Ottley v. Estate of Bell
SAMUEL OTTLEY, Appellant/Plaintiff v. ESTATE OF VIOLA ELFREDA BELL a/k/a VIOLA BELL, a/k/a VIOLA ELFREDA OTTLEY, a/k/a VIOLA ELFREDA BELL OTTLEY, a/k/a VIOLA BELL OTTLEY, a/k/a VIOLA OTTLEY and EBONI OTTLEY and DELROY GERARD, Appellees/Defendants
Attorneys
Dolace McLean, Esq., Visions Law Firm, St. Thomas, USVI, Attorney for Appellant., David A. Bornn, esq., The Bomn Firm, PLLC, St. Thomas, USVI, Attorney for Appellees.
Full Opinion (html_with_citations)
OPINION OF THE COURT
(October 29, 2014)
Samuel Ottley (âOttleyâ) and Viola Bell Ottley (âBellâ) each owned a one-half interest in a piece of real property. After Bellâs death, Ottley initiated an action for partition in the Civil Division of the Superior Court. The Superior Court dismissed Ottleyâs action for lack of subject-matter jurisdiction for failure to present his claim to the administrator of Bellâs estate pursuant to section 606(b) of title 15 of the Virgin Islands Code before filing suit. We reverse.
I. STATEMENT OF RELEVANT FACTS AND PROCEDURAL POSTURE
On April 15, 1987, the Family Division of the Superior Court granted Ottley and Bell a divorce and awarded each a 50 percent equitable interest in Parcel No. 215-91 Estate Annaâs Retreat, No. 1 New Quarter, St. Thomas, Virgin Islands. The divorce decree also set forth the conditions, benefits, and responsibilities placed upon each party in regards to the property. Specifically, the divorce decree granted Bell âexclusive use and occupancy of the propertyâ until their daughter, Eboni Ottley (âEboniâ), became 18 years of age or completed high school. Thereafter, Ottley had
Bell died on July 24, 2001, and was survived by her daughter, Eboni, and her son, Delroy Gerard.
In May 2008, more than one year after filing his partition action, Ottley presented his claim of $60,000 for real property taxes, insurance premiums, mortgage payments, and any other expenses related to Parcel No. 215-91 Estate Annaâs Retreat â⢠but not his claim for partition â˘â to the administrator. This claim was eventually rejected by the administrator on June 21, 2012.
On July 31, 2008, approximately two months after Ottley filed his claim with Bellâs estate, Appelleesâ attorney entered an appearance in the action for partition, and filed a joint answer and a motion to lift the defaults that were entered in the partition action on December 7, 2006. The Superior Court vacated the defaults on February 25, 2009. Soon thereafter, Appellees moved the court in the partition action to dismiss Ottleyâs complaint for lack of subject-matter jurisdiction, failure to state a claim upon which relief can be granted, and failure to join an
II. DISCUSSION
A. Jurisdiction and Standard of Review
This Court has appellate jurisdiction over âall appeals arising from final judgments,'final decrees or final orders of the Superior Court, or as otherwise provided by law.â V.I. CODE Ann. tit. 4, § 32(a). The Superior Courtâs October 8, 2013 order constitutes a final appealable judgment because it resolved all issues against Appellees by dismissing all of Ottleyâs claims for lack of subject-matter jurisdiction. Allen v. HOVENSA, L.L.C., 59 V.I. 430, 434 (V.I. 2013) (an order âresolving all outstanding claims between the partiesâ is a final order for purposes of 4 V.I.C. § 32(a)).
â[T]his Court exercises plenary review over questions relating to the Superior Courtâs subject matter jurisdiction.â Brunn v. Dowdye, 59 V.I. 899, 904 (V.I. 2013) (citing Judiâs of St. Croix Car Rental v. Weston, 49 V.I. 396, 399 (V.I. 2008)).
