Court says AHLA nursing home arbitration clause is "void as contrary to public policy"; and even if enforceable, a health care proxy lacks authority to bind an incapacitated nursing home patient to arbitrate claims

Blankfeld v. Richmond Health Care, Inc., 2005 WL 1226070 (Fla. 4th DCA May 25, 2005) (Trial Court Reversed)

In what will surely be a disturbing decision to all Florida nursing home administrators, the Fourth DCA just made it a lot tougher to avoid trials in nursing home cases. First, the Fourth DCA held that an arbitration clause administered by the American Health Lawyers Association "substantially limits the remedies created by [F.S. § 400.023(2)] and is [thus] void as contrary to public policy." Second, the Fourth DCA held that even if the AHLA's arbitration clause were enforceable, which it's not, a person acting under the health care proxy authority granted by F.S. § 765.401 can only make "health care decisions," and agreeing to arbitration is not a health care decision. If a nursing home wants to bind an incapacitated patient to a valid arbitration clause, it will have to seek the appointment of a temporary guardian pursuant to F.S. § 744.3031(1) to sign the agreement. As the concurring opinion put it . . .

If a nursing home wants to deal with someone competent to make such decisions, it has the right to seek the appointment of a guardian. For only a court appointed guardian could waive or compromise property rights, such as civil remedies in negligence or the right to trial by jury.

The Florida Probate Litigation Blog gets noticed!

The granddaddy of all Florida legal blogs is Matt Conigliaro's Abstract Appeal. Matt was generous enough to post a link here to the Florida Probate Litigation Blog while also commenting that this blog was "among the notable additions" to Florida's ever growing blogosphere. Thanks Matt.

"The Case of Theresa Schiavo" by Joan Didion in the New York Review of Books

Thanks to the Legacy Matters blog for posting this link to an excellent article in the New York Review of Books by Joan Didion tracing the history of the Terry Shiavo case through all its twists and turns. Highly recommended.

Hospital attorneys brace themselves for new legislation in the aftermath of the Terri Schiavo case

Thanks to Florida blog Abstract Appeal for identifying this Corporate Counsel article discussing how in-house hospital attorneys are bracing themselves for new legislation in the aftermath of the Terri Schiavo case that could make it tougher to remove someone from life support. For example, Louisiana and Alabama are considering laws that would prohibit doctors from removing feeding tubes or other means of nutrition and hydration, even with the consent of a guardian. Kansas is considering a change that would compel guardians to seek court permission before withholding food or water. Michigan is weighing a law that would bar anyone having an extramarital affair from making life support decisions for his or her spouse.

Previously commenced probate proceedings are not necessarily trumped by a subsequently filed lawsuit in the Circuit Court's general jurisdiction division

Kutlesic v. Estate of Mervel, 30 Fla. L. Weekly D753 (Fla. 3 DCA March 16, 2005) (Trial Court Affirmed)

The decedent allegedly promised his entire estate to his girlfriend. Unfortunately for her, he then died intestate, leaving her with nothing. Probate proceedings were commenced in 1999. In 2000 the girlfriend sued the decedent's estate on a number of grounds in the general jurisdiction division of the Circuit Court, all of which were eventually dismissed but for a "quantum meruit" claim. The estate then commenced an adversary proceeding before probate-division Judge Sidney B. Shapiro, that resulted in the girlfriend being ordered to vacate the decedent's former apartment. The Third DCA held that this ruling was not an abuse of discretion, even though the girlfriend's "quantum meruit" claim remained pending in the general jurisdiction division of the Circuit Court.

If you're going to remove a guardian, you have to give reasonable notice . . . unfortunately this one-paragraph opinion fails to provide any guidance regarding what reasonable notice may be

Foust v. Maldonado, 30 Fla. L. Weekly D895 (Fla. 5 DCA April 1, 2005) (Trial Court Reversed)

Proceedings for removal of guardians are initiated pursuant to F.S. § 744.477 and Probate Rule 5.660. In this one-paragraph opinion, the Fifth DCA reversed Osceola County Circuit Court Judge Jeffords D. Miller for apparently failing to comply with the requisite notice requirements in a removal proceeding, but provides zero guidance for anyone other than the parties to this litigation for where the trial court went wrong.

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Just because a person makes bad decisions, doesn't mean he should be declared incapacitated and have all his rights stripped away

McJunkin v. McJunkin, 30 Fla. L. Weekly D840 (Fla. 2 DCA March 30, 2005) (Trial Court Reversed)

In March 2001 the ward's two sons had him declared incapacitated at age 79 because he apparently wasn't managing his money as prudently as he could have. Two years later, in October 2003, the ward filed a "Suggestion of Capacity" seeking to have his rights restored. Even though the medical evidence presented in 2003 clearly showed that the ward was not incapacitated, and it was doubtful that he was ever incapacitated, Highlands County Circuit Court Judge J. David Langford ruled against him, declining to restore his rights. In reversing the trial court, the Second DCA makes clear that attorneys representing wards need to be advocates . . . not social workers, protecting individuals from, among other dangers, well intentioned relatives and courts guided by misplaced paternalism.

