In Re the Estate of Duncan

2002 NMCA 069, 50 P.3d 175, 132 N.M. 426
CourtNew Mexico Court of Appeals
DecidedJune 14, 2002
Docket21,326
StatusPublished
Cited by8 cases

This text of 2002 NMCA 069 (In Re the Estate of Duncan) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re the Estate of Duncan, 2002 NMCA 069, 50 P.3d 175, 132 N.M. 426 (N.M. Ct. App. 2002).

Opinion

OPINION

ROBINSON, Judge.

{1} Appellants Dean and Brenda Kinsolving (hereinafter “Lessees”) appeal from a district court order entered after the personal representative of the Estate of Georgia A. Duncan (hereinafter “Decedent”) sought declaratory relief concerning the legal status of three separate properties subject to a lease agreement made between Lessees and Decedent (hereinafter “the Lease”). These properties consisted of a 5360-acre ranch, an adjacent parcel consisting of 320 acres, and a house and lot located in Ruidoso.

{2} On appeal, Lessees claim that the underlying informal probate action was never converted into a formal probate proceeding, and as a consequence, the district court lacked subject matter jurisdiction to enter an order affecting the lease in question. Lessees also claim that their lease did not automatically terminate at Decedent’s death. Alternatively, they argue that the Decedent’s heirs expressly or through their behavior ratified the continuation of the lease. Lessees also claim that the Ruidoso property was held in full fee interest by Decedent and therefore was not subject to any remainder interests that could affect the terms of the lease. Finally, Lessees claim that it is undisputed that the 320-acre parcel was held in full fee interest by Decedent and was not encumbered in any manner that would limit the terms of the lease. We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

{3} The dispute in this case can be traced back to 1968, when Decedent’s husband, Robert Wraldo Duncan, died intestate. At the time of his death, Robert Wraldo Duncan and Decedent had six living children, two of whom were minors and were thereafter represented by a guardian ad litem in efforts to resolve matters relating to their father’s estate.

{4} On May 20, 1969, Decedent and her children entered into a settlement agreement addressing the distribution of Robert Wraldo Duncan’s assets. Under a critical portion of this agreement, the parties agreed to:.

bargain, sell and convey, transfer, assign and set over and quitclaim any and all real property belonging to the said Robert Wraldo Duncan, deceased, and his interest only, at the time of his death, said interest being separate, community or mixed as follows:
To Georgia Anderson Duncan goes a life estate with the remainder over in equal shares [to the children].

{5} This 1969 agreement only addressed property belonging to Robert Wraldo Duncan “at the time of his death, and not any of the properties belonging to Georgia Anderson Duncan whether they be personal, real, community, separate or mixed or wheresoever situated.”

{6} Prior to his death, Robert Wraldo Duncan and Decedent owned as part of their undivided community property a family ranch (hereinafter “Tatum Ranch”) consisting of 5360 acres. The Tatum Ranch also included an additional 320 acres that was owned by Decedent as her sole and separate property. The Tatum Ranch therefore consisted of 5680 acres. The couple also owned, as joint tenants, a house and lot in Ruidoso. Shortly after Decedent and her children entered into the 1969 settlement agreement, an inventory was conducted of Robert Wraldo Duncan’s community property at the time of his death. Neither the 320-aere parcel of the Tatum Ranch or the Ruidoso property appears as part of this inventory.

{7} The ranching operation began experiencing financial difficulties within a few years after the death of Robert Wraldo Duncan. The holder of the mortgage on the Tatum Ranch threatened foreclosure. In response, Decedent secured a loan in 1978 from the Farmers Home Administration (hereinafter “FmHA”). This loan paid off the previous mortgage as well as debts individually owed by the children. It appears that Decedent made payments on the FmHA loan from 1978 until her death in 1997.

{8} Between approximately 1985 and 1995, Decedent and Lessees entered into an oral, year-to-year lease of the Tatum Ranch. The agreement was formalized in 1995, and it is this lease that is at the center of the present dispute. The lease became effective on January 1, 1996, and was to have a term of ten years. The lease sets forth a legal description of the Tatum Ranch, to be used for “ordinary cattle grazing purposes, and such other purposes as may be contained herein.” In consideration for the use of the Tatum Ranch, Lessees agreed to make total cash payments of $248,000, to be paid in $12,400 semi-annual installments. Near the end of the lease, and without any separately referenced consideration, the parties agreed to two additional provisions: Lessees would have exclusive use of the Ruidoso property, subject only to use by Decedent as she so desired, and Lessees would have an option to purchase all of the real property within six months of the expiration of the lease.

{9} Decedent died on March 29, 1997, only fifteen months into the ten-year lease. Decedent was survived by four of her six children: Joe Ann Duncan, Jimmy Anderson Duncan, Wraldo Presley Duncan, and Robert Wraldo Duncan Jr. (hereinafter “Robert Jr,”). One of her children, Tommy Lynn Duncan, predeceased her without heirs and, therefore, any interest he had under the 1969 settlement agreement reverted to Decedent. Another child who predeceased Decedent, Estelle Lee Duncan, was survived by two children: Troy Lee Duncan and Sherry Glen.

{10} On April 7, 1997, Robert Jr. filed an application for informal probate of Decedent’s will, requesting that he be appointed as personal representative of the estate. Although Joe Ann Duncan had been named in the original will as alternate personal representative to her predeceased sister Estelle Lee Duncan, Robert, Jr. had been named as the personal representative in the codicil executed by Decedent on January 26, 1997, approximately two months before her death. The application was granted.

{11} On May 5, and May 9, 1997, Joe Ann Duncan, through counsel, filed a request for hearing and a “Petition to Set Aside Informal Probate of Will and for Formal Appointment of Personal Representative.” The petition requested that the codicil be deemed invalid and that Joe Ann Duncan be appointed personal representative of the estate. Wraldo Presley Duncan also filed a petition challenging the codicil and calling for the removal of Robert Jr. as the personal representative. In response, the district court appointed Ribble Holloman to serve as temporary administrator of the estate, to become permanent unless Joe Ann Duncan sought separate appointment within sixty days. A hearing on Joe Ann’s petition was initially scheduled for November 6, 1997. The matter was delayed after the successive recusals of two judges. Finally, on March 9, 1998, the district court filed its Order Denying Joe Ann Duncan’s Petition to Set Aside Informal Probate and Appointment of Ribble Holloman as Personal Representative. Letters testamentary were issued to Holloman without restrictions.

{12} The current dispute was triggered on June 29, 1998, when Holloman, acting in his capacity as personal representative, filed a motion for declaratory relief. Hollomon asked for guidance on two issues: (1) whether the FmHA loan as related to any individual indebtedness of the children should affect the distribution of assets; and (2) whether the lease and its purchase option was enforceable.

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Bluebook (online)
2002 NMCA 069, 50 P.3d 175, 132 N.M. 426, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-duncan-nmctapp-2002.