Attorney Not Charged Interest for 10-Year Delay in Disbursing Estate

Attorney Not Charged Interest for 10-Year Delay in Disbursing Estate


Dec 15, 2011 11:46:14am

A California appeals court holds that an attorney who was acting as executor for an estate and did not disburse the estate to its heirs for more than 10 years does not have to pay interest on the cash in the estate. Estate of Kampen (Cal. Ct. App. 1st App. Dist., Div. 2, Nos. A129849, A130313, A129856, Dec. 9, 2011).

Attorney Chandler Flickinger drafted wills for two men. Both wills named the Opera Association as contingent beneficiary. In 1996, both men died within days of each other, and the Opera Association was notified that it was the beneficiary of both estates. Mr. Flickinger was appointed executor of both estates. In 1999, an order of disbursement was granted in one of the estates, but Mr. Flickinger retired and took no further action.

In 2009, the Opera Association sued Mr. Flickinger, asking the court to order Mr. Flickinger to close the estate and to charge him surcharges and damages. The court ordered Mr. Flickinger to pay the loss in value to the estates caused by his negligence and refused to compensate him for his work. The Opera Association appealed, arguing that the court should have charged Mr. Flickinger interest on the cash in the estate for the delay.

The California Court of Appeals affirms, holding that Mr. Flickinger does not have to pay interest. The court notes that the Opera Association had various remedies available to address the delay and nothing in the probate code requires the court to impose interest on Mr. Flickinger. The court rules that because the Opera Association failed to act and enforce its rights in a timely manner, Mr. Flickinger's affirmative defense of laches barred any claim interest.

For the full text of this decision in PDF, go to: http://www.courtinfo.ca.gov/opinions/documents/A129849.PDF.

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