B. Section 606
Appellees filed their motion to dismiss based on Ottleyâs failure to comply with section 606(b) after they had already filed an answer to his
1. Section 606(b) is a mandatory claims-processing rule
The Virgin Islands Legislature granted the Superior Court original jurisdiction âin all civil actionsâ and âto supervise and administer estates
As stated, the Superior Court has original jurisdiction over probate matters. 4 V.I.C. § 76(a). Explicitly, the Superior Court
The probate statutory scheme is located in chapters 11 through 29 of title 15 of the Virgin Islands Code, which, if followed correctly, ensures the orderly and efficient distribution of a decedentâs property by establishing the process by which an estate is to be opened, administered, and closed. Once an estate is opened, the executor or administrator must immediately publish a notice in multiple public places alerting âall persons having claims against the estate to present them . . . within six months from the date of the noticeâ to the executor or administrator. 15 V.I.C. § 391. Creditors who present their claims against the estate within the first six months of the notice publication date have priority over other claims presented after the initial six months, if the executor or administrator verifies that the claim is âjustly due.â 15 V.I.C. § 393; see 15 V.I.C. § 392. Once âsatisfied that the claim thus presented is just,â the executor or administrator must âpay such claim in due course of administration,â or reject the claim if ânot so satisfied.â 15 V.I.C. § 394. Disbursements should be made to creditors every three months.
Should the executor or administrator deny a creditorâs .claim, the creditor âmay present his claim to the court. . . [to] hear and determine in a summary manner all demands against any estate ... which have been so rejected.â 15 V.I.C. § 395. Should the court allow the claim, then the claim must âbe satisfied in due course of administrationâ âas if it had been allowed by [the executor or administrator,]â indicating that the creditor maintains the priority he acquired from the time he presented the claim to the executor or administrator. 15 V.I.C. § 396. This route is especially preferable for creditors who failed to present their claim within the first six months, for while creditors who filed their claims within the first six months would retain their original priority, those creditors who submit a claim after the six month mark and then decide to file a separate civil suit would lose any priority their claims may have had and can only recover from âthe assets in [the executor or administratorâs] hands at the time the summons is served.â 15 V.I.C. § 606(b). Section 606 governs when an action may be brought against an estateâs executor or administrator, and is the subject of this appeal. In its entirety, section 606 provides:
(a) An action may be commenced against an executor or administrator at any time after the expiration of twelve months from the granting of letters testamentary or of administration and until the final settlement of the estate and discharge of such executor or administrator from the trust, and not otherwise.
(b) An action against an executor or administrator shall not be commenced until the claim of the plaintiff has been duly presented to such â executor or administrator and by him disallowed. If such claim is presented after the expiration of the period of six months mentioned in sections 391 and 392 of this title, the executor or administrator in an action therefor shall only be liable to the extent of the assets in his hands at the time the summons is served upon him.
15 V.I.C. § 606.
Section 606(a) clearly authorizes a plaintiff to commence an action against an estateâs executor or administrator in the Superior Court, and mandates that at the time of commencement (1) the estate have been open
The Superior Court relied on this Courtâs prior interpretation of the language âshall not be commenced untilâ from section 166i of the Virgin Islands Medical Malpractice Act (âMMAâ) as a jurisdictional barrier. Brady, 55 V.I. at 812-17. It held that similar language in section 606 acted as a prohibition on initiating legal action until the claim was first presented to, and duly rejected by, the estateâs administrator or executor. However, the Superior Court did not consider similar language used in other statutes. For example the âshall not be commencedâ language in section 606(b) likewise resembles the language used in the statute governing the Virgin Islands statute of limitations, which we have previously determined is an affirmative defense that may be waived if not raised at the first opportunity. 5 V.I.C. § 31 (âCivil actions shall only be commenced within the periods prescribed below. . . .â) (emphasis added); Allen, 59 V.I. at 436 (quoting In re Guardianship of Smith, 54 V.I. 517, 524 n.5 (V.I. 2010)). Also, unlike section 166i, no other language in section 606(b) indicates that the Legislature intended for this provision to act as a jurisdictional barrier to court review.
