Estate of Russo v. Sunrise Healthcare Corp.

994 P.2d 491, 2000 Colo. J. C.A.R. 6812, 1999 Colo. App. LEXIS 329, 1999 WL 1243326
CourtColorado Court of Appeals
DecidedDecember 23, 1999
Docket98CA2503
StatusPublished
Cited by3 cases

This text of 994 P.2d 491 (Estate of Russo v. Sunrise Healthcare Corp.) is published on Counsel Stack Legal Research, covering Colorado 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 Russo v. Sunrise Healthcare Corp., 994 P.2d 491, 2000 Colo. J. C.A.R. 6812, 1999 Colo. App. LEXIS 329, 1999 WL 1243326 (Colo. Ct. App. 1999).

Opinion

Opinion by

Judge ROY.

In this probate proceeding, Sunrise Healthcare Corporation, Mediplex Rehab & Skilled Nursing Center of Southern Connecticut (claimant) appeals the trial court’s denial of its petition for allowance of a claim against the Estate of Louis James Russo, also known as Louis J. Russo (decedent). We reverse and remand for further proceedings.

In 1996, claimant provided skilled nursing care to the decedent at its residential facility in Milford, Connecticut. Following the decedent’s departure from the facility, claimant notified decedent and his family of amounts still owing for decedent’s care.

The decedent died in Colorado on January 7, 1998. His son commenced informal probate proceedings and, upon application to the court, was appointed personal representative' of the estate.

Pursuant to applicable statute, the personal representative caused a notice to creditors to be published in a local newspaper. The notice required that claims against the estate be presented to the personal representative or to the district court on or before June 23, 1998. The personal representative did not, prior to June 23, 1998, provide claimant with actual notice of decedent’s death or the opening of the estate.

Claimant presented its claim against the estate by filing it with the court on August 28,1998, within one year of decedent’s death, but following the expiration of the noticed claim period. Claimant then filed a petition for allowance of its claim, and the personal representative responded with a notice of disallowance and objection.

Following a hearing, the trial court found it clear that the personal representative knew or should have known of claimant’s outstanding bill when he caused publication of the notice to creditors. However, relying upon Tulsa Professional Collection Services, Inc. v. Pope, 485 U.S. 478, 108 S.Ct. 1340, 99 L.Ed.2d 565 (1988), the court concluded that the applicable provisions of the Colorado Probate Code did not contemplate sufficient *493 state action to implicate the Due Process Clause of the Fourteenth Amendment or to require that actual notice be given to claimant. Hence, the court concluded that the claim was time-barred.

I.

Claimant contends that the trial court erred in concluding that, as a known creditor of the estate, it was not entitled to actual notice concerning timely presentation of its claim. We agree.

At issue are notice and nonclaim provisions of the Colorado Probate Code. Section 15-12-801(1), C.R.S.1999, provides, in pertinent part, that:

Unless one year or more has elapsed since the death of the decedent, a personal representative shall cause a notice to creditors to be published in some daily or weekly newspaper published in the county in which the estate is being administered ... at least once during each of three successive calendar weeks .... [requiring that claims be presented within four months of the date of first publication or within a year of the date of death, whichever occurs first] (emphasis supplied)

Section 15-12-803(l)(a), C.R.S.1999, provides:

All claims against a decedent’s estate which arose before the death of the decedent ... if not barred earlier by other statutes of limitations, are barred against the estate, the personal representative, and the heirs and devisees of the decedent, unless presented as follows:
(I) As to creditors barred by publication, within the time set in the published notice to creditors;
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(III) As to all creditors, within one year after the decedent’s death.

Our primary task in construing a statute is to determine and give effect to the intent of the General Assembly. Jones v. Cox, 828 P.2d 218 (Colo.1992). As pertinent here, we are required to construe the statutory provisions liberally to promote a speedy and efficient system for settling the estate of a decedent and making distribution to his or her successors, while promoting uniformity in the administration of estates among different jurisdictions. Sections 15-10-102(1), 15-10-102(2)(c), and 15-10-102(2)(c), C.R.S.1999; In re Estate of Hall, 948 P.2d 539 (Colo.1997).

A statute must be construed as a whole, giving consistent and sensible effect to all of its parts so as to achieve a reasonable result and to avoid an unjust one. In re Estate of Hall, supra; Strong Bros. Enterprises, Inc. v. Estate of Strong, 666 P.2d 1109 (Colo.App.1983). And, because statutory interpretation is a question of law, we are not bound by the interpretation of the trial court. Gorman v. Tucker By and Through Edwards, 961 P.2d 1126 (Colo.1998).

We agree with the trial court that the Supreme Court’s ruling in Tulsa Professional Collection Services, Inc. v. Pope, supra, is dispositive of the issue before us. However, we disagree with the trial court’s reading and application of the case to the facts presented here.

The Supreme Court, in Pope, rejected the contention that, under the Oklahoma Probate Code, notification of an estate’s creditors solely by publication was constitutionally sufficient as to known or readily ascertainable creditors. In doing so, the Court relied upon its previous decisions in Mullane v. Central Hanover Bank & Trust Co., 339 U.S. 306, 70 S.Ct. 652, 94 L.Ed. 865 (1950)(ereditor’s claim against an estate is a property interest protected by the Fourteenth Amendment, and state action affecting property must generally be accompanied by notification of that action) and Mennonite Board of Missions v. Adams, 462 U.S. 791, 103 S.Ct. 2706, 77 L.Ed.2d 180 (1983) (actual notice is a minimum constitutional precondition to a proceeding which will adversely affect the liberty or property interests of a party whose name and address are reasonably ascertainable).

The holding in Pope was based upon an analysis of the Oklahoma statutes to determine whether the adverse effect on the creditor’s property arose from state action or, *494 alternatively, whether the operative statutes were self-executing. The Court concluded that the Oklahoma nonclaim statute was not self-executing but operated in connection with the state’s probate proceedings, which required pervasive and substantial state involvement by the. court. Importantly, however, the Court concluded that without the probate court’s involvement, the time bar would never be activated.

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994 P.2d 491, 2000 Colo. J. C.A.R. 6812, 1999 Colo. App. LEXIS 329, 1999 WL 1243326, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-russo-v-sunrise-healthcare-corp-coloctapp-1999.