Wright v. Nuttle

Singley, J., delivered the opinion of the Court. This case, like Wolfe v. Turner, 267 Md. 646 , 299 A. 2d 106 (1973), involves an attack on the fees allowed counsel to a personal representative under Maryland Code (1957, 1969 Repl. Vol.) Art. 93, § 7-602. Unlike Wolfe v. Turner, however, neither the reasonableness of the hourly rate nor the amount of the charge is directly questioned.

Rather, the question is, shall the charge be paid entirely by the estate or partly or wholly by the residuary legatee? Guy Lee Wright died domiciled in Caroline County, Maryland on 22 March 1971, leaving a will dated 20 January 1970, which was admitted to probate by the Orphans’ Court for Caroline County on 23 March 1971. The gross assets of the estate were about $430,000.00. By the terms of his will, Mr. Wright left pecuniary legacies of $22,500.00 (including bequests of $5,000.00 to each of his sisters, Alice T. Wright and Kathleen E. Wright, the appellants here) ; bequeathed the residue of his estate to Wilmer Lee Smith, a young neighbor and employee, who was not related, and appointed Philip E. Nuttle, Jr., his personal representative.

Shortly after the will was admitted to probate, Alice T. Wright and Kathleen E. Wright, sisters of the decedent, filed a claim against the estate on a note dated 16 January 1968 for $300,000.00, which had been signed by Guy Lee Wright, the decedent; his brother, Frank ⁷⁰⁰ Wright, who had predeceased him, and Wright Brothers, apparently a partnership of which the deceased was a member, payable to the sisters. On 31 January 1972, the sisters recovered judgment in the Circuit Court for Caroline County against the estate for $300,000.1)0, the principal amount of the note, together with interest of $72,-750.00; attorneys’ fees of $37,275.00, interest from date of judgment, and costs. The personal representative had first retained the firm of Henry, Henry and Adkins and later, William A. Franch, Esq., to represent him in connection with the defense of the claim and the subsequent litigation, without the prior order of the orphans’ court. On 15 February 1972, the court, on petition of counsel, entered an order authorizing payment of interim counsel fees to the Henry firm and Mr. Franch in amounts of $5,496.98 and $3,150.00, respectively.

On 29 February 1972, an order was entered on the petition of the personal representative, authorizing him to retain the same counsel and compensate them for services to be rendered in the future. From an order denying exceptions to the allowance of these fees, and from the order authorizing employment of counsel in the future at a stipulated hourly rate, this appeal was taken. It seems to be conceded that the assets of the estate will be insufficient to satisfy the judgment. As a consequence, payment of the fees by the estate will further reduce the amount of the sisters’ recovery.

The sisters contend that the fees should be