Lee Mullowney

The respondents brought an unopposed motion to distribute the residue of their late father's estate and to require the applicant estate trustee to repay certain amounts to the estate.

The court found that the estate trustee had failed to properly administer the estate, resulting in unnecessary costs and delays.

The court ordered the estate trustee to reimburse the estate for improper expenses, denied her claim for trustee compensation, and directed the distribution of the remaining funds with setoffs against the estate trustee's share for her liabilities and previous costs awards.

This ruling addresses the costs of a default judgment motion that voided a fraudulent conveyance.

The plaintiffs, Kent Dowsley and two law firms, sought substantial indemnity costs against the defendants for their conduct, including a phantom appeal and the fraudulent transfer of property to evade a prior costs award.

The court found the defendants' actions deserving of sanction and awarded substantial indemnity costs to Kent Dowsley, but not to the law firms, as the original costs award was to Dowsley, and there was no lis between the law firms and the Powells.

The total costs awarded to Dowsley were fixed at $15,000, a downward adjustment from the claimed amount due to proportionality.

The respondent in a family law proceeding brought a motion to set aside a final default order issued after an uncontested trial granting custody, support, and related relief to the applicant.

The court considered the established test for setting aside a default judgment: promptness in bringing the motion, a satisfactory explanation for the default, and the existence of an arguable case on the merits.

The court found the respondent acted promptly after learning of the order, provided a reasonable explanation for failing to file an answer due to concurrent criminal, civil, and investigative matters, and demonstrated significant issues requiring adjudication, including custody arrangements and complex financial disclosure.

The court was also troubled that the applicant proceeded to an uncontested trial despite knowing the respondent had recently retained counsel who indicated responding materials were forthcoming.

The default order was set aside except for the existing parenting schedule, which remained temporarily in force pending further proceedings.