In Re Estate of Sorenson

2006 ND 145, 717 N.W.2d 535, 59 U.C.C. Rep. Serv. 2d (West) 1227, 2006 N.D. LEXIS 136, 2006 WL 1770815
CourtNorth Dakota Supreme Court
DecidedJune 29, 2006
Docket20050350
StatusPublished
Cited by3 cases

This text of 2006 ND 145 (In Re Estate of Sorenson) is published on Counsel Stack Legal Research, covering North Dakota 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 Sorenson, 2006 ND 145, 717 N.W.2d 535, 59 U.C.C. Rep. Serv. 2d (West) 1227, 2006 N.D. LEXIS 136, 2006 WL 1770815 (N.D. 2006).

Opinion

MARING, Justice.

[¶ 1] Kenneth A. Sorenson, the personal representative of Clifford Sorenson’s estate, appeals from an order granting a claim by Ruth Sorenson against the estate, and Ruth Sorenson cross-appeals from an order denying her remaining claims against the estate. We affirm in part and reverse in part.

I

[¶ 2] When Clifford Sorenson died in June 2004, he was survived by his spouse, Ruth Sorenson, and three adult children from a previous marriage. Both Clifford and Ruth Sorenson had been previously married, and before their marriage in June 1976, they signed an “antenuptial agreement” that identified their separate property and provided, if either one died, the survivor would not have a claim to the deceased’s separate property.

[¶ 3] During their marriage, Clifford and Ruth Sorenson lived in his house in Harvey. In March 1980, Clifford Soren-son executed an unsecured $23,650 promissory note payable to Ruth Sorenson,, which she claimed represented a loan to him for his business in Harvey. She also claimed she provided an additional loan of $20,542 for his business, as evidenced by cancelled checks from her separate checking account. The promissory note stated it was due in March 1985, and Clifford Sorenson had not made any payments on the note when he died in 2004.

[¶ 4] Kenneth Sorenson, Clifford Sor-enson’s son from his previous marriage, was appointed personal representative of his estate under a June 1976 will that generally devised his property to his three children from his previous marriage. The 1976 will was modified by a 1980 codicil that granted Ruth Sorenson a life estate in Clifford Sorenson’s home as long as she did not remarry and conditioned her use of the home upon the payment of property taxes and insurance.

[¶ 5] Ruth Sorenson filed a claim against Clifford Sorenson’s estate for full ownership of lake property in McLean County, which was titled in their name as tenants in common and she claimed they purchased during their marriage with her separate funds; for a 1989 van, a 1985 boat, a 1975 pickup, and a pickup box trailer with a topper and storage bin, which she claimed they purchased during their marriage with her separate funds; and for an undivided half ownership in two vehicles owned by Clifford Sorenson before their marriage and restored during their marriage. She claimed she contributed the money for the acquisition or restoration of that property. She also sought reimbursement for amounts she claimed she loaned to Clifford Sorenson for his business in Harvey.

[¶ 6] The personal representative denied Ruth Sorenson’s claim, and she petitioned the district court for allowance of her claim. She sought full ownership of the lake property in McLean County, the 1989 van, the 1985 boat, the 1975 pickup, and the pickup box trailer with topper and storage bin. She sought half ownership of *538 Clifford Sorenson’s two vehicles that the couple restored during their marriage. She also sought reimbursement of $44,192 that she claimed she loaned to Clifford Sorenson for his business from 1976 to 1985, and was evidenced by the $23,650 promissory note and $20,542 in cancelled checks from her separate checking account. Ruth Sorenson claimed the “ante-nuptial agreement” expressed the couple’s intent to maintain their property separately and asked the court to follow that intent for dividing property acquired during the marriage based on the contribution of value from each spouse.

[¶ 7] After a hearing, the district court allowed Ruth Sorenson’s claim for repayment of the $23,650 promissory note, concluding the note evidenced an implied contract for repayment. However, the court declined to award Ruth Sorenson interest on that note, because she had not taken any action to collect on the note during Clifford Sorenson’s life. The court rejected Ruth Sorenson’s other claims, concluding she had not established a contract for reimbursement of money purportedly loaned to Clifford Sorenson for his separately-owned business. The court concluded the lake property, the 1989 van, the 1985 boat, and the 1975 pickup were titled in both her name and Clifford Sorenson’s name at the time of his death and that designation controlled the disposition of that property. The court thus decided Ruth Sorenson was entitled to one-half of that property and the estate was entitled to the other half. The court also decided Clifford Sorenson separately owned the restored vehicles and the pickup box trailer with topper and storage bin and Ruth Sorenson was not entitled to any interest in that property.

II

[¶ 8] The personal representative argues Ruth Sorenson’s claim on the 1980 promissory note is barred by a six-year statute of limitations in N.D.C.C. §§ 28-01-16 and 41-03-18. Ruth Sorenson responds the estate did not plead the statute of limitations as a defense.

[¶ 9] Generally, the statute of limitations is an affirmative defense that is waived if not pleaded. In Interest of K.B., 490 N.W.2d 715, 717 (N.D.1992); Hansen v. First Am. Bank & Trust, 452 N.W.2d 770, 771 (N.D.1990). Ruth Sorenson’s initial claim against the estate did not specifically refer to the promissory note but generally sought “reimbursement for any amounts she contributed to [Clifford Sor-enson’s] business.” Her petition to the district court for allowance of her claims cited the promissory note, and the estate’s response to her petition did not raise the statute of limitations. During the hearing, however, Ruth Sorenson introduced the promissory note into evidence and the estate raised the statute of limitations as a defense. In her post-hearing brief, Ruth Sorenson conceded the estate raised the statute of limitations during the hearing. The district court cited the estate’s reliance on the statute of limitations in its decision, but concluded under “the totality of circumstances” the note was an implied contract to repay Ruth Sorenson. Under these circumstances, we conclude the statute of limitations was impliedly tried by the consent of the parties, and the estate has not waived the statute of limitations as a defense. See Aho v. Maragos, 2000 ND 14, ¶¶ 7-8, 605 N.W.2d 161 (holding issue tried by implied consent of parties and pleadings impliedly amended under N.D.R.Civ.P. 15(b) to conform to evidence).

[¶ 10] An action upon a promissory note must be commenced within six years after the claim for relief has accrued. Pear v. Grand Forks Motel Assocs., 553 *539 N.W.2d 774, 781 (N.D.1996). See N.D.C.C. §§ 28-01-16(1) and 41-08-18. Here, the promissory note was executed on March 26, 1980, and stated it was due on March 26, 1985.. Ruth Sorenson made her claim on the note against the estate in October 2004, and the time for commencing an action on that note has expired unless the period has been extended.

[¶ 11] The personal representative argues no tolling period is applicable to Ruth Sorenson’s claim on the note. Ruth Sor-enson argues the court did not err in allowing her claim on the note, because her extension of time for payment constitutes a forbearance and has the legal effect of tolling the statute of limitations indefinitely as long as the marriage continued or she did not seek repayment.

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Bluebook (online)
2006 ND 145, 717 N.W.2d 535, 59 U.C.C. Rep. Serv. 2d (West) 1227, 2006 N.D. LEXIS 136, 2006 WL 1770815, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-sorenson-nd-2006.