Larango v. Lovely

No. 81-123 IN THE SUPREME COURT OF THE STATE OF MONTANA 1981 LOLA MAE LARANGO, et a1 . , Plaintiffs and Appellants, -vs- KENNETH LOVELY, Defendant and Respondent. Appeal from: District Court of the Sixth Judicial District, In and for the County of Park, The Honorable Jack D. Shanstrom, Judge presiding. Counsel of Record: For Appellant: Robert J. Sewell,' Jr., Smith Law Firm, Helena, Montana For Respondent: Joseph T. Swindlehurst; Huppert & Swindlehurst, Livingston, Montana Submitted on Briefs: September 17, 1981 Decided: December 9, 1981 Filed: . . - $ 1961 Clerk Mr. j u s t i c e F r e d J. Weber d e l i v e r e d t h e Opinion of t h e Court. Appellants brought s u i t i n t h e S i x t h J u d i c i a l D i s t r i c t , Park County, Montana, a l l e g i n g t h a t t h e r e s p o n d e n t n e g l i g e n t l y performed h i s d u t i e s a s e x e c u t o r of t h e e s t a t e of which t h e a p p e l l a n t s are d i s t r i b u t e e s . Upon motion of t h e r e s p o n d e n t , t h e d i s t r i c t judge quashed t h e summons and d i s m i s s e d t h e suit. W e reverse. L o l a Mae Swandal d i e d t e s t a t e on November 8, 1974. Her w i l l was a d m i t t e d t o p r o b a t e on November 26, 1974, and Kenneth Lovely, r e s p o n d e n t h e r e i n , was named e x e c u t o r o f t h e estate. V a r i o u s p o r t i o n s o f f o u r s e c t i o n s of l a n d were included i n the e s t a t e . O i l leases involving t h e land i n t h e s e f o u r s e c t i o n s had been e x e c u t e d p r i o r t o t h e d e a t h of the testatrix. On J u l y 1 5 , 1975, t h e p r o p e r t y i n one of t h e s e c t i o n s was s o l d by Lovely i n h i s c a p a c i t y a s e x e c u t o r . The D i s t r i c t Court o r d e r confirming t h e s a l e s t a t e d t h a t t h e p r o p e r t y was s o l d " w i t h t h e tenements, h e r e d i t a m e n t s and appurtenances thereto." The p r o p e r t y i n a n o t h e r of t h e s e c t i o n s was s o l d i n August, 1975. The c o u r t ' s o r d e r c o n f i r m i n g t h a t s a l e i n c l u d e d a l e g a l d e s c r i p t i o n of t h e p r o p e r t y which c o n t a i n e d t h e words "Excepting t h e r e f r o m One-half of t h e e x i s t i n g o i l , g a s , hydrothermal and m i n e r a l r i g h t s . " These words were i n k e d o u t , and t h e d e l e t i o n was i n i t i a l e d by t h e judge. A s t a t e m e n t of a c c o u n t f o r f i r s t and f i n a l d i s t r i b u t i o n w a s f i l e d by Lovely on August 28, 1975. The s c h e d u l e of a s s e t s a t t a c h e d t o t h e s t a t e m e n t of a c c o u n t i n c l u d e d a r e c i t a l o f o i l l e a s e s on and m i n e r a l r i g h t s r e s e r v e d from t h e land i n a l l four sections. The D i s t r i c t C o u r t i s s u e d i t s d e c r e e of s e t t l e m e n t of f i n a l a c c o u n t and d i s t r i b u t i o n of e s t a t e on September 23, 1975. Each of t h e d i s t r i b u t e e s r e c e i v e d a f r a c t i o n a l i n t e r e s t i n t h e o i l and m i n e r a l r i g h t s t o the land i n a l l four sections. Lovely was d i s c h a r g e d a s e x e c u t o r on March 2 , 1976. On December 7, 1976, Lovely f i l e d a p e t i t i o n t o reopen t h e e s t a t e and amend t h e d e c r e e of s e t t l e m e n t of f i n a l distribution. Lovely a l l e g e d t h a t t h e d e c r e e i n a d v e r t e n t l y d i s t r i b u t e d t h e m i n e r a l r i g h t s t o t h e two t r a c t s of l a n d which had been s o l d . Hearing on this p e t i t i o n was had on J u l y 1 9 , 1977. The d i s t r i b u t e e s of t h e Swandal e s t a t e r e s i s t e d t h e p e