[WSBAPT] Re-Opened Probate and Old Creditor Claims

[Marcus Fry]

Here is a Div. 2 appellate case that holds merely filing a creditor's claim does not toll the SOL on the claim, and therefore, one claims can be barred by SOL despite the fact that a creditor claim filed in probate has never been accepted or rejected by the PR.  I think this case may be on point for your facts.

In re Estate of Henington, 182 Wn. App. 534 (Div 2 2014)

Creditor's Claims
WA[1-5][https://advance.lexis.com/images/IconNavigateUp.png]<https://advance.lexis.com/document/?pdmfid=1000516&crid=5b825fdb-b248-4928-a10e-d7d088360a58&pddocfullpath=%2Fshared%2Fdocument%2Fcases%2Furn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pddocid=urn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pdcontentcomponentid=10841&pdshepid=urn%3AcontentItem%3A5CPY-RHP1-DXC7-F1GC-00000-00&pdteaserkey=sr1&ecomp=bnLhk&earg=sr1&prid=04fbf445-8351-4de3-93fa-f97ce1d6975f> [1-5] ¶8 Mr. Wills argues that the trial court erred when it dismissed Mr. Bradley's creditor's claims as time barred. We hold that the mere filing of a creditor's claim in a probate case, without any further action by the claimant or the PR, does not toll the statute of limitations.
¶9 In order to resolve this case, we rely on interrelated statutes from chapter 4.16 RCW and chapter 11.40 RCW. In so doing, we find that the meaning of each of the applicable statutes is plain on its face.
¶10 "Statutory interpretation involves questions of law that we review de novo. In construing a statute, the court's objective is to determine the legislature's intent." State v. Jacobs, 154 Wn.2d 596, 600, 115 P.3d 281 (2005)<https://advance.lexis.com/document/?pdmfid=1000516&crid=5b825fdb-b248-4928-a10e-d7d088360a58&pddocfullpath=%2Fshared%2Fdocument%2Fcases%2Furn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pddocid=urn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pdcontentcomponentid=10841&pdshepid=urn%3AcontentItem%3A5CPY-RHP1-DXC7-F1GC-00000-00&pdteaserkey=sr1&ecomp=bnLhk&earg=sr1&prid=04fbf445-8351-4de3-93fa-f97ce1d6975f> (citation omitted). "'[I]f the statute's meaning is plain on its face, then the court must give effect to that plain meaning as an expression of legislative intent.'" Jacobs, 154 Wn.2d at 600<https://advance.lexis.com/document/?pdmfid=1000516&crid=5b825fdb-b248-4928-a10e-d7d088360a58&pddocfullpath=%2Fshared%2Fdocument%2Fcases%2Furn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pddocid=urn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pdcontentcomponentid=10841&pdshepid=urn%3AcontentItem%3A5CPY-RHP1-DXC7-F1GC-00000-00&pdteaserkey=sr1&ecomp=bnLhk&earg=sr1&prid=04fbf445-8351-4de3-93fa-f97ce1d6975f> (alteration in original) (quoting Dep't of Ecology v. Campbell & Gwinn, LLC, 146 Wn.2d 1, 9-10, 43 P.3d 4 (2002))<https://advance.lexis.com/document/?pdmfid=1000516&crid=5b825fdb-b248-4928-a10e-d7d088360a58&pddocfullpath=%2Fshared%2Fdocument%2Fcases%2Furn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pddocid=urn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pdcontentcomponentid=10841&pdshepid=urn%3AcontentItem%3A5CPY-RHP1-DXC7-F1GC-00000-00&pdteaserkey=sr1&ecomp=bnLhk&earg=sr1&prid=04fbf445-8351-4de3-93fa-f97ce1d6975f>. "[T]he plain meaning is ... derived from what the Legislature has said in its enactments, but that meaning is discerned from all that the Legislature has said in the statute and related statutes which disclose legislative intent about the provision in question." Campbell & Gwinn, 146 Wn.2d at 11<https://advance.lexis.com/document/?pdmfid=1000516&crid=5b825fdb-b248-4928-a10e-d7d088360a58&pddocfullpath=%2Fshared%2Fdocument%2Fcases%2Furn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pddocid=urn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pdcontentcomponentid=10841&pdshepid=urn%3AcontentItem%3A5CPY-RHP1-DXC7-F1GC-00000-00&pdteaserkey=sr1&ecomp=bnLhk&earg=sr1&prid=04fbf445-8351-4de3-93fa-f97ce1d6975f>.
¶11 RCW 4.16.200<https://advance.lexis.com/document/?pdmfid=1000516&crid=5b825fdb-b248-4928-a10e-d7d088360a58&pddocfullpath=%2Fshared%2Fdocument%2Fcases%2Furn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pddocid=urn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pdcontentcomponentid=10841&pdshepid=urn%3AcontentItem%3A5CPY-RHP1-DXC7-F1GC-00000-00&pdteaserkey=sr1&ecomp=bnLhk&earg=sr1&prid=04fbf445-8351-4de3-93fa-f97ce1d6975f> provides: "Limitations on actions against a person who dies before the expiration of the time otherwise limited for commencement thereof are as set forth in chapter 11.40 RCW." A creditor must then follow the claims procedures established in chapter 11.40 RCW or be forever barred from making a claim or commencing an action against the decedent. However, if the claim or action is barred by other applicable statutes, it cannot be pursued. [539]  "An otherwise applicable statute of