Indiana Farmers Mut. Ins. Co. v. Richie
| Decision Date | 16 March 1999 |
| Docket Number | No. 12S05-9903-CV-180,12S05-9903-CV-180 |
| Parties | INDIANA FARMERS MUTUAL INSURANCE COMPANY, Intervenor/Appellant, v. Kevin RICHIE, Plaintiff/Appellee, v. Louis D. Evans, Special Administrator of the Estate of Leanne M. Smith, Deceased, Amanda J. Popejoy, Stephen Popejoy, and Chris Popejoy, Defendants. |
| Court | Indiana Supreme Court |
We hold that a tort claim against a decedent may be pursued to the extent of any applicable liability insurance proceeds if suit is filed within the applicable tort limitations period, notwithstanding limitations of probate law on the time for opening the decedent's estate or filing claims against the estate's assets. We also conclude that under these circumstances an amended complaint substituting the defendant relates back to the filing of the complaint in the absence of prejudice from any delay.
On October 16, 1994, a car driven by Leanne M. Smith collided with a vehicle in which Kevin Richie was riding as a passenger. Smith died on the day of the accident. Richie was injured and precisely two years later, on October 16, 1996, filed a complaint for personal injuries naming "Leanne M. Smith (Deceased)" as a defendant. At the time Richie filed his complaint no estate had been opened for Leanne Smith and no special representative had been appointed.
On November 18, 1996, Smith's automobile liability insurance carrier, Indiana Farmers Mutual Insurance Company ("Indiana Farmers"), moved to intervene in the suit. On the same day Indiana Farmers moved for summary judgment, asserting that the time for opening an estate for Smith had elapsed and no claim could be pursued against her or her estate at this point. On February 7, 1997, Richie petitioned the Clinton Circuit Court to open the Estate of Leanne Smith. That petition was granted and that same date the estate was opened and a special representative appointed. Also on February 7, 1997, Richie moved in the personal injury suit to amend his complaint to change the defendant from "Leanne Smith (Deceased)" to "Louis D. Evans special administrator of the Estate of Leanne Smith." The trial court granted Richie's motion to amended his complaint, denied Indiana Farmers' motion for summary judgment, and certified its order for interlocutory appeal.
The majority in the Court of Appeals held that Richie's claim was barred, reasoning that (1) Richie's petition was not effective to open Smith's estate because, after the statute of limitations had expired, he was not an "interested person" with standing to open the estate under Indiana Code § 29-1-7-4, and (2) the amended complaint did not relate back to date of original filing and because no estate existed until after the statute of limitations had run the claim was barred. Indiana Farmers Mut. Ins. Co. v. Richie, 694 N.E.2d 1220 (Ind.Ct.App.1998). Judge Bailey dissented. There are no disputed material facts and this appeal presents only a question of law.
Indiana Farmers contends that Richie's claim is barred by Indiana Code § 29-1-14-1(f) because that section requires that Smith's estate be opened within the statute of limitations governing tort actions. Richie contends that the only requirement of section 29-1-14-1(f) is that the action be filed within the tort statute of limitations.
Section 29-1-14-1 of the Probate Code contains three relevant time limitations. First, subsection (d) bars all claims against a decedent's estate unless the estate is opened within one year after death. Second, as a general matter, subsection (a) bars all claims unless they are filed within five months after the first published notice to creditors or three months after the court has revoked probate of a will. Finally, and central to this case, subsection (f) contains an exception from these general propositions for tort claims against the decedent. It provides:
Nothing in this section shall affect or prevent the enforcement of a claim for injury to person or damage to property arising out of negligence against the estate of a deceased tort feasor within the period of the statute of limitations provided for the tort action. A tort claim against the estate of the tort feasor may be opened or reopened and suit filed against the special representative of the estate within the period of the statute of limitations of the tort. Any recovery against the tort feasor's estate shall not affect any interest in the assets of the estate unless the suit was filed within the time allowed for filing claims against the estate. The rules of pleading and procedure in such cases shall be the same as apply in ordinary civil actions.