In Brady, we determined that section 166i was jurisdictional by looking not only to the statuteâs language and structure, but also to the statuteâs historical purpose and decisions by other courts interpreting it and other similar statutes. 55 V.I. at 815-16 (legislative intent may be âdiscerned by looking to the . . . text, context, and relevant historical treatmentâ of the statutory prerequisite (quoting Reed Elsevier, Inc. v. Muchnick, 559 U.S. 154, 166, 130 S. Ct. 1237, 176 L. Ed. 2d 18 (2010))). We focused on the fact that section 166i requires that a âproposed complaintâ be filed with the statutorily-established Medical Malpractice Action Review Committee (âthe Committeeâ) before an action is commenced in court, clearly indicating the Legislatureâs intent that the courts were not to be utilized until after the Committee had an opportunity to address the claim itself. Id. at 816. We also looked at the purpose of the
In this case, despite the similar âshall not be commencedâ language in sections 606(b) and 166i, the context surrounding each statute mandates different results. The purpose behind the MMA was âto prevent actions from being filed in courts until after the statutory requirements of the MMA are fulfilled.â Brady, 55 V.I. at 813. The Committee was created for the express purpose of reviewing and investigating all claims independently and to make a recommendation as to whether the claim is meritorious. Id. at 813-14. In essence, the goal of the MMA is to avoid any court involvement. In contrast, the administration of an estate must involve the court. See 15 V.I.C. § 191 (permitting heirs to petition the court to settle an estate without administration where decedent dies intestate); 15 V.I.C. § 233 (issuance of letters testamentary); 15 V.I.C. § 236 (granting the court discretion to choose an administrator of an intestateâs estate); 15 V.I.C. § 240 (revocation of letters). The executor or administrator of an estate acts as an arm of the court, see 15 V.I.C. § 312 (the executor or administrator shall âmake and file with the clerk of the court an inventory ... of all the real and personal property of the deceasedâ); 15 V.I.C. § 394 (the executor or administrator âshall every three months file with the court a statement of all such claims as have been presentedâ), and the court has a responsibility to âexercise a supervisory control over the executor or administrator, to the end that he faithfully and diligently perform the duties of his trust according to law.â 15 V.I.C. § 240(c). Thus, unlike section 166i, when a person dies, the distribution of that personâs property must, at a minimum, invoke the jurisdiction of the court. 15 V.I.C. § 167 (administration of an estate in a summary manner).
The Legislature has outlined in detail the duties of a executor or administrator in administering an estate and the process by which a creditor should seek to satisfy his claim, all under the guidance and review of the Superior Court. See 15 V.I.C. § 394; 15 V.I.C. § 240(c). Therefore, when looking at section 606 in the context of the entire probate scheme, it appears the Legislature intended section 606 âto regulate the process of obtaining reviewâ by providing strict guidance for probate proceedings and it did not intend âto limit the courtâs adjudicatory
The Oregon Supreme Court
Like the Oregon Supreme Court, we conclude that section 606 is a claims-processing rule and does not govern the Superior Courtâs jurisdiction to adjudicate an action brought in derogation of section 606. Nevertheless, unlike a statute of limitations or other affirmative defenses, we find that section 606 is an inflexible claims-processing rule that cannot be waived. Claims-processing rules may be non-waivable when âthe rule implicates judicial interests beyond those of the parties.â Mustafa v. Camacho, 59 V.I. 566, 571 n.2 (V.I. 2013) (internal quotation marks and citation omitted); see Peters v. People, 60 V.I. 479, 484 (V.I. 2014) (sua sponte raising and enforcing Supreme Court Rule 5(b)(1) since the 30-day filing deadline promotes âsocietyâs legitimate interest in the finality of a judgment. . . perfected by the expiration of the time allowed for direct reviewâ (quoting United States v. Frady, 456 U.S. 152, 164, 102 S. Ct. 1584, 71 L. Ed. 2d 816 (1982))); Eberhart v. United States, 546 U.S. 12, 19, 126 S. Ct. 403, 163 L. Ed. 2d 14 (2005) (some claims-processing rules are âinflexibleâ). A creditor must follow the process outlined in section 606 in order to properly file a complaint in the court against an estate. Failure to do so does not remove the case from the courtâs jurisdiction, but simply requires the court to dismiss it for failure to state a claim upon which relief may be granted. See Balthrop, 772 P.2d at 956-57. This ensures that a creditor cannot bypass the probate process enacted by the Legislature, and relieves the executor or administrator from defending the estateâs rights in both a civil action and through probate proceedings simultaneously. It also ensures that a creditor will not serve the executor or administrator with a summons in an attempt to gain priority over estate assets to the detriment of other creditors who properly followed the
In this case, Ottley did not present his claim to the administrator before he filed suit on February 23, 2006. However, he did present his claim for reimbursement of the alleged $60,000 debt to the administrator on May 28, 2008. Although the Superior Court concluded that the administrator formally denied Ottleyâs claim on June 21, 2012, the claim was effectively denied on August 28, 2008, when the administrator failed to act on the claim within three months after presentment.
