In a case that was prompted by a New York ElderLawAnswers member attorney's inquiries, an Illinois appeals court upholds the reduction of an estate attorney's fees, concluding they were excessive and improperly based on a percentage of the estate's value rather than the time spent, complexity of the work and the attorney's ability. Estate of Weeks v. People Ex Rel. Madigan (Il. App., 4th Distr., No. 4-10-0338, May 20, 2011).
In 2008, the executor of Ronald D. Weeks' estate hired attorney Thomas L. Bruckner to represent him in the administration of the estate. Mr. Weeks' gross estate was valued at more than $4 million. His will provided for several specific bequests and the division of the remainder between three beneficiaries, including a New York charity.
In 2009, the executor submitted an accounting of the estate's administration to the beneficiaries that included $120,000 in attorney fees paid to Mr. Bruckner, plus $50,000 Mr. Bruckner received for serving as auctioneer of the decedent's farm property. ElderLawAnswers member Brian Andrew Tully, an attorney for the New York charity, inquired as to the propriety of the attorney fees and requested a detailed explanation from Mr. Bruckner of his hours billed and hourly rates. Mr. Bruckner responded that his fee was 3 percent of the estate's gross value; however, he did not produce the requested accounting.
Subsequently, the state of Illinois intervened on behalf of the charity and challenged the attorney fees as being excessive. At hearing, Mr. Bruckner testified that although he had not kept detailed records of his work for the estate, a local bar association fee schedule supported his claim that the 3 percent fee was usual and customary. The probate court rejected Mr. Bruckner's reliance on a percentage-based fee and determined that the fees were excessive. The court reduced Mr. Bruckner's fees to $75,000 and ordered him to return the excess fees. Mr. Bruckner appealed, asserting that the court erred in finding that he was per se precluded from basing attorney fees on a percentage of the estate's value.
The Appellate Court of Illinois, Fourth District, affirms the probate court's reduction of Mr. Bruckner's attorney's fees. The court agrees that it was inappropriate for the fees to be pegged to a percentage-based schedule rather than based on proper considerations such as the time spent, the complexity of the work and the attorney's ability.
To download the full text of this decision in PDF format, go to: https://www.state.il.us/court/Opinions/AppellateCourt/2011/4thDistrict/May/4100338.pdf.
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