Peralta v. Peralta

2006 NMCA 033, 131 P.3d 81, 139 N.M. 231
CourtNew Mexico Court of Appeals
DecidedOctober 3, 2005
Docket24,970
StatusPublished
Cited by7 cases

This text of 2006 NMCA 033 (Peralta v. Peralta) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peralta v. Peralta, 2006 NMCA 033, 131 P.3d 81, 139 N.M. 231 (N.M. Ct. App. 2005).

Opinion

OPINION

FRY, Judge.

{1} Nora Peralta filed suit against her brother Manford Peralta and her sister Ruby Archuleta seeking to recover assets of their mother, Helen Peralta, that had been diverted prior to Helen’s death by Manford and Ruby (Defendants). The district court granted summary judgment to Manford and Ruby on the basis that Nora’s action should have been brought in a probate proceeding on behalf of the estate. Nora appeals the order granting summary judgment. We reverse, concluding that Nora could file her suit as a civil action, and remand for trial.

BACKGROUND

{2} After the death of her husband in 1979, Helen executed a will leaving her estate to her three children or their survivors equally. At that same time, Nora was living with Helen and, together with Delores Valdez, providing care for Helen when it was needed. In December 1994, Manford removed Helen from her residence and moved her to live with him and/or Ruby. Shortly thereafter, in March 1995, Helen’s bank accounts were changed to payable-on-death accounts for the benefit of Manford and Ruby. At the same time, Helen executed a codicil to her 1979 will that excluded Nora and divided her estate between Manford and Ruby. In January 1996, Helen transferred by quitclaim deed the sole remaining asset in her estate, a piece of property with a house and apartments, to Manford and Ruby and their respective spouses.

{3} During this time, Manford and Ruby maligned Nora to Helen, telling her that Nora had no use for her and would not take care of her. The transfer of the assets of the estate were concealed from Nora for several years. Helen died on August 2, 1999, at the age of 94. There was no probate of her estate.

{4} Five months after Helen died, Nora filed her complaint for rescission, restitution and recovery, and for imposition of a trust with regard to Helen’s estate. Nora claimed that Manford and Ruby had used their control and influence to convince Helen to transfer her bank accounts and real property to them and to have Nora removed from Helen’s will. She sought to have a trust imposed on the assets that Manford and Ruby had received from Helen. Nora amended her complaint mox-e than two years later to include, as a basis for her claims, that her father and mother had made a contract to make a will disposing of their property equally among their three children. Nora has abandoned this contract claim on appeal.

{5} Manford and Ruby moved for summary judgment arguing that there were no issues of material fact relating to Nora’s claims of undue influence and abuse of confidential or familial relationship. They argued that Nora was unable to prove that they had exerted any influence over Helen. Nora x-esponded, arguing that there was a presumption of undue influence under the evidence presented.

{6} The district court conducted a hearing on the motion and expressed concern that the estate had not been included in Nora’s suit and that her claim had not been made in connection with probate. The district coux't granted the motion for summary judgment on grounds different from those argued by Defendants, ruling:

There is no case. There is absolutely no case because if there was any undue influence, it was exerted on the senior Mrs. Peralta, who is dead; and the damage, if any, was done to her or her estate.... Without an estate, you don’t have a case. It wasn’t brought in the name of the estate or against it but, more importantly, in the name of the estate, which is something your client could have undex’taken to do, is open up an estate and say, I’m suing on behalf of my mother; it has been dissipated by the following misconduct on the pax't of these putative heirs. Maybe you have a case there, but you don’t now.

DISCUSSION

{7} We review the grant of summary judgment de novo because it presents a question of law. Wilson v. Fritschy, 2002-NMCA-105, ¶ 10, 132 N.M. 785, 55 P.3d 997. We must decide whether Nora was required to proceed on her claim in probate.

{8} In 1994, we recognized a cause of action against those who intentionally interfere with an expected inheritance. Doughty v. Morris, 117 N.M. 284, 287, 871 P.2d 380, 383 (Ct.App.1994). In that case, a will beneficiary alleged that her brother had tortiously interfered with her inheritance by coercing their ailing mother into making certain inter vivos transfers of property, which resulted in no property remaining in the estate to divide as the will specified. Relying on the Restatement (Second) of Torts, § 774B (1979), we recognized the tort of intex’ference with a prospective inheritance. Doughty, 117 N.M. at 287-88, 871 P.2d at 383-84. Thus, we allowed the cause of action where an inter vivos transfer of property depleted the estate and left nothing to be transferred in probate. The elements of the cause of action are: “(1) the existence of an expectancy; (2) a reasonable certainty that the expectancy would have been realized, but for the interference; (3) intentional interference with that expectancy; (4) tortious conduct involved with interference, such as fraud, duress, or undue influence; and (5) damages.” Id. at 288, 871 P.2d at 384.

{9} In 2002, we were asked to decide whether the tort of intentional interference with expected inheritance would lie where probate proceedings were available to address the distribution of disputed assets and would otherwise provide an adequate remedy. Wilson, 2002-NMCA-105, ¶ 1. In Wilson, the plaintiffs were beneficiaries of a trust that would have allowed each of them to receive one-third of their uncle’s estate. Id. ¶3. About five years later, the uncle drastically changed the testamentary plan on the urging of a third party so that the plaintiffs’ share of the estate was distributed to a nursing home. Id. ¶¶ 3-4. When their uncle died, the plaintiffs indicated that they were challenging the revised testamentary plan. Id. ¶ 5. No formal probate proceeding was instituted. Id. However, the trustee filed an interpleader and informal probate proceeding, which eventually resulted in a settlement where plaintiffs each received 18.7875 percent of the estate. Id. ¶¶ 3-6. Sometime thereafter, the plaintiffs filed a lawsuit alleging that the defendants had tortiously interfered with their inheritance.

{10} We decided, following the majority of our sister states, “that a cause of action for tortious interference with an expected inheritance will not lie when probate proceedings are available to address the disposition of disputed assets and can otherwise provide adequate relief.” Id. ¶ 35. We determined that “when property passes subject to a testamentary instrument, it is preferable to conclude the dispute at one setting, which ordinarily will afford injured parties an opportunity for substantial relief.” Id. We stated that the preferred proceeding was in probate because the legislature had enacted the Probate Code to deal with such matters and we did not want to undermine the legislative intent in enacting the Probate Code. Id. ¶¶ 19, 21.

{11} We are now faced with a case falling between Doughty and Wilson. Defendants argue that the proper forum for resolution of the issues raised by Nora is pursuant to the Probate Code.

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Cite This Page — Counsel Stack

Bluebook (online)
2006 NMCA 033, 131 P.3d 81, 139 N.M. 231, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peralta-v-peralta-nmctapp-2005.