Wimpfheimer v. Goldsmith

298 A.2d 778, 1972 Del. Ch. LEXIS 148
CourtCourt of Chancery of Delaware
DecidedDecember 4, 1972
StatusPublished
Cited by2 cases

This text of 298 A.2d 778 (Wimpfheimer v. Goldsmith) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wimpfheimer v. Goldsmith, 298 A.2d 778, 1972 Del. Ch. LEXIS 148 (Del. Ct. App. 1972).

Opinion

DUFFY, Chancellor:

The determinative issue is whether this action is barred against the estate of a Florida decedent by the Non-Claim Act of that State.

A.

This is a derivative suit filed on February 2, 1971 by plaintiff on behalf of Ny-tronics, Inc., a Delaware corporation. In the complaint William H. Mencher, a nonresident stockholder of Eastern Air Devices, Inc., a Delaware corporation, was charged with unjust enrichment in certain transactions with Nytronics. His stock in Eastern Air Devices was sequestered pursuant to an order dated February 12, 1971; he died domiciled in Florida on July 14, 1971 without having submitted to personal jurisdiction here.

The First National Bank of Miami was duly qualified by the County Judges’ Court of Dade County as Executor of Mr. Mencher’s Estate. Notice to creditors was first published as required by Florida law on July 22, 1971. On February 22, 1972 the Executor appeared in this Court and filed a Statement of the Fact of Death pursuant to Chancery Rule 25, Del.C.Ann. The Executor entered a general appearance as a substituted defendant on February 28, 1972 and at that time, without objection by plaintiff, this Court vacated the sequestration order as to Mr. Mencher’s property. On March 3 the Executor filed a motion to dismiss under Rule 12(b) or, alternatively, for summary judgment on the theory that the action is barred under the six-month statute of limitations in the Florida Non-Claim Act. This is the decision on that motion.

B.

A threshold question is the choice of law to be applied. Plaintiff says that, under [780]*780McCord v. Smith, Fla., 43 So.2d 704 (1949), the Florida courts do not give extra-territorial effect to the statute unless the other state involved has a similar act; and, she continues, since Delaware does not have a comparable law, the Act does not control. The difficulty with this argument is that McCord does not support it. In that case the Florida Supreme Court considered the effect to be given a judgment entered by an Iowa court against the personal representative of a Florida estate after the period for filing claims had run. The Court held that service under an Iowa long-arm statute within the period for filing claims constituted sufficient notice to toll the statute, at least where the foreign statute was comparable to the Florida one.1

The Florida Supreme Court has consistently stated that the statute runs against non-residents as well as residents and to that extent it does have extra-territorial application. McCord v. Smith, supra; Brooks v. Federal Land Bank, 106 Fla. 412, 143 So. 749 (1932).

Delaware law would clearly apply in determining rights to property having a situs here and seized pursuant to our sequestration statute.2 8 Del.C. § 169; Breech v. Hughes Tool Company, 41 Del. Ch. 128, 189 A.2d 428 (1963). But since the property — the stock — has been released (and estoppel is not argued) we are not concerned with rights in property having a Delaware situs. In the present posture of the case plaintiff seeks a personal judgment against a Florida executor and, by definition, a right to share in estate assets held subject to the law of that jurisdiction. It is my view that, under well-established law, Florida as the domiciliary state, has the right to determine the validity and timeliness of claims against the estate. Restatement (Second) of Conflict of Laws, §§ 316, 344, 345. Clearly, Florida considers that the Non-Claim Act is an integral part of its probate law and the policy which underlays it. State v. Moore’s Estate, Fla., 153 So.2d 819 (1963); Toney v. Adair, Fla.Dist.Ct. of App., 120 So.2d 622 (1960). It follows that for choice of law purposes I am compelled to consider the Florida Non-Claim Act as substantive and not procedural. Restatement (Second) of Conflict of Laws, § 143; Pack v. Beech Aircraft Corporation, 11 Terry 413, 132 A.2d 54 (1957). See also Svenska Handelsbanken v. Carlson, 258 F.Supp. 448 (Mass.1966). Hence, Florida law is applicable.

C.

The Florida Non-Claim Act, 21 F.S.A. § 733.16 provides:

“(1) No claim or demand for damages, including but not limited to [781]*781actions founded upon fraud or other wrongful act or commission of the decedent, shall be valid or binding upon an estate, or upon the personal representative thereof, . . . unless the same shall be in writing and contain the place of residence and postoffice address of the claimant, and shall be sworn to by the claimant, his agent or attorney, and be filed in the office of the county judge granting letters. Any such claim or demand not so filed within six months from the time of the first publication of the notice to creditors shall be void . ; and no cause of action, at law or in equity, heretofore or hereafter accruing, including but not limited to actions founded upon fraud or other wrongful act or omission, shall survive the death of the person against whom such claim may be made, whether suit be pending at the time of the death of such person or not, unless such claim be filed in the manner and within the said six months as aforesaid; . . . ”

The purpose of the statute was stated by the Florida Appeals Court in Davis v. Evans, Fla.App., 132 So.2d 476 (1961):

“Analysis of the non-claim statute and of the hereinafter discussed Rule 1.-19(a)(1), 1954 Florida Rules of Civil Procedure, 30 F.S.A., reflects a common purpose to provide for the prompt and efficient termination of the affairs of deceased persons and to preserve, within the limitations expressed, the rights of persons having lawful claims against the estate. There is no implication in either that it is usable as a vehicle to divest persons of their lawful claims, as distinguished from barring enforcement thereof under the conditions specified.”

Earlier, in McCord, the Florida Supreme Court had emphasized the same point, saying:

“The cardinal purpose of the statute —in toto — is to facilitate an orderly and expeditious settlement of estates. In the case of Ellison v. Allen, 8 Fla. 206, this Court committed us to the proposition that, ‘The law was made to subserve the cause of right and justice by facilitating the speedy settlements of estates and by preventing the enforcement of stale demands. It never was intended to be made the engine of oppression, or to work hardship or injury to any one. To interpret it according to its strict letter would be to give it an operation harsh in the extreme, and * * * it might be made to defeat the most righteous and equitable demands.’ (Italics supplied.)”

It is tacitly conceded that plaintiff did not file a claim as prescribed in the statute. She argues, however, that her claim comes within one or more statutory exceptions.

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Bluebook (online)
298 A.2d 778, 1972 Del. Ch. LEXIS 148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wimpfheimer-v-goldsmith-delch-1972.