IN RE BRUCE E. GARDNER, APPELLANT.
19-PR-845
DISTRICT OF COLUMBIA COURT OF APPEALS
Decided February 3, 2022
Appeal from the Superior Court of the District of Columbia (INT-329-16) (Hon. Natalia M. Combs Greene, Hon. Ronald P. Wertheim, and Hon. Jonathan H. Pittman, Trial Judges)
Notice: This opinion is subject to formal revision before publication in the Atlantic and Maryland Reporters. Users are requested to notify the Clerk of the Court of any formal errors so that corrections may be made before the bound volumes go to press.
(Submitted September 15, 2020 Decided February 3, 2022)
Bruce E. Gardner, pro se.*
Before BLACKBURNE-RIGSBY, Chief Judge, and EASTERLY and MCLEESE, Associate Judges.
Mr. Gardner challenges the Superior Court‘s order denying full payment on his supplemental fee petition on a number of grounds. He argues: (1) he was automatically entitled to the full payment of the $6,840 he requested in his supplemental fee petition because his defense of his request for $10,950 for his court-appointed work was “a complete success” and his amended petition was granted in full; (2) the court took more than sixty days to rule on his supplemental petition and thus should be deemed to have “acquiesced” to full payment, plus interest, of the amount requested; and (3) the Superior Court‘s reasons for awarding him only partial payment were either wrong or inadequately explained.
Preliminarily, we reject Mr. Gardner‘s arguments that he was entitled to full payment of the amount requested in his supplemental fee petition either
We conclude, however, that remand is required first because the trial court did not address whether Mr. Gardner was entitled to his legal rate of compensation for his work as a guardian ad litem and second because we agree with Mr. Gardner that the Superior Court did not adequately explain why it awarded him the compensation it did. Mr. Gardner‘s concern is that the court failed to explain why certain hours were “unreasonable” and paid him too little. Our concern is that the court failed to explain why it paid him so much. In particular, it is unclear why the court focused exclusively on the reasonableness of Mr. Gardner‘s request for payment for 10.1 hours devoted to drafting and revising his amended and supplemental fee petitions; apart from rejecting time spent reviewing irrelevant IRS regulations, the court said nothing about the reasonableness of hours billed for seemingly equally irrelevant work in connection with those pleadings or for work on his (unsuccessful) response to C.B.‘s challenge to his initial fee petition.
I. Facts and Procedural History
After L.B. had a stroke and moved into an assisted living facility near Dupont Circle, the Superior Court appointed Mr. Gardner, pursuant to
In January 2017, Mr. Gardner filed an initial fee petition seeking payment from L.B.‘s estate of $11,041.03: $91.03 for costs, and $10,950 for services rendered. Mr. Gardner attached to his petition an itemized statement identifying by date and brief description the hours of work (36.5 hours of service at a rate of $300/hour2) for which he was seeking payment. In his signature block, Mr. Gardner identified himself as a member of The Gardner Law Firm, P.C., and provided a downtown D.C. address—1101 Pennsylvania Avenue, NW, Suite 300, Washington, D.C. 20004—and a phone number. But in his itemized billing statement he represented without explanation that he had been traveling to visit L.B. from an “MD Office located at 12138 Central Ave, Mitchellville, MD.”
L.B.‘s daughter, C.B., objected to the fee petition. Her primary complaint related to Mr. Gardner‘s travel time.3 She informed the court that Mr. Gardner‘s “so-called office” in Mitchellville, MD was in fact an address for a UPS store that Mr. Gardner used only to receive mail and accused Mr. Gardner of “unethical” behavior for “falsifying [his] address.” She objected to him using that address to justify billing approximately two hours for multiple roundtrip visits to her father. She calculated, incorrectly, that the total travel and waiting time for these visits was $1,800; in fact, it was $2,250.
Mr. Gardner filed an eight-page response. Much of this filing was devoted to reviewing the history of his appointment, taking aim at C.B. for filing a petition for
In a March 2017 order, the Superior Court (Combs Greene, J.) denied Mr. Gardner‘s fee petition without prejudice. The court explained that, if the allegation that the Mitchellville address was not Mr. Gardner‘s law office but a UPS Store “is correct, [then] the [c]ourt would agree that Petitioner‘s travel expenses to and from Maryland are not reasonable.” The court further indicated that it was not satisfied with Mr. Gardner‘s explanation that he had listed the UPS store address as his office address in his billing statement because he received mail there; the court observed that a location where one receives mail is “quite different than an ‘office,‘” and expressed confusion why he would bill L.B. for travel to and from such a location. Further, the court deemed it “important[]” that Mr. Gardner “on the instant filing” (as on his initial fee petition) had “list[ed] his office address as 1101 Pennsylvania Ave NW, 300[,] Washington DC[,] 20004,” noting that address “would have been the appropriate location from which to travel to visit [L.B.]” in Dupont Circle. The court denied his initial fee petition, but stated it would give Mr. Garner another “opportunity to explain” the 7.5 hours4 he had billed for roundtrip travel to see L.B. and to provide a “specific and supported” explanation regarding his “various offices.”
