No. 13220
I N THE SUPREME COURT O THE STATE O M N A A F F OTN
JOSEFA LEVC ( n e e O I B l & ) and IVANA OGRIN (nee 0 ' B1z.k ,
P l a i n t i f f s and Respondents,
THE HONORABLE HOLLIS G. CONNORS, T r e a s u r e r of t h e S t a t e o f Montana, and K e i t h Colbo, D i r e c t o r , Department of Revenue of t h e S t a t e of Montana,
Defendants and A p p e l l a n t s .
Appeal from: D i s t r i c t Court of t h e F i r s t J u d i c i a l D i s t r i c t , Honorable P e t e r Meloy, D i s t r i c t Judge p r e s i d i n g .
Counsel o f Record :
For Appellants :
Hon. R o b e r t L. Woodahl, A t t o r n e y G e n e r a l , Helena, Montana M a r s h a l l Murray, a r g u e d , K a l i s p e l l , Montana
F o r Respondents :
Thomas F. Dowling a r g u e d , Helena, Montana
Submitted: August 31, 1976
Decided :fief 18 1976 F i l e d : P'Tf 7 % ,! ' 1c';cir Mr. Chief J u s t i c e James T. H a r r i s o n d e l i v e r e d t h e O p i n i o n o f t h e Court.
T h i s i s a n a p p e a l from a judgment o f t h e d i s t r i c t c o u r t ,
L e w i s and C l a r k County, a w a r d i n g p l a i n t i f f s f u n d s t h a t had
e s c h e a t e d t o t h e S t a t e o f Montana.
P l a i n t i f f s a r e t h e n i e c e s and h e i r s a t law of F r a n k
O'Blak who d i e d i n t e s t a t e i n B i l l i n g s , Montana, on J u n e 2 4 ,
1970.
The e s t a t e was a d m i n i s t e r e d by p u b l i c a d m i n i s t r a t i o n ,
and a f t e r f i n d i n g no known h e i r s , it was o r d e r e d p a i d t o t h e
s t a t e t r e a s u r e r a s e s c h e a t e d f u n d s i n t h e amount o f $8,693.93.
When t h e h e i r s i n Y u g o s l a v i a l e a r n e d o f t h e i r u n c l e ' s
death they f i l e d t h i s a c t i o n t o claim t h e funds. The d i s t r i c t
c o u r t r u l e d t h e h e i r s w e r e w i t h i n t h e e x c e p t i o n t o t h e two-
y e a r s t a t u t e of l i m i t a t i o n s even though t h e a c t i o n w a s f i l e d
more t h a n two y e a r s a f t e r t h e e s c h e a t e d f u n d s had been r e c e i v e d
by t h e s t a t e t r e a s u r e r .
The h e i r s w e r e g r a n t e d judgment f o r t h e e s c h e a t e d f u n d s .
The i s s u e b e f o r e t h i s C o u r t i s w h e t h e r t h e e x c e p t i o n t o
t h e two-year s t a t u t e of l i m i t a t i o n s f o r c i t i z e n s of t h e United
S t a t e s beyond t h e l i m i t s o f t h e U n i t e d S t a t e s , a p p l i e s t o c i t i -
zens of Yugoslavia r e s i d e n t i n Yugoslavia.
The s t a t u t e i n q u e s t i o n , s e c t i o n 91-509, R.C.M. 1947,
reads i n pertinent part:
" * * * Such a c t i o n must b e b r o u g h t w i t h i n two ( 2 ) y e a r s from t h e d a t e on which t h e money o r p r o p e r t y i s r e c e i v e d by t h e s t a t e t r e a s u r e r , s a v i n g , however, t o i n f a n t s and p e r s o n s o f unsound mind, o r c i t i z e n s o f t h e U n i t e d S t a t e s beyond t h e l i m i t s o f t h e U n i t e d S t a t e s , t h e r i g h t t o commence t h e i r a c t i o n a t a n y t i m e w i t h i n t h e t i m e l i m i t e d o r two ( 2 ) y e a r s a f t e r t h e i r r e s p e c t i v e d i s a b i l i t i e s c e a s e . " (Emphasis supplied ) . P l a i n t i f f s a r e n o t c i t i z e n s o f t h e United S t a t e s , b u t
a r e c i t i z e n s and r e s i d e n t s o f t h e P e o p l e s R e p u b l i c o f Y u g o s l a v i a . I t i s admitted f o r t h i s c a s e t h a t r e c i p r o c i t y of i n h e r i t a n c e
r i g h t s and r e c i p r o c i t y o f t r a n s f e r o f f u n d s e x i s t between t h e
U n i t e d S t a t e s and Y u g o s l a v i a .
