Smith v. McCurdy

269 S.W.3d 876, 2008 WL 820993
CourtCourt of Appeals of Kentucky
DecidedMarch 28, 2008
Docket2007-CA-001239-MR
StatusPublished
Cited by2 cases

This text of 269 S.W.3d 876 (Smith v. McCurdy) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. McCurdy, 269 S.W.3d 876, 2008 WL 820993 (Ky. Ct. App. 2008).

Opinion

OPINION

MOORE, Judge.

The matter before the Court involves a most unfortunate dispute between two sisters regarding the proceeds of a settlement reached in a federal lawsuit filed based on allegations of maltreatment of their deceased mother while she resided in a nursing home. 3 We pause to note that this is a controversy the Court wishes family members could resolve without court intervention, for preservation of family ties. It is regrettable when families are torn apart and seek judicial relief to settle family matters. Nonetheless, fami *878 lies are not compelled to settle their own legal disputes. And, their having failed to reach an agreement and having litigated this matter quite extensively, we turn to resolving this appeal. Upon a thorough review, we affirm.

I. FACTUAL AND PROCEDURAL BACKGROUND

At the outset we are compelled to mention that while the parties agree that the basic facts in this matter are not in dispute, the record designated on appeal, and apparently even the record before the trial court, reveals little in the way of actual evidence in this matter. There are no dispositions or affidavits filed in the circuit court case. And, the discovery taken in the federal action was not made a part of the record or incorporated into the parties’ briefs before the trial court. However, because the parties do not dispute the facts, we set forth the salient facts from the parties’ briefs and various filings in the circuit court.

Diana Smith and Denica McCurdy are sisters. Their mother, Thelma Nanney, was a resident of Britthaven Nursing Home from July 17, 1998 until June 1, 2001. Thelma was described in the pleadings as “morbidly obese and generally unable to care for personal needs.” At oral argument, counsel for Diana agreed that Thelma was elderly and did not have the capacity to earn income.

At the time of Thelma’s arrival at Brit-thaven, she “was in poor health and not capable of working.” She suffered from encephalitis and/or a stroke, rendering her virtually helpless in caring for herself. While Thelma was at Britthaven, she developed pressure ulcers. On June 1, 2001, she was transported to Marshall County Hospital with pneumonia. She also had heart failure and chronic atrial fibrillation, cerebrovascular disease, a history of GI bleeding, anemia and peptic ulcer disease, along with effusion and a large decubitus ulcer. Within a few weeks, Thelma died, a few weeks shy of her eighty-third birthday.

After Thelma’s death, Diana maintains that she did not know that her mother had a Last Will and Testament. Consequently, Diana filed a petition with the Marshall District Court seeking appointment as ad-ministratrix of her mother’s estate. Diana believed that the circumstances surrounding Thelma’s death indicated that a wrongful death action should be pursued on behalf of Thelma’s heirs. Diana later learned that her mother left a Last Will and Testament, naming Denica as sole beneficiary. Accordingly, the probate court named Denica as executrix of Thelma’s estate.

Diana, via counsel, contacted Deni-ca’s counsel, requesting information concerning the probate matter. Denica was notified, via counsel, that if she did not want to pursue a wrongful death claim on behalf of Thelma’s heirs, Diana did. Deni-ca, as personal representative of Thelma’s estate, did file suit in Marshall Circuit Court against Britthaven Nursing Home, Incorporated, and twenty unknown defendants. Diana was not a party to that action, and as a potential beneficiary under a wrongful death action under typical circumstances, could not intervene. 4 In the *879 complaint, Denica stated a variety of causes of action, including negligence, willful misconduct, intentional infliction of emotional distress, constructive fraud, violations of Elder Abuse Statutes, wrongful death, survival action and res ipsa loqui-tur.

Although filed in state court, Britthaven removed the case to federal court, where a course of discovery took place, 5 including taking the deposition of Diana. Eventually, the matter was settled, via a confidential settlement agreement, which did not include Diana’s participation in any matter. And, Diana has not received any proceeds from the settlement. Diana did not find out the terms of the settlement until they were disclosed when she intervened in the Marshall District Court probate action. At oral argument the parties informed the Court that the settlement released all claims in the federal court action, without delineating amounts for specific and separate causes of action set forth in the complaint.

As mentioned, Diana intervened in the Marshall District Court probate action, setting forth essentially the same argument as before this Court: the settlement in the federal action having released all claims, which Diana asserts necessarily includes the wrongful death claim having joined with the personal injury action, that pursuant to KRS 6 411.130 Diana is entitled to a portion of the settlement. While undisclosed to this Court, the amount in controversy in the federal action settlement apparently exceeds the jurisdictional amount of the district court; accordingly, the district court did not have subject matter jurisdiction over the dispute. Consequently, Diana filed suit in the Marshall Circuit Court seeking a recovery from the federal action settlement, which Denica timely answered. This is the matter presently under review.-

Without taking discovery after Denica’s answer was filed, Diana filed a motion for judgment on the pleadings and request for additional relief. She incorporated in this motion all the documents filed in the district court probate matter. In her motion, Diana admitted the basic facts in this action were not in dispute and that there were only questions of law in dispute. Her counsel reiterated this at oral argument before this Court.

Denica responded to Diana’s motion, in a joint motion for judgment on the pleadings and summary judgment, maintaining that there were no issues of material fact. De-ifica requested that the circuit court take judicial notice of the entirety of the district court’s probate file and the documents included therein.

Once the parties’ motions were ripe for disposition, the circuit court ruled on them as cross motions. In its findings of fact, the court determined that “at the time of the death of Thelma Nanney, circumstances present indicated that wrongful death litigation should be pursued by the heirs” and that Denica filed an action for wrongful death and personal injuries leading to the death of Thelma. The court noted that a confidential settlement had been reached in the matter in federal court. In its conclusions of law, the circuit court ruled that

[w]ith respect to the law finding that the proceeds from the Federal Court Action are not attributable to a wrongful death *880 claim, the Court finds that the Federal Court Action is such that there is no genuine issue of material fact and that the settlement was not based upon wrongful death.

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Bluebook (online)
269 S.W.3d 876, 2008 WL 820993, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-mccurdy-kyctapp-2008.