Saturday, August 18, 2012

Alabama Opinion on Paying Fee to Personal Representative in a Wrongful Death Case


In Rodgers v. McElroy, No. 2110364 (Ala. Civ. App. Aug. 10, 2012), White was killed in an accident caused by a drunk driver.  McElroy, the Jefferson County administrator, was appointed White’s personal representative.  White’s estate had no assets.  McElroy hired Stamps to pursue a wrongful-death claim, which included seeking UMI coverage.  There was a recovery of UMI benefits and liability insurance.  McElroy requested and was awarded a portion of the wrongful-death recovery as a fee for serving as the personal representative.  One of the statutory heirs appealed, arguing that McElroy was not entitled to a fee.

The majority of judges found that McElroy was entitled to a fee.  The majority emphasized that McElroy “performed” a service for the heirs and placed reliance on Sec. 43-2-848(b) as allowing for the awarding of such a fee for having performed “extraordinary services … for the estate.”

Judge Moore wrote a “strong” dissent that, among other things, noted that McElroy really did not do anything other than engage the services of an attorney.

Rodgers failed to specifically challenge the amount given McElroy (9%).

This opinion opens the door when there is a no-asset estate for compensating a personal representative from a wrongful-death recovery, but the Supreme Court could shut the door by adopting Judge Moore’s dissent.

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