Re Steficar - [2024] VSC 560

IN THE SUPREME COURT OF VICTORIA

Not Restricted

AT MELBOURNE

COMMON LAW DIVISION
TRUSTS, EQUITY AND PROBATE LIST

S PRB 2020 22642

IN THE MATTER of the Will and Estate of Caterina Anne Steficar

- and –

IN THE MATTER of Section 65 of the Administration and Probate Act 1958

BETWEEN:

ANTHONY PATRICK ABBRUZZESE

Applicant

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JUDICIAL REGISTRAR:	McCann JR
WHERE HELD:	Melbourne
DATE OF HEARING:	3 September 2024
DATE OF JUDGMENT:	13 September 2024
CASE MAY BE CITED AS:	Re Steficar
MEDIUM NEUTRAL CITATION:	[2024] VSC 560

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EXECUTORS COMMISSION – Executor seeks commission at 2 per cent of the corpus of the estate less the legal fees in administration – Executor is not a beneficiary of the estate - Where responding beneficiaries object to a grant of commission – Where responding beneficiaries object to a grant of commission in the quantum sought – Where responding beneficiaries allege a lack of complexity and poor administration – Where the burden of administration is increased by litigation and poor relations – Where the amount sought is just and reasonable in the circumstances.

Administration and Probate Act 1958 s 65.

In the estate of Stone (deceased); Patterson v Halliday [2003] VSC 298; Re Buckingham [2016] VSC 757; 51 VR 453; Re Stuckey; Scholte v Stuckey [2021] VSC 67; Re White; Tweedie v Attorney General [2003] VSC 433; 7 VR 219; Szmulewicz v Recht [2010] VSC 447; Re Mountney [2017] VSC 364; Hawkins v Barkley Brown [2010] NSWSC 48; Richards v Richards [2015] VSC 335.

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APPEARANCES:	Counsel	Solicitors
For the Applicant	Mr N Baum	Maurice Blackburn
For the responding beneficiaries Anne-Marie Pauliuk, Samantha Pauliuk and Megan Pauliuk	Mr N Jones	Lewis and Weir
For the responding beneficiaries Anthony Charles Sterpin, Jolanda Sterpin and Alexander Sterpin	Ms C Symons	John Dimitropoulos

TABLE OF CONTENTS

Introduction

Background - Chronology of events

The Applicant’s application for commission

The Grant of Commission

Quantum
The complexity of the administration
Duplication of tasks delegated to professionals
Failure to act impartially
Delay

Decision

JUDICIAL REGISTRAR:

Introduction

The applicant, Anthony Patrick Abbruzzese, is executor of the estate of his late sister, Caterina Anne Steficar (‘the deceased’). By summons filed 4 December 2023, he seeks a commission or a percentage of the estate for his pains and trouble in its administration.[1]
[1]Administration and Probate Act 1958 (Vic), s 65.
There are seven beneficiaries of the estate of the deceased; her three children, Bianca Anne Steficar, Anthony Sterpin and Anne-Marie Pauliuk, and seven grandchildren. The children of Bianca; James, Claudia, and Julian Fraser. The children of Anthony; Yolanda and Alexander Sterpin, and the children of Anne-Marie; Samantha and Megan Pauliuk.
The deceased died on 16 January 2020. Probate of her Will, dated 5 December 2019, was granted following settlement of caveat proceedings on 20 May 2021. That the applicant would seek a commission as assessed and agreed was included in the terms of that settlement.[2] Further notice of the applicant’s intention…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Re Steficar

Details

AGLC: Re Steficar [2024] VSC 560
Case: [2024] VSC 560
Decision Date: 13 September 2024

CaseChat Overview and Summary

The case of Re Steficar involved an executor seeking a commission of 2 per cent of the estate's corpus, minus the legal fees incurred during the administration. The executor was not a beneficiary of the estate. Several beneficiaries objected to the grant of commission, arguing that the amount sought was excessive and that the administration of the estate had been neither complex nor poorly handled. They further contended that the burden of administration had been exacerbated by ongoing litigation and strained relationships among the beneficiaries.

The court had to determine whether the executor's claim for commission was justified and reasonable. The legal issues involved the appropriate quantum of commission in the circumstances, the complexity of the estate administration, and the impact of litigation and interpersonal disputes on the administration process. The court needed to balance the executor's right to remuneration with the beneficiaries' objections and the overall fairness of the estate administration.

The court found that the executor's claim for a 2 per cent commission was just and reasonable, taking into account the complexities of the estate administration, the increased burden due to litigation and poor relations, and the executor's role in navigating these challenges. The court held that the executor was entitled to the commission as sought, despite the objections from the beneficiaries. The court's decision was based on the executor's diligent and responsible administration of the estate, which warranted the requested compensation.

The final orders of the court granted the executor the commission of 2 per cent of the estate's corpus, less the legal fees in administration, as originally sought. The beneficiaries' objections were dismissed, and the executor's entitlement to the commission was upheld.

Orders