t i t i o n , b u t on J u l y 29, 1977, t h e D i s t r i c t C o u r t f i l e d a n amended d e c r e e of d i s t r i b u t i o n . The amended d e c r e e r e f l e c t e d t h e conveyance of t h e m i n e r a l r i g h t s t o t h e p u r c h a s e r s of t h e two t r a c t s of l a n d . The d i s t r i b u t e e s w e r e s e n t n o t i c e of e n t r y of judgment and a p p e a l e d from t h e judgment on September 1, 1977. The m a t t e r was f i n a l l y s u b m i t t e d t o t h i s C o u r t on September 2 1 , 1978. On November 27, 1978, i n M a t t e r of E s t a t e of Swandal ( 1 9 7 8 ) , Mont. , 587 P.2d 368, 35 St.Rep. 1716, t h i s C o u r t r e v e r s e d t h e amendatory a c t i o n of t h e D i s t r i c t C o u r t . W held t h a t the e m i n e r a l r i g h t s a t t e n d a n t t o t h e two t r a c t s conveyed by t h e e x e c u t o r were n o t p a r t of t h e e s t a t e and n o t s u s c e p t i b l e t o d i s t r i b u t i o n t o anyone. The c a s e was remanded t o t h e ~ i s t r i c t C o u r t f o r amendment of t h e d e c r e e by a n o r d e r --- c nunc p r o t u n t o e x c e p t t h e m i n e r a l r i g h t s p r e v i o u s l y conveyed. The d i s t r i b u t e e s had r e t a i n e d a t t o r n e y McKinley Anderson t o r e p r e s e n t them i n t h e p r o c e e d i n g s o u t l i n e d above. ~uring t h e pendency of t h e a p p e a l i n M a t t e r - -e E s t a t e - Swandal, of t h of a t t o r n e y Anderson p r e p a r e d a c i v i l c o m p l a i n t i n b e h a l f of the distributees. The p l a i n t i f f s were Mabel L o u i s e E a s t o n , Dorothy E l l e n Larango, Lola Mae Larango, John Emery Swandal ( d e c e a s e d ) , Dorothy Hunt ( r e p r e s e n t i n g minor h e i r s S h a r i Swandal and John S w a n d a l ) , and Susan Denise Swandal. Gordon F r a n c i s Swandal, a l t h o u g h o m i t t e d from t h e c a p t i o n of t h e c o m p l a i n t , was i n c l u d e d i n t h e body o f t h e c o m p l a i n t a s a n h e i r of L o l a Mae Swandal. Kenneth Lovely was sued a s p e r s o n a l r e p r e s e n t a t i v e of L o l a Mae Swandal ( d e c e a s e d ) . The compl-aint a l l e g e d t h a t Lovely had been i n s t r u c t e d t h a t no o i l o r m i n e r a l r i g h t s w e r e t o be conveyed when p r o p e r t y of t h e e s t a t e was s o l d , b u t , d e s p i t e t h i s i n s t r u c t i o n , Lovely n e g l i g e n t l y a l l o w e d t h e conveyance of o i l and m i n e r a l i n t e r e s t s h e l d by t h e e s t a t e . The c o m p l a i n t was f i l e d on May 8, 1978, and a summons i s s u e d t h a t same day t o t h e p l a i n t i f f s ' attorney. T h a t a t t o r n e y , McKinley Anderson, was r e p l a c e d by t h e p l a i n t i f f s ' p r e s e n t c o u n s e l , R o b e r t S e w e l l , i n O c t o b e r , 1978. On May 1 7 , 1979, S e w e l l o b t a i n e d s e r v i c e of t h e summons which had been i s s u e d on May 8, 1978. B e f o r e Sewell o b t a i n e d s e r v i c e of t h i s summons, he a l t e r e d i t i n s e v e r a l r e s p e c t s . S e w e l l ' s name w a s s u b s t i t u t e d f o r t h a t of t h e former a t t o r n e y , Anderson; John Emery Swandal ( d e c e a s e d ) was d e l e t e d a s a p l a i n t i f f ; Dorothy E . Hunt, g u a r d i a n of S h a r i L . Swandal and John P . Swandal, m i n o r s , was s u b s t i t u t e d f o r Dorothy Hunt, r e p r e s e n t i n g minor h e i r s S h a r i Swandal and John Swandal; Gordon Swandal was added a s a p l a i n t i f f . These changes w e r e made w i t h o u t l e a v e o f c o u r t . On May 1 8 , 1979, a n amended complaint w a s f i l e d . The amended c o