Written on June 27, 2013 – 6:00 am | by Jasmine Sweatman
The matter of the Estate of Paul Penna (not yet on CanLii) was before the courts again on a passing of accounts dealing with the compensation claimed by the Estate Trustee During Litigation (ETDL). One of the charities objected to the compensation of 2.5% claimed on two large assets, the sale of the house and payment of a 1 million dollar settlement.
The ETDL was given an adjournment to provide the court with further evidence in regards to ETDL’s accounting firm’s work on the file and how those costs reduced the compensation claim. The further evidence corrected some errors and reduced the compensation claim by about $10,000.00.
Justice Greer agreed “that in some cases, a Court might reduce the compensation on the 2 large realizations … [but] in my view, the complications involved in the administration of this Estate were as onerous as it gets.” Justice Greer then goes on to list the litany of court appearances and difficulties the ETDL had in managing the estate.
Justice Greer found she was “not prepared to reduce the compensation from the amount now being asked for. In my view, the Trustee is entitled to a Special Fee of $10,000 in addition to the amount requested, for all the extra work, which had to be done…”
Lesson Learned: When objecting to compensation you should look broadly at the entire administration and not just each entry and the amount claimed.
Until next time
Jasmine Sweatman/Jennifer Stebbing