83,041.44 as surcharge; exclude unsupported portions. |
Key Cases Cited
- Kelly v. Threlkeld, 193 So.2d 7 (Fla. 4th DCA 1966) (documentary stamps prove valuation only if rebutted by contract/evidence)
- Southern Bell Tel. & Tel. Co. v. County of Dade, 275 So.2d 4 (Fla. 1973) (stamps support value only as part of a large sample; not conclusive in single transaction)
- Traub v. Traub, 135 So.2d 243 (Fla. 2d DCA 1961) (trustee may forfeit fees for bad faith or misconduct)
- Barnett v. Barnett, 340 So.2d 548 (Fla. 1st DCA 1976) (burden on trustee to show expenses were necessary and beneficial to the trust)