Krevatas v. Wright

Elizabeth Fambrough, a childless widow, executed a power of attorney naming her close friend, Spero Krevatas (plaintiff), as her agent. Fambrough’s will granted Krevatas $20,000 and named her nieces as remainder beneficiaries. Both the will and the power of attorney were executed in 1982; however, the power of attorney was not delivered to Krevatas until March 1985, shortly before Fambrough’s death. In the weeks preceding Fambrough’s death, she made additional specific gifts, including a gift of furniture to Krevatas. Shortly before Fambrough’s death, Krevatas, on his own initiative, brought Fambrough the forms necessary to convert her checking account into a survivorship account held jointly with Krevatas and one of Fambrough’s nieces. Fambrough signed off on the conversion, but Krevatas did not inform Fambrough of alternatives or explain the consequences of the conversion. Fambrough’s checking account held approximately $5,500 at the time of the conversion; however, following the conversion, Krevatas exercised his power of attorney to transfer approximately $120,000 into the survivorship checking account. Krevatas also converted Fambrough’s certificates of deposit into joint survivorship accounts. Fambrough was not aware that Krevatas was transferring money or converting her accounts. Fambrough was competent until her death. After Fambrough’s death, Donald Wright (defendant), the personal representative of her estate, sued Krevatas for breach of fiduciary duty. The trial court held that Krevatas had breached his fiduciary duty and that the power of attorney had not authorized him to create survivorship accounts. Accordingly, Krevatas was ordered to reimburse the estate, and he was stripped of his interest in the survivorship accounts. Krevatas appealed.