[WSBAPT] Unfiled Creditor Claim?
Amy Goertz
amyjgoertz at icloud.com
Tue Feb 21 15:58:44 PST 2023
I wanted to send a belated thank you to those who responded to my previous email about whether or not to reject three creditor claims that were filed after the deadline had passed (all were from the same creditor).
In follow-up, I took the advice of rejecting the late-filed claims and sent the rejections along with a cover letter explaining that the claims were filed past the deadline.
The 30-days has now passed from mailing the rejection and no further action was taken by the creditor.
Thank you to all for giving me some needed perspective on this one!!

Amy
Amy J. Goertz, J.D.
Goertz & Lambrecht PLLC
amyjgoertz at icloud.com <mailto:amyjgoertz at icloud.com>
1.888.926.2607 phone
1.877.684.1627 fax
Address for correspondence:
2829 S. Grand Blvd., Suite 303
Spokane, WA 99203
Additional office locations:
510 Bell Street
Edmonds, WA 98020
Goertz & Lambrecht PLLC
www.goertzlambrecht.com <http://www.goertzlambrecht.com/>
> On Dec 28, 2022, at 4:21 PM, Claudia A Gowan <claudia at cagowanlaw.com> wrote:
>
> As we Finns say: oofta! Yours is the nightmare scenario, Bruce.
>
> I should also amend my statement below because it is actually the inverse of what is required under 080. (1) The personal representative shall allow or reject all claims presented in the manner provided in RCW11.40.070 <http://app.leg.wa.gov/RCW/default.aspx?cite=11.40.070>. The personal representative may allow or reject a claim in whole or in part.
>
> So, it’s extrapolating to say that if the claims haven’t been presented in accordance with .070, there is no duty to allow or reject an invalid claim. Fortunately, I have not had occasion to look into case law on the matter.
>
> In the end, it is always talking with the client, factual analysis, risk assessment, cost assessment, etc., as eloquently pointed out by Eric and Bruce below.
>
> Best, Claudia
>
> Claudia A. Gowan
>
> Claudia A. Gowan, PLLC
> 2212 Queen Anne Avenue No., # 338 (Mailing only)
> Seattle, WA 98109
> (206) 443-2733 (T)
> claudia at cagowanlaw.com <mailto:claudia at cagowanlaw.com>
>
> www.seattletrustsandestates.com <http://www.seattletrustsandestates.com/>
>
>
> From: wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Bruce Moen
> Sent: Wednesday, December 28, 2022 3:36 PM
> To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com <mailto:wsbapt at lists.wsbarppt.com>>
> Subject: Re: [WSBAPT] Unfiled Creditor Claim?
>
> I agree with both Claudia and Eric, but I lean more towards Eric. It depends upon the size of the claim, the back story and the risk of litigation.
>
> The creditor with no rejection can bring an action for administrative malpractice against the PR. The PR will then implead your office under Trask v Butler. You’re conflicted out and have to tender to your carrier. No fun and no income from the adventure because no more client.
>
> That’s why I say risk assessment and discuss with client.
>
> Bruce Moen
>
> From: wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Claudia A Gowan
> Sent: Wednesday, December 28, 2022 3:02 PM
> To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com <mailto:wsbapt at lists.wsbarppt.com>>
> Subject: Re: [WSBAPT] Unfiled Creditor Claim?
>
> Hi, I understand what Eric is saying and I have had that debate in my mind many a time. Where I come down is that I don’t like to send a formal rejection because a PR has no duty to accept or reject an invalid claim. I have decided that sending a rejection could be interpreted as acknowledging a claim. And, it also concerns me that a rejection might be interpreted as giving them the opportunity to file suit.
>
> Instead, I send a letter as a “courtesy”, opening the letter similar to what I just did for an estate a couple of weeks ago:
>
> Please be advised that I represent the Personal Representative for the estate of . Mr. died , 2022. I am writing as a courtesy because I am in receipt of a copy of a creditor claim dated . I write as a courtesy simply because a personal representative has no duty to accept or reject an invalid claim.
