Legal Definitions - extraordinary fees

Extraordinary fees refer to additional charges an attorney may seek for work performed during the administration of an estate that goes significantly beyond the typical duties and complexities expected in such a process. Unlike standard legal fees, these charges are for unusual or exceptionally demanding tasks that arise unexpectedly. Because they are outside the normal scope, the attorney must present a detailed justification to the court, demonstrating the necessity and reasonableness of these additional expenses before a judge will grant approval for their payment from the estate's assets.

Here are some examples of situations where extraordinary fees might apply:

• Complex Asset Recovery: Imagine an estate where the deceased had invested in a highly speculative, unregulated cryptocurrency that is now difficult to access and liquidate. The attorney might need to engage forensic accountants, cybersecurity experts, and potentially pursue legal action against a defunct exchange to recover these digital assets. This extensive and specialized effort goes far beyond the routine collection of bank accounts or real estate.

  This situation is "extraordinary" because it involves highly specialized technical and legal expertise, significant investigative work, and potential litigation that is not part of a typical estate asset liquidation. The attorney would seek extraordinary fees for this additional, complex work, requiring court approval.

• Business Operation and Sale: Suppose the deceased owned a small manufacturing business that was actively operating at the time of their death. The estate attorney might be required to temporarily oversee the business operations, manage employees, negotiate with suppliers and customers, and ultimately facilitate the sale of the business as a going concern, rather than simply liquidating assets. This involves a level of operational management and business transaction complexity beyond standard estate duties.

  This scenario is "extraordinary" because it requires the attorney to engage in active business management and a complex commercial transaction, which falls outside the scope of typical estate administration. The attorney's time and resources spent on maintaining and selling the business would be billed as extraordinary fees, subject to court review for reasonableness and necessity.

• Dispute with Creditors: An estate might face a large, contested claim from a major creditor, such as a former business partner alleging breach of contract, which requires extensive negotiation, discovery, and potentially litigation to resolve. The attorney must dedicate substantial time to investigating the claim, preparing a defense, and engaging in settlement discussions or court proceedings to protect the estate's assets from an unwarranted or excessive demand.

  This situation is "extraordinary" because it involves defending the estate against a significant, contested legal claim, which is a form of litigation distinct from the routine process of paying undisputed debts. The attorney's efforts to resolve this complex dispute would be considered extraordinary work, and the associated fees would require court approval.