In the Matter of the Estate of Ralph Roethler, Kent Lewis and Becky Lewis v. Angela M. Kuehn, Cheryl L. Upton, Jacquelyn F. Betsworth, Daniel W. Roethler, Mary Anne James, James F. Roethler, Donald A. Roethler, Constance L. Duke, Gerald E. Roethler, Kathleen S. Good, John M. Roethler, Daniel Lee Homan, and Frank E. Homan

801 N.W.2d 833, 2011 Iowa Sup. LEXIS 59
CourtSupreme Court of Iowa
DecidedAugust 19, 2011
Docket09–1105
StatusPublished
Cited by19 cases

This text of 801 N.W.2d 833 (In the Matter of the Estate of Ralph Roethler, Kent Lewis and Becky Lewis v. Angela M. Kuehn, Cheryl L. Upton, Jacquelyn F. Betsworth, Daniel W. Roethler, Mary Anne James, James F. Roethler, Donald A. Roethler, Constance L. Duke, Gerald E. Roethler, Kathleen S. Good, John M. Roethler, Daniel Lee Homan, and Frank E. Homan) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In the Matter of the Estate of Ralph Roethler, Kent Lewis and Becky Lewis v. Angela M. Kuehn, Cheryl L. Upton, Jacquelyn F. Betsworth, Daniel W. Roethler, Mary Anne James, James F. Roethler, Donald A. Roethler, Constance L. Duke, Gerald E. Roethler, Kathleen S. Good, John M. Roethler, Daniel Lee Homan, and Frank E. Homan, 801 N.W.2d 833, 2011 Iowa Sup. LEXIS 59 (iowa 2011).

Opinion

ZAGER, Justice.

In this appeal, we must determine when the district court can properly reopen a probate estate under Iowa Code section 633.489 (2009). Becky and Kent Lewis (“Lewises”), plaintiffs, sought to reopen Ralph Roethler’s estate to allow them to exercise a “first right to purchase” eighty acres of farmland. The executor of the estate did not notify the Lewises that the will contained this right during the administration of this estate. The district court held the Lewises met the statutory grounds set out in section 633.489 to reopen Ralph Roethler’s estate. The court of appeals reversed, holding the Lewises’ petition to reopen was time-barred under section 633.488, which controls when an estate’s final accounting and settlement agreement may be reopened. On further review, we find the Lewises’ petition to reopen satisfied the statutory grounds set forth in section 633.489 to reopen an estate. We also find the district court properly construed the will to permit the Lewises to exercise their first right of purchase irrespective of the executor’s intent to sell the land. Accordingly, the decision of the court of appeals is vacated, and the district court’s judgment is affirmed.

I. Background Facts and Proceedings.

In 1987, the Lewises entered into a lease to farm two parcels of property owned by Ralph and Marjorie Roethler. One parcel was eighty acres owned solely by Ralph. The other parcel was 160 acres owned solely by Marjorie. The Roethlers lived in a home in Aurelia, owned by Ralph. The Lewises and their children also rented the farmhouse located on Marjorie’s parcel. This arrangement continued through 1994. During this time, the relationship between the Lewises and the Roethlers grew close. *836 The Roethlers had no children, but Marjorie baked birthday cakes for the Lewises’ children. Kent Lewis made improvements to the farmstead, and the Roethlers offered the Lewises other considerations like interest free loans and a discounted vehicle.

On February 1, 1994, Ralph executed his last will and testament. Attorney Stephen Hankens drafted the will. Paragraph V of the will provided:

V. I herein give Kent Lewis and Becky Lewis the first right of purchase to the following described real estate, to-wit: 80 Acres in Diamond Township, Section One; at the appraised value in the Estate. This right to purchase shall be given them for a period of four months from my date of death. Notice of said right to purchase shall be filed in my Estate in writing.

The eighty-acre parcel of farm real estate listed in section V is the subject of this dispute. At the time of Ralph’s death, it was valued at $140,600.

