Thompson v. United Truck Body Co.

415 N.W.2d 335, 1987 Minn. App. LEXIS 5020
CourtCourt of Appeals of Minnesota
DecidedNovember 17, 1987
DocketNo. C8-87-707
StatusPublished

This text of 415 N.W.2d 335 (Thompson v. United Truck Body Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thompson v. United Truck Body Co., 415 N.W.2d 335, 1987 Minn. App. LEXIS 5020 (Mich. Ct. App. 1987).

Opinions

OPINION

FOLEY, Judge.

This appeal involves the distribution of a settlement obtained in a wrongful death action. Larry Stauber, guardian ad litem for Aaron Hanson, the illegitimate minor son of the decedent, challenges the distribution on the grounds that Aaron did not receive notice of the hearings on the petition for appointment of a trustee or the petition for distribution, that he was not represented by a guardian ad litem, and that the decedent’s surviving spouse is not a suitable person to act as trustee. We affirm.

FACTS

The decedent, James C. Thompson, died in a car accident on July 31, 1984. He was survived by his wife, respondent Susan Thompson, and three sons, one of which is Aaron Hanson. Aaron had been adjudged to be the decedent’s son by a default judgment in 1979. At the time of the accident, Aaron’s whereabouts were unknown.

Respondent was appointed trustee under Minn. Stat. § 573.02, subd. 3 (1984). Respondent then commenced a wrongful death action against defendants United Truck Body Company and Kelvin R. Her-stad. The parties reached a settlement, which provided compensation for all of the decedent’s heirs, including Aaron Hanson.

On October 16, 1985, respondent submitted a petition for distribution. The trial court approved the settlement and distribution and required respondent take appropriate steps to locate Aaron and inform him of the terms of the distribution. Deborah Parker, Aaron’s mother, received notice of the distribution order at her home in North Carolina on or about May 1, 1986. Parker then petitioned for appointment of appellant as guardian ad litem for Aaron.

Appellant moved to set aside or, in the alternative, to modify the distribution order and to have respondent removed as trustee. The trial court denied appellant’s motion to set aside or modify the order, affirmed the distribution order and discharged respondent as trustee.

ISSUES

1. Is a minor heir who is a recipient of proceeds under a wrongful death settlement entitled to notice of the petition for appointment of trustee and petition for distribution?

2. Is a minor heir who is a recipient of proceeds under a wrongful death settle[338]*338ment entitled to representation by a guardian ad litem?

3. Should appellant’s portion of the wrongful death distribution be limited to amounts decedent was ordered to pay in support, or should it be calculated using the support years formula?

4. Is appellant’s appeal without merit, thereby justifying an award of attorney fees?

ANALYSIS

1. Notice of distribution in a wrongful death settlement is governed by Rule 2 of the Code of Rules for the District Courts. Rule 2 sets forth two notice requirements. The first notice requirement regarding the petition for appointment of the trustee states:

The petition will be heard upon such notice, given in such form and in such manner and upon such persons as may be determined by the court, unless waived by all heirs or the court.

The second notice requirement regarding application for the distribution of the money recovered in the wrongful death action states:

The petition will be heard upon such notice, given in such form and in such manner and upon such person as may be determined by the court, unless waived by all the heirs or the court.

It is undisputed that Aaron did not have notice of the petition for appointment of trustee nor of the petition for distribution, because at the time both those documents were filed, Aaron’s whereabouts were unknown to respondent. However, the trial court did provide notice to Aaron of the terms of the settlement and distribution.

In In re Heirs of Larsen, 306 Minn. 364, 237 N.W.2d 371 (1975), the Minnesota Supreme Court addressed the Rule 2 notice requirements. There, the decedent’s ex-husband sought to remove his children’s maternal grandmother as trustee and have his father appointed as trustee instead. The ex-husband argued the trial court should have refrained from acting upon the petition until he, as father and natural guardian of decedent’s children, had notice of a hearing on the question of whether the maternal grandmother should be appointed as trustee. The court stated:

[Rule 2] requires notice only to “such persons as may be determined by the court.” Judge Minenko, who was apprised in respondent’s petition of all of the heirs, required only that respondent waive notice before he ordered respondent’s appointment as trustee. The rule specifically allows the court discretion to make a determination as to which persons should be given notice.

Id. at 368-69, 237 N.W.2d at 374. The Larsen court found the trial court had not abused its discretion, particularily in light of the fact that the ex-husband had an opportunity to present his views at the hearing on the motion to quash the appointment. Id. at 369, 237 N.W.2d at 374.

In this case, Aaron, through his guardian ad litem, had an opportunity to present his views concerning respondent’s appointment as trustee and the terms of the distribution at the hearing on the motion to set aside or modify the distribution and remove respondent as trustee. Even if notice of the petition for appointment of trustee and petition for distribution was required, Aaron has since been given ample opportunity to present his views, and thus, under Larsen, the trial court did not abuse its discretion.

2. Appellant argues a guardian ad litem should have been appointed for Aaron before the distribution hearing under Rule 17.02 of the Minnesota Rules of Civil Procedure, which provides in part:

Whenever a party to an action is an infant or is incompetent and has a representative duly appointed * * * the representative may sue or defend on behalf of such party. A party who is an infant or is incompetnet and is not so represented shall be represented by a guardian ad litem appointed by the court * * *.

Under Rule 17.02, a guardian ad litem need only be appointed if there is not a duly appointed representative. In this case, there was no need for a guardian ad litem because respondent had been appointed as representative (trustee) for the heirs of the [339]*339decedent, including Aaron, under Minn. Stat. § 573.02, subd. 3 (1984).

Appellant also argues that respondent is not a suitable person to represent Aaron’s interests because of a conflict of interest. In Regie de L'Assurance Automobile du Quebec v. Jensen, 399 N.W.2d 85 (Minn.1987), the Minnesota Supreme Court held:

Simply because the trustee may have an interest in the outcome of the case or in the recovery does not denote incompetency to serve as trustee. Indeed, it is, and has been for many years, commonplace for the surviving spouse or one of the next of kin to be appointed as trustee notwithstanding the obvious interest he or she may have in the outcome of the action. The appointment of a trustee is within the discretion of the trial court.

Id. at 89.

Here, the trial court found respondent is a suitable person to act as trustee despite the potential conflict of interest.

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Related

Strand v. Nelson
380 N.W.2d 906 (Court of Appeals of Minnesota, 1986)
In Re Heirs of Larsen
237 N.W.2d 371 (Supreme Court of Minnesota, 1975)
Regie De L'Assurance Automobile Du Quebec v. Jensen
399 N.W.2d 85 (Supreme Court of Minnesota, 1987)
Gravley v. Sea Gull Marine, Inc.
269 N.W.2d 896 (Supreme Court of Minnesota, 1978)
Rath v. Hamilton Standard Division of United Technologies Corp.
292 N.W.2d 282 (Supreme Court of Minnesota, 1980)
Larsen v. Hengel
237 N.W.2d 371 (Supreme Court of Minnesota, 1975)

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Bluebook (online)
415 N.W.2d 335, 1987 Minn. App. LEXIS 5020, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thompson-v-united-truck-body-co-minnctapp-1987.