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Keywords

settlementappealtrialfiduciaryfiduciary duty
settlementappealtrialfiduciaryfiduciary duty

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In re Estate of Howe, 689 N.W.2d 22, 2004 S.D. 118

Facts

Edna Jane Howe died in March 1999, and her son Michael pursued a wrongful death action against a nursing home. The trial court found that Randolph, another son, had become estranged from Edna and had not seen her for several years prior to her death. Michael settled the wrongful death claim without including Randolph, who later sought a share of the settlement proceeds. The trial court ordered a distribution of the proceeds, which led to the appeal by Randolph and his son Lance.

Edna Jane Howe died in March 1999, and her son Michael pursued a wrongful death action against a nursing home. The trial court found that Randolph, another son, had become estranged from Edna and had not seen her for several years prior to her death. Michael settled the wrongful death claim without including Randolph, who later sought a share of the settlement proceeds. The trial court ordered a distribution of the proceeds, which led to the appeal by Randolph and his son Lance.

Issue

Did the trial court err in excluding Randolph from claiming a share of the wrongful death settlement proceeds and in requiring a supersedeas bond from Randolph and Lance?

Did the trial court err in excluding Randolph from claiming a share of the wrongful death settlement proceeds and in requiring a supersedeas bond from Randolph and Lance?

Rule

Under South Dakota law, a wrongful death action is for the exclusive benefit of the decedent's spouse and children, and the personal representative must pursue the claim on behalf of all statutory beneficiaries.

Under South Dakota law, a wrongful death action is for the exclusive benefit of the decedent's spouse and children, and the personal representative must pursue the claim on behalf of all statutory beneficiaries.

Analysis

The court found that the trial court erred in excluding Randolph from the settlement proceeds, as his estrangement did not negate his status as a statutory beneficiary. The court emphasized that Michael, as the special administrator, had a fiduciary duty to pursue the wrongful death claim for all beneficiaries, including Randolph. The court also noted that the trial court's requirement for a supersedeas bond was an abuse of discretion.

The court found that the trial court erred in excluding Randolph from the settlement proceeds, as his estrangement did not negate his status as a statutory beneficiary. The court emphasized that Michael, as the special administrator, had a fiduciary duty to pursue the wrongful death claim for all beneficiaries, including Randolph. The court also noted that the trial court's requirement for a supersedeas bond was an abuse of discretion.

Conclusion

The Supreme Court affirmed the trial court's decision in part but reversed and remanded the case for reconsideration of the distribution of the wrongful death settlement proceeds, emphasizing the need to consider the pecuniary injury of both Randolph and Michael.

The Supreme Court affirmed the trial court's decision in part but reversed and remanded the case for reconsideration of the distribution of the wrongful death settlement proceeds, emphasizing the need to consider the pecuniary injury of both Randolph and Michael.

Who won?

The prevailing party was Randolph Howe, as the Supreme Court ruled in his favor regarding his entitlement to a share of the wrongful death settlement proceeds.

The prevailing party was Randolph Howe, as the Supreme Court ruled in his favor regarding his entitlement to a share of the wrongful death settlement proceeds.

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