>
> Then, I basically lay out the facts and law as to why it is invalid and tell them that any claim would be barred.
>
> PS I also ask them to close the file and to not forward the matter for collection.
>
> If they want to pursue it, I figure they can always call me.
>
> HNY to all, Claudia
>
> Claudia A. Gowan
>
> Claudia A. Gowan, PLLC
> 2212 Queen Anne Avenue No., # 338 (Mailing only)
> Seattle, WA 98109
> (206) 443-2733 (T)
> claudia at cagowanlaw.com <mailto:claudia at cagowanlaw.com>
>
> www.seattletrustsandestates.com <http://www.seattletrustsandestates.com/>
>
>
> From: wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Eric Nelsen
> Sent: Wednesday, December 28, 2022 2:44 PM
> To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com <mailto:wsbapt at lists.wsbarppt.com>>
> Subject: Re: [WSBAPT] Unfiled Creditor Claim?
>
> Amy—I think your plan is a valid option but I discuss with the client the pros and cons of sending a Rejection anyway. I think the Rejection is helpful and protects the client PR: (a) it clearly gives due process to the creditor so they can’t use that as a colorable “breach of fiduciary duty” claim to try to bootstrap their claim back into existence and get personal liability of the PR; and (b) even if they do file a lawsuit, your first line of defense is a Motion to Dismiss or Motion for SJ on the easy grounds that the claims were (1) only served and not filed as required, and (2) even as served were untimely and were validly rejected.
>
> Sincerely,
>
> Eric
>
> Eric C. Nelsen
> Sayre Law Offices, PLLC
> 1417 31st Ave South
> Seattle WA 98144-3909
> 206-625-0092
> eric at sayrelawoffices.com <mailto:eric at sayrelawoffices.com>
>
> Covid-19 Update - All attorneys are working remotely during regular business hours and are available via email and by phone. Videoconferencing also is available. Signing of estate planning documents can be completed and will be handled on a case-by-case basis. Please direct mail and deliveries to the Seattle office.
>
> From: wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Amy Goertz
> Sent: Wednesday, December 28, 2022 2:23 PM
> To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com <mailto:wsbapt at lists.wsbarppt.com>>
> Subject: [WSBAPT] Unfiled Creditor Claim?
>
> Good afternoon -
>
> I have an interesting scenario regarding BECU creditor claims:
>
> 07.01.22 Notice to Creditors published.
> 11.02.22 Notice to Creditors mailed to BECU. Declaration of Mailing filed.
> 12.02.22 Time for filing claim expired.
> 12.12.22 Spoke to BECU by phone. Rep says they never received the Notice. I said claim period is expired.
> 12.15.22 BECU mails three Creditor Claims ($1200; $4800; and $11,000.00) to me with letter saying they are filing the claims.
> 12.28.22 No claims in Court file (I checked Washington Digital Archives and called the Court clerk).
>
>
> My inclination is to disregard the claims since they are not valid because they are not timely nor properly presented. I don’t think I should officially “reject" the claims and I don’t believe their position that they did not receive the Notice to Creditors gives them additional time.
>
> Since there are no filed claims, my next step is to file a Declaration of Completion.
>
> Any other thoughts on how best to shut the door on these claims?
>
> Thanks in advance -
>
> <image001.gif>
> Amy
>
>
> Amy J. Goertz, J.D.
> Goertz & Lambrecht PLLC
> amyjgoertz at icloud.com <mailto:amyjgoertz at icloud.com>
>
> 1.888.926.2607 phone
> 1.877.684.1627 fax
>
> Address for correspondence:
> 2829 S. Grand Blvd., Suite 303
> Spokane, WA 99203
>
> Additional office locations:
> 510 Bell Street
> Edmonds, WA 98020
>
> Goertz & Lambrecht PLLC
> www.goertzlambrecht.com <http://www.goertzlambrecht.com/>
>
>
>
>
>
>
>
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