Friday's Internet Edition, July 25, 2008.
Executrix removed from Gordon estate
By DAVID HEDGES
Publisher
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The woman in charge of a multi-million dollar estate has been removed from her position.
Roane Circuit Judge Tom Evans removed Joyce Conrad as executrix of the Hazeldeane Gordon estate at a hearing Monday afternoon.
Gordon, who died in 2005, left the bulk of her $2.5 million estate to St. Jude Children’s Research Hospital. She was the daughter of the late Dr. A.T. Gordon, who operated Gordon Memorial Hospital in Spencer for many years.
Conrad has already admitted she owes more than $200,000 she took from the estate. At a hearing last month, she said she planned to sell 132 acres of her property on Seaman Fork to repay the money.
The sale was to have closed last week, but Conrad said it did not go through. She said she had other potential buyers and was still showing the property.
Conrad’s lawyer, William Powell of Parkersburg, asked that the case be continued another 90 days to give Conrad more time to sell her property to pay back the estate.
Conrad has admitted she paid herself $300,000 in advance commissions from the estate. Fiduciary commissioner Loretta Knapp questioned those payments.
Evans had already ruled that Conrad would have to pay back more than $202,000 of the money she took, plus interest. That upheld an earlier ruling by the Roane County Commission that Conrad had appealed to circuit court.
Knapp is represented by Spencer attorney Anita Ashley, who asked Monday that Conrad be removed as executrix for failure to perform her duties.
Ashley said Conrad had recently sold an apartment building, which she said was the first piece of property sold since Gordon died nearly three years ago. Ashley said the tax return for the estate had not been filed.
Powell denied that his client had done anything wrong since the order that she repay the estate.
“There’s not been one hint of any misconduct since she was told something was out of line,” Powell said.
Ashley said Conrad had not repaid any of the money since she was ordered to do so last year.
“She was ordered to pay the money last October. The county commission did that,” Ashley said. “Here it is June and we haven’t seen a penny of it.”
Powell said the estate had not been harmed and interest was accruing on the money Conrad owed.
He suggested that Conrad be allowed to post bond and continue in her role as executrix.
Powell also said Conrad was preparing to borrow $50,000 to repay a portion of what she owes to the estate.
Ripley attorney Larry Skeen, who represents the estate, said he had not heard a request from St. Jude’s that Conrad be removed from the estate. But Ashley said that a representative of St. Jude’s had asked her if Conrad could be removed.
At first, Evans indicated he would grant Powell’s request to continue the hearing on whether Conrad should be removed. If so, he said Conrad would have to post a bond.
“We’re supposed to be protecting the assets of this estate,” Evans said.
Ashley said that might be difficult to carry out.
“Based on the circumstances of this case, I don’t think she could get a bond,” Ashley said.
Evans eventually refused the request for a continuance and instead removed Conrad from her position.
“The court is very reluctant to permit this situation to continue,” Evans said.
It will now be up to the Roane County Commission to find a replacement for Conrad as executor.
Ashley said after the hearing that if the order was entered in time, the commission could name a replacement as soon as their meeting next week.
Evans gave Conrad 90 days to make a final accounting of the estate and ordered her to return to court Sept. 11 when he said he would review her efforts to repay the money she owes to the estate.
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