Kenney v. Peitersen

784 P.2d 841, 13 Brief Times Rptr. 1242, 1989 Colo. App. LEXIS 291
CourtColorado Court of Appeals
DecidedOctober 12, 1989
DocketNo. 88CA1392
StatusPublished
Cited by1 cases

This text of 784 P.2d 841 (Kenney v. Peitersen) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kenney v. Peitersen, 784 P.2d 841, 13 Brief Times Rptr. 1242, 1989 Colo. App. LEXIS 291 (Colo. Ct. App. 1989).

Opinion

Opinion by

Judge FISCHBACH.

Ruth Kenney, claimant against the estate of Geneva Roddy, her deceased aunt, appeals the judgment of the trial court insofar as it ordered only partial payment of her claim. Primarily, she asserts that the court erred in ruling that an adjudication on the merits of her claim was not barred by the personal representative’s failure to disallow her claim within 60 days after the time for original presentment of claims had expired. Helen Peitersen, the personal representative and another niece of decedent, cross-appeals the trial court’s judgment requiring partial payment. We affirm in part and reverse in part.

The decedent died without a spouse or children. In her will she named two of her three nieces, including the personal representative and excluding the claimant, as beneficiaries of her personal effects and household goods and furnishings, and named all three nieces, including the claimant, as beneficiaries of her residuary estate. Although in her will the decedent anticipated that she would direct the distribution of specific personal effects and household goods and furnishings through a subsequent memorandum, no such memorandum was executed. Included in her estate were a Ford Bronco and a Ford Thunderbird.

The personal representative published a timely notice to creditors on February 19, [843]*8431987, directing that all claims against the estate be presented before June 26, 1987. On April 20, 1987, the claimant submitted a timely notice of claim requesting $79,020 as payment for lost wages and services she had provided to the decedent before she died. The personal representative’s attorney notified the claimant by phone on or about August 10, 1987, that her claim had been denied, and, on September 7,1987, the claimant submitted to the court a petition to allow her claim. Only thereafter, on November 12, 1987, in her answer to claimant’s petition, and on May 2, 1988, by means of a formal “Notice of Disallowance,” did the personal representative deny the validity of the claim in writing.

Under § 15-12-806(1), C.R.S. (1987 Repl. Vol. 6B), if a personal representative fails to disallow a claim against an estate in writing within 60 days after the time for original presentment of claims has expired, the claim is deemed allowed. Here, after a hearing, the court applied this statute and ruled that the claim was allowed. It also ruled, however, that payment was subject to proof of the amount of the claim. Among the distributions pertinent to this appeal, the court ordered the estate to pay the claimant $20,000 on her claim as the reasonable value of her services, and awarded the two motor vehicles to the two nieces designated as beneficiaries of the decedent’s “personal effects.”

I.

The claimant first appeals the trial court’s ruling that her claim, which was automatically allowed when the personal representative failed to deny it in writing in a timely fashion, was subject to adjudication on the merits as to the amount. She argues that §§ 15-12-806 and 15-12-807, C.R.S. (1987 Repl.Vol. 6B) require that claims allowed by operation of law be paid in full without a hearing. The personal representative, on the other hand, asserts that claims deemed allowed may subsequently be disallowed by the personal representative and, upon timely petition by a claimant, be adjudicated on their merits. We agree with the personal representative.

Section 15-12-806(1), C.R.S. (1987 Repl. Vol. 6B) provides as follows:

“As to claims presented in the [prescribed] manner ... the personal representative may mail a notice to any claimant stating that the claim has been disallowed. If the personal representative fails to mail notice to a claimant of action on his claim within sixty days after the time for original presentation of the claim has expired, the claim shall be deemed to be allowed. After any claim has been allowed or disallowed, the personal representative may change the allowance or disallowance by notice to the claimant....”

The language of § 15-12-806 is susceptible to different interpretations as to whether the personal representative’s authority to change a previous allowance to a disal-lowance is restricted to allowances made by the personal representative herself, or whether it also applies to allowances made by operation of law. Thus, we must construe it in light of the apparent legislative intent and purpose. See Dodge v. Department of Social Services, 657 P.2d 969 (Colo.App.1982).

The statute’s history is an important tool in ascertaining legislative intent. Haines v. Colorado State Personnel Board, 39 Colo.App. 459, 566 P.2d 1088 (1977).

The current version of the statute was enacted in 1979. Colo.Sess.Laws 1979, ch. 152 at 650. At that time, both the order and content of § 15-12-806 were slightly altered. Language specifying that claims not disallowed within 60 days would be treated as allowed was modified and moved from the end of the paragraph to a position immediately preceding the sentence allowing the personal representative to change an allowance or disallowance. In addition, the latter sentence — which in the earlier version stated: “If after allowing or disallowing a claim, the personal representative changes his decision concerning the claim, he shall notify the claimant” — was amended as follows: “After any claim has been allowed or disallowed, the personal representative may change the allowance or dis-[844]*844allowance by notice to the claimant.” (emphasis added)

The chairman of the Statutory Revision committee explained that the purpose of the revisions was:

“to make it clear that the personal representative, by striking [the last sentence] and moving it up above, that if the P.R. inadvertently has failed to mail notice ... of allowance or disallowance, that it would be deemed allowed and he would still have the right to change his mind and disallow the claim. So that the failure to mail is simply the same as if, ‘O.K., I allow your claim. Wait a minute, something came up. I hereby change my allowance.’ ”

Hearings on H.B. 1230 before the Senate Judiciary Committee, 52d General Assembly, 1st Session, January 31, 1979 (statement of R. Sterling Amber).

The legislative history, thus, resolves any ambiguity in the statutory language: A claim that has been deemed allowed by the personal representative’s failure to disallow it within 60 days after the time for original presentation of the claim has expired may subsequently be disallowed by the personal representative.

Contrary to claimant’s assertions, neither § 15-12-807 nor judicial precedent requires a different result.

Section 15-12-807 describes the manner in which the personal representative is to pay claims allowed against the estate. It also establishes that a claimant whose claim has been allowed but not paid as provided may, by petition to the court, “secure an order directing the personal representative to pay the claim to the extent that funds of the estate are available.... ” The provision, by its terms, applies only to claims that have not been disallowed by the date the personal representative begins payment of claims.

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Related

Matter of Estate of Roddy
784 P.2d 841 (Colorado Court of Appeals, 1989)

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Bluebook (online)
784 P.2d 841, 13 Brief Times Rptr. 1242, 1989 Colo. App. LEXIS 291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kenney-v-peitersen-coloctapp-1989.