I t i s s e t t l e d by K o l o v r a t v . Oregon, 366 U.S. 187, 6
L ed 2d 218, 81 S.Ct. 922, and E s t a t e o f S p e h a r , 1 4 0 Mont. 7 6 ,
367 P.2d 563, t h a t u n d e r t h e r e c i p r o c i t y p r o v i s i o n s o f a n 1 8 8 1
t r e a t y and i t s "most f a v o r e d n a t i o n " c l a u s e , Y u g o s l a v i a n c l a i m a n t s
have t h e same r i g h t t o i n h e r i t t h e i r r e l a t i v e s ' p e r s o n a l p r o p e r t y
a s t h e y would i f t h e y w e r e American c i t i z e n s l i v i n g i n Montana.
The r e l e v a n t p o r t i o n s o f t h e t r e a t i e s d i r e c t i n g t h a t r e s u l t a r e
set o u t i n t h e f o o t n o t e s t o t h e r e p o r t of Kolovrat.
The d i s t r i c t c o u r t h e l d t h a t t h e Y u g o s l a v i a n h e i r s a r e
e n t i t l e d t o t h e s a m e exemption t h a t American c i t i z e n s have who
a r e o u t s i d e t h e U n i t e d S t a t e s u n t i l t h e i r d i s a b i l i t y c e a s e s and
t h a t t h e i r d i s a b i l i t y r e a s o n a b l y c e a s e d i n t h i s c a s e upon a c t u a l
n o t i c e of t h e d e a t h of t h e i r uncle. The C o u r t a l s o i n d i c a t e d t h a t
s e c t i o n 91-502, R.C.M. 1947, r e q u i r e s t h e s t a t e t o h o l d e s c h e a t e d
p r o p e r t y i n t r u s t f o r 1 0 y e a r s w i t h i n which t i m e it may b e c l a i m e d
by f i l i n g a n a c t i o n .
W e hold t h a t t h e s t a t u t e a p p l i e s t o t h e s e Yugoslavian
c l a i m a n t s a s it would t o Montana r e s i d e n t s . T h e r e i s no q u e s t i o n
t h e y a r e e n t i t l e d t o i n h e r i t p r o p e r t y on t h e same b a s i s a s resi-
dents. This i s i n accordance with Kolovrat.
However, t h e y a r e n o t i n c l u d e d i n t h e c l a s s o f U n i t e d
S t a t e s c i t i z e n s o u t s i d e t h e United S t a t e s . W e do n o t f e e l compelled
t o g o beyond t h e h o l d i n g i n K o l o v r a t and j u d i c i a l l y d e s i g n a t e
them a s w i t h i n t h a t c l a s s and e n t i t l e d t o t h e e x c e p t i o n .
T h i s e x c e p t i o n was e n a c t e d i n 1943. A t that t i m e large
numbers o f o u r c i t i z e n s w e r e c a l l e d t o d u t y o u t s i d e t h e U n i t e d
States. Presumably t h i s e x c e p t i o n was e n a c t e d f o r t h e i r b e n e f i t
u n t i l t h e y c o u l d r e t u r n t o t h e i r homeland. W e a r e referred t o the general r u l e s t h a t limitation
s t a t u t e s making e x c e p t i o n s i n f a v o r o f p e r s o n s u n d e r d i s a b i l i t y
must be s t r i c t l y c o n s t r u e d and t h a t c o u r t s w i l l n o t r e a d i n t o
s t a t u t e s o f l i m i t a t i o n a n exemption o r d i s a b i l i t y which h a s n o t
been embodied t h e r e i n .
I f w e w e r e t o a c c e p t p l a i n t i f f s ' argument t h a t t h e s t a t -
u t e d i d n o t run u n t i l they received n o t i c e of t h e d e a t h , w e
would be r e a d i n g i n t o t h e s t a t u t e a n a d d i t i o n a l r e q u i r e m e n t .
N o t i c e of t h e d e a t h o f a d e c e a s e d i s n o t a d i s a b i l i t y o r excep-
tion t o the statute.
