Estate of John Jennings v. William Cumming

2013 ME 103, 82 A.3d 132, 2013 WL 6174370, 2013 Me. LEXIS 104
CourtSupreme Judicial Court of Maine
DecidedNovember 26, 2013
DocketDocket Wal-13-175
StatusPublished
Cited by3 cases

This text of 2013 ME 103 (Estate of John Jennings v. William Cumming) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of John Jennings v. William Cumming, 2013 ME 103, 82 A.3d 132, 2013 WL 6174370, 2013 Me. LEXIS 104 (Me. 2013).

Opinion

LEVY, J.

[¶ 1] George Jennings is the surety of a probate bond for the conservatorship of his brother John Jennings’s estate. 1 George appeals from a default judgment entered in the Superior Court (Waldo County, R. Murray, J.) finding George liable for the breach of the bond by the conservator of John’s estate, William Cumming. George contends that the judgment against him is void for lack of subject matter jurisdiction. We disagree and affirm the judgment.

I. BACKGROUND

[¶ 2] In 2006, William Cumming, a friend of the Jennings family, was appointed by the Waldo County Probate Court (Langley, J.) as conservator for John’s estate. George and Janetta Jennings, John’s brother and sister, signed a bond for the conservatorship in the amount of $282,922, the estimated value of John’s estate at that time. 2

[¶ 3] .During the term of the conserva-torship, Cumming used his power as the conservator to write himself reimbursement checks from John’s accounts. The first accounting filed with the Probate Court in May 2007 showed that Cumming had reimbursed himself $37,584.25 for money he had purportedly lent to John. The Probate Court approved this first accounting. In December 2007, Cumming made a second reimbursement to himself in the amount of $41,572.33, again purportedly for a loan to John. John contested the amount and on December 10, 2007, filed a petition in the Probate Court to terminate *134 Cumming’s conservatorship. Cumming filed a petition to resign as conservator soon thereafter.

[¶ 4] Although Cumming conceded in the Probate Court proceeding that he misappropriated funds from John’s estate, the parties disputed the amount that was misappropriated. In September 2008, the Probate Court held a hearing on Cumming’s final accounting of the conservator-ship but made no finding as to the disputed amount.

[¶ 5] Meanwhile, in July 2008, John initiated a second suit in the Superior Court against Cumming for breach of fiduciary duty, various other torts, and breach of the obligations of the probate bond, among other claims. John alleged that Cumming owed him $58,013.67 in misappropriated funds plus interest, costs, and attorney fees. John also requested punitive damages. The complaint named George and Janetta, both sureties of the probate bond, as co-defendants.

[¶ 6] In March 2009, Cumming filed for Chapter 7 bankruptcy in the United States Bankruptcy Court for the District of Maine. In June 2010, the Bankruptcy Court entered an order of compromise of claim in which it ordered Cumming to pay John $80,000 within two years of the order’s date of entry without interest accruing; or, if Cumming failed to pay the amount within two years, $45,000 with interest accruing at the prevailing post-judgment rate.

[¶ 7] More than a year later, in October 2011, the Superior Court held a bench trial on John’s suit, which John, Janetta, and Cumming attended. 3 Despite proper notice, George failed to appear. The court found that “there were unaccounted for funds in the total amount of $58,403.67 directly resulting from Defendant Cumming’s mishandling of [John’s] assets,” that “[d]efendants Janetta and George Jennings both signed a Bond for Consér-vator ... obligating them to secure the faithful performance of William Cumming in the discharge of his duties as conservator,” and that “Cumming failed to so discharge his conservator duties.” At trial, John and Janetta reached an agreement that, prior to seeking payment from Janet-ta for any amounts due under the bond and the bankruptcy order, John would first seek payment from George and take all reasonable and necessary steps to execute against George’s properties. On November 2, 2011, the Superior Court incorporated this agreement in its default judgment entered against George in the amount of $58,403.67, plus interest and costs.

[¶ 8] After the proceedings in the Superior Court concluded, all parties agreed to substitute the payment scheme in the Bankruptcy Court’s order of compromise for the disputed amount in the Probate Court’s final accounting, which had been pending since 2008. The Probate Court subsequently approved the final accounting and terminated the conservatorship.

[¶ 9] In November 2012, George filed a motion to set aside the default judgment pursuant to M.R. Civ. P. 60(b)(4), 4 contending that the Superior Court lacked subject matter jurisdiction. The Superior Court denied George’s motion, and this appeal followed.

*135 II. DISCUSSION

[¶ 10] We review de novo a court’s denial of a motion pursuant to M.R. Civ. P. 60(b)(4) to set aside a judgment due to a jurisdictional defect. Town of Carmel v. McSorley, 2002 ME 33, ¶ 5, 791 A.2d 102. George contends that the Superior Court lacked subject matter jurisdiction to hear John’s suit against Cumming and George because (A) the Probate Court has exclusive jurisdiction to adjudicate actions on a conservator’s misconduct and on surety liability pursuant to 18-A M.R.S. § 5-402 (2012), and (B) John failed to obtain the probate judge’s authorization prior to commencing suit in the Superior Court as required by 18-A M.R.S. § 8-313 (2012). 5 We begin with George’s contention that the Superior Court lacked subject matter jurisdiction.

A. Jurisdiction of the Superior Court

[¶ 11] The Probate Court’s exclusive and concurrent jurisdiction in matters concerning conservatorships is set forth in 18-A M.R.S. § 5-402:

After the service of notice in a proceeding seeking the appointment of a conservator or other protective order and until termination of the proceeding, the court in which the petition is filed has:
(1) Exclusive jurisdiction to determine the need for a conservator or other protective order until the proceedings are terminated;
(2) Exclusive jurisdiction to determine how the estate of the protected person which is subject to the laws of this State shall be managed, expended or distributed to or for the use of the protected person or any of his dependents;
(3)Concurrent jurisdiction to determine the validity of claims against the person or estate of the protected person and his title to any property or claim.

18-A M.R.S. § 5-402. George contends that the question of whether Cumming misappropriated funds from John’s estate and the determination of the amount in dispute concern the administration and management of John’s estate, and are therefore within the Probate Court’s exclusive jurisdiction pursuant to section 5-402(2). John responds that the dispute at issue concerns John’s “claims” against the estate, and therefore is within the Superior Court’s concurrent jurisdiction under section 5-402(3).

[¶ 12] We review the interpretation of a statute de novo as a question of law. Cent. Me. Power Co. v. Devereux Marine, Inc., 2013 ME 37, ¶ 8, 68 A.3d 1262.

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Bluebook (online)
2013 ME 103, 82 A.3d 132, 2013 WL 6174370, 2013 Me. LEXIS 104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-john-jennings-v-william-cumming-me-2013.