limitations applies without regard to the tolling provisions ofRCW 4.16.190<https://advance.lexis.com/document/?pdmfid=1000516&crid=5b825fdb-b248-4928-a10e-d7d088360a58&pddocfullpath=%2Fshared%2Fdocument%2Fcases%2Furn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pddocid=urn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pdcontentcomponentid=10841&pdshepid=urn%3AcontentItem%3A5CPY-RHP1-DXC7-F1GC-00000-00&pdteaserkey=sr1&ecomp=bnLhk&earg=sr1&prid=04fbf445-8351-4de3-93fa-f97ce1d6975f>."1[Link to the text of the note]<https://advance.lexis.com/document/?pdmfid=1000516&crid=5b825fdb-b248-4928-a10e-d7d088360a58&pddocfullpath=%2Fshared%2Fdocument%2Fcases%2Furn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pddocid=urn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pdcontentcomponentid=10841&pdshepid=urn%3AcontentItem%3A5CPY-RHP1-DXC7-F1GC-00000-00&pdteaserkey=sr1&ecomp=bnLhk&earg=sr1&prid=04fbf445-8351-4de3-93fa-f97ce1d6975f> RCW 11.40.051(2)<https://advance.lexis.com/document/?pdmfid=1000516&crid=5b825fdb-b248-4928-a10e-d7d088360a58&pddocfullpath=%2Fshared%2Fdocument%2Fcases%2Furn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pddocid=urn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pdcontentcomponentid=10841&pdshepid=urn%3AcontentItem%3A5CPY-RHP1-DXC7-F1GC-00000-00&pdteaserkey=sr1&ecomp=bnLhk&earg=sr1&prid=04fbf445-8351-4de3-93fa-f97ce1d6975f>.
¶12 Contrary to the PR's argument, when read together, this statutory scheme does not state that the filing of a creditor's claim tolls the statute of limitations.2[Link to the text of the note]<https://advance.lexis.com/document/?pdmfid=1000516&crid=5b825fdb-b248-4928-a10e-d7d088360a58&pddocfullpath=%2Fshared%2Fdocument%2Fcases%2Furn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pddocid=urn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pdcontentcomponentid=10841&pdshepid=urn%3AcontentItem%3A5CPY-RHP1-DXC7-F1GC-00000-00&pdteaserkey=sr1&ecomp=bnLhk&earg=sr1&prid=04fbf445-8351-4de3-93fa-f97ce1d6975f> Rather, it affirmatively states that limitations on actions apply to chapter 11.40 RCW: Claims Against Estate. RCW 4.16.200<https://advance.lexis.com/document/?pdmfid=1000516&crid=5b825fdb-b248-4928-a10e-d7d088360a58&pddocfullpath=%2Fshared%2Fdocument%2Fcases%2Furn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pddocid=urn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pdcontentcomponentid=10841&pdshepid=urn%3AcontentItem%3A5CPY-RHP1-DXC7-F1GC-00000-00&pdteaserkey=sr1&ecomp=bnLhk&earg=sr1&prid=04fbf445-8351-4de3-93fa-f97ce1d6975f>;RCW 11.40.051(2)<https://advance.lexis.com/document/?pdmfid=1000516&crid=5b825fdb-b248-4928-a10e-d7d088360a58&pddocfullpath=%2Fshared%2Fdocument%2Fcases%2Furn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pddocid=urn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pdcontentcomponentid=10841&pdshepid=urn%3AcontentItem%3A5CPY-RHP1-DXC7-F1GC-00000-00&pdteaserkey=sr1&ecomp=bnLhk&earg=sr1&prid=04fbf445-8351-4de3-93fa-f97ce1d6975f>. Therefore, we hold that the statute of limitations is not tolled by the mere filing of a creditor's claim against an estate.3[Link to the text of the note]<https://advance.lexis.com/document/?pdmfid=1000516&crid=5b825fdb-b248-4928-a10e-d7d088360a58&pddocfullpath=%2Fshared%2Fdocument%2Fcases%2Furn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pddocid=urn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pdcontentcomponentid=10841&pdshepid=urn%3AcontentItem%3A5CPY-RHP1-DXC7-F1GC-00000-00&pdteaserkey=sr1&ecomp=bnLhk&earg=sr1&prid=04fbf445-8351-4de3-93fa-f97ce1d6975f>Tolling occurs when an action is commenced against an estate. RCW 4.16.170<https://advance.lexis.com/document/?pdmfid=1000516&crid=5b825fdb-b248-4928-a10e-d7d088360a58&pddocfullpath=%2Fshared%2Fdocument%2Fcases%2Furn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pddocid=urn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pdcontentcomponentid=10841&pdshepid=urn%3AcontentItem%3A5CPY-RHP1-DXC7-F1GC-00000-00&pdteaserkey=sr1&ecomp=bnLhk&earg=sr1&prid=04fbf445-8351-4de3-93fa-f97ce1d6975f>.
¶13 In so ruling, we note that neither the PR nor Mr. Bradley acted on the claims after they were filed in May 2008. The PR did not at any time allow or reject the claim. Mr. Bradley did not serve written notice on the PR or petition the court for a hearing on the matter. See RCW 11.40.080(2)<https://advance.lexis.com/document/?pdmfid=1000516&crid=5b825fdb-b248-4928-a10e-d7d088360a58&pddocfullpath=%2Fshared%2Fdocument%2Fcases%2Furn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pddocid=urn%3AcontentItem%3A5CR6-0YS1-F04M-B13V-00000-00&pdcontentcomponentid=10841&pdshepid=urn%3AcontentItem%3A5CPY-RHP1-DXC7-F1GC-00000-00&pdteaserkey=sr1&ecomp=bnLhk&earg=sr1&prid=04fbf445-8351-4de3-93fa-f97ce1d6975f>. Approximately four years of inaction elapsed before the court declared the claims time barred.

