Trujillo v. Lopez

740 P.2d 707, 106 N.M. 157
CourtNew Mexico Court of Appeals
DecidedJune 30, 1987
DocketNo. 8505
StatusPublished
Cited by4 cases

This text of 740 P.2d 707 (Trujillo v. Lopez) 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
Trujillo v. Lopez, 740 P.2d 707, 106 N.M. 157 (N.M. Ct. App. 1987).

Opinion

OPINION

MINZNER, Judge.

This case has been submitted for decision by the court following its submission to an advisory committee pursuant to an experimental plan. See Patterson v. Environmental Improvement Div., 105 N.M. 320, 731 P.2d 1364 (Ct.App.1986); Boucher v. Foxworth-Galbraith Lumber Co., 105 N.M. 442, 733 P.2d 1325 (Ct.App.1986); Stoll v. Dow, 105 N.M. 316, 731 P.2d 1360 (Ct.App.1986). The committee rendered a unanimous decision, affirming in part, reversing in part, and remanding for further proceedings. Both parties filed response memoranda. This court has considered the transcript and briefs, together with the opinion of the advisory committee and the response memoranda. It is the decision of this court that the result proposed by the advisory committee, as modified in this opinion, should be adopted. Our reasons are as follows.

BACKGROUND.

Erlinda Trujillo (Trujillo) appeals an order distributing the estate of her father, Feloquio Lopez, who died intestate November 14, 1981. Feloquio Lopez was survived by Trujillo and by his second wife, Josefita Lopez (Lopez). He left a small amount of cash, which was used to pay funeral and estate expenses, and a house in Cordova, New Mexico, initially his separate property, which he and Lopez had occupied. The house was valued at $15,000 when Lopez and decedent married in 1973 and at $37,-000 at the time of decedent’s death. Lopez continues to live in the house.

Lopez was informally appointed personal representative. After considering community contributions to the value of the home, the trial court found that Trujillo’s interest in the house equalled $21,800 and Lopez’s interest was $15,200. These amounts represent interests of 58.92% and 41.08%, respectively, and are not disputed.

Trujillo filed a motion asking the court to order Lopez to sell her interest to Trujillo for cash. Lopez responded with a counter-motion requesting that the court approve her proposed distribution and permit her to buy Trujillo’s interest. After a hearing, the trial court denied Trujillo’s motion and approved the proposed distribution and settlement. The trial judge indicated he did not believe he had the power to order a sale.

Lopez’s motion discloses a gross estate value of $41,687.50. After deductions for funeral and estate expenses, the net estate was $36,126.40, which was a sum slightly less than the value of the house. After deductions for Lopez’s family allowance and personal property allowance, $22,-626.40 remained. Since this sum consisted entirely of real estate, it was divided according to the proportions the trial court had previously determined represented the respective interests in the house: 58.92%, or $13,331.47 to Trujillo, and 41.08%, or $9,294.93 to Lopez. The schedule of distribution indicated that Trujillo had received “assets from the net estate” of $13,331.47.

Lopez then tendered a check to Trujillo for $13,331.47 as “[f]ull payment of Erlinda Trujillo’s interest in the estate of Feloquio Lopez ****’’ Trujillo refused the check, which was subsequently deposited with the First Judicial District.

On appeal, Trujillo argues (1) that she is entitled to distribution in kind of her interest in the estate, i.e., the real property; (2) that she is entitled to rent for the time that Lopez has had exclusive possession of the property; (3) that she was denied an evidentiary hearing on her objection to the proposed distribution and her motion for sale; and (4) that the district court was without jurisdiction to enter a final order in this case. Trujillo also appears to argue that the trial court erred in awarding family and personal property allowances. We summarily dispose of the last two issues and then discuss issues one and two. Because of the close relationship between the third issue and the first two issues, we defer discussion of that issue until the conclusion.

ISSUES DISPOSED OF SUMMARILY.

Trujillo contends that the district court lacked jurisdiction to enter a final order because after Lopez was informally appointed personal representative, Trujillo petitioned for formal appointment as personal representative. Trujillo argues on appeal that Lopez could not act unless she was reappointed formally. See NMSA 1978, § 45-3-414(A). This argument is without merit.

Once a petition for formal appointment is filed, the power of the informally-appointed representative is limited under Section 45-3-414(A). The statute expressly provides that if a formal proceeding is commenced after an informal appointment, “the previously-appointed personal representative, after receipt of notice thereof, shall refrain from exercising any power of administration except as necessary to preserve the estate or unless the district court orders otherwise.” However, once the trial court determines who is entitled to appointment, it shall make a proper appointment and, if appropriate, terminate any prior appointment found to have been improper. See § 45-3-414(B).

The trial court correctly retained Lopez as personal representative because she had priority as surviving spouse of the decedent. See NMSA 1978, § 45-3-203(A)(4). Since Lopez had already been properly appointed and her appointment had not been terminated, it was not necessary to reappoint her. Once the district court denied Trujillo’s petition and ruled that Lopez should continue as personal representative, the limitation in Section 45-3-414(A) no longer applied.

Trujillo also argues that the court lacked jurisdiction to enter a closing order absent an order entered on a formal petition for appointment. This is incorrect. The status of personal representative and the powers and duties pertaining to the appointment are fully established by informal appointment, see NMSA 1978, Section 45-3-307(B) (Cum.Supp.1986), and a personal representative may petition for an order of complete settlement of an estate at any time, NMSA 1978, Section 45-3-1001(A).

Finally, Trujillo argues that the family allowance and the personal property allowance as provided by NMSA 1978, Sections 45-2-401 and -402 (Orig.Pamp. and Cum. Supp.1986) should not be used to permit Lopez to diminish Trujillo’s interest in the real property. We find this argument to be without merit. The family allowance and the personal property allowances have priority over all claims. See §§ 45-2-401(A); 45-2-402(B). NMSA 1978, Section 45-2-404 contemplates that the family allowance can be taken as an interest in real property, if the estate is not otherwise sufficient to satisfy these claims.

WHETHER TRUJILLO WAS ENTITLED TO DISTRIBUTION IN KIND.

Trujillo contends that NMSA 1978, Section 45-3-906 compels distribution of estate assets in kind. Consequently, she argues on appeal that she was entitled to an interest in the real estate rather than the cash distribution tendered. Lopez contends that the trial court allotted the real property to her and that this is permitted under NMSA 1978, Section 45-3-911(C). Both parties overlook the fact that the real property was the only asset in the estate left to be distributed.

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Bluebook (online)
740 P.2d 707, 106 N.M. 157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trujillo-v-lopez-nmctapp-1987.