Bilbrey v. Smithers

September 3, 1996 FOR PUBLICATION IN THE SUPREME COURT OF TENNESSEE AT NASHVILLE FILED BLANCHE BILBREY AND CECIL ( September 3, 1996 ASBERRY, ( ( Cecil W. Crowson Plaintiffs-Appellees, ( Appellate Court Clerk ( ( ( Pickett Chancery ( v. ( Hon. Vernon Neal, ( Chancellor ( ( No. 01S01-9509-CH-00168 ( VESTEL SMITHERS, ( ( Defendant-Appellant. ( For Plaintiffs-Appellees: For Defendant-Appellant: Phillips M. Smalling Onnie L. Winebarger Byrdstown Byrdstown OPINION JUDGMENT OF COURT OF APPEALS AFFIRMED; CASE REMANDED. REID, J. This case presents for review the right of a child born out of wedlock to inherit from his natural father who died prior to the amendment of Tenn. C ode Ann . § 31-2-105(a )(2)(B) (Supp. 1 995) in 1978 . The record supports the finding of paternity, but the claimant failed to establish the right to inherit as required by the statu te; howe ver, the ap pellant is es topped to deny the claiman t's asserte d interest in the dece dent fathe r's real prop erty. THE CASE S. D. (Sam) Asberry died intestate on June 12, 1966, survived by two legitim ate ch ildren, O rban A sberry and B lanch e Bilbre y, and C ecil Asberry, who was born out of wedlock. Orban Asberry qualified and served as the ad ministrato r of his fathe r's estate. T he adm inistration of th e estate was clos ed on th e 12th d ay of Aug ust, 1968 , and the d ecede nt's perso nalty was distributed equally between Orban Asberry and Blanche Bilbrey. At the time of his father's death, Cecil Asberry made no claim for a share of the personal estate. No disp osition wa s mad e of any p ortion of the real prop erty owned by S. D. (Sam) Asberry until 1983.1 In 1983, and again in 1986, portions of the real property were conveyed to the State of Tennessee by warra nty dee d exec uted b y Orba n Asb erry, Bla nche Bilbrey , and C ecil Asberry. The deeds identified the grantors as "being the only children and heirs at law of S. D. A sberry." The pro ceeds from the sale of the land were divided eq ually am ong O rban A sberry, B lanche Bilbrey, an d Cecil A sberry. In 1993, prior to the filing of the c omplaint in this cas e, Orban A sberry, Blanch e Bilbrey, et vir, and Ce cil Asberry , et ux, executed an oil and gas lease of re al prope rty owned by S. D. (S am) A sberry at th e time of h is death. The record also shows that the proceeds from the sale of timber cut on the land w ere div ided a mon g Orb an As berry, B lanch e Bilbre y, and C ecil Asberry. 1 The record does not show who received the rents from the real property owned by the deced ent. -2- Orban Asberry died in 19 93. He d evised a ll of his prope rty to his steps on, Ves tel Smith ers. Soon after O rban A sberry 's dea th, Blan che B ilbrey an d Cec il Asbe rry filed th is suit, se eking an ad judica tion tha t Blanc he Bilb rey, Ce cil Asberr y, and Ve stel Sm ithers are te nants in c omm on of the re al prope rty owned by Sam Asberry at the time of his death and that the land be sold and the proceeds be divided among the parties equally. The parties stipulated that S. D. (Sam) Asberry's paternity of Cecil Asberry could be proven by clear and convincing evidence; however, Smithers disputed the allegation that Cec il Asberry o wns an y interest in th e real pro perty. The trial cou rt found for the p laintiffs a nd he ld that C ecil Asberry by intestate succession became the owner of a one-third undivided interest in his father's real property. The Court of Appeals affirmed. ANALY SIS Prior to 1978, a child born out of wedlock could inherit from the natural father only if there had been an adjudication of paternity prior to the death o f the father. See Tenn. Code Ann. § 31-206(2) (Supp. 1977). That law was changed in 1978 by this Court's decision in Allen v. Harvey, 568 S.W.2d 829 (Tenn. 1978), and the subsequent enactment of an amendment to the statute which is presently found at Tenn. Code Ann. § 31-2- 105(a)(2)(B) (S upp. 1995 ).2 2 Tenn. Code Ann. § 31-2-105(a)(2)(B) states as follows: (a) If, for purposes of intestate succession, a relationship of parent and child must be established to determine succession by, through, or from a person: ... (2) In cases not covered by subdivision (a)(1), a person born out of wedlock is a child of the mother. That person is also a child of the father, if: ... -3- In Allen v. Harvey, there had not been an adjudication of paternity p rior to the na tural father's death. E ven thou gh the sta tute contained no provision at that time for an adjudication of paternity after the death of the father, this Court found "the policy of that Act to be one of