Marcus J. Fry
Lyon, Weigand & Gustafson, P.S.
Adoption Attorney*
P.O. Box 1689
Yakima, Washington  98907
Telephone:  (509) 248-7220
Facsimile:  (509) 575-1883

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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Dalynne Singleton
Sent: Monday, June 06, 2016 2:55 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Re-Opened Probate and Old Creditor Claims

The probate statutes allow for an extension of the SOL if by another statute, it is allowed.
The probate statute is clear on creditor's claims for the time period in which you can submit one:

1.      Within 2 years of date of death if the PR/Administrator did not provide notice by publication or otherwise to the creditor.
2.      4 months from date of notice to creditors publication

When you have an MVA, it has a 3 year SOL so the time period to make a claim against the estate is 3 years from MVA whether it caused death of person at fault or not.
The time period between the probate 2 year SOL and the MVA 3 year SOL is allowed BUT the probate statute limits the claim to the liability insurance available and nothing from the estate assets.

I would have to say, once the claim is accepted by the PR, then the rules follow that it is paid by the estate if there are monies available to pay.
Just because a creditor's claim is accepted, ALL this means is yes, it is a valid claim.  BUT, if there are no assets to pay it, then it is still a valid claim but sorry, can't be paid.
Waiting 6 years later and re-opening the estate with estate assets becoming available, it is still a valid claim.

But here, we have a creditor's claim made and no action - no acceptance or rejection by the estate.

If the claim is for less than $1,000, then whether accepted or rejected, by holding it, it is allowed.  RCW 11.40.090(2).  But, if for more than $1,000 and you hold it, it is on the PR/Administrator to accept or reject.  The problem is, you are not supposed to be allowed to close an estate without dealing with the creditor's claims presented.  The clerk closed the estate with no action - were the creditors given notice of closing the estate?  Doubtful...

Dalynne Singleton

Gourley Law Group
Snohomish Escrow
The Exchange Connection
1002 10th Street / PO Box 1091
Snohomish, WA 98291

360.568.5065
360.329.4079
360.568.8092  fax
dalynne at glgmail.com<mailto:dalynne at glgmail.com>

LICENSED IN WASHINGTON AND OREGON
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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Paul Neumiller
Sent: Friday, June 3, 2016 2:34 PM
To: wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Re-Opened Probate and Old Creditor Claims

Dear Listmates.  Happy beautiful Friday afternoon.  I need to reopen a long-standing, neglected, and troubled probate in order to sell an asset by having the clerk re-issue the letters testamentary.  Probate was opened in 2004.  In reviewing the file online, I see some creditor claims filed in 2005 which I strongly doubt were paid.  Probate was administratively closed by court clerk in 2012 because of lack of activity and neglect.

Do I need to be worried about the creditor claims?  Are they still valid?  Client would like to open the probate, get new letters, sell the asset, and then close the probate.

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