He transferred estate properties to himself and his brother without fair market value compensation
The BC Supreme Court removed the executor of an estate and appointed a trust company as administrator due to self-dealing and failure to provide transparent accounting, resolving a protracted dispute between siblings.
Lily Diane Barbieri passed away in 2018, leaving a will which named her children Rick Barbieri and Teresa White as joint executors. The will's significant terms granted their brother, Steven Barbieri, a life estate for a business property and directed the residue of the estate to be equally divided among Rick, Steven, and Teresa.
Conflict arose when Rick applied to become the sole executor, accusing Teresa of improperly transferring estate assets to herself. The court granted this request by consent order in September 2019, making Rick the sole executor and requiring him to provide Teresa and Steven with bimonthly estate accountings.
However, Rick and Teresa's disputes escalated, involving multiple court proceedings and a trip to the Court of Appeal. Teresa launched a civil action in July 2022, accusing Rick of misappropriating estate assets and favouring himself and Steven.
Key points in Teresa’s application to remove Rick centred on handling two estate properties. Rick transferred the Old Yale Property to his company without notifying Teresa and sold it for below appraised value. He also transferred another property to Steven without Teresa's knowledge. Teresa claimed both properties were undervalued, which Rick partially conceded but defended as within his executor's discretion under the will.
The Supreme Court found that Rick engaged in self-dealing by transferring estate properties to himself and Steven without proper notification or fair market value compensation. This conduct was deemed a significant conflict of interest, imperilling the estate assets and favouring certain beneficiaries over others.
Despite acknowledging the broad discretion granted to Rick by the will, the court concluded that his actions necessitated removal to protect the estate's integrity and ensure fair administration. The court appointed Solus Trust as the new administrator of the estate pending litigation and directed that all estate assets be vested in Solus Trust.
The court noted that Rick's failure to provide a satisfactory and transparent estate accounting further justified his removal. The court emphasized the need for an independent, detailed accounting to clarify the estate's value and asset distribution.
