IN RE ESTATE OF ALAN NOVICK A/K/A ALAN R. NOVICK, DECEASED

Fla. 4th DCA | 1988-06-08
No. 4-86-2830
DOWNEY and GUNTHER, JJ., concur.
526 So. 2d 200 Florida District Court of Appeal, Fourth District (1988)

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Synopsis

The Florida District Court of Appeal reversed a trial court's dismissal of a petition to surcharge the former personal representative (the widow) of an estate for making unauthorized preferential payments to a creditor. The court held that the pending appeal of a settlement agreement entered into by the successor personal representative did not divest the trial court of jurisdiction to proceed with the surcharge action against the widow.


Holding

The court held that the trial court retains jurisdiction to consider the surcharge petition against the widow. The petition for surcharge is directed solely at the widow's unauthorized actions during her tenure and presents a different issue from the settlement agreement entered into by the successor representative. Accordingly, the motion to dismiss should be reversed and the case remanded for a full evidentiary hearing.


Headnotes

[1] A trial court order approving a settlement agreement does not automatically grant immunity to a former personal representative for their prior actions.

[2] A petition to surcharge a personal representative is distinct from an appeal of a settlement agreement approved during the successor personal representative's tenure.

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Key Quotes

“The petition for surcharge is addressed only to the widow and not the successor personal representative. The latter inherited what can only be described as a mess, none of it of his making.”

Establishes that the surcharge action targets the widow specifically for her conduct, not the successor representative, making it a separate issue from the settlement agreement.

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Facts & Procedural History

Alan Novick, president of ESM Group, Inc. (a securities firm that collapsed amid fraud and misconduct charges), died. His widow filed what she claimed…

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Opinion of the Court
LETTS, Judge.

LETTS, Judge.

The trial judge, without comment, granted a motion to dismiss a petition for surcharge of a personal representative. We reverse.

This appeal, and three others issued simultaneously herewith as per curianas affirmed,1 all have their genesis in the estate of Alan Novick. The deceased Novick was the president of ESM Group, Inc., a securities firm which collapsed and went bankrupt amid charges of fraud, misconduct and mismanagement.

Shortly after Novick’s death, his widow filed an instrument purporting to be her husband’s last will and testament and she was appointed his personal representative pursuant thereto. Some three months thereafter, the will was revoked as a forgery and the widow resigned as personal representative. During her tenure as personal representative, the widow paid off the claim of a particular creditor, First Security, to the tune of $951,000, ignoring the claims of other creditors including that of an out-of-state bank, Central Bank & Trust Company, the appellant.

After the widow’s resignation, the successor personal representative entered into a settlement agreement with the widow, First Security and the Equity Receiver of ESM Group, Inc. To this settlement, the out-of-state Central Bank objected. Notwithstanding, the trial court approved the settlement and in a companion appeal we have found no error in that approval.

In one respect, however, we must disagree with the trial court. Specifically, we reverse the trial court’s order granting the dismissal of the out-of-state Central Bank’s motion to surcharge the widow for her actions while serving as personal representative.

In the motion to dismiss the petition for surcharge, the widow principally alleged that the court order, which approved the settlement entered into by the successor personal representative, was already on appeal to this court. According to the widow, that ongoing appeal robbed the trial court of jurisdiction to consider the petition for surcharge against her because the petition and the ongoing appeal essentially involved the same relief. We disagree. The petition for surcharge is addressed only to the widow and not the successor personal representative. The latter inherited what can only be described as a mess, none of it of his making. His decision to settle, however, does not furnish an automatic cloak of immunity to the widow for her prior actions.

We, therefore, hold that the motion to surcharge the widow should proceed to a full evidentiary hearing. For example, the widow, while serving in her fiduciary capacity, stands accused of making unauthorized preferential payments to a creditor to satisfy an indebtedness for which she was individually, jointly and severally liable. That is not an accusation which has, or could be, leveled against the successor representative. Accordingly, a different issue is involved. See Costa Bella Development Corp. v. Costa Development Corp., 445 So. 2d 1090 (Fla. 3d DCA 1984).

We reject the theories advanced by the widow that she is protected by either section 733.601 or section 733.708, Florida Statutes (1985).

The claim for attorney’s fees under section 733.609, Florida Statutes (1985) filed by the out-of-state Central Bank, if indeed it has merit, is certainly premature at this time and therefore denied without prejudice.

REVERSED AND REMANDED.

DOWNEY and GUNTHER, JJ., concur. . Case Nos. 4-86-1582 and 4-85-1703 were consolidated.


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