sanction ing inherita nce if the fa ther-child re lationship is clearly esta blished," 568 S.W .2d at 834 , and he ld that pate rnity for the pu rpose o f "inheritanc e," could be determined after the de ath of the father, upon "clear and convinc ing proo f" provided "rights of inhe ritance ha ve not finally ve sted." Id. at 835. The Court stated that application of the decision to other cases would b e prosp ective only. Id. The decision in Allen v. Harvey turned on a finding of clear and convincing proof of paternity. The second condition, "where rights of inheritance have not vested," was not an issue in that case because it was a conde mnatio n proce eding b y the State in which th e owne r of the pro perty died during the pendency of the case. The claimant's right to inherit was depe nden t upon the de termin ation th at he w as the child of the ow ner's deceased brother. Consequently, there could be no claim that "rights of inheritanc e" had ve sted, and the issue was no t discuss ed by the Court. The 1978 amendment to Tenn. Code Ann. § 31-2-105 codified the Court's decision in Allen v. Harvey, that paternity could be established after the death of the father upon clear and convincing proof. However, the statute did not address the second limitation found in Allen v. Harvey, that "rights of inh eritance h ave not fina lly vested." In the present case, the Court of Appeals based its decision that Cecil Asberry is entitled to a share of his natural father's property upon (B) The paternity is established by an adjudication before the death of the father or is established thereafter by clear and convincing proof, but the paternity established under th is subdivis ion is ineffec tive to qualify the fa ther or the father's k indred to inherit from or through the child unless the father has openly treated the child as the father's, and has not refused to support the child. -4- Mars hall v. M arsha ll, 670 S.W.2d 213 (Tenn. 1984). In Mars hall v. M arsha ll, the Court applied the decision in Allen v. Harvey "retros pective ly" and h eld that a child born out of wedlock could inherit from his intestate father, who had die d in 1975 survived b y a widow and co llateral heirs. Id. at 215. The opinion, filed in 1984, does not discuss the statute or the holding in Allen v. Harvey that the claim will not b e allow ed to d isturb ve sted rig hts; no r does it address the time within which the right of inheritance must be asserted, excep t to find th at the "d efend ants in the ins tant ca se ha ve not a cted in reliance upon the precede nt overruled by Allen . . . ." Id. Nevertheless, the effect of the Mars hall decision was that three and one-half years after the death of the ow ner of the prope rty, the fee simple title to the prop erty, subject only to the widow's statutory rights, was divested out of the decedent's heirs at law and vested into his son who was born out of wedloc k. The d ecision o bviously d isturbed v ested p roperty righ ts, despite its focus on "prospe ctive" and "re trospec tive" applica tions of the statute. Conseq uently, neither the statute nor any opinion of this Court has addressed directly the time within which a child born out of wedlock must assert the right to inherit by virtue of his relationship with his natural father. That is sue w as rais ed in th e trial co urt and the Co urt of A ppea ls in this ca se. Th e trial co urt ruled that title h ad no t vested in the d eced ent's legitimate children and, further, that Vestel Smithers was estopped from asserting any statute of limitation. The Court of Appeals utilized a different rationale. In response to Smithers' insistence that title to S. D. (Sam) Asberry's real property had vested in the decedent's legitimate heirs at law imme diately upo n his dea th in 1966 , that court a pparen tly found tha t, pursuant to Allen v. Harvey and Mars hall v. M arsha ll, title also vested in Cecil Asberry upon the death of the father, even though there had been no adjudication of paternity. The Court of Appeals did not discuss the statute of limitation or estoppel. The decision by the Court of Appeals that title vested in the claimant upon the death of his father, even though there had been no adjudication of paternity, left unresolved significant issues regarding the -5- ownership of property. Application of the relevant rules of law compels the conclusion tha t neither the decision of the Court of A ppeals nor the trial court is entirely correct. Both courts, as well as this Court in Mars hall v. M arsha ll, ignored the decision in Allen v. Harvey that an ad judication of