bloodsuckers at work
New York Times - December 5, 2006
In Aftermath of the Astor Case, How the Final Fees Piled Up By SERGE F. KOVALESKI
The legal drama over the health care and finances of Brooke Astor,
New York’s legendary socialite and philanthropist, played out for
nearly three months amid allegations and recriminations of financial
duplicity, greed and outright forgery.
The case against her son, Anthony D. Marshall, came to a halt on Oct.
13 when the parties in the feud reached a settlement, averting what
could have been an expensive and sensational trial scheduled to begin
less than a week later.
But everything comes with a price. In the seven weeks since the
agreement, those involved in the case have filed bills with Justice
John E. H. Stackhouse of State Supreme Court in Manhattan for fees
totaling about $3 million for the services of 56 lawyers, 65 legal
assistants, 6 accountants, 5 bankers, 6 doctors, 2 public relations
firms and a law school professor. Under state law, such payments
would come out of Mrs. Astor’s assets, valued at over $120 million.
But yesterday, Justice Stackhouse issued an order that approved a
smaller amount, $2.22 million, calling the original figure
“staggering” and saying that some charges were for work that was not
in the best interest of Mrs. Astor, who is 104. The justice denied
payments for the public relations firms, the time lawyers spent
talking with reporters and the hours logged preparing the fee
applications themselves.
The largest fee of nearly $1.08 million went to J. P. Morgan Chase,
which was named permanent guardian of Mrs. Astor’s assets as part of
the settlement, less than the $1.24 million that the bank requested.
The other guardian in the case, Annette de la Renta, the wife of the
designer Oscar de la Renta, requested no compensation for herself or
the law firm that represented her.
“She felt that the right thing to do was to pay all her own
attorneys’ fees and that it was not fair to charge that to her
friend’s estate since she volunteered to step up as guardian,” said
Fraser P. Seitel, a spokesman for Ms. de la Renta. Mr. Seitel’s
business was one of the public relations firms denied payment by the
justice.
The case began on July 20, when one of Mr. Marshall’s sons, Philip
Marshall, filed a legal petition that accused his father of
neglecting the care of Mrs. Astor while trying to enrich himself with
her fortune. Under the October settlement, Anthony Marshall, 82, gave
up his role as steward of his mother’s finances and was required,
along with his wife, Charlene, to relinquish his position as co-
executor of Mrs. Astor’s estate. As part of the agreement, Mr.
Marshall admitted no wrongdoing.
Justice Stackhouse said he felt Mr. Marshall should be awarded half
of his legal fees. “I make this ruling based on the conclusion of the
court evaluator that the allegations in the petition regarding Mrs.
Astor’s medical and dental care, and other allegations of intentional
elder abuse by the Marshalls, were not substantiated,” he wrote in
his ruling.
Ira Salzman, whose firm represented Philip Marshall and was awarded
$356,512 of the $365,572 in fees it requested, said in a statement
that payments to Mr. Seitel, who did work for his client, would be
honored through other means.