[WSBAPT] Statement of Balance Owed w/o Creditor Claim

[Inge Fordham]

Thanks, Josh.  After hitting “send,” I realized my word choice was not the best.  We obviously can’t reject a claim that was not asserted.  In these instances, I typically send a letter to the creditor outlining why they can no longer assert a claim against the estate (typically because a creditor claim was not brought within 30 days of actual notice).  I wonder whether anyone has specifically dealt with a subrogation claim.  My sense, based on initial research, is that this is a standard creditor claim like any other unsecured debt.  The decedent entered into a payment plan to avoid a subrogation claim.  The insurance company must bring a claim pursuant to RCW 11.40.070.  We provided actual notice and the insurance company failed to file a claim within 30 days.  I think I’ll just send my standard letter and see what kind of push back, if any, I get.  Appreciate the responses!

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Inge A. Fordham | Attorney
Fordham Law, PLLC
3218 Sixth Avenue | Tacoma, WA 98406
Office: (253) 348-2657 | Mobile: (206) 778-3131
www.fordhamlegal.com<http://www.fordhamlegal.com>

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From: <wsbapt-bounces at lists.wsbarppt.com> on behalf of Joshua McKarcher <josh at mckarcherlaw.com>
Reply-To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Date: Wednesday, June 22, 2022 at 3:05 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Statement of Balance Owed w/o Creditor Claim

Hi Inge,

Don’t worry – this email will not tell you to pay both claims! 😉

Given your premises -- and unless subrogation claims are somehow “special” or it is somehow a secured debt (which I doubt) – I just wanted to relieve you of one concern: there is nothing in my mind to “reject”; indeed, nothing further to do at all . . . so far.

If neither creditor has done more than what you say after receiving your notice to creditors at their usual address, then neither has filed anything, and your client has nothing to reject. No further communication is necessary, it seems to me, unless they continue attempts to collect past the later of the “publication notice” deadline and the “actual notice” 30-day deadline.

Mind you, I cannot help but clarify that as a legal reality, a letter saying you cannot collect, or the deadline is past, or I hereby reject your claim, or any of it has only the finality accorded it by a court one day (or, admittedly, by an impressionable creditor-recipient who accepts it as gospel and does nothing to fight it).

So I would be careful to research the law regarding subrogation claims if I were going to try to avoid the claim, so that I didn’t risk surprising my client’s beneficiaries with a lawsuit in the future asserting they’re each equally liable as takers of the estate, etc. etc. etc. I always think in these situations, “It would beyond unpleasant to find out there was a special rule of law hidden somewhere I didn’t know about regarding subrogation claims.” (And, let’s be honest, if it’s an INSURER’s claim, does anyone still reading this missive really think insurers could not possibly have some little known protection under state or federal law protecting their subrogation claims?)

So that would be my only additional “analysis point” before giving anyone comfort that “Yay, the deadline is past! They’re owed NOTHING!” But I’m learning how significantly more risk-averse I am than a whole lot of PRs out there! 😉

All the best, Josh

Joshua D. McKarcher
McKarcher Law PLLC
537 6th Street
Clarkston, WA 99403
(509) 758-3345
(509) 758-3314 (fax)
josh at mckarcherlaw.com<mailto:josh at mckarcherlaw.com>
www.mckarcherlaw.com<http://www.mckarcherlaw.com>

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Inge Fordham
Sent: Wednesday, June 22, 2022 1:53 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Statement of Balance Owed w/o Creditor Claim

I have a probate where I sent notice to a handful of reasonably ascertainable creditors per RCW 11.40.020(1)(c).  Two of the creditors responded by sending: (1) an invoice requesting payment of the balance owed on a credit card; and (2) a statement of account on a subrogation claim (it appears the decedent was making monthly payments to satisfy the claim).  Neither creditor has presented a claim in accordance with RCW 11.40.070.  Nothing has been filed with the court.  Curious as to how my colleagues handle these situations.  I’m not as concerned about the credit card – the creditor is Capitol One and they should know well enough to present and file a Creditor Claim.  I’m more concerned about the subrogation claim and whether the PR could safely reject that claim for failure to comply with RCW 11.40.070 once 30 days has expired.  (I realize that the PR can waive the defect.  The PR in this case does not want to waive the defect if she can safely reject the claim).

Thanks in advance!

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Inge A. Fordham | Attorney
Fordham Law, PLLC
3218 Sixth Avenue | Tacoma, WA 98406
Office: (253) 348-2657 | Mobile: (206) 778-3131
www.fordhamlegal.com<http://www.fordhamlegal.com>

Confidential Communication: This email is sent to a recipient on behalf of an attorney/law firm, and is information intended exclusively for the individual, entity or company to which it is sent.  This communication may contain proprietary, privileged or confidential information or may otherwise be legally exempt from disclosure other than to the intended recipient.  If you are not the named addressee, you are not authorized to read, print, retain, copy or otherwise disseminate this message or any part of it.  If you have received this email in error, please notify the sender immediately by email or other communication and delete all copies of the message.
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