Attorney Not Entitled to Commission-Based Fee for Three Weeks' Work as Guardian

A New York appeals court rules that an attorney who acted as guardian for three weeks is entitled to reasonable compensation, not nearly $700,000 in commission-based fees. Goldstein v. Zabel (N.Y. Sup. Ct., App. Div., 1st Dept., No. 91812/13 2076N 2075N, Jan. 24, 2017).

Three people petitioned the court to appoint a guardian for Celia Ascher. After the court determined Ms. Ascher was incapacitated, it appointed attorney Mark Goldstein as guardian. Mr. Goldstein secured and inventoried Ms. Ascher's assets and millions of dollars of personal property. Ms. Ascher died three weeks after Mr. Goldstein was appointed permanent guardian.

Mr. Goldstein filed an accounting, asking for compensation of $695,106.58 based on Ms. Ascher’s total assets of more than $33 million. Instead, the court used an hourly rate to set his compensation at $100,000. Mr. Goldstein appealed, arguing that he was entitled to a commission-based compensation.

The New York Supreme Court, Appellate Division, affirms, holding that $100,000 is appropriate compensation. The court rules that there is not a specific formula for determining a guardian's compensation and Mr. Goldstein is entitled to reasonable compensation. According to the court, given the duration of his appointment, Mr. Goldstein was "well compensated for his time."

For the full text of this decision, go to: https://www.nycourts.gov/reporter/3dseries/2017/2017_00426.htm.

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