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Virginia: Senior Guardianship Regulations at Issue in the Courts

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Arcadius Hakim, 94, of Bailey’s Crossroads served in the U.S. Navy and later became an ear, nose and throat physician, practicing for nearly 50 years and amassing a pretty hefty nest egg. But when he developed dementia in his 80’s and then married a significantly younger woman, his family quarreled about who was to be in charge of Hakim’s finances, and eventually he was appointed a third-party conservator and guardian by a Fairfax County judge.

“My dad is a wonderful guy,” said Dr. John Hakim, a cardiologist and one of three children of Arcadius Hakim. “But when his house burned down in 2002 and he married a much younger woman, we as family members got concerned, and were unsure of how to manage him.”

The McLean law firm of Needham Mitnick & Pollack became Arcadius Hakim’s legal guardians and conservators in 2006, something that is not uncommon in Virginia. A guardian is often needed to care for an incapacitated adult, an adult with mental health issues or a senior who has diminished mental capacity. Additionally, in Virginia a conservator is a person appointed by the court to manage the incapacitated adult’s finances and property when they no longer can.

According to Susan Pollack of Needham Mitnick & Pollack, her law firm specializes in these types of cases, and especially in ones that have familial complications or are considered difficult to manage.
Legal guardian and conservatorship matters are billed at the firm’s professional rates, which can be hundreds of dollars per hour. Virginia Code § 64.2-1208 allows any appointed guardian reasonable compensation for services rendered to an incapacitated adult, but there is no specific definition of “reasonable compensation.”.

Fairfax County Circuit Court Commissioner of Accounts John Rust supervises the billing process by these types of law firms in these cases and for the last few years, the Hakim family has been embroiled in litigation that stemmed from findings issued by Rust in 2011 that some of the fees charged to the Hakim estate by NMP were disproportionate.

Rust concluded in his findings that it was unreasonable for NMP to charge legal rates for non-legal tasks and demanded the firm return $67,358 to the Hakim estate.

Now-retired Fairfax County Circuit Court Judge Leslie Alden ordered a review of the billings, which was then taken before Judge Randy Bellows. The case may soon finally be decided by the Supreme Court.

“They charged my father’s estate $500 to attend a funeral,” said John Hakim. “In other cases, they were charging his estate $200-$300 an hour just to make a phone call on his behalf.”

But NMP’s attorney Bernard DiMuro says all of the charges for services in the Hakim case were reasonable, and that any non-legal tasks were charged accordingly, and not at professional attorney’s rates.

“When NMP was appointed, there was a specific finding and ruling that it could charge professional rates because of the complexity of the case,” he said. “But non-legal tasks were not charged at professional legal rates.”

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Senior Guardianship Regulation at Issue in the Courts

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