Petition for Final Distribution

Cal. Super. - 2nd Dist.September 3, 2015

123 23561 378401583 562400020067960 113454 21905 89 SUPERIOR COURT OF CALIFORNIA, MINUTE ORDER TIME: 09:00:00 AM TEMPORARY JUDGE: Amber Rodriguez COUNTY OF VENTURA OXNARD DATE: 04/21/2016 DEPT: J6 CLERK: Elizabeth Valdez REPORTER/ERM: Erin Spence CASE NO: 56-2015-00471892-PR-LA-OXN CASE TITLE: In the Matter of Larry Randolph Brown CASE CATEGORY: Probate CASE TYPE: Letters Of Administration EVENT TYPE: Petition for Final Distribution First and Final Account and Report of Administrator and Petition for, etc and for Final Distribution MOVING PARTY: Dusty Brown CAUSAL DOCUMENT/DATE FILED: Petition for Final Distribution First and Final Account and Report of Administrator and Petition for, etc and for Final Distribution, 03/10/2016 STOLO APPEARANCES STOLO Rexford "Dusty" Brown present Stolo At 10:03 a.m., court convenes in this matter with all parties present as previously indicated. Attorney Marc l. Sallus (former attorney) appearing for Rexford "Dusty" Brown present. Parties stipulate(s) to the Judge Pro Tem to hear the matter. Stipulation signed and filed. Counsel have received and read the court's written tentative ruling. Matter submitted to the Court with argument. Corrected Inventory and Appraisal filed 02/29/16 is read and considered Counsel represents, Mr. Brown has power of attorney on behalf all the beneficiaries. Counsel is directed to provided proof of power of attorney as to all beneficiaries via filed Supplement. The Court finds/orders: Tentative Ruling issued by Amber Rodriguez, Judge Pro Tem presiding on 4/21/16: Continued to 05/25/16 VEN-FNR-10.03 MINUTE ORDER DATE: 04/21/2016 Page 1 DEPT: J6 CASE TITLE: In the Matter of Larry Randolph Brown CASE NO: 56-2015-00471892-PR-LA-OXN Tentative modified on the record: 1) The final petition states the corrected I&A shows an additional $1,498.03 in estate assets, however, the I&A itself (tabbed I&A - Corrected) shows on Page 1, an additional $250.57, which is the amount the itemization totals shown on attachment 1; -Accepted by this Court 2) I&A Final only includes an Attachment 1, with items appraised by the personal representative. The I&A improperly includes 3 items which must be appraised by the probate referee: 1) 2000 Jeep, 2) Personal Furnishings and property located at the residence; and personal property located at Channel Island Storage facility; -Corrected I&A needs to show value of Jeep to probate referee, the court will accept the representation as to the items located at the Channel Island Storage facility. 3) The beginning POH should be $427,266.57, not $428,559.03. Of note the correct total I&A value of $427,266.65 is used for the computation of the statutory fees and commissions at paragraph 23, so it appears the petitioner and/or attorney should have been aware of the correct POH, beginning value. -Accepted by this Court 4) Schedule C includes a payment to beneficiary Garry Brown in the amount of $1,200.00 for flight and hotel. This should be offset in the distribution, as it appears to be a preliminary distribution. -Verified Supplement to include change of distribution to Garry Brown or charge as preliminary distribution against Garry Brown's distribution. 5) The "Reimbursement of Expenses" is two payments made by petitioner to himself, one for $5,000.00 and the other for $850.30. The itemization is attached as Attachment 1 to Schedule Other Credits (tabbed) The total petitioner reimbursed to himself is $5850.30, of that $2,520.00 was petitioner paying himself $2,520.00 for 126 hours at $20/hour for work he alleges he did himself for the estate. He titled this category "Pre-Paid Extraordinary Fees" and the itemization is insufficient to support the request. Petitioner reimbursed himself $576.56 for food and lodging without prior court approval. "Supplies and Services" totaled $452.41, and "Administrative Expense" totaled $912.10. All amounts petitioner "reimbursed" himself without prior court order should be disgorged and returned to the estate. Petitioner signed the "Duties and Liabilities of Personal Representative" (JC Form DE-147, see 1.d) Petitioner was put on notice that he could only reimburse himself for "official court costs paid by him to the county clerk and for the premium on his bond (no bond in this matter), and that all other reimbursements, including the $2,520.00 in fees to himself needed prior court approval in order to be reimbursed. See also Pr. C. §10501(a)(1) -Verified supplement to included change of distribution on behalf of Rexford Brown as a preliminary distribution. Accordingly, the court will utilize its discretion to reduce statutory fees and reduce the statutory fee to Petitioner by the total amount he paid himself without prior court authorization or approval. 6) Petitioner sold the estate real property, however this is not discussed in the report (Except where the attorney requests extraordinary fees for work on the sale of the estate real property.) There does not appear to have been a Notice of Proposed Action filed showing service of the NPA on the two intestate heirs. Pr. C. §10511 requires petitioner to give Notice of Proposed Action. Was a NPA mailed to each VEN-FNR-10.03 MINUTE ORDER DATE: 04/21/2016 Page 2 DEPT: J6 CASE TITLE: In the Matter of Larry Randolph Brown CASE NO: 56-2015-00471892-PR-LA-OXN intestate heir? - Verified Supplement to included proof Rexford Brown power of attorney as to all beneficiaries. 7) Attorney Sallus requests x/o fees in the amount of $1,333.75 for .4 hours of attorney time at $550/hour and 4.95 hours of paralegal time at $225/hour. An itemization of x/o time is attached to Attorney Sallus' declaration at Exhibit E. The court requires an itemization of both statutory and extraordinary time before an award of x/o time will be allowed. The maximum per hour allowed for attorney time is $350/hour and paralegal time is $175/hour. (CRC 7.703(a)) While petitioner signed a contingency fee agreement as to x/o fees and the rate they would be paid, the court still must approve the agreement - it is not, based on its existence, de facto that the attorney will be paid as the agreement states. CRC 7.703(d)(1)) 8) Petitioner requests $7,500.00 reserve for use in paying 2015 state and federal taxes and winding up the estate. Petitioner has provided no justification such a large reserve. Has petitioner been advised by his accountant that the estate will owe taxes? If so, what is the estimate? Counsel stipulates to the use of lower fee calculation. -Supplement to reflect recalculation of attorney fees. 9) Proposed distribution (see paragraph 29) is consistent with intestate succession, however petitioner paid $1,200.00 for heir Garry Brown's travel and that the offset has not been accounted for in the proposed distribution. -Issue addressed in line item number four Petition for Final Distribution First and Final Account and Report of Administrator and Petition for, etc and for Final Distribution continued to 05/25/2016 at 09:00 AM in department J6. Verified Supplement to be served and filed on or before 05/18/16 by Executor. Supplement Re: Ordinary Time and Lower Rate to be served and filed on or before 05/18/16 by former Counsel Sallus. STOLO VEN-FNR-10.03 MINUTE ORDER DATE: 04/21/2016 Page 3 DEPT: J6