Mr. Gardner filed a seven-page Amended Fee Petition with over sixty pages of exhibits in April 2017. Regarding the location of his office he stated that (1) his “exclusive” place of business for his probate work was his home in Bowie, Maryland;5 (2) the Mitchellville, Maryland UPS store address was the official address of his separate tax preparation business where no probate work was done; and (3) the D.C. address in his signature block was a virtual office6 used by The Gardner Law Firm, P.C., a separate corporate entity, but that he took probate appointments
Mr. Gardner‘s amended fee petition went to a different Superior Court judge (Wertheim, J.), who, in a one-page order without analysis, granted in full Mr. Gardner‘s initial request for $11,041.03 in fees and costs.
Sixteen months later, in September 2018, Mr. Gardner filed a supplemental fee petition, seeking a total of $6,960.27: $120.27 in costs and $6,840 for the 22.8 hours of work done (at the same rate of $300/hour) “defending[] his rights to compensation.” The latter figure included time spent preparing his (1) response to C.B.‘s objection, (2) his amended fee petition, and (3) his supplemental fee petition. He included in the fee request the time spent taking pictures of his home office, reading fee petitions submitted by other court-appointed fiduciaries in the case, reading IRS materials, and reviewing the case file.
Eleven months later, in August 2019, another Superior Court judge (Pittman, J.) issued an order granting the supplemental petition only in part. At the outset of its order, the court juxtaposed Mr. Gardner‘s “almost $7,000” supplemental petition against his initial petition for $10,950 for work actually done on L.B.‘s case. The court explained that it would not authorize compensation for “fees and expenses for tasks that are properly considered administrative overhead.” Specifying dates, the court put a total of 5.1 hours of work in this category:
the 1.5 hours ... and the .3 hours ... that Mr. Gardner spent preparing his billing statement, the several instances in which he billed the estate .2 hours for electronically filing his petitions ... 1.8 hours spent procuring scan[ed] copies of exhibits to his petition ... and [the] .7 hours he spent driving to a bank to get his petition notarized ....
The court separately declined compensation for one hour Mr. Gardner spent “reading two IRS publications, the purpose of which is not clear.” Lastly, the court concluded that the hours it calculated Mr. Gardner spent “preparing his amended fee petition”8 (4.7) and “his supplemental fee petition” (5.4) were “unreasonable.” The court permitted compensation only for one hour for the preparation of each fee petition, but did not explain how it arrived at that figure.
II. Analysis
A. Standard of Review
The compensation provision of the Guardianship Act,
As approved by order of the court, any case reviewer, visitor, attorney, examiner, conservator, special conservator, guardian ad litem, or guardian is entitled to compensation for services rendered either in a guardianship proceeding, protective proceeding, or in connection with a guardianship or protective arrangement.
Accord Super. Ct. Prob. R. 308(a) (recognizing that court-appointed fiduciaries, including guardians ad litem, are entitled to compensation). Payment is made from the estate of the incapacitated person the fiduciary is appointed to assist, “or, if the estate of the ward or person will be depleted by payouts made under this subsection, from a fund established by the District.”
B. Whether the Superior Court erred in declining to award Mr. Gardner full payment on his supplemental fee petition either because he successfully defended his right to payment for his court-appointed work or because the court failed to rule on it within sixty days
Mr. Gardner makes two arguments that he was entitled to full payment on his supplemental petition as a matter of law.
First, Mr. Gardner argues that he was entitled to full payment for the work he did to obtain compensation because this work was a “complete success” and he ultimately received full payment for his court-appointed services. We reject this argument. In In re Orshansky, 952 A.2d 199, 211 (D.C. 2008), we explained that it is not the law that “court-appointed fiduciaries must always be compensated regardless of their performance, or the detriment they cause to their ward or that person‘s estate.” Id. But we did not endorse the converse rule that whenever a court-appointed fiduciary prevails in a dispute about payment for court-appointed work, they are entitled to payment for any and all work done to obtain compensation. Instead, we reaffirmed that all “[c]ompensation under the statute is ‘as approved by order of the court.‘” Id. (quoting
Second, Mr. Gardner argues that his supplemental fee petition should have been granted in full because the Superior Court did not rule on his request within sixty days. Mr. Gardner concedes that the statute authorizing payment to court-appointed fiduciaries is “silent” on the timing of payment,
We as a division of the Court of Appeals have no authority to write a timing requirement into either
C. Whether the Superior Court erred in declining to allow Mr. Gardner to charge his legal rate for work and expenses it deemed “administrative overhead”
Mr. Gardner also challenges the Superior Court‘s refusal to pay him for 5.1 hours of work and expenses it deemed “administrative overhead,” see supra at 11–12, specifically, work done to prepare his billing statements, to electronically file his fee petitions, to copy and scan exhibits to his petition, and to drive to the bank to get his petition notarized and the associated mileage costs. Mr. Gardner charged his same hourly out-of-court rate, $300, for these tasks. He argues the probate court erred because (1) all of time for which he sought payment was for work he did ”directly related to the defense of his compensation and expenses for GAL services performed for the benefit of [L.B.]” and (2) the court‘s unexplained definition of what constitutes administrative overhead was overbroad.
