A Florida court has issued a ruling regarding the fees awarded to a trustee managing the Irving J. Denmark Trust. The decision affects trustee Marshal Glenn Spear, who sought a significantly higher amount than what the court ultimately granted. The case highlights the complexities involved in trust management and the calculation of trustee fees.

The ruling comes from the Third District Court of Appeal in Florida, filed on June 10, 2020, under docket number 3D18-2068. The court reversed part of the trial court's decision while affirming other aspects of the fee award, which totaled $8,419.31. Spear had originally sought $82,887.73 for her work on the trust.

Background

The parties involved in this case are Marshal Glenn Spear, the trustee of the Irving J. Denmark Trust, and Lawrence J. Denmark, the trust's beneficiary. The dispute has a long history, spanning nearly a decade and involving multiple appeals. The trust was established in 1988 by Irving Denmark for his brother Lawrence and their spouses.

Upon the deaths of both Irving and his wife, Evelyn, the trust required the property to be divided into two separate trusts. After the resignation of the prior trustee in 2007, Spear was appointed to take over. Following the deaths of the settlor and his wife, Lawrence Denmark requested the termination of the trust and sought a distribution of its assets. This request led to a series of legal battles, including the current appeal regarding the trustee's fees.

The Ruling

The court ruled that the trial court had erred in calculating the hourly rate for Spear's expert witness, which was initially set at $400. The court determined that the correct hourly rate should have been $450, as testified by the expert during the evidentiary hearing. The court stated, "Because the $400 rate is both unsupported and contradicted by the record, we reverse this portion of the award and remand for entry of an order reflecting a correct calculation based on the $450 hourly rate."

However, the court upheld the trial court's decision regarding the overall award of trustee fees and costs, affirming that the trial court did not abuse its discretion in awarding a significantly lower amount than what Spear had requested. The judges involved in this ruling were SCALES, HENDON, and LOBREE.

Impact

This ruling has important implications for trustees and beneficiaries involved in similar disputes over fee calculations. By reversing the trial court's decision on the expert witness's hourly rate, the court has clarified that accurate evidence must support fee calculations. The decision also reinforces the discretion courts have in determining reasonable fees for trustees, which can vary based on the specifics of each case.

The ruling may also influence future cases involving trustee fees, as it highlights the importance of presenting competent evidence to support claims for compensation. Beneficiaries and trustees alike must now be more diligent in documenting and justifying their requests for fees and costs.

What's Next

The court's decision allows for the possibility of an appeal regarding the adjusted fee calculation. There may also be related cases pending that involve similar issues surrounding trustee fees and the management of trusts. Details were not available in the court filing.