2. Presentment requirement for partition of property
Ottleyâs request for partition was never presented to the administrator and thus, did not ripen before the Superior Court dismissed the civil suit. Ottley argues that he was not required to present the claim for partition to the administrator before filing suit because, as a tenant in common, he has a personal right to initiate an action for partition in the Superior Court at any time.
We agree that an action for partition is not a âclaimâ that is required to be presented to an estateâs executor or administrator under section 606. Section 606(b) specifically states that all âclaimsâ must be presented to an estateâs executor or administrator. It then references sections 391 and 392 of title 15 as the basis for limiting the amount that a executor or administrator may be liable for. Section 391 requires âall persons having claims against the estate to present them, with the proper vouchers, within six months from the date of the notice [that the estate is under administration].â 15 V.I.C. § 391 (emphasis added). Section 392 states that âa claim against the estate not barred by the statute of limitations may be presented, allowed, and paid out of any assets then in the hands of the executor or administrator not otherwise appropriated or liable.â 15 V.I.C. § 392 (emphasis added). It is apparent from both of these sections, as well as the remainder of chapter 23 of title 15, that âclaimsâ contemplates the debts that the deceased incurred during their lifetime and which a creditor is attempting to recover from the estate. See In re Estate of Small, 57 V.I. 416, 422 (V.I. 2012) (âA creditor may . . . [still] make a claim against the estate after th[is] six month . . . [period] has passed, but is subject to penalties in the priority of payment by the estate.â).
An action for partition is not an attempt to recover debt or property from an estate. As cotenants, Ottley and Bell each own an undivided one-half interest in the property with concurrent rights to
This case is analogous to Ames v. Ames, 170 Kan. 227, 225 P.2d 85, 87 (1950). In that case, a mother and her two sons were cotenants of a piece
Ottley correctly named Bellâs estate as the defendant, and although not necessary, additionally listed the two heirs entitled to inherit her interest in the property. Weaver v. Laub, 1977 OK 242, 574 P.2d 609, 611 n.3 (1977) (naming the administrator of the estate, rather than the decedentâs heirs, was sufficient in petition for partition because âit is the function of the probate proceeding to determine heirs at law, and not the function of a partition proceedingâ). It is immaterial that Ottley brought the action for partition after her estate was being probated. Although a party could wait for a determination of who receives how much of a decedentâs interest in some property, it is not a prerequisite to the Superior Court dividing the property according to the cotenantsâ interests as they stand and deciding the most appropriate equitable method of partitioning it.
Allowing a cotenant to bring an action for partition apart from a probate proceeding dealing with the same property allows the cotenant to
III. CONCLUSION
Therefore, because the Superior Court erred in granting Appelleesâ motion to dismiss, we reverse the Superior Courtâs decision and remand the case for reinstatement so that the court can adjudicate Ottleyâs action for partition and the ancillary debt of $60,000.
Delroy Gerard is Bellâs son from a prior marriage and an heir to her estate.
Eboni Ottley is identified as the âAdministratrixâ of Bellâs estate in court documents, but this form is âbecoming obsolete, since administrator [is] considered gender-neutral.â Bryan A. Garner, The Redbook: A Manual On Legal Style 214 (2d ed. 2002); see V.I.S.Ct. I.O.R Appâx § I (A) (this Court should refer to The Redbook for guidance on matters of legal style). Furthermore, REDBOOK § 12.5 states that â[w]hen possible, avoid using titles that have increasingly archaic feminine suffixes (such as -ess, -ette, or -ix) or that use man as a suffix or prefix.â Id. at 316 (suggesting the use of âadministratorâ instead of âadministratrixâ).