D. Whether the Superior Court adequately explained its ruling
Lastly, Mr. Gardner argues the Superior Court abused its discretion by “stat[ing] in conclusory fashion” that the 10.1 hours he worked on his amended fee petition and supplemental fee petition, collectively, were unreasonable. As we have previously explained, when ruling on a fee petition, the Superior Court has an obligation to make a “record that elucidates the factors that contributed to the fee decision and upon which it was based,” District of Columbia v. Jerry M., 580 A.2d 1270, 1282 (D.C. 1990) (internal quotation marks omitted). Without such an explanation, our court cannot assess whether the Superior Court reasonably exercised its discretion. We agree with Mr. Gardner that the Superior Court did not adequately explain in its order why it had concluded that these 10.1 hours in aggregate were unreasonable or why it determined that it would compensate Mr. Gardner for two hours of his time. For this reason alone, remand is required.16 But for the reasons discussed below, we direct on remand a broader review of the court‘s supplemental fee award.17
Mr. Gardner sought compensation of 22.8 hours of work in all. As discussed, see supra 19-22, the court properly declined
Specifically, we question the relevance and thus the reasonableness of these 16.7 hours of work. It is far from clear how any of it related to concerns raised about Mr. Gardner‘s more than $2,000 of travel time to see L.B., about where he actually did his probate work, or about whether he had been truthful in his statements to the court. Instead, much of Mr. Gardner‘s eight-page response to C.B.‘s objection to the travel time billed in his initial fee petition was devoted to unrelated matters: the procedural history of the case, attacks on C.B., and a discussion of work he had not billed for. He devoted less than a page to his explanation for his use of a beyond-the-beltway dummy address as his point of origin for travel. Moreover, the explanation he gave—safety concerns about disclosing his home office address—did not address why he had not told the court the Mitchellville, MD address was not his real office address, or why he had not billed for travel from the downtown D.C. address in his signature block (an address that was much closer to L.B.‘s Dupont Circle residence). Similarly, the amended petition Mr. Gardner subsequently filed after the Superior Court denied his initial fee petition was largely nonresponsive to the concerns the court clearly expressed about whether he was entitled to compensation for roundtrip travel time from an undisclosed, outside-the-beltway dummy address19—the court stated that it would “not [be] reasonable” for him to bill from an address that was not his and directed him to explain why he had not billed from his signature-block D.C. address. Instead, Mr. Gardner‘s amended fee petition diverted attention to discussing the work for his other business enterprises, where he conducted that work, and whether he complied with tax regulations.20 The work he
In assessing the reasonableness of fees that a court-appointed fiduciary requests to defend their right to compensation, a court should consider whether the defense that was mounted was actually responsive to the objections made to the requested compensation, see supra 14–15. The Superior Court rightly questioned the time Mr. Gardner billed to review utterly irrelevant IRS manuals about deductions for home offices and work travel. It should also have questioned the relevance of all the other work Mr. Gardner did to defend his right to compensation.
More fundamentally, the Superior Court should have taken into account Mr. Gardner‘s responsibility for generating the additional litigation about his right to compensation. Mr. Gardner failed to give the court complete and accurate information. He misrepresented in his billing statement that he made roundtrip visits to L.B. from his “MD Office located at 12138 Central Ave, Mitchellville, MD.” Because C.B. objected to the use of an address that was not Mr. Gardner‘s office but a UPS store, he had to file a response. And because his response was largely nonresponsive and raised more questions for the court, he had to file an amended petition. And, of course, had he not had to file a response and an amended petition, he never would have had to file a supplemental petition to seek compensation for work done on these filings. In other words, the work Mr. Gardner did to defend his right to compensation appears to have been wholly self-inflicted.
Court-appointed fiduciaries do important work for the court: they protect the interests of individuals who are incapacitated in some way, that is, their “ability to receive and evaluate information effectively or to communicate decisions is impaired to such an extent that he or she lacks the capacity to manage all or some of his or her financial resources or to meet all or some essential requirements for his or her physical health, safety, habilitation, or therapeutic needs without court-ordered assistance or the appointment of a guardian or conservator.” See
III. Conclusion
For the reasons stated above, we remand the case for further proceedings consistent with this opinion.
So ordered.
