In Re Estate of Henry

426 N.W.2d 451, 1988 Minn. App. LEXIS 692, 1988 WL 64477
CourtCourt of Appeals of Minnesota
DecidedJune 28, 1988
DocketC9-87-2269, C5-87-2270
StatusPublished
Cited by3 cases

This text of 426 N.W.2d 451 (In Re Estate of Henry) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Estate of Henry, 426 N.W.2d 451, 1988 Minn. App. LEXIS 692, 1988 WL 64477 (Mich. Ct. App. 1988).

Opinion

OPINION

CRIPPEN, Judge.

Appellants Mary Bergman and Haga-done Hospitality Corporation appeal from the dismissal of their claims against the estate of Teresa Lynn Henry. The trial court concluded both claims were untimely. We reverse as to the claim of Bergman and affirm the dismissal of Hagadone’s claim.

FACTS

On September 21, 1985, cars driven by Teresa Henry and Steven Bergman collided near Coeur d’Alene, Idaho. Henry’s car crossed the center line of the state highway and ran head-on into the car driven by Bergman. Both Henry and Bergman died as a result of the accident. Mary Bergman, a passenger in Steven Bergman’s car, was seriously injured.

Just prior to the accident, Henry had been drinking in Coeur d’Alene. One of the bars where Henry drank was the lounge at the Coeur d’Alene Holiday Inn. The Holiday Inn is owned by Hagadone Hospitality Corporation.

Although decedent Henry owned property in Priest River, Idaho, she was a Minnesota resident. Since she was a Minnesota resident, formal probate hearings began in Dakota County, Minnesota, on October 1, 1985. Concurrent with the initiation of probate, Shirley Booth, Henry’s mother, became administrator of the estate.

*454 Notice to creditors was properly published in October 1985 pursuant to Minn.Stat. § 524.3-801 (1984). Under Minn.Stat. § 524.3-803 (1984), Henry’s creditors had four months to file certain claims against the estate.

Ancillary probate proceedings began in Idaho on June 30, 1986. The purpose of this action was the disposition of Henry’s Idaho property. There is no indication that separate notice to creditors was published for these proceedings.

On August 7, 1986, Mary Bergman, individually and as personal representative of Steven Bergman and Steven Frank Bergman, her son, filed a tort action in Idaho against Henry’s estate. The complaint alleged that the accident was caused by Henry’s negligence. Bergman also named Ha-gadone as a co-defendant, alleging dram shop liability.

Henry’s personal representative filed a petition for Order of Complete Settlement and Distribution in Minnesota on September 5, 1986, complying with Minn.Stat. § 524.3-1001 (1984). The order was approved one month later. The order to finalize distribution was issued in November 6, 1986. Although funds were distributed, the estate was not closed. The bulk of the estate went to Henry’s minor child.

On October 28, 1986, Bergman served Henry’s personal representative with a copy of the summons and complaint from the tort action. Bergman filed a claim against Henry’s estate on May 7, 1987.

Hagadone submitted a claim against Henry’s estate on July 21, 1987. Haga-done’s claim is contingent and unliquidated —it seeks contribution and/or indemnification from Henry’s estate in the event Ha-gadone loses the dram shop action. 1

In August 1987, a hearing was held in Dakota County to determine the disposition of the late claims. The trial court granted Hagadone a temporary restraining order (TRO) preventing closure of the estate. The TRO stands until a final determination of the claims is made.

In October 1987, the trial court dismissed both claims as untimely. Hagadone and Bergman both appealed. Both appellants now join in challenging the dismissal of their claims against the Henry estate.

ISSUES

1. Is Bergman’s claim valid because the filing time restrictions in Minn.Stat. § 524.3-803 (1984) do not apply to tort claims?

2. Has Hagadone’s claim for contribution or indemnity arisen such that the four-month limitation set by the nonclaim statute expired before Hagadone filed its claim on July 21, 1987?

3. If Hagadone’s claim is governed by the nonclaim statute and was not filed within the statutory period of four months, should the claim be allowed pursuant to Minn.Stat. § 524.3-803(c) (1984)?

ANALYSIS

1. Bergman’s Claim.

The trial court dismissed Mary Bergman’s claim as untimely pursuant to the nonclaim statute, Minn.Stat. § 524.3-803 (1984). 2 Subsection (a) of the nonclaim statute governs “claims as defined in section 524.1-201(4)” which arose before decedent died, requiring that these claims be filed within four months after notice to creditors as provided by law. Subsection (b) of the statute governs “claims” which arise at or after decedent’s death, “whether due or to become due, absolute or contingent,” requiring filing, with exceptions not pertinent here, within four months after the claims arise.

The trial court identified Bergman’s claim as a tort claim which arose at the time of decedent’s accident in September 1985. Accordingly, the court concluded Bergman had four months from the time of *455 the accident in which to file her claim. Minn.Stat. § 524.3-803(b). Bergman did not formally file a claim until May 7,1987, 3 and the trial court found the claim untimely and forever barred against the estate.

Bergman’s claim is a tort claim. Tort claims are expressly excluded from the statutory definition of claims.

(4) “Claims” includes liabilities of the decedent whether arising in contract or otherwise and liabilities of the estate which arise after the death of the decedent including funeral expenses and expenses of administration. The term does not include taxes, demands or disputes, regarding title of a decedent to specific assets alleged to be included in the estate, tort claims, foreclosure of mechanic’s liens, or to actions pursuant to section 573.02. 4

Minn.Stat. § 524.1-201(4) (1984) (emphasis added).

Supporting the trial court’s conclusions, respondent Bergman argues that the claims definition applies only to subsection (a) of Minn.Stat. § 524.3-803 which expressly deals with pre-death “claims as defined in section 524.1-201(4) against a decedent’s estate.” Since Minn.Stat. § 524.3-803(b) makes no reference to the claims definition, respondent contends that a common definition of claims is appropriate for that subsection. We disagree with this analysis of the statute.

The introduction to the general definition statute requires a broad application of the claims definition. Minn.Stat. § 524.1-201 (1984). It states that the specified definitions, including the definition of claims, apply

[s]ubject to additional definitions contained in subsequent articles which are applicable to specific articles or parts, and unless the context otherwise requires, in chapter 524 and in chapter 525.

Id.

In addition, the exclusion of tort claims from the time requirements of the non-claim statute is supported by nearly a century of Minnesota law. 5 See, e.g., In re Iverson’s Appeal, 249 Minn. 156, 81 N.W.2d 701

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Related

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704 N.W.2d 522 (Court of Appeals of Minnesota, 2005)
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Bluebook (online)
426 N.W.2d 451, 1988 Minn. App. LEXIS 692, 1988 WL 64477, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-henry-minnctapp-1988.