Ex Parte Wheeler v. Estate of Green
| Decision Date | 30 January 2009 |
| Docket Number | No. 4494.,4494. |
| Citation | 673 S.E.2d 836 |
| Court | South Carolina Court of Appeals |
| Parties | Ex Parte Janice S. WHEELER, Respondent, v. In re ESTATE OF Dorothy Fillius GREEN, Carlette Reynolds, Edward Scott Reynolds, Dawn Flack Reynolds, Thomas A. & Betty H. Considine, Lucy Ann Strickland, Maxine Green Thomas, John G. & Lois M. Considine, Susan C. Considine, James R. Considine, Carol Evans Fastnaught, Roberta Sodaro, Elizabeth Sodaro Wolters, Karen Sodaro Little, Douglas Wheeler, Janice S. Wheeler, Claire (Pat) Kelly Derickson, Heather Parkinson Webb, Treva Joyce Wilson, Susan P. Stowe, Frances O'Donnell Nevin, Adelina D'Aliosio, St. Andrews Catholic Church, North Myrtle Beach/Horry County Library, Briarcliffe Acres Association, Jennifer D. Powers, Kenneth S. & Laura F. Corbett, Defendants, Of whom Kenneth S. & Laura F. Corbett are Respondents, And Edward Scott Reynolds, Thomas A. & Betty H. Considine, Lois M. Considine, Briarcliffe Acres Association, and Jennifer D. Powers, are Appellants. |
J. Charles Ormond, Jr. and Anthony R. Plante, both of Columbia, for Appellant.
Charles Bernhart Jordan and John M. Leiter, both of Myrtle Beach, for Respondents.
Edward Reynolds, Thomas and Betty Considine, Lois Considine, and Briarcliffe Acres Association (collectively Beneficiaries), as well as Jennifer Powers (collectively hereinafter referred to as Appellants) contend the circuit court erred in reversing the probate court's finding that Janice Wheeler breached her fiduciary duty to Beneficiaries by failing to consider other offers to purchase property under her control as personal representative (PR). We affirm.
In March of 2004, Dorothy Green died testate, and her Last Will and Testament named John Considine as her PR; however, Considine pre-deceased Green. Wheeler, Green's friend and devisee under the will, applied for and was appointed PR. The will required the disposition of Green's primary residence in the following fashion:
THIRD. I direct my Personal Representative hereinafter named to sell my real property at 38 Birch Lane, Briarcliffe Acres, Horry County, South Carolina, and any other real property I may hereafter acquire, at such time as, in his sole discretion, the sale would be most advantageous financially to my estate, regardless of whether it takes a year or more to do so, and to distribute the proceeds from such sales in accordance with the provisions of this Will.
Powers, having heard of Green's passing and also of Wheeler's impending appointment as PR, contacted Wheeler in April of 2004 to express interest in purchasing the Birch Lane property. Several weeks later, Powers and Wheeler met to discuss the property. Powers once again affirmed her interest in making an offer, and Wheeler indicated she would forward an appraisal of the property to Powers as soon as one had been obtained. In the weeks following their initial meeting, Powers continued to make phone calls to Wheeler in order to inquire as to the property's status and the forthcoming appraisal. Wheeler neither responded to Powers' calls, nor forwarded the appraisal, which was completed in early June 2004.
The appraisal was conducted by Jayroe Appraisal Company, and assigned a market value of $320,000 to the property. In July, Kenneth and Laura Corbett approached Wheeler about purchasing the property, submitting a written offer for $325,000, which Wheeler ultimately accepted. The Corbetts' contract also contained a clause stating the contract was subject to the approval of the probate court.
On August 25, in a letter from her attorney to Wheeler's attorney, Powers represented that she would be willing to pay $350,000 for the property; however, she did not include or submit a formal offer to purchase. Wheeler did not respond to Powers' offer, instead, she filed a Petition for Approval of Contract of Sale of Real Estate on October 7 with the probate court, seeking its approval of the Corbetts' contract to purchase the property. Wheeler's petition also stated she was aware Powers objected to the sale, but that she had not received an offer from Powers prior to accepting the Corbetts' offer.
