Estate of Miller v. Miller

51 F. Supp. 3d 861, 2014 U.S. Dist. LEXIS 142470, 2014 WL 5034611
CourtDistrict Court, E.D. Arkansas
DecidedOctober 7, 2014
DocketNo. 4:14CV00312 JLH
StatusPublished
Cited by1 cases

This text of 51 F. Supp. 3d 861 (Estate of Miller v. Miller) is published on Counsel Stack Legal Research, covering District Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Miller v. Miller, 51 F. Supp. 3d 861, 2014 U.S. Dist. LEXIS 142470, 2014 WL 5034611 (E.D. Ark. 2014).

Opinion

OPINION AND ORDER

J. LEON HOLMES, District Judge.

Katherine Ann Stanton and Karen Elizabeth Phillips are the daughters of Nancy Elizabeth Miller, deceased. They are also co-administrators of her estate. They commenced this action in the Circuit Court of Pulaski County, Arkansas, seek[863]*863ing a declaration that a power of attorney that the decedent executed on April 16, 2006, is void ab initio; that a joint trust and will executed on February 16, 2011, are void ab initio; that a confidential relationship existed between Louis T. Miller and the decedent; and that Louis breached his fiduciary duties to her. In addition, the complaint sought recovery for conversion and fraudulent concealment. Louis removed the action to this Court based on diversity of citizenship. The Estate filed an amended complaint and moved to remand, arguing that the probate exception to federal jurisdiction precludes this Court from exercising jurisdiction over its claim for a declaratory judgment that the 2011 will was void ab initio and that the Court should abstain from exercising jurisdiction over the remaining claims pursuant to Colorado River Water Conservation District v. United States, 424 U.S. 800, 96 S.Ct. 1236, 47 L.Ed.2d 483 (1976). For the reasons explained below, the motion to remand is granted in part and denied in part.

I.

In 1995, the decedent, Elizabeth Miller, married Louis T. Miller. The couple entered into a prenuptial agreement under which each retained the right to dispose of his or her separate property. In October 2005, Elizabeth began complaining of memory loss. She was diagnosed with Alzheimer’s disease, and her condition progressively deteriorated until December 2011 when she was hospitalized. Upon her release, her doctor recommended 24-hour home supervision. Thereafter, Louis provided Elizabeth with 24-hour home supervision.

Four months later, on April 16, 2009, Elizabeth executed a power of attorney that designated her husband as her attorney-in-fact. On May 29, 2009, Elizabeth executed a deed by which her separately-owned residence was sold, and the proceeds were transferred into an account jointly held by the couple at the Bank of America. On February 16, 2011, Elizabeth and Louis executed a durable power of attorney, a living will declaration, HI-PAA authorizations, a will, and a beneficiary deed conveying her and Lewis’s jointly-owned residence to the joint trust upon the death of the second of the two. On May 11, 2011, the assets in an account held in Elizabeth’s name were transferred to a USAA investment account held in her name. Those assets were subsequently transferred to a different USAA account held in the name of the trust. On June 4, 2011, a copy of the trust and a trustee certification form was delivered to the Hartford for an annuity. Although the beneficiary of the Hartford annuity had previously been the Estate, the beneficiary of the Hartford annuity was changed to Louis.

On June 4, 2012, Elizabeth died. Louis subsequently engaged in various other financial transactions. On February 11, 2013, Louis filed a petition to probate Elizabeth’s will. In the petition he identified the value of the personal and real property of the Estate as $0. Then, on April 5, 2013, Louis withdrew his petition for probate of Elizabeth’s will.

II.

The face of the amended complaint shows that this action meets the requirements for original jurisdiction under 28 U.S.C. § 1332 based on a diversity of citizenship and the amount in controversy. See Document # 15 at 2. However, even when all the prerequisites for federal diversity jurisdiction are otherwise present, federal courts are generally precluded from exercising jurisdiction in cases that challenge the validity of a will. Sianis v. [864]*864Jensen, 294 F.3d 994, 997 (8th Cir.2002). “Whether that is the case depends on the remedy available to [the plaintiff] under [state] law.” Id. at 998.

Generally, where the dispute over the will would be cognizable only in a state probate court, a federal court is deprived of jurisdiction over the contest, and the aggrieved party must pursue the action in the probate court. Rienhardt v. Kelly, 164 F.3d 1296, 1300 (10th Cir.1999); Moore v. Graybeal, 843 F.2d 706, 709 (3d Cir.1988). But if state law authorizes a suit inter partes to annul a will or to set aside the probate of a will, and the suit is enforceable in a court of general jurisdiction within the state, a federal court may entertain jurisdiction over the will contest. Id.; see also Bassler v. Arrowood, 500 F.2d 138, 141 (8th Cir.1974) (“Where the action is clearly in personam, federal courts have the power to adjudicate the controversy.”), cert. denied, 419 U.S. 1116, 95 S.Ct. 796, 42 L.Ed.2d 815 (1975). The action authorized by state law must not be incidental to, or an ancillary proceeding of, the prior probate action for federal jurisdiction. to exist. Moore, 843 F.2d at 709.

Id. Thus, according to Sianis, whether this Court has jurisdiction to decide the validity of Elizabeth’s February 2011 will depends on whether in Arkansas that issue would be cognizable exclusively in a probate court or whether it also would be cognizable in a suit inter partes in a court of general jurisdiction.

In Arkansas, “[t]here is no right to contest a will, except as provided by statute.” Coleman v. Coleman, 257 Ark. 404, 408, 520 S.W.2d 239, 242 (1974); Manning v. Manning, 206 Ark. 425, 175 S.W.2d 982, 984 (1943) (“[T]here is no right to contest a will except such as is conferred by statute.”); Robertson v. Robertson, 144 Ark. 556, 223 S.W. 32, 33 (1920) (“The right to contest a will is not an inherent or constitutional right. Such a right is purely statutory, and does not exist independently of statutory authority.”).

The validity of a will may be adjudicated by means of an in rem probate proceeding. “An interested person may contest the probate of a will, or any part thereof, by stating in writing the grounds of his or her objection and filing them in the court.” Ark.Code Ann. § 28-40-113(a). “The administration of the estate of a decedent from the filing of the petition for probate and administration or for administration until the order of final distribution and the discharge of the last personal representative shall be considered as one (1) proceeding for purposes of jurisdiction.” Id. § 28-40-101(a). “The entire proceeding is a proceeding in rem.” Id. § 28-40-101(b). “A will contest is not a civil action, but is a special proceeding.” Coleman, 257 Ark. at 408, 520 S.W.2d at 242.

Since the advent of [Arkansas’s] original Civil Code, there have been two types of proceedings in Arkansas law. One is a civil action; the other is a special proceeding. Coleman v. Coleman, 257 Ark. 404, 520 S.W.2d 239 (1974).... A civil action is an ordinary proceeding in a court of justice by one. party against another for the enforcement or protection of a private right or the redress or prevention of a private wrong. Id.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
51 F. Supp. 3d 861, 2014 U.S. Dist. LEXIS 142470, 2014 WL 5034611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-miller-v-miller-ared-2014.