of a possible successor. Maloney v. Foundry Methodist Episcopal Church, 1943, 78 U.S.App.D.C. 263, 139 F.2d 388.
Here the trustees were able to effect the sale of the Cincinnati Enquirer on terms highly advantageous to the trust, without the payment of broker's fees, after arduous, prolonged and intensive negotiations with prospective purchasers. The record shows extraordinary services were rendered beyond the ordinary duty of a trustee in the management and sale of a highly valuable property. These services demanded unusual skill and responsibility. The duties were not created by the trustee but were thrust upon it by the terms of the trust. The trust, which was assumed in 1916, may continue for another fifty years or more, and the corpus distributed when the transaction has long since been forgotten and the participants long since departed. Part of the corpus, in the amount of $ 600,000, has already been distributed, and another $ 100,000 will be distributed in several months under the terms of the trust. Examination of the detailed statement submitted by the trustees, of the opinions of two independent trust officers which many years' experience in trust administration and one law firm with broad experience in the appraisal, management and sale of various newspapers, and of the awards that have been allowed other fiduciaries in the District of Columbia, leads the Court to the conclusion that the $ 150,000 suggested, representing less than 2 percent of the $ 7,600,000 in cash for which the Enquirer was sold, is a just, fair and reasonable compensation under all the circumstances for the trustee's services.
With regard to the proposed allowance of $ 100,000, of which $ 30,000 has been paid on account, for counsel of the trustee for services rendered in connection with the sale of the Enquirer, two distinguished members of the bar of this Court have recommended the amount claimed. An Ohio law firm with long experience in representing newspapers has recommended $ 150,000.
The trustees can properly incur expenses in employing attorneys or agents so far as such employment is reasonably necessary or appropriate in the administration of the trust. Restatement of Trusts, Sec. 188, comment (c). Where litigation or negotiations are conducted with a view to enriching the corpus of the estate, an allowance of attorney's fees is payable out of the corpus of the estate. Commercial Trust Co. of New Jersey v. Mason, 1936, 119 N.J.Eq. 376, 182 A. 875, affirming Commercial Trust Co. of New Jersey v. Spiegelberg, 1934, 117 N.J.Eq. 171, 175 A. 164. Among the elements which may be considered in determining the reasonable value of an attorney's fees are (1) the character and extent of the services and the nature of the transaction; (2) the amount of time necessarily devoted to the matter; (3) the experience, skill, learning and standing of the attorney; (4) the amount involved, the importance and magnitude of the cause and the responsibility assumed; (5) the results and benefits obtained; (6) the amounts usually charged or awarded for similar services in the locality. Note, 143 A.L.R. 672.
The nature and magnitude of the transaction here required the services of counsel with ability, skill, judgment and experience in varied fields of law. The services were rendered with ability and success. The Court is of opinion that the amount requested represents fair and reasonable compensation for the services rendered.
The guardian ad litem has suggested an allowance of $ 15,000 for more than 320 hours consumed in the negotiations for sale of the newspaper. The guardian has previously received $ 2,500 for services from October 9, 1942 to April, 1943, and $ 7,500 for services from July 1, 1943 to June 19, 1951. The guardian has been alert to his responsibilities and has at all times rendered effective service. In large measure he was a moving spirit in undertaking and consummating the sale of the Cincinnati Enquirer. The Court is of opinion that $ 15,000 represents a just and reasonable compensation for his services.
The trustee has requested that compensation for its extraordinary services be paid in five equal annual installments, the first payment to be made in 1953. It is the rule that compensation to trustees will be awarded in such manner as is most beneficial to the estate, without regard to such financial benefits as may accrue to the trustees by the method of payment. The Court has been advised that the trustee would have preferred either a lump-sum payment or payments over a shorter period, but that the five-year period was agreed upon by the parties at the instance of the life beneficiaries because the unpaid balances would continue to produce income for the trust until the respective payments were made, to compensate the life beneficiaries in part for their loss of income resulting from sale of the Enquirer. The agreement also avoided a contested hearing on the motion for allowance, which would have been extensive and costly. The Court therefore is of opinion that payments to the trustee may be made in equal sums over a five-year period.
The Court accordingly will enter an order directing that $ 150,000 be allowed the trustee as compensation for extraordinary services rendered in sale of the Cincinnati Enquirer, payments to be made in five equal annual installments; $ 100,000 to be allowed counsel for the trustee; and $ 15,000 to be allowed the guardian ad litem.
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