In Matter of Estate of Barthel

468 N.W.2d 689, 161 Wis. 2d 587
CourtWisconsin Supreme Court
DecidedMay 9, 1991
Docket89-1905
StatusPublished
Cited by6 cases

This text of 468 N.W.2d 689 (In Matter of Estate of Barthel) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Matter of Estate of Barthel, 468 N.W.2d 689, 161 Wis. 2d 587 (Wis. 1991).

Opinion

161 Wis.2d 587 (1991)
468 N.W.2d 689

IN the MATTER OF the ESTATE OF: Regina BARTHEL, Deceased. SEARS, ROEBUCK & COMPANY, Appellant,
v.
Marge PLATH, Personal Representative, Respondent.

No. 89-1905.

Supreme Court of Wisconsin.

Submitted on briefs March 27, 1991.
Decided May 9, 1991.

*589 For the appellant there was a brief (in the court of appeals) by Ronald L. Diersen, Kenosha.

For the respondent there were no briefs filed, however, there was correspondence (in the court of appeals) by Marge Plath, Mundelein, Illinois.

CALLOW, WILLIAM G., J.

This case is before this court on certification from the court of appeals pursuant to sec. (Rule) 809.61, Stats. The appellant Sears, Roebuck & Company (Sears) appeals from an order denying its claim for $6,522.73 against the estate of Regina Barthel. The circuit court for Kenosha county, Judge Jerold W. Breitenbach, denied Sears' claim on the ground that it was not timely filed, and hence was barred *590 by sec. 859.01(1), Stats. 1987-88.[1]

One issue is raised on appeal: Do secs. 859.01 and .07,[2] Stats. 1987-88, violate a creditor's right to due process of the law under the Fourteenth Amendment to the United States Constitution, because they provide for notice of time limits in which to file claims against a decedent's estate only by publication, and bar claims not filed within the time limitation? We conclude that these "nonclaim" statutes violated Sears' due process rights under the fourteenth amendment because Sears was a known or reasonably ascertainable creditor, and was entitled to actual notice.[3]

*591 The relevant facts follow. Regina Barthel died on August 4, 1988. On September 13, 1988, the probate registrar for the Kenosha county circuit court issued an order after Barthel's estate filed an "Application for Informal Administration." Pursuant to secs. 859.01 and .05, Stats. 1987-88, this order dictated that all creditors' claims against the estate would be barred if not filed by December 13, 1988. Additionally, the probate registrar ordered notice to be published for three consecutive weeks, pursuant to secs. 859.07 and 879.05(4). Notice was published for three consecutive weeks from September 16, 1988 through September 30, 1988 in the Kenosha News, advising creditors of the time limitations for filing claims against Barthel's estate.

The appellant (Sears) was unaware of Barthel's death until December 12, 1988. Sears alleged that it was informed on December 21, 1988 that Barthel had left no estate. On January 13, 1989, Barthel's daughter advised Sears that the time limit for filing claims against the estate had expired.

Sears filed a claim for $6,522.73 against the estate on February 20, 1989.[4] On February 24, 1989, Sears filed a "Motion to Determine Allowability of Claim" with the circuit court. Hearings were held before the circuit court on March 29, 1989 and May 3, 1989.

The state attorney general was given an opportunity to participate in the May 3, 1989 hearing, but declined to participate. At the May 3, 1989 hearing, Sears challenged the statutory notice procedure on the ground that publication notice did not satisfy the procedural due process protections of the fourteenth amendment. Sears based its argument on the United States Supreme Court *592 case, Tulsa Professional Collection Servs. v. Estate of Pope, 485 U.S. 478 (1988).

[1]

The circuit court refused to allow Sears' claim, on the ground that it was not filed before the time limit expired. The court recognized the inconsistency between Pope and this court's decision in In re Fessler, 100 Wis. 2d 437, 302 N.W.2d 414 (1981), but felt compelled by Fessler and the language of secs. 859.01 and .07, Stats. 1987-88, to deny the claim.[5] Sears appealed this decision and the court of appeals certified the case to this court for review and determination, pursuant to sec. (Rule) 809.61, Stats. We review this issue without deference to the decision of the circuit court, as it involves the issue of constitutionality. State v. Holmes, 106 Wis.2d 31, 41 n.7, 315 N.W.2d 703 (1982).

We conclude that secs. 859.01 and .07, Stats. 1987-88, violate Sears' right to due process of the law for three reasons. First, the statutes in this case operate similarly to the Oklahoma statutes which the Supreme Court in Pope found may adversely affect a creditor's protected property interest. Pope, 485 U.S. at 488. Second, the rationale which led to our conclusion in Fessler is no longer sound. Finally, while the statutory change does not control our decision today, it is significant that the state legislature subsequently amended ch. 859, Stats., in response to the Supreme Court's decision in Pope.

*593 [2]

First, the United States Supreme Court addressed an Oklahoma statutory probate process in Pope which was similar to the probate process followed in this case. In Pope, after Pope died testate, his widow initiated probate proceedings in accordance with Oklahoma's probate code. Okla. Stat. Tit. 58 (1981). This chapter provides that an interested party may initiate probate proceedings by petitioning the court to have the will proved. Id. at sec. 22. After setting a hearing date, sec. 25, and notifying "all heirs, legatees and devisees of the testator," secs. 25 and 26, the court may admit the will to probate pursuant to sec. 30. Thereafter, the court must qualify and appoint an executor/executrix, sec. 101, who is required to give notice to the creditors of the deceased. Section 331.[*] The statute only required that notice be published in a county newspaper once a week for two consecutive weeks. Id. If a creditor did not file a claim within two months of the date of first publication, the creditor's claim was barred. Section 332.[*] The Supreme Court, applying the principles of Mullane v. Central Hanover Bank & Trust Co., 339 U.S. 306 (1950), and Mennonite, 462 U.S. 791, determined that if a creditor was known or "reasonably ascertainable,"[6] the due process *594 clause of the fourteenth amendment required "[n]otice by mail or other means as certain to ensure actual notice." Pope, 485 U.S. at 491 (quoting Mennonite, 462 U.S. at 800). Those same principles lead to the same conclusion in this case.

The Pope Court quoted Mennonite for the proposition that "actual notice is a minimum constitutional precondition to a proceeding which will adversely affect the liberty or property interests of any party . . . if its name and address are reasonably ascertainable." Pope, 485 U.S. at 485 (quoting Mennonite, 462 U.S. at 800) (emphasis in original).

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468 N.W.2d 689, 161 Wis. 2d 587, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-matter-of-estate-of-barthel-wis-1991.