Appellees dedicate a significant portion of their brief to arguing that because Ottley did not respond to their motion to dismiss for lack of subject-matter jurisdiction, this Court should consider the issues raised in this appeal waived. But even though Appellees are correct that the failure to raise an argument before the Superior Court typically constitutes waiver under Supreme Court Rules 4(h) and 22(m), â[t]his Court has repeatedly cautioned that parties may not, through explicit agreement or implicitly by orqission, stipulate to the law.â Simmonds v. People, 59 V.I. 480, 493 (V.I. 2013) (citing Rohn v. People, 57 V.I. 637, 643 (V.I. 2012)). This is especially true âwhere a decision by this Court âmay unfairly and unjustifiably affect the disposition of other cases.â â V.I. Narcotics Strike Force v. Pub. Emps. Relations Bd., 60 V.I. 204, 211 (V.I. 2013) (quoting Garcia v. Garcia, 59 V.I. 758, 774 (V.I. 2013)). Refusing to apply waiver is particularly appropriate here since Appelleesâ motion challenged the Superior Courtâs jurisdiction, and âit is well established that parties may not stipulate to either the presence or absence of subject matter jurisdiction.â Williams v. People, 58 V.I. 341, 346 n.4 (V.I. 2013) (citing H & H Avionics, Inc. v. V.I. Port Auth., 52 V.I. 458, 460 (V.I. 2009)).
Federal Rule of Civil Procedure 12(b) is made applicable to the Superior Court by Superior Court Rule 7. See Super. Ct. R. 7.
Although 15 V.I.C. § 161 continues to read that âthe district court has jurisdiction and the power to administer justice in all matters relating to the affairs of decedents,â the Legislature granted the Superior Court âoriginal jurisdiction... to supervise and administer estatesâ in 1990, thereby removing the District Courtâs jurisdiction over such matters. 4 V.I.C. § 76(a); see In re Rogers, 57 V.I. 553, 558 n. 1 (V.I. 2012). Therefore, the reference to the District Court in § 161 â like most references to the District Court in the Virgin Islands Code enacted before the Legislature adopted 4 V.I.C. § 76 â âha[s] been implicitly repealed.â In re Reynolds, 60 V.I. 330, 333 n.3 (V.I. 2013) (citing In re Rogers, 57 V.I. at 558 n.1).
The Legislature also specifically authorized magistrates to hear probate matters. 4 V.I.C. § 123(a)(4) (âEach magistrate may ... hear ... probate matters.â).
Within each three month disbursement, priority among creditors is established by 15 V.I.C. § 421. Should funds be insufficient to pay all claims and charges during a three month period, claims with the highest priority are to be paid first. 15 V.I.C. § 423. If funds are insufficient to pay all claims in the same class according to the priority established in section 421, then each creditor shall be paid in proportion to the amount of his claim. Id. Also, debts established by judgment against the deceased during the deceasedâs lifetime may be satisfied âfrom the proceeds of the sale of the property.â 15 V.I.C. § 422.
Although section 606 has acted as a bar to successfully bringing suit in two prior Virgin Islands cases â Oat v. Sewer Enters., 46 V.I. 286, 290 (D.V.I.2004) and Island Green, LLC v. Querrard, 429 Fed. Appx. 90, 92 (3d Cir. 2011) â neither case explicitly holds that section 606 is jurisdictional, nor are their holdings binding on this Court. Banks v. Intâl Rental & Leasing Corp., 55 V.I. 967, 974-76 (V.I. 2011). They are merely persuasive authority, which we decline to follow in favor of the more persuasive argument that such a statute is a claims-processing rule. Stevens v. Scanlon, 248 Ore. 229, 430 P.2d 1019, 1020 (1967); Fay v. McConnell, 229 Ore. 128, 366 P.2d 327, 328 (1961).
When statutes from other jurisdictions are substantially similar to a Virgin Islands statute, this Court may look for guidance at how that jurisdictionâs courts have interpreted the similar statute. See Nicholas v. People, 56 V.I. 718, 734-35 (V.I. 2012) (relying on other courtsâ interpretations of a nearly identical federal statute to interpret section 922 of title 14 of the Virgin Islands Code); In re Disbarment of Plaskett, 56 V.I. 441, 447 (V.I. 2012); Brady, 55 V.I. at 815-16 (relying on Indianaâs interpretation of a statute with almost identical language to a Virgin Islands statute).
Oregonâs statute currently reads that âno action against a personal representative on account of a claim shall be commenced until the claim of the plaintiff has been presented to and disallowed by the personal representative.â Or. Rev. Stat. § 115.325. An earlier version of the statute, which was the basis for Oregonâs earlier cases on the issue, was substantially similar: â[a]n action against an executor or administrator shall not be commenced until the claim of the plaintiff has been duly presented to the executor or administrator, and by him rejected.â Fay, 366 P.2d at 328 (quoting former OR. REV. STAT. § 121.090).