IND.CODE § 29-1-14-1(f) (1998). 1 This subsection preserves "a claim for injury to person" against the estate of a deceased tortfeasor as long as the action is filed within the period of the statute of limitations "provided for the tort action," which in this case is two years from the date of the accident. IND.CODE § 34-11-2-4 (1998). See also Slater v. Stoffel, 140 Ind.App. 131, 221 N.E.2d 688 (1966); 1B HENRY'S PROBATE LAW AND PRACTICE § 10, at 310 (7th ed.1978).
Indiana Farmers points to the Court of Appeals' decision in Pasley v. American Underwriters, 433 N.E.2d 838 (Ind.Ct.App.1982), which disallowed a tort claim filed within statute of limitations because the estate was not opened and a personal representative was not appointed within one year of the decedent's death. Citing Estate of Kuzma v. Peoples Trust & Savings Bank, 132 Ind.App. 176, 176 N.E.2d 134 (1961), which predated current subsection (f), Pasley held that tort claims are barred if the decedent's estate is not opened and the suit is filed as a claim against the estate within one year of the date of decedent's death. Pasley concluded that this requirement was not changed by the addition of subsection (f) to the statute. Pasley, 433 N.E.2d at 840.
Pasley is inconsistent with several subsequent decisions of the Court of Appeals. Langston v. Estate of Cuppels by Miller, 471 N.E.2d 17 (Ind.Ct.App.1984), involved an estate that was opened, but no tort suit was filed within the five month claim period. The court held that the plaintiff's tort claim filed within the two year statute of limitations was not barred by section 29-1-14-1, observing that subsection (f) limits the recovery to insurance proceeds if no claim is filed within the five month limit. Id. at 20; see also Serban v. Halsey, 533 N.E.2d 162 (Ind.Ct.App.1989) (); Shearer v. Pla-Boy, Inc., 538 N.E.2d 247 (Ind.Ct.App.1989) (). In each of these decisions either the decedent's estate was open at the time the tort statute of limitations expired or another rule of procedure tolled the statute of limitations. None dealt with the facts presented in this case, where the tort action was filed within the statute of limitations but the estate of the decedent was not opened until after the statute of limitations had expired. 2
Indiana Farmers contends that section 29-1-14-1(f) requires a tort claimant to open the decedent's estate before the statute of limitations has expired. In support of this view, Indiana Farmers observes that subsection (f) preserves claims "against the estate" for the tort limitations period. This, Indiana Farmers argues, implies that the estate must be opened within that period. Second, Indiana Farmers argues that the second sentence authorizes the opening or reopening of the estate only if it is within the tort limitations period. Both points reflect permissible readings of the statute. Neither however is persuasive in light of the overall statutory framework.
The statute is not a model of clarity. The first sentence of subsection (f) states that none of the requirements of section 29-1-14-1 "shall affect or prevent the enforcement of a claim for injury ... within the period of the statute of limitations." The third sentence limits claims against estate assets to those filed within five months of the period found in subsection (a). The purpose of the five month requirement is to permit the administrator to know the assets and potential liabilities of the estate and facilitate prompt payment of the claims to wrap up the estate. Permitting tort claims to pursue insurance proceeds, but not estate assets is fully consistent with these goals. So far, so good.
Indiana Farmers points to the second sentence, however. It provides that: "[a] tort claim against the estate of the tort feasor may be opened or reopened and suit filed against the special representative of the estate within the period of the statute of limitations of the tort." It seems somewhat odd usage to say a "tort claim" may be "opened or reopened" in a statute that elsewhere speaks of the opening of an "estate." 3 However the most practical reading is that a tort suit may be instituted at any time within the applicable tort limitation period. As a matter of syntax only, the section is not wholly clear whether the tort limitations period (1) applies only to the filing of the suit or (2) also limits the period for appointing the special representative. Because we can see no purpose and do discern some mischief in a requirement that the appointment be accomplished before the running of the statute, we choose the first interpretation. By adding subsection (f), the legislature clearly intended to exempt tort actions for liability insurance proceeds from the requirements of the...
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