Reese v. Reese

No. 81-218 I N THE SUPREME COURT OF THE STATE OF MONTANA 1981 NORVELL 0. REESE, and THE ESTATE OF NORVELL 0. REESE, DECEASED. P l a i n t i f f and A p p e l l a n t , -vs- STELLA R. REESE, D e f e n d a n t and R e s p o n d e n t . A p p e a l from: D i s t r i c t C o u r t of t h e N i n e t e e n t h J u d i c i a l D i s t r i c t , I n and f o r t h e C o u n t y of L i n c o l n , T h e H o n o r a b l e R o b e r t H o l t e r , Judge p r e s i d i n g . C o u n s e l of R e c o r d : For A p p e l l a n t : A n n C. G e r m a n , M i s s o u l a , Montana F o r Respondent: W i l l i a m A. Douglas, Libby, Montana S u b m i t t e d on B r i e f s : November 5, 1 9 8 1 Decided: gEg,#l lgef Filed: r f c2i 1981 M r . Chief J u s t i c e Frank I . H a s w e l l d e l i v e r e d t h e Opinion of t h e Court. The q u e s t i o n i n t h i s a p p e a l is w h e t h e r a d i v o r c e d w i f e ' s claim f o r money d u e h e r u n d e r a p r o p e r t y s e t t l e m e n t a g r e e m e n t is b a r r e d b y h e r f a i l u r e t o commence a n a c t i o n t h e r e o n a g a i n s t h e r deceased former husband's estate w i t h i n the t i m e provided i n t h e U n i f o r m P r o b a t e Code. The ~ i s t r i c tC o u r t h e l d h e r claim was n o t barred. We affirm. N o r v e l l Reese and S t e l l a R e e s e were d i v o r c e d o n A p r i l 7 , 1972. A p r o p e r t y s e t t l e m e n t agreement w a s i n c o r p o r a t e d i n t h e decree. Under i t s terms N o r v e l l r e c e i v e d c e r t a i n p r o p e r t y , a s s u m e d c e r t a i n t a x o b l i g a t i o n s , and a g r e e d t o p a y S t e l l a $ 1 8 , 0 0 0 i n m o n t h l y p a y m e n t s o f $300. On May 2 2 , 1 9 7 8 , S t e l l a f i l e d a n a c t i o n a g a i n s t N o r v e l l s e e k i n g a n a c c o u n t i n g and to s e t a s i d e h e r c o n v e y a n c e o f p r o - p e r t y under t h e p r o p e r t y s e t t l e m e n t agreement. S t e l l a claimed N o r v e l l had b r e a c h e d t h e a g r e e m e n t b y h i s f a i l u r e to make t h e r e q u i r e d monthly payments. A h e a r i n g t h e r e o n was s e t f o r J u l y 6, 1 9 7 8 , b u t was c o n t i n u e d i n d e f i n i t e l y t o be c a l l e d u p by e i t h e r c o u n s e l on 1 0 d a y s n o t i c e . On S e p t e m b e r 1 2 , 1 9 7 9 , N o r v e l l d i e d . P r i o r to h i s d e a t h h e had r e m a r r i e d , and h i s s u r v i v i n g s p o u s e , D a n i e l l e , was appointed p e r s o n a l r e p r e s e n t a t i v e of h i s estate . Not i c e t o cre- d i t o r s was f i r s t p u b l i s h e d on O c t o b e r 1 2 , 1 9 7 9 . On F e b r u a r y 7 , 1 9 8 0 , S t e l l a f i l e d a claim a g a i n s t h i s e s t a t e f o r $ 7 , 1 1 7 p l u s i n t e r e s t e n c o m p a s s i n g t h e money d u e h e r u n d e r t h e p r o p e r t y s e t t l e m e n t agreement i n t h e divorce decree. The p e r s o n a l r e p r e - s e n t a t i v e o f N o r v e l l ' s e s t a t e t o o k no a c t i o n o n S t e l l a ' s claim. On November 1 7 , 1 9 8 0 , a h e a r i n g w a s h e l d i n S t e l l a ' s a c t i o n f o r a n a c