W e a l s o point out t h a t the s t a t u t e i n question here is
a l i m i t a t i o n s t a t u t e and a f f e c t s t h e remedy t o a s s e r t t h e r i g h t ,
not the r i g h t i t s e l f . The r i g h t o f t h e s e h e i r s t o i n h e r i t i s
n o t i n q u e s t i o n and i s e s t a b l i s h e d .
Free access — add to your briefcase to read the full text and ask questions with AI
No. 13220
I N THE SUPREME COURT O THE STATE O M N A A F F OTN
JOSEFA LEVC ( n e e O I B l & ) and IVANA OGRIN (nee 0 ' B1z.k ,
P l a i n t i f f s and Respondents,
THE HONORABLE HOLLIS G. CONNORS, T r e a s u r e r of t h e S t a t e o f Montana, and K e i t h Colbo, D i r e c t o r , Department of Revenue of t h e S t a t e of Montana,
Defendants and A p p e l l a n t s .
Appeal from: D i s t r i c t Court of t h e F i r s t J u d i c i a l D i s t r i c t , Honorable P e t e r Meloy, D i s t r i c t Judge p r e s i d i n g .
Counsel o f Record :
For Appellants :
Hon. R o b e r t L. Woodahl, A t t o r n e y G e n e r a l , Helena, Montana M a r s h a l l Murray, a r g u e d , K a l i s p e l l , Montana
F o r Respondents :
Thomas F. Dowling a r g u e d , Helena, Montana
Submitted: August 31, 1976
Decided :fief 18 1976 F i l e d : P'Tf 7 % ,! ' 1c';cir Mr. Chief J u s t i c e James T. H a r r i s o n d e l i v e r e d t h e O p i n i o n o f t h e Court.
T h i s i s a n a p p e a l from a judgment o f t h e d i s t r i c t c o u r t ,
L e w i s and C l a r k County, a w a r d i n g p l a i n t i f f s f u n d s t h a t had
e s c h e a t e d t o t h e S t a t e o f Montana.
P l a i n t i f f s a r e t h e n i e c e s and h e i r s a t law of F r a n k
O'Blak who d i e d i n t e s t a t e i n B i l l i n g s , Montana, on J u n e 2 4 ,
1970.
The e s t a t e was a d m i n i s t e r e d by p u b l i c a d m i n i s t r a t i o n ,
and a f t e r f i n d i n g no known h e i r s , it was o r d e r e d p a i d t o t h e
s t a t e t r e a s u r e r a s e s c h e a t e d f u n d s i n t h e amount o f $8,693.93.
When t h e h e i r s i n Y u g o s l a v i a l e a r n e d o f t h e i r u n c l e ' s
death they f i l e d t h i s a c t i o n t o claim t h e funds. The d i s t r i c t
c o u r t r u l e d t h e h e i r s w e r e w i t h i n t h e e x c e p t i o n t o t h e two-
y e a r s t a t u t e of l i m i t a t i o n s even though t h e a c t i o n w a s f i l e d
more t h a n two y e a r s a f t e r t h e e s c h e a t e d f u n d s had been r e c e i v e d
by t h e s t a t e t r e a s u r e r .
The h e i r s w e r e g r a n t e d judgment f o r t h e e s c h e a t e d f u n d s .
The i s s u e b e f o r e t h i s C o u r t i s w h e t h e r t h e e x c e p t i o n t o
t h e two-year s t a t u t e of l i m i t a t i o n s f o r c i t i z e n s of t h e United
S t a t e s beyond t h e l i m i t s o f t h e U n i t e d S t a t e s , a p p l i e s t o c i t i -
zens of Yugoslavia r e s i d e n t i n Yugoslavia.
The s t a t u t e i n q u e s t i o n , s e c t i o n 91-509, R.C.M. 1947,
reads i n pertinent part:
" * * * Such a c t i o n must b e b r o u g h t w i t h i n two ( 2 ) y e a r s from t h e d a t e on which t h e money o r p r o p e r t y i s r e c e i v e d by t h e s t a t e t r e a s u r e r , s a v i n g , however, t o i n f a n t s and p e r s o n s o f unsound mind, o r c i t i z e n s o f t h e U n i t e d S t a t e s beyond t h e l i m i t s o f t h e U n i t e d S t a t e s , t h e r i g h t t o commence t h e i r a c t i o n a t a n y t i m e w i t h i n t h e t i m e l i m i t e d o r two ( 2 ) y e a r s a f t e r t h e i r r e s p e c t i v e d i s a b i l i t i e s c e a s e . " (Emphasis supplied ) . P l a i n t i f f s a r e n o t c i t i z e n s o f t h e United S t a t e s , b u t
a r e c i t i z e n s and r e s i d e n t s o f t h e P e o p l e s R e p u b l i c o f Y u g o s l a v i a . I t i s admitted f o r t h i s c a s e t h a t r e c i p r o c i t y of i n h e r i t a n c e
r i g h t s and r e c i p r o c i t y o f t r a n s f e r o f f u n d s e x i s t between t h e
U n i t e d S t a t e s and Y u g o s l a v i a .