patern ity subsequent to the father's death will not be allowed to disturb vested interests. Determining the appropriate application of the limitation that vested rights will not be disturbed to the statute allowing paternity to be established after the father's death requires consideration of the law of real property, intestate succession, and equal protection. That consideration properly begins with the applicable statutes. Section 31-2-103(a) provides: The real pro perty o f an inte state d eced ent sh all vest im med iately up on de ath of th e dec eden t in the heirs a s provide d in § 31-2 -104. . . . Tenn . Code Ann. § 3 1-2-103 (a) (Sup p. 1995 ). For purp oses o f intestate succession, a person born out of wedlock is the child of that person's father if: The paternity is established by an adjudication before the death of the father or is established thereafte r by clear a nd con vincing pro of. Tenn. Code Ann. § 31-2-105(a)(2)(B). Consequently, if there has been an adjudication of paternity prior to the death of the father, the child born out of wedlock inherits by intestate succession as a legitimate child, and title to the decedent's real property vests in that child immediately upon death of the decedent. No further adjudication is necessary to establish the child's right to inherit. -6- But, according to the statute, where there has been no adjudication of paternity prior to the father's death, paternity can be established only by clear and convincing proof, which, of course, requires a judicia l determ ination subs eque nt to the death of the fa ther. T he on ly designation in the statute of the time within which that determination can be made is "the reafter," or, in other words , after the father's death. H owever, "there after" ca nnot b e unlim ited or u ncerta in, bec ause , as pre viously discussed, the right of a child born out of wedlock to inherit cannot be asserte d to disturb "rights of inhe ritance" tha t have "finally ve sted." 3 Con sequ ently, it ap pears that the limitatio n imp osed upon the righ t of a ch ild born ou t of wedloc k to inherit from the child's n atural fathe r, where p aternity has not been established prior to the father's death, is that paternity must be prove n by cle ar and convin cing p roof pr ior to the vesting in intere st in person s other tha n the claim ant-child. In reaching its decision in Allen v. Harvey, the Court relied upon Trimble v. Gordon, 430 U.S. 762, 97 S. Ct. 1459 (1977), in which the United State s Sup reme Cour t held th at an Illin ois sta tute tha t perm itted on ly legitimate children to inherit from a father who died intestate violated the equal protection provisions of the United States Constitution. In that case, the Su prem e Cou rt recog nized that the state h as a le gitima te intere st in establishing an orderly method of disposition of intestate property, that the more serious problems incident to proving the paternity of persons born out of wedlock justify a more demanding standard of proof, and that the dependability of titles to property passing by intestate succession must be ensure d. Id. at 771, 97 S. Ct. at 1465. A reasonable accommodation of these state interests and the rights of pe rsons b orn out o f wedlock to inherit from their natura l fathers is to 3 The com mo n law conc ept o f seis in is st ill a bas ic prin ciple o f rea l prop erty law in Ten nes see . Upo n the term inatio n of a free hold e state , "ther e m ust b e som e asc ertain ed pe rson in existenc e capa ble of tak ing the se isin." Corne lius J. Moyn ihan, Introduction to the Law of Real Prope rty 113 (1962). -7- require that, in the absence of a statute addressing the issue, a claimant must a ssert the rig ht to inherit w ithin the time allowed c reditors to a ssert a claim again st the e state o f the pe rson w ho wa s the o wner o f the pro perty in which an interest is claimed.4 Admittedly, this is a som ewhat arbitrary determ ination . How ever, in the ab senc e of a s tatute, th is dete rmina tion is necessary in order to resolve competing rights. In any event, this limitation can be determined by familiar and well-defined rules, it meets constitutional standards of notice to claimants,5 it protects the rights of creditors and subsequent owners of the property, it poses no threat to "rights of inheritance" beyond those which may now be posed by creditors and taxing authorities , and it retain s the pre sent de gree of d epend ability in the titles to intestate property. 