In re Peers' Estate
| Decision Date | 08 February 1944 |
| Docket Number | 46389. |
| Citation | 12 N.W.2d 894,234 Iowa 403 |
| Parties | In re PEERS' ESTATE. |
| Court | Iowa Supreme Court |
George O. Van Allen, of Mt. Pleasant, pro se, for appellant.
John M. Rankin, Atty. Gen., and Floyd Philbrick, First Asst. Atty Gen., for appellee State of Iowa.
Ben A. Galer, Co. Atty., of Mt. Pleasant, for appellees Henry County, and John P. Brown, County Treasurer, Henry County.
Imogen B. Emery, of Cedar Rapids, for Laura S. Peers Teed, Ida Mae Gates, Theresa Catherine Lane, and Charles C. Peers.
The administrator de bonis non, of the estate of Irene Peers, has appealed from an order of the district court, which allowed a claim of the State of Iowa filed in this estate, for the care of Irene Peers as a state patient in the Mount Pleasant state hospital. The administrator de bonis non, as appellant, contends that the claim of the state was not filed and presented within the limit of time for filing claims of the fourth class, as set forth in section 11972 of the 1935 Code of Iowa. The court held that the provisions of this section were not applicable to the State of Iowa, that the state's claim was not barred, and that it should be allowed. This is the sole question on appeal.
A summary of the facts and the pleadings filed, as disclosed by the record presented, is as follows Irene Peers was admitted to the Mount Pleasant state hospital, a state institution for the care and treatment of insane persons, on or about November 22, 1924, as a state patient. Code section 3581(2), 1924 Code of Iowa. When a commitment is made of a patient "who has no legal settlement in this state, or whose legal settlement is unknown," payment for the person's care at a state hospital for the insane shall be made by the state rather than by the particular county from which commitment is made. Section 3591, 1924 Code of Iowa. Irene Peers remained in the Mount Pleasant state hospital as a patient until the time of her death, which occurred on November 3, 1937. On this same date an administrator of her estate was appointed. On February 15, 1938, an order was entered in the estate proceedings, directing the administrator, after the payment of costs and claims, to pay the balance remaining in his hands, to the county treasurer of Henry County, Iowa, for the benefit of the school fund, if, within six months after the giving of notice of such intention to make payment to the county treasurer, no heirs of Irene Peers appear to claim an interest in the estate. Code, sections 12035, 12038, 12039, 4470, 1935 Code of Iowa. On February 8, 1939, the final report of the administrator was filed in this estate, wherein it was stated that the sum of $1598.73 had been paid to the county treasurer of Henry County, Iowa, for the benefit of the school fund, and on February 16, 1939 the court entered an order of discharge of the administrator of the estate of Irene Peers.
On May 18 1943, there was filed in the Irene Peers estate, an application alleging that the parties named therein were brothers and sisters of the decedent and asked for a distribution of the funds held by the county treasurer to these parties. On May 18, 1943, the court entered an order stating that the estate was reopened for the purpose of passing on the application of the alleged heirs also on a certain claim of the State of Iowa, and for the further purpose of determining the question of any unpaid inheritance tax due the State of Iowa. An administrator de bonis non was appointed, who thereafter qualified. The record further discloses that on May 28, 1943, the State of Iowa filed a claim which alleged that Irene Peers had been admitted to the Mount Pleasant state hospital as a patient at large and that the cost of maintaining her at said institution, during the period she was there confined, was $2894.53, which amount was unpaid, and asked that the claim be allowed. A resistance was filed by the administrator de bonis non wherein he alleged that the year for filing claims in the original administration expired on November 3, 1938, that said administration was closed, that no claim was filed by the State of Iowa against the estate until May 28, 1943, and that under the provisions of section 11972 of the 1935 Code of Iowa, this claim was barred by reason of the state's failure to file the same within twelve months from the date of giving notice of the appointment of the original administrator. It is further alleged that the State of Iowa, through the superintendent of the state hospital at Mt. Pleasant, had full knowledge of the existence of the claim, of the death of Irene Peers, and of the original opening of the estate, and that by reason of the negligence of the state it was estopped from asserting its claim. The administrator de bonis non asked that the claim be disallowed.
