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In re Estate of Lester

Supreme Court of South Dakota

October 29, 2014

ESTATE OF STEVEN C. LESTER, DECEASED

Considered on Briefs October 6, 2014.

APPEAL FROM THE CIRCUIT COURT OF THE SEVENTH JUDICIAL CIRCUIT PENNINGTON COUNTY, SOUTH DAKOTA. THE HONORABLE WALLY EKLUND, Judge.

SCOTT SUMNER, Rapid City, South Dakota, Attorney for appellant, Michelle L. Lamphere.

ROBERT J. GALBRAITH, JOHN C. NOONEY of Nooney, Solay & Van Norman, LLP, Rapid City, South Dakota, Attorneys for appellee/Estate of Steven C. Lester.

SEVERSON, Justice. GILBERTSON, Chief Justice, and ZINTER, and WILBUR, Justices, concur. KONENKAMP, Justice, deeming himself disqualified, did not participate.

OPINION

Page 877

SEVERSON, Justice

[¶1] Pamela Lester, personal representative of Steven C. Lester's estate, published a Notice to Creditors advising them to file claims within four months of the notice. She also mailed a notice directly to Michelle Lamphere which provided a later deadline by which Lamphere needed to file her claim. Lamphere complied with the deadline established in the personal notice she received, but Pamela Lester denied the claim. Lamphere then filed a petition to allow the claim. Pamela Lester moved to dismiss the claim as barred by the statute of limitations provided for creditors' claims. The circuit court granted the motion to dismiss, finding that Lamphere was an unknown creditor whose claim was barred four months after publication of the Notice to Creditors rather than the time stated in the letter mailed directly to Lamphere. Lamphere appeals.

Background

[¶2] Steven C. Lester died on August 17, 2011. Pamela Lester (PR Lester) was appointed as the personal representative of the estate on August 24, 2011. She filed a Notice to Creditors on August 25, 2011. The notice gave creditors four months to file their claims and was published in the Rapid City Journal once each week for three successive weeks, beginning on September 3, 2011. Any unknown creditors that were subject to this publication had until January 3, 2012, to make claims. At some point in time, PR Lester became aware of an alleged claim by Michelle L. Lamphere. PR Lester mailed a Notice to Creditors directly to Lamphere on February 3, 2012. The notice to Lamphere stated that Lamphere must file her claim by April 10, 2012. Lamphere met that deadline by mailing a claim letter, received by PR Lester on April 10, 2012. On May 18, 2012, PR Lester filed A Notice of Disallowance of Claim dated April 24, 2012. On July 3, 2012, in response to the disallowance, Lamphere sent a Petition for Allowance of Claim by Michelle L. Lamphere to PR Lester. On August 23, 2013, PR Lester filed a Motion to Dismiss Petition for

Page 878

Allowance of Claim by Michelle Lamphere, alleging that it was untimely filed according to SDCL 29A-3-804. Honorable Judge Wally Eklund held a hearing on the motion on November 20, 2013. No evidence was presented at the hearing. The circuit court found that Lamphere was an unknown creditor and SDCL 29A-3-801(c)(3) barred her claim because it was not filed within four months after the publication of the Notice to Creditors. If Lamphere had been a known creditor then she was entitled to the notice mailed to her and her claim would have been valid under SDCL 29A-3-801(b). Lamphere appeals. She asserts that the court erred by granting the motion to dismiss because a genuine issue of material fact exists as to whether Lamphere is an unknown, known, or reasonably ascertainable creditor.

Standard of Review

[¶3] SDCL 29A-1-304 provides: " [u]nless specifically provided to the contrary in this code or unless inconsistent with its provisions, the rules of civil procedure, including the rules concerning vacation of orders and appellate review, govern formal proceedings under this code." Therefore, we consider PR Lester's motion to dismiss as a motion for judgment on the pleadings under SDCL 15-6-12(c). " Judgment on the pleadings provides an expeditious remedy to test the legal sufficiency, substance, and form of the pleadings. However, it is only an appropriate remedy to resolve issues of law when there are no ...


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