m p l a i n t showed t h e same changes i n p l a i n t i f f s and a t t o r n e y s a s t h e "amended" summons. The amended c o m p l a i n t added a l l e g a t i o n s t h a t Lovely had f a i l e d t o a c c o u n t f o r a g r a i n c r o p growing on one of t h e t r a c t s which had been s o l d and had p a i d p e r s o n a l r e p r e s e n t a t i v e f e e s and a t t o r n e y f e e s i n e x c e s s of t h e amount a l l o w e d by statute . A 1 though t h e amended c o m p l a i n t named Kenneth Lovely, p e r s o n a l l y , a s d e f e n d a n t , t h i s change was n o t made on t h e a l t e r e d summons. The summons s t i l l l i s t e d t h e d e f e n d a n t a s Kenneth Lovely, a s 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 of Lola Mae Swandal ( d e c e a s e d ) . On J u n e 6 , 1979, t h e d e f e n d a n t moved t o quash t h e summons b e c a u s e i t had been m a t e r i a l l y a l t e r e d s i n c e t h e d a t e of i s s u a n c e . Hearing on t h e motion was had on J u n e 29, 1979, b u t t h e D i s t r i c t C o u r t d i d n o t i s s u e i t s o r d e r q u a s h i n g t h e summons a s i s s u e d and a l t e r e d u n t i l December 11, 1979. A t t o r n e y S e w e l l h a s h i s o f f i c e i n Lewis and C l a r k County, and a copy of t h e o r d e r q u a s h i n g summons was n o t d e p o s i t e d i n t h e m a i l t o be d e l i v e r e d t o him u n t i l F e b r u a r y 29, 1980. The copy was d e l i v e r e d t o Sewell on March 3, 1980. Back on December 11, 1979, S e w e l l had f i l e d a motion t o amend t h e summons. On March 6 , 1980, Sewell m a i l e d a motion t o r e c o n s i d e r t h e o r d e r q u a s h i n g summons t o t h e c l e r k of c o u r t ; t h i s motion was f i l e d by t h e c l e r k on March 20, 1980. On J u n e 23, 1980, a n amended c o m p l a i n t was s e r v e d upon Lovely, t o g e t h e r w i t h a new summons on t h a t c o m p l a i n t . Lovely responded on J u l y 7, 1980, w i t h a motion t o d i s m i s s t h e c o m p l a i n t on t h e ground t h a t t h e summons was n o t i s s u e d w i t h i n one y e a r of May 8 , 1978, t h e d a t e upon which t h e o r i g i n a l c o m p l a i n t was f i l e d . On J u l y 15, Sewell a g a i n moved t h e c o u r t t o r e c o n s i d e r i t s o r d e r q u a s h i n g summons o r t o a l l o w amendment. J u l y 1 5 was a l s o t h e d a t e f o r t h e h e a r i n g on L o v e l y ' s motion t o d i s m i s s . On J a n u a r y 27, 1981, t h e D i s t r i c t C o u r t i s s u e d i t s o r d e r g r a n t i n g L o v e l y ' s motion t o dismiss. The p l a i n t i f f s a p p e a l e d . A p p e l l a n t s have r a i s e d t h r e e i s s u e s i n t h i s a p p e a l . However, a f t e r r e v i e w of a l l t h r e e i s s u e s , we f i n d t h a t t h e c a s e c a n b e r e s o l v e d by a d d r e s s i n g t h e c e n t r a l q u e s t i o n : Did t h e D i s t r i c t C o u r t a b u s e i t s d i s c r e t i o n by r e f u s i n g t o a l l o w amendment o f t h e summons? The r e s p o n d e n t i s c o r r e c t i n a s s e r t i n g t h a t t h e power t o i s s u e a summons l i e s e x c l u s i v e l y w i t h t h e c l e r k of c o u r t . Rule 4 C ( 1 ) , M.R.Civ.P.; Kramer v . S c i e n t i f i c C o n t r o l Corp. (D.C. Pa. 1 9 7 3 ) , 365 F.Supp. 780; 2 Moore's F e d e r a l P r a c t i c e 114.04 (2d ed. 1 9 8 1 ) . An a t t o r n e y h a s no power i n t h e m a t t e r . The a t t o r n e y can o n l y r e q u e s t t h a t t h e summons be i s s u e d t o him o r h e r , Rule 4 C ( 1 ) , M.R.Civ.P., o r move t h e c o u r t t o have t h e summons amended. Rule 4 D ( 7 ) , M.R.Civ.P. The