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Dependent Relative Revocation doctrine falls short in attempt to fix an estate plan gone awry

Rosoff v. Harding, 2005 WL 1163101 (Fla. 4th DCA May 18, 2005) (Trial Court Affirmed)

Sometimes a belts-and-suspenders approach to estate planning is not just overkill, it actually ends up doing more harm than good. In this case "Brother" wanted to look out for his sister. So far, so good. So Bother's Will creates a testamentary trust for Sister's life-time benefit and gives her a testamentary power of appointment over the trust corpus. Again, so far so good. But just in case Sister might be victimized, Brother's Will required that any exercise of Sister's power of appointment within 18 months of her death had to be witnessed by a corporate officer of his Corporate Trustee. In theory, this last clause probably sounded like a good idea. In practice, this belts-and-suspenders approach resulted in unintended consequences that the Fourth DCA characterized as "extremely unfortunate" and "unintentional," but beyond the "court's power to correct."

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The 90-day time limit for moving to substitute parties under Florida Rule of Civil Procedure 1.260 does not apply when the personal representative of an estate dies

Estate of Morales v. Iasis Healthcare Corporation, 2005 WL 1107067 (Fla. 2 DCA May 11, 2005) (Trial Court Reversed)

Normally, Florida Rule of Civil Procedure 1.260 requires that a plaintiff be substituted in a pending lawsuit within 90 days after the original plaintiff's death is "suggested on the record." Failure to comply with this deadline results in dismissal of the pending lawsuit. In this case, the personal representative of the estate died while a medical malpractice lawsuit was pending. Pinellas County Circuit Court Judge James R. Case dismissed the pending malpractice lawsuit under Civil Procedure Rule 1.260 because the estate's successor personal representative did not file a motion for substitution within 90 days of the suggestion of death.

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Gary Becker and Richard Posner on repeal of the federal estate tax

Thanks to the Wills, Trusts and Estates Prof Blog for drawing attention to the May 15, 2005 entry on the blog maintained jointly by Gary Becker and Richard Posner seting forth their ideas about the continued vitality of the federal estate tax. They respond, in part, to the New York Times article I previously posted on addressing repeal of the federal estate tax here. Enjoy!

When two trust beneficiaries sue the same bank-trustee in two different counties . . . then appeal to two different DCAs . . . then obtain conflicting rulings on the same issue . . . well, things get interesting

Whitener v. First Union National Bank of Florida, 2005 WL 1047268 (Fla. 5th DCA May 6, 2005) (Trial Court Order Quashed)

This case involves a single trust divided into two parts. The same trustee for both trusts was First Union National Bank of Florida ("First Union"). One beneficiary sued First Union in Duval County, which falls under the jurisdiction of the First DCA. In the course of the Duval-county litigation, the First DCA ruled that certain documents fell within the crime-fraud exception of the attorney-client privilege, and were thus discoverable. The second beneficiary sued First Union in Seminole County, which falls under the jurisdiction of the Fifth DCA. In the course of the Seminole-county litigation, the Fifth DCA ruled in the case cited at the top of this post that the same documents addressed by the First DCA were privileged, and thus due to their previous disclosure, counsel for the Seminole-county litigant was disqualified. Not to be so easily deterred, the Seminole-county litigant simply hired the lawyers involved in the Duval-county litigation and moved forward with her case . . . with the benefit of the "privileged" documents her previous attorneys were disqualified for obtaining.

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The Estate Tax: Efficient, Fair and Misunderstood

As I previously posted here, even though the estate tax is not a litigation issue, it looms in the background of almost any litigation involving an estate large enough to be subject to the tax. Which means I'm giving myself license to continue posting on the issue of estate-tax repeal. On that note, SmartBlog recently posted an interesting New York Times article here addressing repeal of the estate tax. Enjoy!

2005 Florida Legislative Update

For the benefit of the rest of Florida, here is a copy of the 2005 legislative summary presented by Michael Dribin of Broad and Cassel to the Probate and Guardianship Court Committee of the Dade County Bar Association. Enjoy!

Order Determining Entitlement to the Elective Share Is Not Appealable

Dempsey v. Dempsey, 2005 WL 954856 (Fla. 2 DCA April 27, 2005) (Appeal Dismissed)

Under Florida Probate Rule 5.360, determining the elective share is a two step process. First, the trial court must rule on the issue of entitlement (Rule 5.360(c)). Second, if the trial court finds entitlement, then it must determine the amount of the elective share, the assets to be distributed to satisfy the elective share, and, if contribution is necessary, the amount of contribution for which each recipient is liable (Rule 5.360(d)).

