Ditto v. Martin

557 N.E.2d 1353, 1990 Ind. App. LEXIS 1055, 1990 WL 118776
CourtIndiana Court of Appeals
DecidedAugust 13, 1990
DocketNo. 12A04-8910-CV-446
StatusPublished
Cited by1 cases

This text of 557 N.E.2d 1353 (Ditto v. Martin) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ditto v. Martin, 557 N.E.2d 1353, 1990 Ind. App. LEXIS 1055, 1990 WL 118776 (Ind. Ct. App. 1990).

Opinion

MILLER, Judge.

Appellant Max L. Ditto, executor of the estate of Mary Runyan, appeals his removal—without hearing or notice of charges— as executor of Mary Runyan’s estate by the Clinton Circuit Court. The issue here is:

Whether Ditto’s removal as executor without either notice of charges against him or a hearing was contrary to law because no emergency, as required by Ind.Code 29-1-10-6, existed.

We reverse.

FACTS

The facts most favorable to the judgment are as follows:

Mary Runyan died on December 27, 1986, leaving an estate of just under $1,000,000. On December 29, 1986, Max Ditto (Ditto), applied for, and received, Letters Testamentary.1 He also provided bond for $100,000 at this time. On September 23, 1987, Ditto filed a Schedule of All Property for Détermining Inheritance Tax and an Order Determining Inheritance Tax Due, which was approved by the Clinton Circuit Court on September 29, 1987. On December 9, 1987, Ditto filed a Petition to Settle Claims, proposing to settle a claim by Geneva Burns of $60,534 for $15,000,2 and to settle a claim by Robert Smith of at [1354]*1354least $12,610, for $7,5003 (R. 104-105). The probate judge conducted a hearing to inquire into the validity of both the claims. Ditto’s attorney, however, refused to discuss the validity of those claims. The probate court denied the petition, “until such time as the court receives more information to warrant granting the Petition to Settle Claims.” (R. 108).

Burns and Smith were granted a change of venue to the Tippecanoe Circuit Court on January 22, 1988. (R. 234). Both Burns and Smith, however, filed Motions to Dismiss with Prejudice, which were granted, with the Tippecanoe court on February 9, 1988, stating that both of them had settled with Ditto—Burns was to be paid $15,000 and Smith $7,500.

On July 18, 1989, Ditto filed the executor’s final account, and a “Petition to Settle and to Allow Account Petition for Authority to Distribute Assets Remaining and Close Estate.” (R. 150). Listed on this petition was a distribution of $15,000 to Geneva Burns and David Little dated February 11, 1988, and a distribution to Robert Smith and David Little of $7,500, on the same date. The petition also listed payments to Robison, Bergum and Johnson of $60,000 for attorney fees, and payments totaling $60,000 to Ditto for executor fees. Five thousand dollars was claimed by both Ditto and his attorney for settlement of claims, apparently for the settlement of the Burns and Smith claims. The probate judge set a hearing on this petition for September 25, 1989, ordering Ditto to appear. On September 5, Ditto filed a motion for change of venue from the judge, which was denied. Ditto requested the court to reconsider its ruling on the change of venue on September 14, 1989. This motion was deemed denied because it was not ruled on within five days. See Ind.Trial R. 53.4.

On September 25,1989, the probate court conducted a hearing on the petition to settle the estate. At the hearing, the judge inquired into the validity of the Smith and Burns claims, attorney fees and executor fees. Ditto refused to discuss the claims or fees. Instead, he argued that an inquiry at this point was inappropriate because the court had approved the accounting when it approved the inheritance tax schedule. He also claimed he was not prepared to present evidence in support of his petition as no objections had been filed. After the hearing, the probate court, on its own motion, removed Ditto as executor, issuing the following order:

ORDER
On May 27, 1987, two claims were filed in this estate, one by Geneva I. Burns seeking $60,534 for services rendered from May 29, 1970, through October 24, 1984, and one by Robert L. Smith seeking $12,610 for services rendered from January 1970 through December 27, 1986. At the time the claims were being processed, one Ruth Dunn, an employee of the Clerk of the Clinton Circuit Court with an impeccable reputation, stated excitedly that the claim of Mr. Smith was not accurate in that the decedent performed work for Mr. Smith, not he for the decedent.
On December 9, 1987, a Petition to Settle Claim was filed by the executor seeking to settle the claim of Geneva I. Burns for $15,000 and the claim of Robert L. Smith for $7,500.
The matter was set for hearing on the petition, at which time counsel for the executor contended that the Court had no option but to authorize the settlement and could not inquire into the reasons. The Court held on January 4, 1988, that such a position made the petition itself a superfluous act and nullified I.C. 24-1-14-18 and further declined to grant the petition until such time as it received such information to warrant it being granted.
Claimants’ counsel filed a motion for change of venue on the claims which were venued to Tippecanoe where claimants’ counsel filed a Motion to Dismiss with Prejudice on February 9,1988. The [1355]*1355memorandums signed by both counsel for the claimants and counsel for the executor settled the claim of Geneva I. Burns for $15,000 and the claim of Robert L. Smith for $7,500.
On July 18, 1989, executor filed Executor’s Final Account, Petition to Settle and Allow Account Petition for Authority to Distribute Assets Remaining and to Close Estate.
This matter was set for hearing on September 25, 1989, at which time the executor was ordered to appear.
On September 5, 1989, a Motion for Change of Venue from the Judge was filed which was denied on September 11, 1989. On September 14, 1989, another Motion for Change of Venue from the Judge was filed moving “... the Court to Reconsider....” Being a motion to reconsider said motion was deemed denied when not ruled upon within five days.
At the hearing on September 25, 1989, counsel for the executor advised that he did not know the subject matter of the hearing and could not proceed. The hearing was on the final account as stated in the order setting the matter for hearing. Counsel was further advised that the Court was interested in the justification for the attorney fee of $60,000 and the executor fee of $60,000 in an estate with a beginning inventory of $930,517.53 and receipts of $235,701.88 and was interested in the settlement of the claims of Geneva I. Burns and Robert L. Smith.
Counsel moved for a continuance which was denied. Counsel then declined to provide to the Court the information requested and the hearing was concluded.
The Court, while not taking the statement of Mrs. Dunn as testimony or as fact but merely as a basis for inquiry, feels that considerable effort and resources have been expended to preclude the court from learning the details of the settlement of the claims. Especially interesting to the Court is the fact that were all of Mr. Smith’s claims to be allowed which are not excluded by the six year statute of limitations the amount would be less than the settlement amount. Also, the amount of fees by the attorney and the executor and the justification therefore are of concern and importance to the Court.

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557 N.E.2d 1353, 1990 Ind. App. LEXIS 1055, 1990 WL 118776, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ditto-v-martin-indctapp-1990.