Arthur v. Davies CA2/6

Filed 8/21/14 Arthur v. Davies CA2/6 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.111.5.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION SIX

In re Elmer Snyder Family Trust. 2d Civil No. B249810 (Super. Ct. No. PR100166) JANET ARTHUR , (San Luis Obispo County)

Petitioner and Appellant,

v.

DIANE E. DAVIES etc.,

Objector and Respondent.

This appeal involves a trust management dispute in which a brother and sister spent nearly $300,000 in attorney fees and costs to compel trust accountings. Janet Arthur (Janet), trustee of the Elmer W. Snyder Family Trust, appeals from an order awarding $178,850.15 attorney fees to her brother/trustee Richard Snyder (Richard), and a second order denying Janet's request for $30,260 trustee's fees and $29,873.38 paralegal fees. The orders were made following a 13-day trial on two probate petitions for 1 instructions (Prob. Code, § 17200). We affirm.

1 Unless otherwise stated, all statutory references are to the Probate Code. We refer to Janet, Richard, and other family members by their first names for the convenience of the reader.

Facts and Procedural History On April 29, 1993, Elmer W. Snyder and Lois P. Snyder created the Elmer W. Snyder Family Trust, naming their children - Janet, Richard, and their brothers Ronald Snyder, Douglas Snyder, and Jeffrey Snyder – as remainder beneficiaries. The trust provided that on the death of the first spouse, the trust assets would be divided into an exemption trust and a survivor's trust. Janet was named the successor trustee of the exemption trust and trustee of two special needs sub-trusts for Jeffrey Snyder who was disabled. After Elmer died in 1993, Lois amended the survivor's trust to name Richard and Janet as successor co-trustees. When Lois died in 2009, Janet distributed $602,094 from the exemption trust, leaving a balance of $195,000. The survivor's trust had $1,436,911 in assets consisting of a Simi Valley residence, a Canoga Park residence, a house and rental in Atascadero, and cash. In 2011, Janet petitioned for instructions to sell the Simi Valley and Canoga Park properties. The trial court ordered Janet to sell the Simi Valley property and Richard the Canoga Park Property. Janet obtained a buyer for the Simi Valley property which sold on October 18, 2011. Cross-Petitions for Accounting Janet filed a new petition to sell the Canoga Park property and to compel Richard to provide an accounting. Richard and his brothers (Ronald and Douglas) filed a cross-petition to remove Janet as co-trustee alleging, among other things, breach of fiduciary duty. Following a three-week trial, the trial court removed Richard as co- trustee of the survivor's trust, leaving Janet as the sole trustee. Diane E. Davies was appointed as the successor trustee of Jeffrey's special needs subtrust. The trial court ordered the Canoga Park property sold, ordered Janet and Richard to file separate accountings, and surcharged Janet and Richard for expenditures that did not benefit the trust. After the Canoga Park property was sold, Richard and Janet filed separate trust accountings from June 2009 through July 1, 2012. With respect to Richard's