Estate of Philip Meriano, Deceased, Anita Panepinto, Administratrix - Page 20

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               However, Lynch should have been given credit for the                   
               payments of $30,950 to Reardon and $45,000 to Groen &                  
               Smolow.  After being given credit for those payments,                  
               the amount of the "surcharge" should have been based                   
               upon the difference between $424,811.19 (i.e.,                         
               $500,761.19 less $30,950.00 and less $45,000.00) and                   
               $401,256.10, or $23,559.09.  That figure is the amount                 
               of the refund Lynch must make as a result of the                       
               overpayment of his fee.                                                
                    Concerning Reardon's fee, the auditing judge                      
               allowed him a fee of 15% of the market value of the                    
               bonds recovered or the sum of $171,966.90.  He                         
               therefore "surcharged" Reardon the difference between                  
               the amount paid to him by Lynch, i.e., $250,950.00, and                
               the fee he found to be reasonable, for a total                         
               "surcharge" of $78,983.10.  We find no error in the                    
               auditing judge's finding and dismiss the exception.                    
                    However, the auditing judge was unmindful of the                  
               fact that Reardon had been totally compensated by Lynch                
               for his services.  When Lynch made the two payments to                 
               Reardon, totaling $250,950.00, Reardon had received the                
               benefit of his bargain with Lynch.  That is to say,                    
               Reardon was paid by Lynch in accordance with the terms                 
               of the contract he entered into with Lynch.  In fact,                  
               Reardon received somewhat more than 15% of the face                    
               value of the bonds recovered.                                          
                    Even after refunding the full amount of the                       
               surcharge, Reardon is left with $171,966.90.  His fee,                 
               when added to Lynch's allowed fee of $401,256.10, makes                
               a total fee for services of $573,223.00.  That amount                  
               is exactly 50% of the total market value of the assets                 
               recovered by Lynch and Reardon.                                        
                    Although the auditing judge does not expressly                    
               address the issue, it is clear from the amounts of                     
               compensation awarded to Lynch and Reardon that he found                
               that Lynch was to receive 35% of the market value of                   
               the bonds and that Reardon was to receive 15% of the                   
               market value of the bonds and that each man was                        
               compensated from the gross estate.  We are of the                      
               opinion that an allowance of 50% of the market value of                
               the assets recovered is unreasonable and excessive and                 
               was error for the auditing judge to allow that amount                  
               of compensation.                                                       






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