IN RE THE ESTATE OF IVAN E. OSBORN, DECEASED

Fla. 4th DCA | 1980-05-07
No. 79-1394
MOORE and HERSEY, JJ., concur.
383 So. 2d 1107 Florida District Court of Appeal, Fourth District (1980) Positive Treatment
Cited by 2 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.


Holding

A claim against an estate is not barred by Fla. Stat. § 733.709 if a proceeding to enforce it was pending within one year of filing, even if not fully resolved within that year.


Headnotes

[1] A claim against an estate is not barred by the one-year statute of limitations if a proceeding for its enforcement or compulsory payment was pending at the expiration of…

[2] A final judgment obtained against an estate within one year of a claim being filed constitutes a pending proceeding for the enforcement or compulsory payment of that clai…

Previewing 2 of 4 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.

Join FLexlaw to unlock all legal intelligence

Facts & Procedural History

A bank filed a claim against a decedent's estate on a promissory note. The bank then sued the estate in circuit court and obtained a judgment within o…

The full statement of facts, procedural history, and disposition for this case are member content.

Join FLexlaw to unlock all legal intelligence

© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.


Opinion of the Court
LETTS, Chief Judge.

LETTS, Chief Judge.

Appealed here is a trial court ruling requiring payment of claim against an estate despite failure by the creditor to petition the probate court for payment within one year from the date the claim was filed. We affirm.

The deceased was a guarantor of a $50,-000 promissory note, in default, in favor of the Pan American Bank which commenced suit on the note in Circuit Court. Thereafter upon the death of the decedent the Bank timely filed its statement of claim against his estate (which was not objected to), substituted the estate as a party defendant1 and the suit on the note progressed in circuit court resulting in a final judgment in favor of the Bank, rendered prior to the expiration of one year from the date the claim was filed. Some time later, and after the expiration of a year from the date of claim, the Bank petitioned the probate court for payment whereupon the estate responded with argument that the claim was barred under Section 733.709, Florida Statute (1977). The trial judge disagreed and allowed the Bank’s claim. So do we.

Section 733.709 provides as follows:

Claims undisposed of after 1 year

When a person has filed a claim against an estate and the claim has not been paid, settled, or otherwise disposed of and no proceeding is pending for the enforcement or compulsory payment of it at the expiration of 1 year from the date the claim was filed, the claim shall be forever barred. No action shall thereafter be brought to enforce it. This section shall not affect the lien of any duly recorded mortgage or security interest or the lien of any person in possession of personal property or the right to foreclose and enforce the mortgage or lien.

Pursuant to this statutory wording, the estate contends that, because the instant claim was not paid or settled within a year although the suit on the note was concluded within that year, it is therefore barred. To quote from the language of Judge Schwartz, the estate thus seeks victory from a “gotcha!” maneuver. See Salcedo v. Asociacion Cubana, Inc., 368 So. 2d 1337, 1339 (Fla. 3d DCA 1979). We fully realize that affirmative “gotcha!” defenses, frequently are, and should be, upheld. This case, however, is not one of those.

The estate urges upon us, In re Estate of Baynard, 307 So. 2d 831 (Fla. 2d DCA 1975) which does in some respects support its position. To us, however, there is a vital distinction. In Baynard, the unsuccessful claimant in the circuit court proceeding never named the estate as a defendant and no judgment was ever obtained against the estate either before or after the passage of the statutory period first above referred to.

We have read and reread the applicable statute quoted above and while we agree that, like so many others, it is no model of clarity, we see nothing in its wording to bar the instant claim. Nor do we believe the legislative purpose was to do so. See In re Oxford’s Estate, 372 So. 2d 1129, 1132 (Fla. 2d DCA 1979).

To us a proceeding against this estate was “pending for the enforcement or compulsory payment” of this claim at the end of the year. A final judgment against the estate, rather than the decedent had been obtained, enforceable for-twenty years2 and it had not been “paid, settled, or otherwise disposed of.” In the sense of settlement or payment, it is still as of now very much pending. Were we to hold otherwise, absurd as well as inequitable results could pertain. For example, a suit commenced against the estate within one year but not concluded in that time, would bind the estate only as long as it remained unresolved and not concluded. Thereafter, under the estate’s reasoning, upon the instant of the entry of the final judgment, the suit would be no longer “pending” and the claim would not have been disposed of within a year— ergo uncollectable. Such a Catch 22 result is unacceptable and we will not permit it.

We also reject any thought that this opinion subverts the purpose of the new probate code which seeks as one of its main objectives, the early conclusion of probate. In the case before us, as soon as the final judgment on this properly filed and unob-jected to claim was awarded against the estate, the personal representative should have either appealed it or sat himself down and written a check for it which latter action would have permitted a much earlier termination of the estate proceedings than has in fact occurred.

Although not necessary to this result, nor set forth in the record, we are confident that this indebtedness was taken as a deduction on the 706 estate tax return. Assuming this to be so, surely the estate should be estopped to deduct the item as a debt, actively defend the suit in circuit court, lose that suit and then successfully refuse to pay the creditor upon the premise that the properly filed and unobjected to claim was “otherwise disposed of.” We certainly hope so.

WE AFFIRM THE LOWER COURT JUDGMENT ON THE NOTE, FOR COSTS AND ATTORNEYS FEES.

MOORE and HERSEY, JJ., concur. . So far as the record shows, this substitution was accomplished without objection from the estate. Had an objection been lodged and sustained, the Bank no doubt would have proceeded in the probate estate instead.

. Limitation on Lien of Judgment, § 55.081, Fla.Stat. (1977).


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • Heimer v. Travelers Ins. Co., 400 So. 2d 771 (Fla. 3d DCA 1981)
    …ders, 388 So. 2d 380 (Fla. 3d DCA 1980); State v. Belien, 379 So. 2d 446 (Fla. 3d DCA 1980); Salcedo v. Asociacion Cubana, Inc., 368 So. 2d 1337 (Fla. 3d DCA 1979). See also Achin v. State, 387 So. 2d 375 (Fla. 4th DCA 1980); In re Estate of Osborn, 383 So. 2d 1107 (Fla. 4th DCA 1980). In the words of this court, speaking through Judge Schwartz: “In earlier times, the rule we apply in this case was said to reflect the feeling that a party may not ‘mend his hold,’ ... [*773] or ‘blow hot and cold at the same t…

Authorities Cited

Full citator, related cases, and AI research tools

Open in FLexlaw