Upon learning of Wheeler's petition, Powers tendered a written offer and formal contract to Wheeler's attorney for $385,000. Beneficiaries, in addition to would-be purchaser Powers, answered Wheeler's petition, alleging Wheeler had breached her fiduciary duties as PR by failing to consider Powers' substantially higher offer to purchase the residence. The probate court held a hearing on the petition and ultimately denied approval of the contract of sale to the Corbetts; however, the court went on to find Wheeler had breached her fiduciary duty to the estate, and approved the sale of the residence to Powers. Respondents filed a motion to reconsider, which was denied. On appeal, the circuit court reversed the probate court and approved the petition for Corbetts' contract. Appellants appeal the circuit court's reversal.
Appeals from the probate court are governed by the provisions of the Probate Code. Matter of Howard, 315 S.C. 356, 360, 434 S.E.2d 254, 256 (1993). The circuit court must hear and determine an appeal from the probate court "according to the rules of law." Id. (citing S.C.Code Ann. § 62-1-308(d) (Supp.2008)). "As used in [section 62-1-308], the phrase `according to the rules of law' means according to the rules governing appeals." Id. On appeal from the final order of the probate court, the circuit court must apply the same rules of law as an appellate court would apply on appeal. In re Estate of Pallister, 363 S.C. 437, 447, 611 S.E.2d 250, 256 (2005). Consequently, if the proceeding in the probate court is in the nature of an action at law, "the circuit court and the appellate court may not disturb the probate court's findings of fact unless a review of the record discloses there is no evidence to support them." Neely v. Thomasson, 365 S.C. 345, 349-50, 618 S.E.2d 884, 886 (2005). "On the other hand, if the probate proceeding is equitable in nature, [an appellate court] may make factual findings according to its own view of the preponderance of the evidence." Matter of Howard, 315 S.C. 356, 361-62, 434 S.E.2d 254, 257-58 (1993).
"To determine whether this suit is legal or equitable, we must look to the `main purpose' of the action as reflected by the nature of the pleadings and proof, and the character of relief sought under them." Gordon v. Drews, 358 S.C. 598, 604, 595 S.E.2d 864, 867 (Ct.App.2004). A claim of breach of fiduciary duty is an action at law and the trial judge's findings will be upheld unless without evidentiary support. Jordan v. Holt, 362 S.C. 201, 205, 608 S.E.2d 129, 131 (2005). However, a "breach of fiduciary duty [claim] may sound in equity if the relief sought is equitable." Bivens v. Watkins, 313 S.C. 228, 230 n. 3, 437 S.E.2d 132, 133 n. 3 (Ct.App. 1993).
I. Wheeler's Alleged Breach of Her Fiduciary Duty as PR
Appellants contend the circuit court erred in reversing the probate court's finding that Wheeler breached her fiduciary duty to Beneficiaries by failing to consider other offers for the purchase of the property. Appellants maintain Wheeler failed to act in the best interest of the estate by not inquiring into or entertaining an offer from Powers that Wheeler knew to be forthcoming as soon as an appraisal had been conducted. We disagree.
Assuming without deciding that Wheeler's petition to consummate the Corbetts' contract to purchase the property sounded in equity, a claim of breach of fiduciary duty is an action at law. Clearwater Trust v. Bunting, 367 S.C. 340, 351 n. 4, 626 S.E.2d 334, 340 n. 4 (2006). Additionally, the circuit court stated it was reviewing the decision of the probate court under the more stringent standard at law. A case may involve both equitable and legal issues. See Blackmon v. Weaver, 366 S.C. 245, 248-49, 621 S.E.2d 42, 43-44 (Ct.App.2005). However, an appellate court must look to the main purpose of the proceeding in order to determine the standard of review to exact. Gordon v. Drews, 358 S.C. 598, 604, 595 S.E.2d 864, 867 (Ct.App.2004).
Although this action was filed by Wheeler solely in an attempt to approve the contract she had accepted from the Corbetts as PR of Green's estate, Appellants' answer and allegation of a breach of fiduciary duty in Wheeler's handling of the sale of the property became the determinative issue in the hearing before the probate court. Nevertheless, the relief requested in the claim for breach of fiduciary duty was for the Corbetts' contract to be set aside, and the Powers' proffered contract to be approved. See Bivens v. Watkins, 313 S.C. 228, 230 n. 3, 437 S.E.2d 132, 133 n. 3 (Ct.App.1993) ().
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