6 In summary, a child born out of wedlock, whose paternity was not adjud icated prio r to the dea th of the fath er, can e stablish the right to inherit by intestate succession by asserting that right against the estate of the deceased owner of the property in which an interest is claimed within the time allowed for creditors to file claims against the estate and by establishing paternity b y clear an d convin cing proo f. In this case, Cecil Asberry has shown by clear and convincing proof that he is the s on of S. D. (Sa m) Asbe rry; however, he did not assert the right to inherit against the estate of S. D. (Sam) Asberry, the owner of the property in which an interest is claimed, within the time required. The estate was closed in 1968; Cecil Asberry's application for a determination of patern ity was n ot ma de un til this suit w as filed in 199 3. How ever, th is 4 Where, as in Allen v. Harvey, the ow ner of the pro perty at is sue w as no t the cla iman t's father, the adjudication of paternity may occur long after the death of the claimant's father and the closing of his estate. 5 See Estate of Jenkins, 912 S.W .2d 134, 1 36 (Te nn. 1995 ). 6 The limitation stated also eliminates reliance upon the questionable use of the distinction betw een "pros pec tive" a nd "re trosp ective " app licatio n of th e sta tute to dete rm ine its applic ability, which was discussed in Allen v. Harvey and Mar sha ll v. Ma rsha ll. -8- holding d oes no t resolve the rights of the parties in this case. ESTOPPEL Another issue is presented by the pleadings and proof. That issue is whe ther V estel S mithe rs can rely upo n Cec il Asbe rry's de lay in seeking an adjudication of paternity. Cecil Asberry asserts that Vestel Smithers is estopped from denying his ownership of an interest in the property. He bases the claim of estoppel upon the recitations made by Orban Asberry in the instruments of conveyance executed by Orban Asberry, Blanche Bilbrey, and Cecil Asberry, in which Vestel Smithers' predeces sor in title declared that he , Blanche B ilbrey, and Cecil As berry were the children a nd heirs a t law of the d ecede nt owne r. Estoppel is an affirmative defense which must be raised in the pleadings and proven by the party asserting it. Tenn. R. Civ. P. § 8.03; Edwards v. Central Motor Co., 38 Tenn. App. 577, 277 S.W.2d 4l3, 416 (Tenn . Ct. App . 1954), a ff'd, 277 S.W .2d 417 (Tenn . 1955); Borches & Co. v. Arbuckle Bros., 111 Tenn. 498, 78 S.W. 266 (1903). Estoppel by deed is an affirmative d efense based on repre sentation s mad e by a pa rty in a deed . Essentially, representations made by a party to a deed cannot be denied later by that party or his privies. "Estoppel by deed is a bar which precludes one party to a deed and his privies from asserting as against the other party and his privies any right or title in derogation of the deed, or from denying the truth of any materia l facts asse rted in it." Denn y v. Wilso n Cou nty, 198 Tenn. 677, 281 S.W.2d 671, 674 (1955) (quoting 28 Am. Jur. 2d Estoppel & Waiver § 4 (196 6)); see also: Blevins v. Johns on Co unty, 746 S.W.2d 678, 684 (Tenn. 1988). "Where one recog nizes anoth er's title o r is instru men tal in an other's acqu iring title h e is -9- estopp ed to afterw ards de ny that title." Spicer v. Kimes, 156 S.W.2d 334, 337 (Ten n. Ct. App. 194 1). "The privies of a gra ntor or grantee a re estopp ed to the s ame e xtent as the original pa rties to the d eed." Id. Estoppel by deed applies where both parties were grantors or grantees, and also where one party was a grantor and the other was a grantee. In either case, an individual's p roperty righ ts are be ing recog nized by the other party or parties signing the deed. That recognition of rights cannot be taken back at a later time. Blanche Bilbrey and Orban Asberry joined Cecil Asberry in the execution of two warranty deeds and a lease. It was asserted in those instruments that the grantors were the heirs of S. D. (Sam) Asberry. The proof sh ows tha t they divided the proc eeds fro m the c onveya nces e qually. Orban Asberry would be estopped from denying that Cecil Asberry owns a one-third undivided interest in the real property. Vestel Smithers, as Orban Asberry's successor in interest, is likewise estopped. CONCLUSION The ruling of the Court of Appeals, that Cecil Asberry is entitled to a one-third und ivided interest in the real pro perty owned by Sam A sberry, is affirmed. The case is remanded to the trial court for further proceedings consistent with this opinion. Costs are taxed to Vestel Smithers, for which execution may issue. ______________________________ Reid, J. Concur: Birch, C.J., Drowota, Anderson, -10- and White, JJ. -11-