The Lewises always intended on purchasing farmland of their own. Toward the end of 1994, the Lewises purchased ten acres of their own and informed Ralph and Marjorie they would be moving out of the farmhouse. After the Lewises moved off the property, they also stopped farming the Roethlers’ land. On December 13, 1994, the Roethlers contracted with Neal and Kathleen Pearson to rent, live on, and farm their two parcels. After the Lewises moved off of the acreage, their relationship with the Roethlers grew apart.

On July 3, 1999, Ralph died. The Lew-ises, along with three other families that had rented from the Roethlers, were listed as an “honorary family” on the funeral program. The Lewises attended the funeral. The Lewises testified Kent was a pallbearer, but he was not listed as a “casketbearer” on the funeral program, and Ralph’s nephew said Kent was not a pallbearer.

Ralph’s will was admitted to probate on July 19, 1999. The notice of probate was published in the local newspaper with a second publication date of August 2, 1999. Pursuant to the notice, any claims against the estate would be barred if not filed within four months. Also, an affidavit of mailing notice was given to all the residual beneficiaries (“the beneficiaries”) who are defendants in this appeal. No notice was mailed to the Lewises despite paragraph V of Ralph’s will, which specifically named the Lewises. Marjorie was named the executor, and the will awarded her a life estate in all of Ralph’s real property, with the remainder to the beneficiaries. Hank-ens was the attorney for the estate. Hankens filed the final report in October 1999. The report of referee approved the final report, subject to a minor tax issue. The final report was approved on November 22, 1999, prior to the claims-bar date. Title to the eighty acres of real estate was changed the next day to reflect Marjorie’s life interest and the beneficiaries’ remainder interest.

The Lewises were not made aware by the attorney for the estate, the executor of the estate, or any other party that Ralph’s will specifically named them or that the will was being probated.

Marjorie passed away in 2008. The Lewises did not attend the funeral. During the probate of her estate, the beneficiaries contracted to sell Ralph’s eighty acres to Neal and Kathy Pearson for the appraised value of $408,000. A title opinion performed on the real estate discovered Ralph’s probate file did not contain a notice showing the Lewises waived their option to purchase the subject real estate as required under Ralph’s will. The Pear-sons’ attorney sent the Lewises a letter *837 asking them to waive their option to purchase Ralph’s eighty acres. This was the first time the Lewises were apprised that Ralph’s will afforded them a first right to purchase Ralph’s eighty-acre farm. The Lewises indicated they would have been interested in purchasing the eighty-acre farm and had the financial capacity to purchase the land in 1999.

On June 23, 2008, Kent Lewis filed a petition to reopen Ralph’s estate. The beneficiaries resisted. After a hearing, the district court ordered the estate reopened under Iowa Code section 633.489 to determine whether the Lewises had a valid option to purchase. Hankens, who was now a defendant in a negligence action filed against him by the Lewises, was allowed to intervene.

Trial was held on May 27, 2009, to construe Ralph’s will and determine whether Ralph’s will provided the Lewises a valid first right to purchase Ralph’s eighty acres. The district court held Ralph’s will gave the Lewises an option to purchase Ralph’s eighty acres, irrespective of Marjorie’s decision to sell the land.

The beneficiaries appealed. The case was transferred to the court of appeals. The court of appeals determined the district court abused its discretion in reopening the estate because the Lewises were time-barred under Iowa Code section 633.488. The court of appeals therefore did not have to reach the will construction issue. The Lewises petitioned for further review, which we granted.

II. Standard of Review.

A petition to reopen an estate requires the court to engage in a two-step decision process. First, the district court must make a preliminary determination whether the plaintiff has asserted a permissible reason for reopening the estate. In re Estate of Warrington, 686 N.W.2d 198, 202 (Iowa 2004). This determination is governed by Iowa Code sections 633.487, 633.488, and 633.489.

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Bluebook (online)
801 N.W.2d 833, 2011 Iowa Sup. LEXIS 59, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-the-matter-of-the-estate-of-ralph-roethler-kent-lewis-and-becky-lewis-iowa-2011.