Degner v. Yaunick

977 P.2d 1284, 1999 Wyo. LEXIS 72, 1999 WL 308408
CourtWyoming Supreme Court
DecidedMay 18, 1999
DocketNo. 97-268
StatusPublished
Cited by1 cases

This text of 977 P.2d 1284 (Degner v. Yaunick) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Degner v. Yaunick, 977 P.2d 1284, 1999 Wyo. LEXIS 72, 1999 WL 308408 (Wyo. 1999).

Opinion

LEHMAN, Chief Justice.

In a protracted dispute among siblings over their parents’ estates, a sister moved for revocation of letters of administration issued to the personal representatives. The district court granted the motion, finding that the parties’ hostility, evidenced by their litigiousness and antagonism, threatened to hamper the administration of the estates. Because the district court did not abuse its discretion in revoking the letters of administration, we affirm.

ISSUES

The appellants, Ruby Degner and Steve Gonzales, co-personal representatives of the estates of Flora 0. Gonzales and John H. Gonzales, present one issue for our review, which they summarize as follows:

In simplest context the issue on appeal is whether cause for revocation of letters of administration is created by the Personal Representatives’ rejection of a creditor’s claim following a continuing course of legal actions directed to achieve an equal division of the estates involved for all heirs in contest with a sister.

The appellees, Mary Lou Yaunick and James M. Yaunick, restate the issue as:

Whether the district court acted within its discretion in revoking the Letters of Administration.

FACTS

The decedents, John H. Gonzales (Mr. Gonzales) and Flora A. Gonzales (Mrs. Gonzales) were husband and wife. In January of 1980, they acquired the home that is the subject of this dispute. Although the couple resided together in the home, Mrs. Gonzales was the lone grantee of the deed transferring the property. In April of 1985, Mrs. Gonzales executed a power of attorney which appointed two of the nine Gonzales children, Mary Lou Golding (now Yaunick) and Ramona Allen, as her attorneys in fact. Utilizing this power of attorney, Mary Lou and Ramona executed a warranty deed conveying the home to themselves, reserving a life estate for Mr. Gonzales. The deed, which was also signed by Mr. Gonzales, was filed for record in May of 1985. Mrs. Gonzales departed this life, intestate, on October 24,1985. Mr. Gonzales was subsequently placed in a nursing home, and the home was rented.

Litigation among the children began in June of 1994, when Ramona Allen and Mr. [1286]*1286Gonzales filed an action to quiet title and for an accounting of rents from Mary Lou Yaun-ick. When the other children failed to appear or defend the action, Ramona and Mary Lou agreed that each would receive a one-half interest in the home, to the exclusion of the other children. On April 11, 1995, a default judgment was entered quieting title in Ramona and Mary Lou, with reservation of a life estate for Mr. Gonzales. Mr. Gonzales died intestate September 6,1995.

On November 9, 1995, five Gonzales children, including appellant Ruby Degner, brought an action to set aside the default judgment. On December 1,1995, the default judgment was set aside because the five children had not been properly served with notice of the action. Next, an action was instituted to invalidate the deed issued under the power of attorney. By an August 14, 1996 order, the district court voided the deed, as that conveyance exceeded the scope of the power of attorney. No appeal has been taken from any of these rulings.

With the deed invalidated, the home will pass by intestacy. On October 29, 1996, Ruby Degner and her brother Steve Gonzales petitioned for letters of administration and were duly qualified. Acting as co-personal representatives of their parents’ estates, they made demand on the Yaunieks to deliver possession of the home for administration. The personal representatives also requested an accounting of rents. Response by the Yaunieks came in the form of creditor claims against the estates of Mrs. Gonzales ($13,766.88) and Mr. Gonzales ($10,582.70) for support and property maintenance. The personal representatives rejected the Yaun-icks’ claims, prompting the Yaunieks to file suit based on the claims. Besides these claims, the personal representatives have also rejected a claim submitted by the.State of Wyoming, which is seeking to recoup expenses for Mr. Gonzales’ medical care. If all of these claims are allowed, claims and fees would surpass the value of the estates, the sole asset of which is the home valued at approximately $50,000.

On April 24, 1997, the Yaunieks moved to revoke the letters of administration issued to the personal representatives. In their motion, the Yaunieks alleged that, due to personal animosity and a conflict of interest, the personal representatives were wasting estate assets. As a replacement, the Yaunieks recommended a local attorney who was willing to act as personal representative. After hearing argument from counsel, the district court granted the Yaunieks’ motion. In its order revoking the letters of administration, the district court wrote:

The parties in these cases have shown actual hostility to each other. The litigiousness and antagonism between the parties has reached the point that it will hamper the expedient, efficient resolution of the probate estates, as well as the civil cases.

The ousted personal representatives timely appeal the district court’s order.

STANDARD OF REVIEW

In reviewing a district court’s refusal to revoke letters of administration, this court applies its abuse of discretion standard of review:

Whether the cause shown be good or bad is a matter largely within the discretion of the trial court; and, when that court has investigated the question and adjudicated upon it, it will only be where a gross abuse of discretion has occurred that this court will interfere.

In re Haddenham’s Estate, 358 P.2d 706, 707 (Wyo.1961) (quoting In re Graber’s Estate, 111 Cal. 432, 44 P. 165, 166 (1896)). See also In re Mayne’s Estate, 345 P.2d 790, 795 (Wyo.1959).

In the recent ease of Vaughn v. State, 962 P.2d 149 (Wyo.1998), we took occasion to revisit and refine our abuse of discretion standard of review. There, we settled on the following definition:

Judicial discretion is a composite of many things, among which are conclusions drawn from objective criteria; it means a sound judgment exercised with regard to what is right under the circumstances and without doing so arbitrarily or capriciously.

Id. at 151 (quoting Martin v. State, 720 P.2d 894, 897 (Wyo.1986)). In this case, this standard requires that a reason stated by the trial court justify the manner in which it exercised its discretion. Matter of Baird’s [1287]*1287Estate, 408 N.E.2d 1323, 1328 (Ind.App.1980).

If the reason given by the court is not a valid basis for a particular exercise of discretion, it can be no more than conjecture on our part that once the court recognizes the invalidity of its original reason it will reach precisely the same exercise of discretion for other reasons.

In re Marriage of Miles, 173 Ind.App. 5, 362 N.E.2d 171, 174 (1977).

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977 P.2d 1284, 1999 Wyo. LEXIS 72, 1999 WL 308408, Counsel Stack Legal Research, https://law.counselstack.com/opinion/degner-v-yaunick-wyo-1999.