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Court Says No to Attorney's Fees for Litigation over Whom Will Be Appointed Guardian

Butler v. Guardianship of Peacock, 30 Fla. L. Weekly D889 (Fla. 5 DCA April 1, 2005) (Compensation Disputes)

Marion County Circuit Court Judge Brian D. Lambert ruled that under F.S. § 744.108(1) a petitioner seeking an order to determine the incapacity of her mother was entitled to an award of attorney's fees and costs incurred in the guardianship proceedings up to the date the petitioner's siblings objected to her being appointed guardian . . . fees and costs incurred thereafter were not for "services rendered on [the ward's] behalf."

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Probate judge orders the former executor of violinist Isaac Stern's estate to pay hundreds of thousands of dollars to Stern's three grown children

A probate judge has ordered the former executor of famed violinist Isaac Stern's estate to pay hundreds of thousands of dollars to Stern's three grown children. Stern, who died in 2001 at age 81, was one of the foremost violinists of the 20th century. He was among the most recorded classical musicians in history, and played a major role in cultivating the careers of such musicians as Itzhak Perlman, Pinchas Zukerman and Yo-Yo Ma. The full story is available here.

When the statute says the personal representative's attorney "shall" be paid for services rendered, that's what it means, and it's reversible error for a court to rule otherwise

Baumann v. Estate of Blum, 30 Fla. L. Weekly D842 (Fla. 2 DCA March 30, 2005) (Trial Court Reversed)

Getting paid fairly for the work you do is sometimes merely an "aspirational" goal for attorneys. It doesn't have to be that way . . . especially when the law says you're entitled to payment. In this case, the personal representative objected to the fees his own attorney petitioned for. Hillsborough County Circuit Court Judge Susan Sexton referred the matter to a general master and then simply adopted the general master's report and recommendations wholesale without conducting a hearing.

In the course of reversing the trial court, the Second DCA provides very valuable guidance for any attorney trying to make sure he or she gets paid for services rendered.

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Newsflash to Florida Division of Retirement: Order determining "heirs" no longer exists under the probate rules

Steadman v. Department of Management Services, 2005 WL 924314 (Fla. 5 DCA April 22, 2005)

The Florida Division of Retirement wanted a court order determining an employee's heirs prior to paying survivor benefits. Only one problem. In 2003 Florida Probate Rule 5.385(c) was amended so that the terms "heirs or devises" were replaced with "beneficiaries" for purposes of the court order a person ends up with when filing a petition in circuit court pursuant to Florida Statute Section 733.105 seeking an order determining beneficiaries of an estate. Undaunted by the fact that the requested order no longer existed, the Division refused payment of the requested survivor benefits because it didn't get the order. The fact that an appeal had to be filed so that the Division would change its position is troubling to say the least. The Fifth DCA apparently shared that view, because it held that the Division's refusal to accept an order complying with the provisions of amended Rule 5.385(c) "was a gross abuse of discretion" and ordered the Division to pay the petitioner's attorney's fees.

DCAs in conflict . . . can freely devisable homestead property be used to satisfy pre-residuary bequests? Fourth DCA says YES, Second DCA says NO, Florida Supreme Court ruling awaited

Estate of Mahaney v. Keefe, 2005 WL 924264 (Fla. 2 DCA April 22, 2005) (Trial Court Affirmed)

It is not uncommon for a person's single largest asset at death to be his homestead property. This is exactly what happened in the just decided Second DCA case, Estate of Mahaney v. Keefe (other than her home, decedent owned no other property of any value), and in the Fourth DCA case decided last year, Warburton v. McKean, 29 Fla. L. Weekly D1411 (June 9, 2004) (other than a condominium sold for $141,000, the decedent's estate consisted of only nominal assets valued at $10,000).

The question faced by both courts was whether freely-devisable homestead property could be used to satisfy pre-residuary bequests. The Fourth DCA said yes, the Second DCA said no. My understanding is that the Warburton case was heard by the Florida Supreme Court in early 2005, so we should have some resolution to this conflict in the near future. For the record, based on the basic principal that "freely devisable" homestead property should be controlled by a person's will just like any other freely devisable asset, and the 1991 Florida Supreme Court ruling in City Nat'l Bank of Fla. v. Tescher, I think the Fourth DCA got it right in Warburton.

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Release of dead soldier's e-mail account to his parents in Michigan has sparked debate over personal data: Who owns your e-mail when you die?

In the recent Michigan case, a probate judge ordered Yahoo Inc. to give the family of a soldier killed in Iraq full access to their son's e-mail account. Attorney Brian Dailey, who represented the Ellsworth family, said there was no court battle with Yahoo and there was no controversy over privacy issues. "It took no convincing because Yahoo agreed," he said. He added that "[t]here's really no privacy debate over who owns e-mail. It's the same thing as a safe deposit box." The full story is available here.