Johnston v. Von Houck

209 P.3d 548
Court of Appeals of Washington·Decided June 23, 2009·No. 37726-8-II·Published·Cited by 2 cases

Opinion

209 P.3d 548 (2009)

Sherry JOHNSTON, as Personal Representative of the Estate of Grace D. Mattson, Respondent,
v.
Rod VON HOUCK, as Personal Representative of the Estate of George T. Mattson; and Larry McConnell and Jane Doe McConnell, his wife, and the marital community, Appellants.

No. 37726-8-II.

Court of Appeals of Washington, Division 2.

June 23, 2009.

*549 Curtis Gerard Johnson, Attorney at Law, Port Angeles, WA, for Appellants.

James M. Bendell, Attorney at Law, Port Townsend, WA, for Respondent.

ARMSTRONG, J.

¶ 1 Rod Von Houck, as personal representative of the estate of George Mattson, appeals the trial court's order denying his motion for summary judgment. This ruling allows Sherry Johnston to proceed with her action against the estate even though she filed suit before receiving notification that the estate would reject her claim. We affirm.

FACTS

¶ 2 During their marriage, Grace and George Mattson owned and operated a motel. They sold the motel pursuant to a promissory note in 1986 and divorced in 1991. The decree of dissolution provided that the Mattsons would divide equally the buyer's monthly payments. When Grace became ill and needed additional income, the parties altered the division of the monthly payments so that she received $1,940 and George received $1,328. The Mattsons subsequently entered into a management agreement that was operable if the buyer defaulted on the promissory note. George erroneously believed that with this agreement, he and Grace became joint tenants with rights of survivorship.

¶ 3 In 2001, the buyer began making the monthly payments directly to George, who then divided them with Grace. She died on January 31, 2005. Following Grace's death, George refused to continue splitting the payments with her estate, believing that as a joint tenant with rights of survivorship, he was entitled to the entire payment. George withheld 11 monthly payments of $1,940 from Grace's estate until he died in December 2005.

¶ 4 On January 3, 2006, the superior court appointed Von Houck personal representative of George's estate. On January 13, he published a notice to creditors in the local newspaper as the probate statutes required. On May 1, Johnston, as executor of Grace's estate, delivered a notice of creditor's claim to the law office representing George's estate; the claim sought Grace's share of the monthly motel payments that George had retained.[1] On May 2, Johnston served the notice of creditor's claim on Von Houck as personal representative of George's estate. On May 3, Von Houck filed with the superior court a notice of rejection concerning Johnston's claim. That same day, Johnston filed a summons and complaint against George's estate based on her creditor's claim. She served Von Houck with the summons and complaint on May 11. On May 16, Von Houck sent by certified mail the notice of rejection of creditor's claim to Johnston. His notice advised her that under RCW 11.40.100, she had to commence a lawsuit concerning the claim within 30 days after notification of rejection of the creditor's claim. Johnston received that notice on May 26 but did not file a new action.

¶ 5 On July 17, 2007, Von Houck moved for summary judgment, asking the trial court to dismiss Johnston's suit because she had not complied with RCW 11.40.100. The trial court denied Von Houck's motion, concluding in a memorandum opinion that

Mr. Mattson's estate was properly served with the lawsuit and has the opportunity to defend. The purpose of the statutes involved is to insure that the claimant has notice of the rejection of the claim and that the estate has timely notice and an opportunity to defend any lawsuit without undue delay. Neither purpose would be served by requiring the claimant to initiate a second lawsuit because the first lawsuit was initiated prior to rejection of the claim.

Clerk's Papers at 168.

¶ 6 Through a settlement agreement, the parties resolved the issues concerning the division of future payments on the motel contract and reserved for appeal the issue of whether Johnston properly brought her action *550 concerning the $21,340 claim in light of RCW 11.40.100.

ANALYSIS

I. Compliance with RCW 11.40.100

¶ 7 RCW 11.40.100 provides that an estate claimant must sue on a rejected claim "within thirty days after notification of rejection" of the claim. RCW 11.40.100(1). The issue is whether a claimant may file suit against a personal representative before receiving notification that the estate has rejected her claim. The trial court rejected Von Houck's position that the requirements of RCW 11.40.100 must be strictly construed and denied his motion for a summary judgment dismissal of Johnston's action against the estate. We review that decision de novo. Villegas v. McBride, 112 Wash.App. 689, 693, 50 P.3d 678 (2002).

¶ 8 RCW 11.40.100(1) provides in part:

If the personal representative rejects a claim, in whole or in part, the claimant must bring suit against the personal representative within thirty days after notification of rejection or the claim is forever barred.... The notification must advise the claimant that the claimant must bring suit in the proper court against the personal representative within thirty days after notification of rejection or the claim will be forever barred.

¶ 9 Our purpose in interpreting a statute is to find and follow the legislature's intent. Williamson, Inc. v. Calibre Homes, Inc., 147 Wash.2d 394, 401, 54 P.3d 1186 (2002). If a statute is unambiguous, we follow its plain language. State v. Chester, 133 Wash.2d 15, 21, 940 P.2d 1374 (1997). The critical language of RCW 11.40.100(1) is not ambiguous, and the issue does not require us to interpret any statutory language. Rather, we must address whether the legislature's statutory goals require strict compliance with the statute or only substantial compliance, thereby permitting a claimant to sue before receiving notice that the estate has rejected her claim. The parties cite no case directly on point, and we have found none.

¶ 10 Von Houck contends that substantial compliance does not meet the statute's goals and that Johnston's suit against the estate is void because it was premature. He reasons that Johnston was required to file a second suit within 30 days after the estate notified her it was rejecting her claim.

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