Mediation resolves estate dispute

SANDPOINT — A dispute over management of a $5.6 million estate held in trust to benefit Bonner County roads was resolved Thursday via mediation.

The estate’s personal representative and its successor representative have agreed to step aside and appoint a new representative to help carry out Harpster Frederick Turnbull’s final wishes, Bonner County Prosecutor Louis Marshall said on Friday.

The successful mediation heads off a court trial set for next month.

James Carothers, the estate’s successor representative, filed a petition last fall to remove the estate’s primary representative, Dale Coffelt.

Carothers claimed Coffelt did not moving quickly enough in handling estate matters. Coffelt defended his conservative management of the estate.

The sides were ordered into mediation with Post Falls attorney Chuck Lempesis in advance of the bench trial. Under the terms of the mediation, Coffelt and Carothers will resign and appoint Dick Hutter, a real estate broker who had already been consulting with Coffelt on matters involving the estate.

Carothers will receive a $7,500 payment for his financial interest in administration of the estate, according to Marshall.

Marshall will continue to act as counsel for the estate’s representative, at least for the time being. Marshall’s involvement in the matter drew objections from Carothers, who argued it was a conflict of interest because the county is beneficiary of the estate.

The conflict question was first raised by John Topp, a former deputy prosecutor who worked with Turnbull and Coffelt. The county commission acknowledged and waived the conflict of interest to avoid potentially hefty legal fees.

The county’s counsel works on the estate pro bono.

The dispute froze the estate in limbo. Successful mediation means Turnbull’s $4.7 million homesteaded ranch in Sagle can be selectively logged and eventually sold.

“That had to be put on hold due to the petition being filed,” said Marshall.

Proceeds from the sale of timber and real estate, in addition to various financial holdings, will be held in trust with the Idaho Community Foundation. Interest from the trust will ultimately be used to enhance the county’s road budget in perpetuity.