Estate of Decker v. Farm Credit Services of Mid America, ACA

653 N.E.2d 534, 1995 Ind. App. LEXIS 933, 1995 WL 444312
CourtIndiana Court of Appeals
DecidedJuly 28, 1995
Docket71A03-9410-CV-389
StatusPublished
Cited by4 cases

This text of 653 N.E.2d 534 (Estate of Decker v. Farm Credit Services of Mid America, ACA) 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
Estate of Decker v. Farm Credit Services of Mid America, ACA, 653 N.E.2d 534, 1995 Ind. App. LEXIS 933, 1995 WL 444312 (Ind. Ct. App. 1995).

Opinions

OPINION

GARRARD, Judge.

Farm Credit Services of Mid-America, ACA (hereinafter FCS) filed a claim against the Estate of Charles Decker which the probate court disallowed as untimely. FCS appealed, claiming that the personal representative induced the delay in bringing its action. The Court of Appeals found that equity may require extension of the statute of limitations, and remanded for a determination of whether the equities here demanded that the statute of limitations be extended to allow FCS to file its claim against the estate. Upon remand, the probate court found in FCS’s favor. The estate now appeals.,

ISSUE
Whether the probate court’s determination that equity demanded extension of the statute of limitations, thus allowing FCS to file its claim against the estate, amounted to clear error.

FACTS

The stipulated facts show that Charles Decker died on July 4, 1990. Approximately seven years prior to his death, Decker had become indebted to the Federal Land Bank of Louisville Kentucky, now known as FCS. On September 25, 1990, an attorney for the decedent sent a letter to FCS advising it of Decker’s death, indicating that an estate might be opened in the future, and requesting information concerning the deficiency judgment. An estate was opened on October 3, 1990 and Michael Decker, son of the deceased, was appointed as personal representative. Although further correspondence between the parties occurred, neither the personal representative nor his attorney provided actual notice to FCS that an estate had been opened, as required by Ind.Code § 29-l-7-7(d). FCS received actual notice of the estate in September, 1991, and filed the claim at issue on September 5, 1991.

The probate court dismissed FCS’s claim against the estate because it was filed outside the one year statute of limitations.1 This [536]*536court found that equity may require extension of the statute of limitations, and reversed the lower court’s decision. See Farm Credit Services of Mid America, ACA v. Estate of Decker (1993), Ind.App., 624 N.E.2d 491. Upon remand, the probate court concluded that the attorney for the personal representative should have notified FCS that an estate had been opened and that equity demanded extending the statute of limitations in this case.

DISCUSSION AND DECISION

Standard of Review.

We review cases in which a trial court has entered requested findings of fact and conclusions of law, as it did in this case, in a two-step process. First, we determine whether the evidence supports the trial court’s findings of fact. Second, we determine whether those findings of fact support the trial court’s conclusions of law. Estate of Reasor v. Putnam County (1994), Ind., 635 N.E.2d 153, 158, reh’g denied. We will not set aside the court’s judgment unless it is clearly erroneous. Id.; DeHaan v. DeHaan (1991), Ind.App., 572 N.E.2d 1315, 1320, reh’g denied, trans. denied. Findings are clearly erroneous only if the record contains no facts supporting them either directly or by inference. A judgment is clearly erroneous when it is unsupported by the findings of fact and the conclusions relying on those findings. We may not reweigh the evidence or judge the credibility of witnesses. Estate of Reasor, 635 N.E.2d at 158. Additionally, we may not search outside the trial court’s findings for evidence which supports the judgment. Id., n. 3.

Appellant’s Claim.

The estate contends that the probate court erred by allowing FCS to file its claim more than one year after the death of Charles Decker. Under these circumstances, this court has held that the statute of limitations may be extended where conduct of the personal representative for the estate prevented a party from commencing an action or induced the party to delay beyond the time allowed by law.2 Farm Credit Services, 624 N.E.2d at 496. The estate claims the single alleged inducement was a letter from the estate’s attorney to FCS describing the estate as having minimal assets and abundant debts. The estate argues that the term “minimal assets” was not misleading but was, in fact, accurate. Moreover, the estate construes the term as subjective in nature and argues that it may not be used as the basis of reliance in claiming fraud.

We disagree with the estate’s position that FCS must prove fraud induced its delay. While a showing of fraud on the part of the estate’s personal representative would clearly support extension of the statute of limitations, proof of other misconduct will also suffice. See Donnella v. Crady (1962), 135 Ind.App. 60, 63, 185 N.E.2d 623, 625, trans. denied (1963) 244 Ind. 205, 191 N.E.2d 499, (stating “[e]quity will estop a party from setting up the statute of limitations as a defense in an action where such party by fraud or other misconduct has prevented a party from commencing his action or induced him to delay the bringing of his action beyond the time allowed by law.”) (Emphasis added). In Farm Credit Services, this court specifically stated that if the personal representative knew of a creditor’s claim against the estate and simply ignored the claim until the statute of limitations ran, then such action would amount to misconduct which could extend the running of the statute. 624 N.E.2d at 495. We held that counsel’s knowledge of FCS’s claim against the estate was imputed to the personal representative. Id. at 496. Therefore, the question presented for review today is whether this misconduct induced FCS to delay in filing its claim against the estate.

The estate contends the trial court erred in finding that the September 25, 1990 letter from the estate’s attorney induced FCS to delay beyond the running of the statute of limitations. This letter contained the following relevant language:

[537]*537As I told you on the telephone, I may be opening up an estate for Mr. Charles E. Decker as my office has been contacted by his son, Michael. Charles Decker had minimal assets but, in checking the records, it appears that he had abundant debts.
One of the judgments that shows up on Mr. Decker’s record, is the above-referenced cause which reflects a judgment in favor of the Federal Land Bank of Louisville in the sum of $92,721.30.
Basically, we have no desire to open up an estate to transfer whatever assets there may be to the Federal Land Bank of Louisville but if we could determine exactly how much money the Federal Land Bank of Louisville is out considering their ultimate disposition of the property we might be able to work something out.

Record at 18.

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Related

Decker v. Farm Credit Services
Indiana Supreme Court, 1998
Burnett v. Villaneuve
685 N.E.2d 1103 (Indiana Court of Appeals, 1997)
Estate of Decker v. Farm Credit Services of Mid-America, ACA
684 N.E.2d 1137 (Indiana Supreme Court, 1997)
Estate of Decker v. Farm Credit Services of Mid America, ACA
653 N.E.2d 534 (Indiana Court of Appeals, 1995)

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Bluebook (online)
653 N.E.2d 534, 1995 Ind. App. LEXIS 933, 1995 WL 444312, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-decker-v-farm-credit-services-of-mid-america-aca-indctapp-1995.