I t i s s e t t l e d by K o l o v r a t v . Oregon, 366 U.S. 187, 6
L ed 2d 218, 81 S.Ct. 922, and E s t a t e o f S p e h a r , 1 4 0 Mont. 7 6 ,
367 P.2d 563, t h a t u n d e r t h e r e c i p r o c i t y p r o v i s i o n s o f a n 1 8 8 1
t r e a t y and i t s "most f a v o r e d n a t i o n " c l a u s e , Y u g o s l a v i a n c l a i m a n t s
have t h e same r i g h t t o i n h e r i t t h e i r r e l a t i v e s ' p e r s o n a l p r o p e r t y
a s t h e y would i f t h e y w e r e American c i t i z e n s l i v i n g i n Montana.
The r e l e v a n t p o r t i o n s o f t h e t r e a t i e s d i r e c t i n g t h a t r e s u l t a r e
set o u t i n t h e f o o t n o t e s t o t h e r e p o r t of Kolovrat.
The d i s t r i c t c o u r t h e l d t h a t t h e Y u g o s l a v i a n h e i r s a r e
e n t i t l e d t o t h e s a m e exemption t h a t American c i t i z e n s have who
a r e o u t s i d e t h e U n i t e d S t a t e s u n t i l t h e i r d i s a b i l i t y c e a s e s and
t h a t t h e i r d i s a b i l i t y r e a s o n a b l y c e a s e d i n t h i s c a s e upon a c t u a l
n o t i c e of t h e d e a t h of t h e i r uncle. The C o u r t a l s o i n d i c a t e d t h a t
s e c t i o n 91-502, R.C.M. 1947, r e q u i r e s t h e s t a t e t o h o l d e s c h e a t e d
p r o p e r t y i n t r u s t f o r 1 0 y e a r s w i t h i n which t i m e it may b e c l a i m e d
by f i l i n g a n a c t i o n .
W e hold t h a t t h e s t a t u t e a p p l i e s t o t h e s e Yugoslavian
c l a i m a n t s a s it would t o Montana r e s i d e n t s . T h e r e i s no q u e s t i o n
t h e y a r e e n t i t l e d t o i n h e r i t p r o p e r t y on t h e same b a s i s a s resi-
dents. This i s i n accordance with Kolovrat.
However, t h e y a r e n o t i n c l u d e d i n t h e c l a s s o f U n i t e d
S t a t e s c i t i z e n s o u t s i d e t h e United S t a t e s . W e do n o t f e e l compelled
t o g o beyond t h e h o l d i n g i n K o l o v r a t and j u d i c i a l l y d e s i g n a t e
them a s w i t h i n t h a t c l a s s and e n t i t l e d t o t h e e x c e p t i o n .
T h i s e x c e p t i o n was e n a c t e d i n 1943. A t that t i m e large
numbers o f o u r c i t i z e n s w e r e c a l l e d t o d u t y o u t s i d e t h e U n i t e d
States. Presumably t h i s e x c e p t i o n was e n a c t e d f o r t h e i r b e n e f i t
u n t i l t h e y c o u l d r e t u r n t o t h e i r homeland. W e a r e referred t o the general r u l e s t h a t limitation
s t a t u t e s making e x c e p t i o n s i n f a v o r o f p e r s o n s u n d e r d i s a b i l i t y
must be s t r i c t l y c o n s t r u e d and t h a t c o u r t s w i l l n o t r e a d i n t o
s t a t u t e s o f l i m i t a t i o n a n exemption o r d i s a b i l i t y which h a s n o t
been embodied t h e r e i n .
I f w e w e r e t o a c c e p t p l a i n t i f f s ' argument t h a t t h e s t a t -
u t e d i d n o t run u n t i l they received n o t i c e of t h e d e a t h , w e
would be r e a d i n g i n t o t h e s t a t u t e a n a d d i t i o n a l r e q u i r e m e n t .