On June 1, 1943, the matters then pending were submitted to the court on an agreed stipulation of facts and on June 28, 1943, the trial court filed a memorandum opinion, wherein it held that the county treasurer should pay to the administrator de bonis non the funds received from this estate, and that the claim of the State of Iowa in the sum of $2894.53 should be allowed and established as a claim of the fourth class. A judgment confirming the ruling of the trial court was thereafter entered.
I. The application relative to the reopening of the estate developed by reason of the claimed interest of certain heirs in the property which otherwise would escheat for the benefit of the school fund. In a similar proceeding disclosed in the case of Joy v. Woodbury Sav. Bank, 226 Iowa 1251, 1255, 286 N.W. 443, 445, this court held that the notice to claimants and heirs in an escheat proceedings was not a new invitation to creditors to claim the money on hand and therein held that the word "claimant" as used in the escheat proceedings referred to persons interested in the estate as heirs and not creditors. Although the claimant in the last cited case was not the State of Iowa, this court there said, in regard to a general claimant: "Claimant does not purport to advise us what authority the court would have to extend the period of limitations in 'a new invitation to creditors' to file claims against the estate."
This holding would have application and be controlling in the instant case unless we conclude that the provisions of section 11972 of the 1935 Code of Iowa have no application to the State of Iowa on the theory that a statute of limitations or non-claim does not apply to the state.
II. The manner in which an estate shall be administered in the State of Iowa is prescribed by the statute and the manner and order in which expenditures shall be made, on behalf of an estate, are specifically set out in the code. Section 11969 of the 1935 Code of Iowa, provides that costs of administration shall be a first claim against an estate, then, charges of last sickness and funeral of deceased shall be paid and third, any allowance made by the court for the maintenance of the widow and minor children. Section 11970 of the 1935 Code of Iowa relates to the order of payment of other claim obligations of the estate and directs that they be paid in the following order:
Section 11972 of the 1935 Code of Iowa provides that claims of the fourth class "not filed and allowed, or if filed and notice thereof, ***, is not served within twelve months from the giving of the notice aforesaid, will be barred, except ***, or unless peculiar circumstances entitle the claimant to equitable relief."
The record in the matter now before us on appeal shows that no claim on behalf of the State of Iowa was filed within the twelve month period as provided by section 11972 and no peculiar circumstances have been pleaded that would entitle the state, as a claimant, to equitable relief, and unless we hold that this statute is not applicable to the State of Iowa its claim must of necessity be held to be filed too late. It will be observed by reference to code section 11970(1) of the 1935 Code of Iowa, that debts entitled to preference under the laws of the United States shall have first priority in the payment of debts and claims noted under that section. Under the federal statute and under the holding of federal courts there is no necessity of filing claims wherein the United States is a party and claimant. See 31 U.S.C.A. § 191 and note 30; 31 U.S.C.A. § 192, and note 3. Section 11970 further provides that public rates and taxes shall have second priority in payment.
In the case of In re Estate of Wagner, 226 Iowa 667, 672, 284 N.W. 485, 488, in connection with the claim of a county, it is stated: "There is nothing in the provisions of this chapter which would warrant the court in labeling the expense of the care and keep of an insane patient a public rate within the provisions of Section 11970 of the Code. ***"
However, the statute now has been amended and claims for the care and assistance of persons committed to a state hospital for the insane "shall be allowed as a claim of the second class against the estate of such decedent." 48 G.A., Chapter 98, § 4, June 1, 1939, now Code section 3604.6, 1939 Code of Iowa.
It will thus be observed that the present claim for the care of the decedent by the state cannot be and was not considered by the trial court under the statutes then in effect on the same basis as claims of the second class. It was held to be timely filed as a claim of the fourth class. We have concluded...
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