c o u n t i n g and t o s e t a s i d e h e r c o n v e y a n c e o f p r o - p e r t y under t h e p r o p e r t y s e t t l e m e n t agreement. The D i s t r i c t C o u r t o f L i n c o l n C o u n t y d e n i e d t h e e s t a t e ' s m o t i o n to d i s m i s s t h e a c t i o n and e n t e r e d j u d g m e n t f o r S t e l l a i n t h e amount o f $ 7 , 1 1 7 p l u s i n t e r e s t and c o s t s , t h e amount o f N o r v e l l u s i n d e b t e d n e s s to h e r under t h e p r o p e r t y s e t t l e m e n t agreement. The p e r s o n a l r e p r e - s e n t a t i v e o f N o r v e l l ' s e s t a t e a p p e a l s from t h e d e n i a l o f h e r motion to d i s m i s s . The s u b s t a n c e o f t h e e s t a t e ' s c o n t e n t i o n i s t h a t S t e l l a ' s claim f i l e d i n t h e p r o b a t e p r o c e e d i n g s was e f f e c t i v e l y d i s a l l o w e d o n A p r i l 1 2 , 1 9 8 0 , 60 d a y s a f t e r t h e l a s t d a y f o r p r e s e n t a t i o n of claims a g a i n s t t h e e s t a t e ; t h a t S t e l l a had 6 0 d a y s t h e r e a f t e r i n w h i c h to commence a n a c t i o n a g a i n s t t h e p e r s o n a l r e p r e s e n t a t i v e o n h e r d i s a l l o w e d claim; and t h a t S t e l l a ' s f a i l u r e t o commence s u c h a c t i o n w i t h i n s u c h t i m e f o r e v e r b a r r e d h e r claim a g a i n s t t h e e s t a t e i n c l u d i n g S t e l l a ' s a c t i o n f o r a n a c c o u n t i n g and to s e t a s i d e h e r c o n v e y a n c e o f p r o p e r t y to N o r v e l l . M o n t a n a ' s U n i f o r m P r o b a t e Code g o v e r n s t h e manner of p r e s e n t a t i o n , a l l o w a n c e and d i s a l l o w a n c e o f claims a g a i n s t a decedent' s estate. I t p r o v i d e s a l t e r n a t i v e methods of presen- t a t i o n o f s u c h claims: (1) m a i l i n g a w r i t t e n s t a t e m e n t o f t h e claim t o t h e p e r s o n a l r e p r e s e n t a t i v e , ( 2 ) f i l i n g a w r i t t e n s t a t e - m e n t o f t h e claim w i t h t h e c o u r t , o r ( 3 ) commencing a p r o c e e d i n g a g a i n s t t h e p e r s o n a l r e p r e s e n t a t i v e w i t h i n t h e time a l l o w e d f o r p r e s e n t a t i o n o f claims. S e c t i o n 72-3-804, MCA. The Code f u r t h e r p r o v i d e s i n p e r t i n e n t p a r t : "No p r e s e n t a t i o n o f claim is r e q u i r e d i n r e g a r d t o matters c l a i m e d i n p r o c e e d i n g s a g a i n s t t h e d e c e d e n t which were p e n d i n g a t t h e t i m e o f h i s death." S e c t i o n 7 2 - 3 - 8 0 4 ( 2 ) , MCA. Where, as h e r e , t h e l a n g u a g e o f a s t a t u t e is p l a i n , u n a m b i g u o u s , d i r e c t and c e r t a i n , t h e r e is n o t h i n g l e f t f o r t h e Court to c o n s t r u e . Dunphy v. Anaconda Co. ( 1 9 6 8 ) , 1 5 1 Mont. 7 6 , 438 P.2d 6 6 0 , and cases c i t e d t h e r e i n . I n such c a s e , t h e func- t i o n o f t h e C o u r t is s i m p l y to a s c e r t a i n and d e c l a r e w h a t is i n terms or i n s u b s t a n c e c o n t a i n e d t h e r e i n , n o t to i n s e r t w h a t h a s b e e n o m i t t