In re Estate of Petelle

CourtWashington Supreme Court
DecidedMay 14, 2020
Docket97463-2
StatusPublished

This text of In re Estate of Petelle (In re Estate of Petelle) is published on Counsel Stack Legal Research, covering Washington Supreme Court 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 Petelle, (Wash. 2020).

Opinion

FILE THIS OPINION WAS FILED FOR RECORD AT 8 A.M. ON IN CLERK’S OFFICE MAY 14, 2020 SUPREME COURT, STATE OF WASHINGTON MAY 14, 2020 SUSAN L. CARLSON SUPREME COURT CLERK

IN THE SUPREME COURT OF THE STATE OF WASHINGTON

In the Matter of the Estate of ) ) No. 97463-2 MICHAEL A. PETELLE, ) ) Deceased. ) ) GLORIA PETELLE, ) En Banc ) Respondent, ) ) v. ) ) MICHELLE ERSFELD-PETELLE, ) ) Petitioner. ) ) Filed May 14, 2020

JOHNSON, J.—This case involves an issue of contract interpretation,

determining whether a surviving spouse agreed in a separation contract to give up

her right to intestate succession under RCW 11.04.015. Petitioner Michelle

Ersfeld-Petelle seeks reversal of a published Court of Appeals opinion reversing In re Estate of Petelle, No. 97463-2

the trial court’s denial of a motion to terminate her right to intestate succession in

the estate of her late husband, Michael Petelle. We affirm the Court of Appeals and

conclude that petitioner expressly waived her right to intestate succession under the

terms of the contract.

FACTS AND PROCEDURAL HISTORY

After six years of marriage, Michael Petelle filed a petition to dissolve his

marriage to petitioner, having separated on January 27, 2017. The parties, both

represented by counsel, executed a separation contract and CR 2A agreement on

February 14, 2017.1 The contract divided assets and liabilities, contained an

integration clause, and required all modifications to be in writing.

In the contract, the parties agreed “to make a complete and final settlement

of all their marital and property rights and obligations on the following terms and

conditions.” Clerk’s Papers (CP) at 43 (emphasis added). The contract also

provides that the “contract shall be final and binding upon the execution of both

parties, whether or not a legal separation or decree of dissolution is obtained[,]”

and, by its terms, the contract remained valid and enforceable against the estate of

1 CR 2A states that “[n]o agreement or consent between parties or attorneys in respect to the proceedings in a cause, the purport of which is disputed, will be regarded by the court unless the same shall have been made and assented to in open court on the record, or entered in the minutes, or unless the evidence thereof shall be in writing and subscribed by the attorneys denying the same.”

2 In re Estate of Petelle, No. 97463-2

either party if either party died after the execution of the contract. CP at 43-44, 48.

Though the contract contains a “Full Satisfaction of All Claims” section, the right

to intestate succession is not mentioned. CP at 46.

Petitioner claims that she and Michael, the decedent, were contemplating

reconciliation, citing an e-mail the decedent sent to his attorney requesting an

extension to the “closing date” of the divorce. CP at 17. Before any reconciliation

or dissolution occurred, the decedent died intestate on May 1, 2017.

Petitioner filed, and was granted, a petition for letters of administration,

appointment of an administrator, an order of solvency, and nonintervention powers

for probate of the decedent’s estate. Petitioner did not disclose the existence of the

dissolution action or the separation contract and did not give notice to any of the

decedent’s heirs of her intent to petition for nonintervention powers pursuant to

RCW 11.68.041(2).

Respondent Gloria Petelle, the decedent’s mother, filed in the trial court a

motion contesting the grant of powers. The trial court revoked petitioner’s

nonintervention powers but allowed petitioner to continue to serve as personal

representative and required the posting of a $100,000 bond. Respondent petitioned

the trial court to terminate petitioner’s right to intestate succession, which the trial

court denied. Respondent appealed, and the Court of Appeals reversed, holding

that petitioner waived her right to intestate succession under the language in the 3 In re Estate of Petelle, No. 97463-2

separation contract. 2 In re Estate of Petelle, 8 Wn. App. 2d 714, 721, 440 P.3d

1026, review granted, 194 Wn.2d 1001 (2019).

ANALYSIS

Absent disputed material facts, the construction or legal effect of a contract

is reviewed de novo. Yeats v. Estate of Yeats, 90 Wn.2d 201, 204, 580 P.2d 617

(1978). When interpreting contracts, we attempt “to determine the parties’ intent

by focusing on the objective manifestations of the agreement, rather than on the

unexpressed subjective intent of the parties,” imputing an intention corresponding

to the reasonable meaning of the words used. Hearst Commc’ns, Inc. v. Seattle

Times Co., 154 Wn.2d 493, 503, 115 P.3d 262 (2005). The dispute in this case

centers on whether the separation agreement waived statutory intestate rights.

Generally, waiver may be either express or implied; an express waiver is

governed by its own terms, while implied waiver may be found based on conduct

conclusively establishing intent to waive a right. Reynolds v. Travelers Ins. Co.,

176 Wash. 36, 45, 28 P.2d 310 (1934). Both express and implied waiver are

asserted in this case.

The doctrine of waiver ordinarily applies to all rights or privileges, and the

party alleged to have waived a right must generally have actual or constructive

2 Professor Karen E. Boxx filed an amicus curiae brief in support of the petition for review.

4 In re Estate of Petelle, No. 97463-2

knowledge of the existence of the right. Bowman v. Webster, 44 Wn.2d 667, 669,

269 P.2d 960 (1954). In this case, the effect of the separation contract is

determined based on the provisions in the agreement and the agreement as a whole.

The statutory right at issue in this case is created under chapter 11.04 RCW,

which controls intestate distribution and intestate rights. Under RCW

11.04.015(1)(c), a surviving spouse is entitled to receive three-quarters of a

decedent’s estate when the decedent is survived by no children but is survived by a

parent or sibling. The parties seem to agree that this statutory directive can be

waived and dispute whether the terms of the separation agreement establish waiver

and how waiver can be accomplished.

Although none of our cases address this exact situation, we have previously

decided cases touching on whether similar spousal statutory rights were waived by

contract or conduct. The most analogous case cited by respondent and relied on by

the Court of Appeals is In re Estate of Brown, 28 Wn.2d 436, 440, 183 P.2d 768

(1947). In Brown, we found that the language in a separation contract waived a

surviving spouse’s statutorily created homestead right. There, a husband and wife

had entered into a separation contract. Before the parties were divorced, the

husband died, leaving behind a will that did not mention his wife. This court found

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In re Estate of Petelle, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-petelle-wash-2020.