In Re Estate of Hudson

887 So. 2d 923, 2004 WL 225471
CourtCourt of Civil Appeals of Alabama
DecidedFebruary 6, 2004
Docket2021057
StatusPublished
Cited by7 cases

This text of 887 So. 2d 923 (In Re Estate of Hudson) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama 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 Hudson, 887 So. 2d 923, 2004 WL 225471 (Ala. Ct. App. 2004).

Opinions

This is an appeal from a judgment of the Dale Circuit Court entered on June 30, 2003, in which it declined to set aside a final-settlement judgment of the Dale County Probate Court. We affirm.

Essie Lee Hudson died intestate on April 14, 2000. Geraldine Johnson and Catherine Stewart, both daughters of the deceased, petitioned the Dale County Probate Court ("the probate court") for letters of administration. On June 28, 2000, the probate court issued letters of administration appointing Johnson and Stewart as co-administrators of the estate of Essie Lee Hudson ("the estate"). Following notice of their appointment by publication, several creditors filed claims against the estate. On June 28, 2001, Johnson and Stewart, on behalf of the estate, filed a petition with the probate court, pursuant to § 43-2-444, Ala. Code 1975, claiming that the personalty of the estate was insufficient to pay the claims filed against the estate and seeking to sell the decedent's real property located in Dale County ("the Dale County property") to pay the outstanding claims. On September 4, 2001, the probate court ordered the sale of the Dale County property.

On February 22, 2002, Johnson and Stewart petitioned to remove the case from the probate court to Dale Circuit Court ("the trial court"). The trial court granted the petition, and the case was transferred to the trial court. Simultaneous with the filing of the petition for removal, Johnson and Stewart filed a complaint seeking a court-ordered sale of the Dale County property. On June 19, 2002, the trial court ordered the sale of the property and ordered that notice of the sale be given by publication. The property was subsequently sold to Greg Jaeb on August 7, 2002, for $9,200.

On August 8, 2002, Johnson and Stewart filed an objection to the sale of the Dale County property, alleging that the property had a tax-assessed value of $22,780; that the bid price was so inadequate as to shock the conscience; that the bid price was inadequate to satisfy the outstanding mortgage indebtedness of $9,291 on the property; and that the bid price was inadequate to pay any claims against the estate or administration expenses.

Following a hearing, the trial court entered an order on September 16, 2002, in which it concluded, in part, that the sale of the Dale County property was held according to law, that there was no evidence of fraud, and that no conditions had been placed on the public sale. On October 21, 2002, Jaeb, the purchaser of the property, was issued a registers deed. The trial court subsequently transferred the case back to the probate court, determining that "all circuit court issues [were] resolved." On November 5, 2002, Johnson and Stewart moved the probate court to set the case for a final hearing, and on February 7, 2003, the probate court entered a judgment of final settlement.

On March 13, 2003, Jaeb filed a motion in the probate court seeking to "set aside" the final settlement and to require the estate to pay off the mortgage on the Dale County property purchased at the public sale. In support of his March 13, 2003, motion, Jaeb stated that "[a]t the time of sale he asked the attorney for the Estate what amount it would take to pay off all mortgages and liens against the property and was told $9,000. In response he bid the sum of $9,200." Jaeb further alleged *Page 926 that after the estate received payment for the property, the estate refused to pay off the outstanding mortgage on the property. According to Jaeb, Johnson and Stewart failed to include the mortgage debt in the summary of expenses included with the November 5, 2002, motion to set the case for a final hearing.

Following an ore tenus hearing, the probate court entered an order on March 26, 2003, in which it set aside the February 7, 2003, final settlement and ordered the estate to pay off the remaining mortgage indebtedness on the Dale County property. The probate court specifically found:

"1. That when the property was advertised for sale there was nothing in the advertisement or notice that stated that the property would be sold subject to a mortgage.

"2. That at the time of the sale there was a mortgage on the said property.

"3. That the attorney for the Estate represented to the purchaser, Greg Jaeb, at the time of the auction that, if he paid the sum of $9,000, he would get clear title to the property.

"4. That neither the final settlement petition nor accounting nowhere shows a mortgage balance or state that the property was subject to a lien or mortgage. Therefore, the Court finds that an error occurred and pursuant to law, the Court has authority to set aside the final settlement to correct this error.

"5. Further, pursuant to § 43-8-5, Ala. Code 1975, the Court has jurisdiction to provide relief for someone whenever a fraud or misrepresentation has occurred.

"6. That the deed transferring title to Jaeb did not state that title was being transferred subject to the mortgage."

On April 3, 2003, Johnson and Stewart filed a motion to set aside the probate court's March 26, 2003, order; it does not appear from the record that the probate court ruled on that motion.

On April 24, 2003, Johnson and Stewart filed a notice of appeal to the trial court. Following a hearing, the trial court entered an order on June 30, 2003, in which it declined to disturb the judgment of the probate court. Johnson and Stewart timely appealed to this court. This court transferred the case to the supreme court for lack of subject-matter jurisdiction, and the supreme court transferred the case back to this court pursuant to § 12-2-7(6), Ala. Code 1975.

On appeal, Johnson and Stewart contend that the trial court erred in affirming the probate court's judgment because, they allege, the probate court was without jurisdiction to enter its March 26, 2003, order setting aside its February 7, 2003, judgment of final settlement. Johnson and Stewart specifically argue that Jaeb's motion to "set aside" the final settlement was a motion made pursuant to Rule 60(b), Ala. R. Civ. P., and, as such, was untimely filed and improperly used as a substitute for appeal.

We first note that, contrary to Johnson and Stewart's assertion on appeal, Jaeb's motion to "set aside" the final settlement was not made pursuant to Rule 60(b), but instead was made pursuant to § 43-8-5, Ala. Code 1975, which provides, in part:

"Whenever fraud has been perpetrated in connection with any proceeding or in any statement filed under this chapter or if fraud is used to avoid or circumvent the provisions or purposes of this chapter, any person injured thereby may obtain appropriate relief against the perpetrator of the fraud or restitution *Page 927 from any person (other than a bona fide purchaser) benefitting from the fraud, whether innocent or not."

(Emphasis added.) Section 43-8-5 also places a limitation on the time period within which a party must seek relief under the statute:

"Any proceeding must be commenced within one year after the discovery of the fraud or from the time when the fraud should have been discovered, but no proceeding may be brought against one not a perpetrator of the fraud later than five years after the time of the commission of the fraud."

The record indicates that Jaeb alleged in his motion to set aside the final settlement that the attorney for the estate had misrepresented to him that the Dale County property only had a $9,000 outstanding mortgage indebtedness.

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In Re Estate of Hudson
887 So. 2d 923 (Court of Civil Appeals of Alabama, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
887 So. 2d 923, 2004 WL 225471, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-hudson-alacivapp-2004.