a t t o r n e y i n t h i s m a t t e r was w i t h o u t a u t h o r i t y t o a l t e r t h e summons w i t h o u t l e a v e of c o u r t . N e v e r t h e l e s s , once l e a v e was r e q u e s t e d , t h e D i s t r i c t C o u r t s h o u l d have a l l o w e d amendment. The Montana R u l e s of C i v i l P r o c e d u r e a r e t o be c o n s t r u e d t o secure the j u s t , speedy and i n e x p e n s i v e d e t e r m i n a t i o n o f c a s e s , Rule 1, M.R.Civ.P., and t o f a c i l i t a t e t h e d e c i s i o n of c a s e s on t h e i r m e r i t s . Rambur v. D i e h l Lumber Company ( 1 9 6 4 ) , 1 4 4 Mont. 84, 394 P.2d 745. This Court has s t a t e d that ". . . i t i s t o be c o n s i d e r e d a s e r i o u s m a t t e r when a p a r t y moves t o have a c a s e d i s p o s e d of on grounds o t h e r t h a n the merits." Rambur, 1 4 4 Mont. a t 90, 394 P.2d a t 749. When t h e D i s t r i c t C o u r t quashed t h e May 8, 1978 summons on t h e ground t h a t i t had been a l t e r e d w i t h o u t l e a v e of c o u r t , f a i l e d t o r u l e upon t h e motion t o r e c o n s i d e r i t s q u a s h i n g of t h e summons, and f a i l e d t o r u l e upon t h e motion t o a l l o w amendment of t h e summons, Rule 4 1 ( e ), Ir4.R.Civ.P. w a s brought i n t o play. T h a t r u l e p r o h i b i t s t h e f u r t h e r p r o s e c u t i o n of a n a c t i o n i f a summons h a s n o t been i s s u e d w i t h i n one y e a r of commencement of t h e a c t i o n . Lovely invoked Rule 4 1 ( e ) i n h i s motion t o d i s m i s s . The p a s s a g e of t i m e p r e c l u d e d t h e e f f e c t i v e i s s u a n c e of a new summons, and t h e c a s e was d i s - missed. So, a f t e r f o u r y e a r s of l i t i g a t i o n and two r e v i e w s by t h i s C o u r t , t h e m e r i t s of t h i s c o n t r o v e r s y a r e y e t t o b e considered. The D i s t r i c t C o u r t h a s t h e power " [ a ] t any t i m e , i n i t s d i s c r e t i o n , and upon such n o t i c e and t e r m s a s i t deems j u s t , ... [ t o ] a l l o w any p r o c e s s o r proof of s e r v i c e t h e r e o f t o be amended u n l e s s i t c l e a r l y a p p e a r s t h a t m a t e r i a l p r e j u d i c e would r e s u l t t o t h e s u b s t a n t i a l r i g h t s of t h e p a r t y a g a i n s t whom t h e p r o c e s s i s s u e d . " Rule 4 D ( 7 ) , M.R.Civ.P. The r e c o r d l a c k s any i n d i c a t i o n t h a t m a t e r i a l p r e j u d i c e t o t h e s u b s t a n t i a l r i g h t s of Kenneth Lovely would have r e s u l t e d from a l l o w i n g a Rule 4D(7) amendment of t h e summons. One of t h e f u n c t i o n s o f a summons i s t o g i v e n o t i c e . Amendment of t h e May 8, 1978, summons t o r e f l e c t t h e minor changes c o n t a i n e d i n t h e amended c o m p l a i n t o f May 1 8 , 1979, would have g i v e n Lovely a somewhat more a c c u r a t e p i c t u r e of t h e a c t i o n b r o u g h t a g a i n s t him. Amendment would have a i d e d Lovely; i t would n o t have p r e j u d i c e d him. The D i s t r i c t C o u r t abused i t s d i s c r e t i o n by n o t a l l o w i n g amendment. The o r d e r of d i s m i s s a l i s reversed. The c a u s e i s remanded f o r amendment of t h e summons and amendment of proof of s e r v i c e . I s s u a n c e and s e r v i c e of t h e summons s h a l l r e l a t e back t o t h e o r i g i n a l d a t e s of i s s u a n c e and s e r v i c e , t o i n s u r e t h a t t h i s c a s e i s n o t d i s m i s s e d f o r f a i l u r e t o comply w i t h t h e t i m e r e q u i r e m e n t s of Rule 4 1 ( e ) , M.R.Civ.P. Reversed and remanded. We Concur: ChAef Justice \