In re Grant

Should the estate pay for unauthorized legal services, albeit services that were valuable, rendered by a law firm that it never hired?

FACTS

Deaunna Grant (“Grant”) was the mother of Robin Grant, a disabled adult. In need of supervision, Robin resided in a care facility operated by Bethesda Lutheran Communities, Inc. (“Bethesda”). While under Bethesda’s supervision, Robin died. Grant retained Wild Carter & Tipton (“Wild Carter”), a law firm, to represent her in connection with Robin’s death but signed no fee agreement at the time.

Later, Grant filed a Chapter 7 bankruptcy case. She did not schedule or exempt her cause of action against Bethesda, and she did not list Wild Carter as a creditor. Sheryl Strain (“Strain”) was appointed the Chapter 7 trustee.

Unaware of Grant’s pending bankruptcy, Wild Carter filed a wrongful death action for Grant in Fresno County, California (the “Bethesda action”). But after learning of Grant’s bankruptcy, Wild Carter entered into a contingency fee agreement with Grant. The agreement created a charging lien to secure Wild Carter’s fee and costs against any recovery obtained.

Shortly after the fee agreement was signed, Strain wrote Wild…