Matter of Estate of Eberle

505 N.W.2d 767, 1993 S.D. LEXIS 118, 1993 WL 339952
CourtSouth Dakota Supreme Court
DecidedSeptember 8, 1993
Docket18033
StatusPublished
Cited by23 cases

This text of 505 N.W.2d 767 (Matter of Estate of Eberle) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matter of Estate of Eberle, 505 N.W.2d 767, 1993 S.D. LEXIS 118, 1993 WL 339952 (S.D. 1993).

Opinion

TUCKER, Circuit Judge.

Ben Eberle (Ben) appeals from an order which enforced the March 12, 1992, stipulation and agreement of the parties. We affirm.

FACTS

Mary D. Eberle died January 27, 1983, survived by three adult step-children, Ben, Gretchen Taute (Gretchen), and Julie Koes-ter (Julie). On March 14, 1983, Ben and Julie were appointed as co-executors of the estate. Mary’s will left all of her assets to *769 Ben, Gretchen and Julie, share and share alike, including a farm in Brookings County appraised at nearly $370,000, cash and grain on hand. Some of Mary’s blood relatives contested the will because an earlier will gave most of Mary’s property to those relatives. The will contest was dismissed on January 10, 1984.

The three hems agreed that they did not need further legal representation to handle the probate. Ben managed the estate assets.

In 1986 the three decided to operate the farm as a partnership, with each having a one-third interest. Ben persuaded Julie to sell her interest to him under a contract for deed. Ben and Gretchen continued to operate the farm as a partnership. In 1987 Ben and Gretchen had disagreements over how the farm was being managed which led Gretchen to hire counsel to petition for an accounting of Mary’s estate. On December 4, 1987, the circuit court ordered accountings for 1984 and 1987.

These probate accountings raised questions as to how the estate was handled. Mary had given Ben a general power of attorney in 1979 to handle her business and financial affairs. At that time, Ben opened a checking account at Sun Bank in Sioux Falls under the name of Ben Eberle. This checking account then became the “estate” account which continued to be used by Ben until closed on August 10, 1987. Over $231,000 was deposited into the estate checking account, yet many of these deposits were not mentioned in any of Ben’s accountings until 1991. Discovery also disclosed that Ben was “borrowing” from the estate account to buy various rental properties in Sioux Falls and a vehicle in his own name. Ben claimed these “loans” were repaid. Ben also acknowledged that “estate” funds and his own personal funds were both being deposited into the estate account.

Finally, the trial court revoked the letters testamentary of Ben and Julie. First National Bank of Sioux Falls was appointed administrator. On August 28, 1989, the trial court authorized Gretchen to bring an action for herself and for the benefit of the estate against Ben, his wife Marcia, and Julie, and the action was filed. Ben submitted a final account on December 4, 1991. Gretchen filed objections to this final accounting and a hearing was set.

On March 11, 1992, the court began what was to be a three day hearing in the probate file on the accounting of Ben and Julie. Ben was put on the stand to explain his accounting method and the history of the estate and how it had been handled. Ben had been on the stand for a short period of time when he testified to depositing his personal funds into the estate account. Upon hearing of this commingling, the circuit court expressed concern that there might be some criminal activity going on and that Mr. Eberle should be advised of his Miranda rights.

A recess was taken. Ben met with his counsel and they outlined what they felt it would take to settle the case. Ben gave his attorneys the authority to negotiate a settlement. Counsel for the respective parties met later that afternoon and worked out a settlement and stipulation.

On March 12, 1992, counsel for all parties appeared before the court and orally recited the stipulation. The hearing was taken by a court reporter and a transcript of the hearing was later made. The stipulation as agreed to by counsel for all parties settled the probate proceeding and the related civil action.

The stipulation provided in part that Ben would quit claim his one-third interest in the estate farm to Gretchen Taute; that Gretchen would receive a two-thirds interest in the estate farm and Julie would receive a one-third interest in that farm through the final decree; that the contract for deed from Julie to Ben would be canceled; and that the civil action against Ben would be dismissed and a release signed. Other items of personal property were also divided. Any balance remaining in the estate was to be divided among Ben, Julie and Gretchen equally.

Counsel also agreed that a written stipulation and agreement would be presented to the court. Gretchen’s attorney said he would be working on specific settlement agreements which would be submitted to the court. Over the next several months, the attorneys prepared various agreements, but Ben *770 changed counsel and refused to sign any of them.

Gretchen filed a motion to compel enforcement of the settlement. Ben then filed a motion to set aside the stipulation, thereby trying to avoid the settlement. On June 29, 1992, the court heard both motions. The trial court found that the March 12, 1992, stipulation was valid and that the parties were bound by the oral stipulation dictated onto the record. The trial court stated in conclusion of law 11 as follows:

The Court concludes that Ben has failed of his burden that the stipulation should be set aside due to mistake of fact or law, duress, or the alleged failure of the Court to communicate with Ben on the matter of settlement and the stipulation in question. The stipulation was advanced, negotiated, and read into the record by counsel who were admittedly authorized by Ben to represent him in this matter. Both counsel were apparently well familiar with the risk of litigating this matter further. Both counsel were very able in the representation of Ben’s interests throughout the several years that this Court has been familiar with the Estate.

Ben now appeals, raising several issues surrounding the oral stipulation.

ISSUE ONE

WAS THE MARCH 12, 1992, ORAL AGREEMENT AND STIPULATION ENTERED ON THE RECORD SPECIFIC AND COMPREHENSIVE ENOUGH TO CONSTITUTE A CONTRACT?

Ben claims that the stipulated agreement was not definite and specific enough to evidence a meeting of the minds because the attorneys continued to negotiate for several more months before a final written stipulation was presented to the court. He therefore claims that the stipulation and agreement is not a valid contract.

Stipulations may be contractual and the law of contracts applies. Aetna Life Ins. Co. v. Satterlee, 475 N.W.2d 569 (S.D.1991). See also Restatement of Contracts 2d, Stipulations, § 94, (A promise or agreement with reference to a pending judicial proceeding, made by a party to the proceeding or his attorney, is binding without consideration. By statute or rule of court such an agreement is generally binding only ... if it is made or admitted in the presence of the court ...). Oral stipulations of the parties in the presence of the court are generally held to be binding, especially when acted upon or entered on the court record, and need not be signed by the parties or their attorneys. 73 Am.Jur.2d Stipulations, § 3 (1974).

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Cite This Page — Counsel Stack

Bluebook (online)
505 N.W.2d 767, 1993 S.D. LEXIS 118, 1993 WL 339952, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-estate-of-eberle-sd-1993.