N o t i c e of t h e d e a t h o f a d e c e a s e d i s n o t a d i s a b i l i t y o r excep-
tion t o the statute.
W e a l s o point out t h a t the s t a t u t e i n question here is
a l i m i t a t i o n s t a t u t e and a f f e c t s t h e remedy t o a s s e r t t h e r i g h t ,
not the r i g h t i t s e l f . The r i g h t o f t h e s e h e i r s t o i n h e r i t i s
n o t i n q u e s t i o n and i s e s t a b l i s h e d .
The c a s e i s remanded t o t h e d i s t r i c t c o u r t w i t h d i r e c t i o n
t o a p p l y t h e two-year s t a t u t e of l i m i t a t i o n i n accordance with
t h i s opinion.
Chief J u s t i c e
A concur: 'L Mr. J u s t i c e Haswell d i s s e n t i n g :
I dissent. I n m view t h e s e Yugoslavian c l a i m a n t s a r e y
e n t i t l e d t o t h e p r o p e r t y of t h e i r d e c e a s e d r e l a t i v e .
The p r o v i s i o n s o f t h e t r e a t i e s h e l d t o a p p l y i n K o l o v r a t
v. Oregon, 366 U . S . 187, 8 1 S.Ct. 9 2 2 , 6 L ed 2d 218, a r e b r o a d e r
than t h e s p e c i f i c holding required i n t h a t case. The f o l l o w i n g
i s a q u o t e from o n e of t h e t r e a t i e s h e l d t o a p p l y i n K o l o v r a t
and i s s e t o u t i n a f o o t n o t e t o K o l o v r a t a t page 223:
" ' I n whatever r e l a t e s t o * * * a c q u i r i n g and d i s p o s i n g of p r o p e r t y of e v e r y s o r t and denomina- t i o n , e i t h e r by s a l e , d o n a t i o n , exchange, t e s t a - ment, o r i n any o t h e r manner w h a t s o e v e r , * * * t h e c i t i z e n s of t h e two c o n t r a c t i n g p a r t i e s s h a l l r e c i p r o c a l l y e n j o y t h e same p r i v i l e q e s , l i b e r t i e s , and r i q h t s , a s n a t i v e c i t i z e n s * * * . I " (Emphasis added. )
Although t h e d e c i s i o n i n t h i s c a s e n e c e s s a r i l y g o e s beyond
K o l o v r a t b e c a u s e we a r e concerned h e r e w i t h a s t a t u t e of l i m i t a -
t i o n s where t h e r i g h t t o i n h e r i t i s conceded, t h e emphasized
p o r t i o n of t h e t r e a t y d i c t a t e s t h a t t h e s e h e i r s have t h e s a m e
p r i v i l e g e a s n a t i v e c i t i z e n s under t h e s t a t u t e of l i m i t a t i o n s .
The t r e a t y r e q u i r e s t h a t i n whatever r e l a t e s t o a c q u i r i n g
and d i s p o s i n g of p r o p e r t y , t h e s e h e i r s a r e t h e same a s n a t i v e
citizens. These words do n o t a l l o w a d i s t i n c t i o n between t h e
r i g h t t o i n h e r i t , e s t a b l i s h e d i n K o l o v r a t , and t h e remedy t o ob-
t a i n t h a t r i g h t a s a f f e c t e d by a l i m i t a t i o n s t a t u t e . Where t h e
l e g i s l a t u r e h a s made a n e x c e p t i o n f o r United S t a t e s c i t i z e n s , t h e
t r e a t y r e q u i r e s t h a t same e x c e p t i o n be a p p l i e d t o t h e s e h e i r s .
T h e r e f o r e , b e c a u s e United S t a t e s c i t i z e n s a r e e n t i t l e d t o c l a i m
w i t h i n two y e a r s of a c t u a l n o t i c e of t h e d e a t h of t h e i r d e c e a s e d
r e l a t i v e i n Y u g o s l a v i a , Yugoslavian c i t i z e n s a r e e n t i t l e d t o c l a i m
w i t h i n t h e same t i m e p e r i o d and t h e c l a i m h e r e i n v o l v e d i s n o t b a r r e d .
Accordingly I would a f f i r m t h e judgment of t h e d i s t r i c t
court.
Justice - 5 -