e d or o m i t w h a t h a s b e e n i n s e r t e d . S e c t i o n 1-2-101, MCA; W h i t e v. White ( 1 9 8 1 ) , Mont . -P.2d t 38 St.Rep. 2041. The p l a i n meaning o f t h i s s t a t u t e is t h a t a c l a i m a n t is n o t r e q u i r e d t o p r e s e n t a claim to t h e p e r s o n a l r e p r e s e n t a t i v e o f a d e c e d e n t ' s e s t a t e where s u c h claim is t h e s u b j e c t o f a l e g a l p r o c e e d i n g a g a i n s t t h e d e c e d e n t p e n d i n g a t t h e time o f h i s d e a t h . Here S t e l l a ' s a c t i o n a g a i n s t N o r v e l l f o r a n a c c o u n t i n g and to s e t a s i d e a p r o p e r t y conveyance encompassed t h e amounts due h e r under t h e p r o p e r t y s e t t l e m e n t agreement. I t was p e n d i n g and uncompleted a t t h e t i m e of N o r v e l l ' s d e a t h . P r e s e n t a t i o n of h e r claim and f i l i n g a n a c t i o n t h e r e o n f o l l o w i n g d i s a l l o w a n c e w a s n o t r e q u i r e d under t h e p l a i n language of s e c t i o n 72-3-804(2), MCA. F i n a l l y , t h e j u d g m e n t f o r t h e u n p a i d money d u e h e r u n d e r t h e p r o p e r t y s e t t l e m e n t agreement c o n s t i t u t e s an a l l o w a n c e of h e r claims. The a p p l i c a b l e s t a t u t e s t a t e s i n p e r t i n e n t p a r t : " A judgment i n a proceeding i n a n o t h e r c o u r t a g a i n s t a p e r s o n a l r e p r e s e n t a t i v e to e n f o r c e a claim a g a i n s t a d e c e d e n t ' s e s t a t e is a n a l l o w a n c e of t h e c l a i m . " S e c t i o n 72-3-805(3) , MCA. W e c o n s t r u e t h e l a n g u a g e " i n a n o t h e r c o u r t " to mean o u t - s i d e t h e p r o b a t e c o u r t and t h e e s t a t e p r o c e e d i n g s . Although both t h e p r o b a t e p r o c e e d i n g s and S t e l l a ' s p e n d i n g c i v i l s u i t were f i l e d and h e a r d i n t h e D i s t r i c t C o u r t o f L i n c o l n C o u n t y , t h e c o u r t was s i t t i n g i n p r o b a t e i n t h e e s t a t e p r o c e e d i n g s and f u n c - t i o n i n g as a c i v i l c o u r t i n a d j u d i c a t i n g S t e l l a ' s claim f o r a c c o u n t i n g and to s e t a s i d e t h e p r o p e r t y c o n v e y a n c e . W e do n o t r e a c h t h e i s s u e of whether S t e l l a ' s f a i l u r e to s u b s t i t u t e the personal representative i n her c i v i l action a g a i n s t N o r v e l l r e q u i r e s v a c a t i n g t h e j u d g m e n t and d i s m i s s i n g t h e action. The e s t a t e f u l l y p a r t i c i p a t e d i n t h i s a c t i o n , t h e i s s u e w a s n o t r a i s e d i n t h e D i s t r i c t C o u r t , and t h e i s s u e w a s n o t i n c l u d e d i n t h e a g r e e d s t a t e m e n t o f t h e case s u b m i t t e d b y t h e p a r t i e s p u r s u a n t t o R u l e 9 ( d ) , M.R.App.Civ.P. The D i s t r i c t C o u r t ' s d e n i a l o f t h e e s t a t e ' s m o t i o n to d i s m i s s S t e l l a ' s c i v i l a c t i o n f o r a n a c c o u n t i n g and to s e t a s i d e h e r p r o p e r t y c o n v e y a n c e is a f f irmed . I__-. Chief Justice