Rice v. Seals

377 S.W.3d 416, 2010 Ark. App. 393, 2010 Ark. App. LEXIS 390
CourtCourt of Appeals of Arkansas
DecidedMay 5, 2010
DocketNo. CA 09-844
StatusPublished
Cited by3 cases

This text of 377 S.W.3d 416 (Rice v. Seals) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rice v. Seals, 377 S.W.3d 416, 2010 Ark. App. 393, 2010 Ark. App. LEXIS 390 (Ark. Ct. App. 2010).

Opinion

KAREN R. BAKER, Judge.

11 This is a probate case in which one of the decedent’s heirs appeals from an order authorizing the sale of real estate and another order confirming the sale and partially distributing the estate. We affirm both orders.

Victor Rice, aged eighty-six, died on April 12, 2006, survived by his three daughters, appellant RaeEvelyn Rice, ap-pellee Eunita Rice Seals, and appellee Vicki Rice McGhee. After a hearing, the court appointed appellees co-administrators in May 2007 with appellant’s consent. On January 7, 2008, appellant filed a petition to compel the co-administrators to file an inventory of the estate’s assets. On February 22, 2008, appellees filed an inventory that included their father’s homestead 1 in Pine Bluff, along with several parcels of farm land and city lots. They listed the total value of the real estate as $230,650; household goods and personal 12effects with a value of $3,500.00; some tools valued at $200.00; a checking account with Bank of America containing $2,304.31; a checking account at Simmons First National Bank containing $1,939.04; and fifty shares of stock valued at $1,250.00.

On April 15, 2008, appellant filed a petition to require appellees to file a “true and complete inventory and to render account and/or be removed.” She stated that the inventory contained certain deficiencies, such as omitting real and personal property; listing inaccurate values; and including some items that the decedent did not own. Appellant stated that she had not been provided with any record of income to the estate or expenditures from its assets, and suggested wrongdoing by appellees.

On May 29, 2008, appellees filed a petition for authority to sell four parcels of farm land because there were outstanding claims against the estate. They stated that the property had been appraised and valued at $104,000; that an offer to purchase the property for $106,000 had been tendered; and that a private sale at that price, rather than a public auction, might be advantageous under present market conditions. Appellees asked the court to authorize the private sale of the real estate on those terms or to offer the land for public sale to the highest bidder. Appel-lees attached an “appraisement” valuing the parcels at $103,750 to the petition. This “appraisement” was signed by three individuals, and contained the following caveat: “This is a Broker’s price opinion not an appraisal.” Appellees also attached a letter from an attorney to the estate’s counsel, which stated that his client “has authorized me to offer on his behalf $106,000 for the referenced acreage.”

|3On June 13, 2008, appellant filed an objection to the sale, stating that appellees had not yet responded to her petition for a true and complete inventory and accounting, and that, “[bjarring breach of fiduciary duty or other foul play there should be sufficient cash assets in decedent’s estate to cover any justly due claim(s) against the Estate without exhausting it.” Appellant said that appellees had failed to state the amount or establish the validity of any outstanding claims against the estate, and that she was not interested in selling her interest in the property. After a hearing on July 16, 2008, the trial court ordered appellees to file another inventory within thirty days and a first accounting within sixty days.

On August 1, 2008, appellees filed a second petition for authority to sell the land at a private sale for $106,000. Appellant filed another objection to the proposed sale, asserting that the petition did not comply with Arkansas Code Annotated section 28-51-301(b) because it did not adequately set forth the terms of the contract for sale, and it did not describe the co-administrators’ bond. She also alleged that it did not comply with subsection (a)(l)’s requirement that the property be appraised by three disinterested persons “who are well informed concerning the value of real property in the vicinity.”

Appellees filed an amended inventory on September 15, 2008. It listed a value of $249,850 for the real estate; household goods ($3500); tools ($500); car ($500); Bank of America checking account ($21,-991.80); Simmons checking account ($6,261.11); corporate stock ($1,250); and Met Life stock ($1,927.50). Appellees filed an accounting on September 19, 2008, which reflected $14,650 rental income to the estate, and stated that the outstanding | pliabilities were the estate’s attorney’s fees and costs (which were undetermined); the co-administrators’ fees (which were undetermined); and reimbursement to the co-administrators for their personal funds expended to maintain the estate’s assets, pay real and personal property taxes, the decedent’s last expenses, and claims against the estate (which were undetermined).

On September 29, 2008, the court entered an order, nunc pro tunc, denying the petition and finding that three parcels of real property in Altheimer and the income from rentals of the real property were not assets of the estate. It asked appellees to provide appellant with a report of rents and expenditures, as well as “a concise statement explaining the facts upon which the Inventory and Accounting are based” with supporting documents. The court stated that, if appellees filed a new or amended petition within thirty days, it could be decided upon the proof given at the July 16 hearing.

The court held another hearing on October 27, 2008, at which appellant voiced her objections to the sale. Appellee Seals testified that she had spent her own funds and the rental income maintaining the real estate; had purchased insurance; had brought the property “up to code”; had paid property taxes; and had maintained the lawns. She said that appellant had refused to help, and that the rental income was not sufficient to pay for all of the necessary repairs and expenses. She also testified about the offer to purchase the property. On October 30, 2008, the court entered an order granting the petition to sell the property at a private sale within sixty days for at least the appraised value of $104,000, for cash, finding it in the best interest of the estate. Appellees filed a memorandum supporting the inventory and accounting Ron December 23, 2008. They included a detailed listing of expenses paid for the decedent’s final medical bills and burial and for maintaining and repairing the real property.

Appellees filed a report of sale, stating that Maurice and his wife Emma Kelley had purchased the real property for $106,000, and filed a petition for authority to make a partial distribution of the estate’s assets. They stated that the proceeds of the sale had been deposited with the clerk; that their attorney had asked for attorney’s fees and costs of $4,817.57 (36.65 hours at $150.00 per hour, plus costs of $70.07, less a payment of $750.00); and that the co-administrators requested fees and costs. They asked that, after deducting those fees and expenses, the court distribute the remaining assets to the heirs. They also said that appellant was indebted to the estate for rent and for her share of the decedent’s final expenses.

Appellant filed an objection to confirmation of the sale on April 2, 2009.

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Bluebook (online)
377 S.W.3d 416, 2010 Ark. App. 393, 2010 Ark. App. LEXIS 390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rice-v-seals-arkctapp-2010.