In re the Estate of Wolf

96 P.3d 1110, 32 Kan. App. 2d 1247, 2004 Kan. App. LEXIS 955
CourtCourt of Appeals of Kansas
DecidedSeptember 3, 2004
DocketNo. 91,225
StatusPublished
Cited by7 cases

This text of 96 P.3d 1110 (In re the Estate of Wolf) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas 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 Wolf, 96 P.3d 1110, 32 Kan. App. 2d 1247, 2004 Kan. App. LEXIS 955 (kanctapp 2004).

Opinions

Rosen, J.:

Nancy J. Wolf, executrix of the Estate of Francis J. Wolf, Jr., appeals the trial court’s award of attorney fees to Marino & Wolf, Inc. (M&W). We reverse.

Francis (Frank) J. Wolf, Jr., died in Wyandotte County, Kansas, on September 24, 1998. Shortly thereafter, Nancy, Frank’s wife, filed a petition for probate of a lost will in Wyandotte County District Court. The trial court named Nancy as the executrix of Frank’s estate (Estate). Among the assets Nancy identified in the Estate’s first inventoiy were 333 shares of M&W stock.

Nancy issued a notice to creditors. M&W filed two petitions for allowance and classification of demand within the 4-month claim period. One of those petitions asserted that M&W held a demand against the Estate “for the purchase [of] 333 shares of stock in Petitioner owned by the decedent . . . pursuant to the terms and conditions of a certain Option Agreement, as amended, a copy of which is attached hereto as Exhibit ‘A’ at the price of $625.00 per share.” Attached to the petition was a copy of the Option Agreement and an amendment to the Option Agreement.

Nancy filed written defenses to M&W’s demand, disputing the validity of the Option Agreement and asserting a right to a set off for all monies and commissions due to Wolf at his death. In the probate case, Nancy alleged that in early 1997, the principals of M&W had agreed to new terms for purchasing each other’s stock. Nancy also filed a separate civil action in Wyandotte County District Court against M&W and its coowner Jasper Marino, seeking a declaratory judgment and an accounting. This action was dismissed for lack of jurisdiction. In September 2000, M&W filed a [1249]*1249motion for summary judgment seeking to enforce the Option Agreement. Nancy opposed the motion, claiming that there was a genuine issue of fact.

The trial court held a hearing in January 2001, and orally granted M&W’s motion. In a subsequent memorandum decision, however, the trial court reversed its decision and found that there was a sufficient factual dispute for Nancy’s objections to survive summary judgment.

Nancy filed a motion to reconsider and M&W renewed its motion for summary judgment. The trial court granted M&W’s motion for summary judgment and ordered Nancy to convey the M&W stock in exchange for a payment of $625 per share. Nancy appealed the trial court’s grant of summary judgment to M&W and then voluntarily dismissed the appeal.

Less than a week after this order, Nancy filed a petition for declaratory relief in the probate court. She asserted that M&W had advised her it would seek attorney fees under the terms of the Option Agreement. She argued that the claim was barred by the statute of limitations set forth in K.S.A. 59-2239, the nonclaim statute.

Thereafter, M&W filed a “bill of costs and expenses of suit,” asserting that under the Option Agreement, it was entitled to recover attorney fees, costs, and expenses of the lawsuit. M&W asserted that since the litigation had concluded, it was entitled to recover those costs as the prevailing party. M&W claimed $143,659.41 in attorney fees and expenses. M&W also requested that the amount be offset against the amount it owed for purchasing the Estate’s M&W stock.

The trial court held a hearing and ruled that K.S.A. 59-2239 did not bar M&W’s request for attorney fees. The trial court also found that M&W’s original claim against the Estate, which had a copy of the Option Agreement attached, made attorney fees part of the original demand.

The Option Agreement that was attached to the petition contained the following provision:

“7.13 Attorneys’ Fees. If any party to this Agreement brings an action to enforce the terms hereof or to declare rights hereunder, the prevailing party in the final [1250]*1250adjudication of any such action, at trial or on appeal shall be entitled to costs and expenses of suit, including without limitation actual attorneys’ fees borne by such party, to be paid by the losing party as fixed by the Court.”

Nancy objected to the amount of M&W’s attorney fees and expenses. A hearing was held and the trial court found that M&W’s attorney fees were reasonable; however, it reduced the amount by 1 percent. The trial court ordered that M&W be allowed $142,222.82 in attorney fees offset against its prior payment for the Estate’s stock. Nancy timely appealed the trial court’s ruling.

Nancy’s primary argument on appeal is that tire trial court lacked subject matter jurisdiction to award M&W attorney fees because M&W’s claim was not made within 4 months of tire notice to creditors pursuant to K.S.A. 59-2239(1). M&W contends that its original demand, which was timely under K.S.A. 59-2239, encompassed its claim for attorney fees.

Whether the trial court has subject matter jurisdiction over a claim is a question of law over which an appellate court has unlimited review. In re Marriage of Metz, 31 Kan. App. 2d 623, 625, 69 P.3d 1128 (2003).

Nancy’s subject matter jurisdiction argument is misguided. Subject matter jurisdiction is the authority of the court to hear and decide a particular action. Metz, 31 Kan. App. 2d at 625. Clearly, trial courts have subject matter jurisdiction in probate proceedings to determine the validity of claims and demands made against the estate. See K.S.A. 59-2204; K.S.A. 2003 Supp. 59-2237(b).

The Kansas courts have, on occasion, referred to the nonclaim statute as jurisdictional in nature. In re Estate of Reynolds, 266 Kan. 449, 456, 970 P.2d 537 (1998). However, in Reynolds, the court recognized that untimely claims could be considered if tire trial court finds fraud or other unconscionable conduct. 266 Kan. at 456. Allowing such an exception negates the “jurisdictional” label, as subject matter jurisdiction cannot be waived. See Labette Community College v. Board of Crawford County Comm'rs, 258 Kan. 622, 626, 907 P.2d 127 (1995).

Nothing in the probate code divests the court of subject matter jurisdiction over claims which may be barred under the nonclaim statute. Instead, the nonclaim statute simply limits the trial court’s [1251]*1251authority to allow certain claims to be assessed against the estate. See K.S.A. 59:2239(1).

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Bluebook (online)
96 P.3d 1110, 32 Kan. App. 2d 1247, 2004 Kan. App. LEXIS 955, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-wolf-kanctapp-2004.