A California appeals court rules that because an heir hunter's agreement with an estate's beneficiaries authorized him to select and pay for an attorney, and there is an element of legal representation in the contract, the agreement is void against public policy. Estate of Molino (Cal. Ct. App., 2nd Distr., Div. 3, No. B197196, Aug. 1, 2008).
Guadalupe Molino executed a will in 1995, leaving $100,000 to a friend and the remainder to be shared equally between her five half-siblings. In 1997, Ms. Molino was hospitalized and the friend sought to be appointed her conservator, asserting that Ms. Molino had no living relatives. Jeffrey Siegel also sought to be appointed Ms. Molino's conservator and he hired private detective Kevin O'Grady to locate any heirs. Mr. O'Grady located three heirs and had them sign an "assignment & agreement" authorizing him to pursue their claim and to hire an attorney of his choice in exchange for 35 percent of any inheritance they received.
Following Ms. Molino's death in 2005, Mr. Siegel, acting as administrator, filed a petition for preliminary distribution that did not mention the heir hunter fee agreements. Prior to the court's entering an order, Mr. Siegel paid Mr. O'Grady $280,000, representing 35 percent of the heirs's inheritances. Thereafter, the probate court awarded each heir $200,000 and nothing to Mr. O'Grady. The heirs became suspicious and hired counsel when Mr. Siegel requested that they sign receipts indicating they had received $200,000 as opposed to the $130,000 they would actually receive.
Mr. Siegel filed a petition seeking a determination as to whether the heir hunter fee agreements were valid. The beneficiaries argued that the agreements violated public policy and filed a motion for summary judgment. The probate court granted the heirs' motion, finding that Mr. O'Grady was not entitled to a share of the inheritances. Mr. O'Grady appealed.
The California Court of Appeals affirms, holding that if an heir hunter obtains an assignment authorizing him to select and pay for an attorney, and there is an element of legal representation included in the heir hunting contract or assignment, such as controlling the litigation, the agreement is void against public policy.
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