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Keywords

contractbreach of contractjurisdictionappealmotionprobate
contractstatuteappealprobatewill

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In re Washburn Estate, 195 Mich.App. 42, 488 N.W.2d 787

Facts

Terry Washburn was appointed as the independent personal representative of the estate of Michael B. Washburn, who passed away in 1986. The estate was probated under independent procedures, and notice to creditors was given by publication. No claims were filed, and the estate was closed on March 23, 1988. In March 1989, McCarthy & Associates filed a breach of contract suit against the estate, which led to a motion to reopen the estate in order to pursue their claim.

Terry Washburn, Successor Independent Personal Representative of the Estate of Michael B. Washburn, deceased, appeals by leave granted the June 13, 1990, order of Wayne Probate Judge Thomas A. Maher, reopening the previously closed estate so that petitioner McCarthy & Associates (hereinafter McCarthy) could pursue its contract claim against the estate.

Issue

Whether the U.S. Supreme Court's decision in Tulsa Professional Collection Services, Inc. v. Pope applies retroactively to probate proceedings finalized before that decision, and whether the probate court had jurisdiction to reopen the estate given the creditor's failure to file a claim within the statutory time limit.

The pivotal issue we must decide is whether the Tulsa decision applies retroactively to probate proceedings finalized before that decision was announced on April 19, 1988.

Rule

The court determined that the Tulsa decision does not apply retroactively to probate proceedings finalized before its announcement, and that a creditor's failure to file a claim within the prescribed time limits bars the probate court from reopening the estate.

We hold that the Tulsa decision does not apply retroactively to probate proceedings rendered final before it was decided on April 19, 1988.

Analysis

The court analyzed the retroactive application of the Tulsa decision by applying the standards set forth in Chevron Oil Co. v. Huson, concluding that while the purposes of the Tulsa rule could be furthered by retroactive application, the potential hardships and injustices created by such retroactivity warranted a prospective application only. Furthermore, the court found that the creditor's claim was barred due to the failure to file within the statutory time limits, which rendered the probate court without jurisdiction to hear the petition to reopen the estate.

Applying these standards, we must initially determine whether Tulsa established a new principle of law. In Tulsa, the Court addressed a question of first impression. In addition, the Court acknowledged that it rejected a practice widely adopted by state legislatures and courts when it stated: 'Such ‘nonclaim statutes' are almost universally included in state probate codes.'

Conclusion

The Court of Appeals reversed the probate court's order to reopen the estate, concluding that the creditor's claim was barred due to the failure to file within the statutory time limits.

Thus, petitioner's claim is barred because he failed to file it within the time limits prescribed by statute.

Who won?

Terry Washburn, Successor Independent Personal Representative of the Estate of Michael B. Washburn, prevailed because the court found that the creditor's failure to file a claim within the statutory time limit barred the reopening of the estate.

The personal representative responded by arguing that Tulsa should not be given retroactive effect, and that, at the very least should not be given total retroactive effect in such a manner that an estate already closed will be allowed to be reopened.

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