As a claims-processing rule, compliance with section 606 is subject to equitable remedies at the courtâs discretion. See, e.g., Mustafa, 59 V.I. at 571 n.2 (â[T]he $50.00 filing fee established by Superior Court Rule 322.1 does not codify a jurisdictional requirement, but represents a mandatory claims-processing rule that is potentially subject to waiver.â). So, for example, while the parties cannot agree to waive any of section 606â s requirements, in certain circumstances a court may properly find that an administrator forfeited the right to raise section 606 as a defense due to equitable considerations.
The Superior Court toolcjudicial notice that the administrator disallowed the claim on June 21,2012. However, if a plaintiff cannot bring a civil suit until his claim is explicitly rejected by the administrator, the administrator would effectively have the power to indefinitely postpone the commencement of litigation.
In light of this holding, we do not address whether the Superior Court could have set aside the requirements of section 606 on equitable grounds in this case.
Unlike Brady â where the plaintiff was barred from filing a new complaint because the statute of limitations had expired, 55 V.I. at 817âOttley has complied with section 606(b)âs requirements while Bellâs estate remains open and the administrator has not been discharged. 15 V.I.C. § 606(a). However, should Ottley prove he is legally owed the entire $60,000, he may only recover up to the amount of unclaimed assets, if any, that were still in the administratorâs hands âat the time the summons [was] served upon [her].â 15 V.I.C; § 606(b); see also 15 V.I.C. § 392.
In this particular case, because Ottley did not follow the probate code to his own detriment, the administrator would only be liable up to the amount of unclaimed assets in her hands at the time the civil suit ripened, instead of the date the summons was served on her. Furthermore, we make no determination as to whether the refiled action would have been timely within the applicable statute of limitations period, and hold only that section 606 could not have been raised to bar the refiled complaint. See 15 V.I.C. § 392 (â[A] claim against the estate not barred by the statute of limitations may be presented, allowed, and paid.â).
This Court accepted an amicus curiae brief by Alester A. Garvy and Lionel Lewis, and granted their request to participate in oral arguments. Ottley v. Estate of Bell, S. Ct. Civ. No. 2013-0097, slip op. at 3 (V.I. Mar. 4, 2014); Ottley v. Estate of Bell, S. Ct. Civ. No. 2013-0097, slip op. at 1 (V.I. Apr. 15, 2014) (granting amici five minutes to present arguments). Both the parties and the amici urged this Court to determine the scope of the magistrateâs
According to Ottley and Bellâs divorce decree, Bell had exclusive use and occupancy of the property until their daughter attained 18 years of age or completed high school. Ottleyâs inability to concurrently possess the property before that time has no bearing on the outcome of this case, as it is undisputed that Ottley and Bell held the property together as tenants in common.
Such an action would normally be initiated in the Civil Division of the Superior Court. 28 V.I.C. § 451. Magistrates are generally not authorized to hear disputes regarding the ownership ofreal property. See 4 V.I.C. § 123 (outlines the Magistrate Divisionâs jurisdiction and powers). Section 123(d)âwhich authorizes a magistrate to hear any case upon the âconsent of the parties and approval of the Presiding Judgeâ â is inapplicable in this case as consent of all parties was clearly not obtained nor did the Presiding Judge approve such action. While a magistrate may have the authority to divide and sell the decedentâs interest in real property when hearing a probate matter, see 15 V.I.C. § 161(5), a magistrate does not have the authority to sell or divide a cotenantâs interest in the same property. See Buckley v. Super. Ct. of San Francisco Cnty., 102 Cal. 6, 36 P. 360, 360 (1894) (âThe court, while sitting as a court of probate, has no other powers than those given to it by the statute, and such incidental powers as pertain to it for the purpose of enabling it to exercise the jurisdiction which is conferred upon it. It has no power to determine disputes between heirs or devisees and strangers as to the title to property.â).
In this case, the most equitable partition may be to sell the property and divide the proceeds equally between Ottley and Bellâs estate, as mandated in the divorce decree since neither party exercised the option of buying out the otherâs interest.