Lazetich v. Miller

671 P.2d 15, 206 Mont. 247, 1983 Mont. LEXIS 840
CourtMontana Supreme Court
DecidedOctober 12, 1983
Docket82-295
StatusPublished
Cited by2 cases

This text of 671 P.2d 15 (Lazetich v. Miller) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lazetich v. Miller, 671 P.2d 15, 206 Mont. 247, 1983 Mont. LEXIS 840 (Mo. 1983).

Opinions

MR. JUSTICE WEBER

delivered the opinion of the Court.

Plaintiffs brought this action against the personal respresentatives of the estate of Mary Lazetich to enforce an oral agreement not to revoke the provisions of a will disposing of family corporation stock. The Third Judicial District Court, Deer Lodge County, ordered enforcement of the agreement, and defendants appeal. We affirm.

The issue on appeal is whether there is sufficient evidence to establish that Mary Lazetich orally contracted not to revoke the provision of her May 2, 1966 will directing the disposition of family corporation stock.

The dispute involves shares of stock in Lazetich & Sons, a closely-held family corporation. Peter and Mary Lazetich, husband and wife, each owned a one-sixth interest in the stock of the corporation in early 1966. On May 2, 1966, they executed mutual wills with clauses providing that the stock would pass to the surviving spouse. Upon the death of the surviving spouse, it would pass to three sons and one grandson, share and share alike. The provision from the will of Mary Lazetich was as follows:

“My husband, PETER LAZETICH, has made and executed a Last Will and Testament, the same date as my Will, and in this Will he has provided that his undivided one-sixth of said stock in said corporation [Lazetich & [249]*249Sons] will go to me in the event he dies before I do. Upon the death of the survivor of myself or husband, the one-third interest that we own in said stock is given and bequeathed to my son, MILAN LAZETICH, to my son, ELI LAZETICH, to my son WILLIAM LAZETICH, and to my grandson PETER LAZETICH, son of WILLIAM LAZETICH, share and share alike.”

Peter Lazetich predeceased his wife and his May 2, 1966 will was admitted to probate. His undivided one-sixth interest in the Lazetich & Sons corporate stock was distributed to his wife, Mary Lazetich.

In the 1970s, Mary Lazetich executed two more wills, the last on November 28, 1978. Upon Mary’s death, the November 28, 1978 will was admitted to probate. It did not bequeath the Lazetich & Sons corporate stock in the manner provided in the May 2, 1966 will. The plaintiffs filed claims against the Mary Lazetich estate, alleging they were entitled to the oné-third stock interest in Lazetich & Sons. Plaintiffs claimed that Peter and Mary Lazetich had entered into an oral contract not to revoke that portion of their mutual 1966 wills relating to the distribution of Lazetich & Sons stock. The defendant personal representatives disallowed the claims of the plaintiffs, and this lawsuit followed.

The case was heard by the District Court without a jury. Extensive findings of fact and conclusions of law were prepared by the District Court.

The attorney who prepared the May 2, 1966 will also prepared the November 28, 1978 will of Mary Lazetich. He was the primary witness at the trial. The findings of the District Court in regard to his testimony are substantially as follows. Previous to execution of the mutual wills and in the presence of their attorney, Mary and Peter Lazetich agreed that upon the death of both parties, their one-third interest in Lazetich & Sons corporate stock would be distributed between their sons and one grandson, share and share alike. Pursuant to that agreement, mutual wills were drawn for [250]*250Peter and Mary Lazetich and executed on May 2, 1966. When the attorney prepared the November 28, 1978 will for Mary Lazetich, he had forgotten about the May 2, 1966 will. The District Court also found as follows:

“Peter and Mary Lazetich were very fond of each other before, on and after May 2, 1966, and they pledged that they would not change their Wills.
“There is no evidence that the agreement between Mary and Peter Lazetich was induced by duress, menace, fraud, undue influence or mistake.”

The District Court’s conclusions of law stated that Peter and Mary Lazetich had agreed that upon the death of the first of them the one-sixth stock ownership would pass to the survivor. Upon the death of the survivor, the total one-third stock interest would pass to the designated sons and grandson, share and share alike. In consideration of that agreement, the mutual wills were executed. Based upon these findings and conclusions, the District Court ordered the personal representatives to distribute the stock of Lazetich & Sons in accordance with the May 2, 1966 will.

Agreements not to revoke wills are specifically addressed by the Montana Uniform Probate Code (UPC). Section 72-2-105, MCA provides:

“(1) A contract . . . not to revoke a will or devise ... if executed after July 1, 1975, can be established only by:
(a) Provisions of a will stating material provisions of the contract;
(b) An express reference in a will to a contract and extrinsic evidence proving the terms of the contract; or
(c) A writing signed by the decedent evidencing the contract.
“(2)The execution of . . . mutual wills does not create a presumption of a contract not to revoke the . . . wills.”

Because the alleged contract was entered into in 1966, the provisions of the UPC do not apply.

It is clear that prior to the adoption of the Montana UPC, a person could make a valid oral contract to dispose [251]*251of her property by will. In Conitz v. Walker (1975), 168 Mont. 238, 244, 541 P.2d 1028, 1031, this Court stated:

“It is clear that in Montana a person may make a valid contract to dispose of his property by will. Erwin v. Mark, 105 Mont. 361, 73 P.2d 537.
“This Court in Rowe v. Eggum, 107 Mont. 378, 87 P.2d 189, enforced an oral agreement of a decedent not to change a will made in favor of the plaintiff.
“The rule of law in Montana is that proof of an oral contract by a deceased to leave property by will:
“ * * must be clear, cogent, and convincing, and that the making of such an oral contract or agreement must be established by disinterested witnesses.’ Cox v. Williamson, 124 Mont. 512, 227 P.2d 614.”

In Conitz, as here, one party argued there was sufficient evidence to find a contract while the other party argued there was no such evidence and that the contract was “pulled out of the air.” In holding that there was such a contract, the Court stated:

“Perhaps each item of evidence above standing by itself does not establish a contract between Edward and Leona to make mutual will[s] leaving their property to the other. However, viewed as a whole this Court finds that the oral contract between Leona and Edward has been established in this case by clear, cogent and convincing evidence and by the testimony of disinterested witnesses . . . .” Conitz, 168 Mont. at 245, 541 P.2d at 1031.

The basic rule was restated more strongly in Craddock v. Berryman, (1982) 198 Mont.

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Cite This Page — Counsel Stack

Bluebook (online)
671 P.2d 15, 206 Mont. 247, 1983 Mont. LEXIS 840, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lazetich-v-miller-mont-1983.