Thompson's Estates, Matter of

• Decision Date: 27 October 1979
• Docket Number: No. 49860,49860
• Citation: 226 Kan. 437,601 P.2d 1105
• Parties: In the Matter of the ESTATES of Kenneth E. THOMPSON and Gertrude Thompson. Glenn B. THOMPSON et al., Appellants, v. James I. LANE, Appellee.
• Court: Kansas Supreme Court

Page 1105

601 P.2d 1105

226 Kan. 437

In the Matter of the ESTATES of Kenneth E. THOMPSON and

Gertrude Thompson.

Glenn B. THOMPSON et al., Appellants, v. James I. LANE, Appellee.

No. 49860.

Supreme Court of Kansas.

Oct. 27, 1979.

Syllabus by the Court

1. When the record on appeal consists of stipulated facts and documentary evidence an appellate court stands in the same position as the trial court in determining what is shown.

2. In order for a mistake to have legal significance and to constitute a basis for invalidating a compromise settlement agreement, it must be based upon the parties' unconscious ignorance and not related to one of the uncertainties of which the parties were conscious and which it was the purpose of the compromise to resolve and put at rest. Relief will not be granted for a mistake in prophecy, opinion or in belief relative to an uncertain event.

3. Family settlement agreements are favorites of the law and, when fairly made, are to be given liberal interpretation and should not be disturbed by those who entered into them.

4. Where parties enter into a family settlement agreement with the intention to resolve and put to rest all disputes among them and where the existence of an original will of one of the deceased members of the family was one of the uncertainties involved, the settlement will not be set aside because such original will was subsequently found under the facts and circumstances shown to exist.

Robert K. Scovel, of Scovel, Emert & Heasty, Independence, argued the cause and was on the brief for the appellants.

John M. Wall, Sedan, argued the cause and was on the brief for the appellee.

KAUL, Justice:

This is an appeal from rulings of the district court setting aside a compromise settlement agreement on the ground of mutuality of mistake and overruling the appellants' motion for summary judgment. The settlement agreement stemmed from issues framed by the parties in probate proceedings initiated in the probate court in the estates of Gertrude Thompson, deceased, Kenneth E. Thompson, deceased, and an action filed in the district court entitled "Glenn B. Thompson v. James I. Lane." For purposes of this appeal the three matters have been consolidated because the parties agree the issues in each case are common to those in the other cases and the decision herein would be dispositive of all issues involved. The appellants are heirs at law of Kenneth E. Thompson. The appellee is an heir at law of Gertrude Thompson and a beneficiary under the wills of both Kenneth and Gertrude. All of the parties have claimed an interest in all or part of both estates.

The litigation involves two estates. The first is that of Gertrude Thompson who died December 5, 1972, leaving a will dated December 19, 1968, in which she left a life estate in certain real estate to her husband, Kenneth, and the remainder to her nephew, James I. Lane, appellee herein. The residue of her estate was bequeathed by Gertrude to her husband, Kenneth. Gertrude's will was not found until June of 1974. On June 18, 1974, James I. Lane filed a petition in probate court to admit Gertrude's will to probate. In the meantime Kenneth Thompson and James I. Lane had reached an agreement for the sale of the real estate in which Gertrude had bequeathed a life estate to Kenneth. Determination of descent proceedings were instituted and concluded in which the probate court decreed that Kenneth was the sole heir at law of Gertrude.

Kenneth E. Thompson died on April 17, 1974, and a search for his will was made. No original will was found but a copy of a will was in the possession of the attorney who drafted it. On May 20, 1974, the appellee filed a petition in probate court to admit the copy of the will to probate. No notice of hearing was given to appellants who are the heirs at law of Kenneth. Counsel for appellee explains that one of the witnesses to the will was a nonresident and until arrangements were made to take her deposition no time for hearing on the petition to probate was fixed and thus no notice had been given. A deposition of the witness was subsequently taken without notice to the Thompson heirs.

On May 23, 1974, a petition was filed by one of the appellants, Glenn B. Thompson, for the appointment of an administrator of Kenneth's estate.

A hearing was had in which the probate court denied the petition for the appointment of an administrator and admitted the copy of the will to probate on the petition of appellee Lane. On appeal, the order of the probate court was overruled by the district court for procedural reasons and the matter was remanded to probate court. At this juncture of the proceedings counsel commenced negotiations for a settlement of all matters in dispute.

Concerning the negotiations leading up to the settlement, the agreed statement of facts reads in pertinent part as follows:

"Negotiations were entered into by and between the counsel for all parties for the purpose of settling all claims and disputes concerning both the Kenneth E. Thompson estate and the Gertrude Thompson estate. Several letters were written between counsel and, on June 30, 1975, counsel for James I. Lane wrote counsel for the heirs of Kenneth E. Thompson a letter stating that all disputes could be settled by James I. Lane through the estate making payment to the heirs of Kenneth E. Thompson of the sum of $26,500, settling all disputes in both estates. A stipulation was entered into on July 16, 1975, which stipulation recited the order of the Probate Court admitting the last will and testament of Kenneth E. Thompson and denying the petition for the appointment of an administrator had been reversed and that the petition to admit to probate the last will and testament of Gertrude Thompson had been transferred to the District Court, that the heirs of Kenneth E. Thompson claimed an interest in and to all or a part of both estates, and that it was the desire of the parties to determine their respective interests and settle all issues. The inventory filed by James I. Lane in the estate of Kenneth E. Thompson, deceased, showed a total appraised value of $67,300.51. The heirs of Kenneth E. Thompson agreed to settle their respective claims to both estates for the sum of $26,500. In addition to the items set out in the inventory, the heirs of Kenneth E. Thompson were disputing a conveyance by Gertrude Thompson and Kenneth Thompson, her husband, Marjorie Brown Lane and Maurice Lane, her husband, quitclaiming unto Willa Brown as grantee certain real estate in Chautauqua County, Kansas, not contained in the inventory and appraisement in the estate of Kenneth E. Thompson. This deed was dated April 13, 1972, but was not filed of record until May 21, 1975, at 3:05 p. m., subsequent to Kenneth E. Thompson's death on April 17, 1974. A copy of the stipulation, petition for its approval, order approving settlement, and order appointing James I. Lane executor of the estate of Kenneth E. Thompson, are filed hereto and marked Exhibits 10, 11, 12 and 13.

"A check for $26,500 was delivered to the attorney for the heirs of Kenneth E. Thompson and, on the same date, to-wit, July 17, 1975, the heirs filed their disclaimer to the estate of Gertrude Thompson, deceased. (see Exhibit 14 attached hereto) And, on said date, James I. Lane was appointed executor and Letters Testamentary were issued to him.

"On July 18, 1975, the original last will and testament of Kenneth E. Thompson was found and payment upon the check drawn on the First National Bank of Sedan, Kansas, was stopped."

Appellee proceeded to file his petition for admission of the original will to probate and to set aside the settlement agreement and the order of the district court approving the same. The matter was submitted to the district court on an agreed statement of facts and briefs of the parties. The district court found the settlement agreement should be set aside announcing its findings as follows:

"That the compromised settlement entered into between the parties may be set aside by reason of mutuality of mistake. It is the Court's feeling that at the time of the settlement between the heirs of Kenneth E. Thompson and of James I. Lane, the parties were acting on the basis that the original Will had been lost or destroyed. This now by the...