ATTORNEY FOR APPELLANT ATTORNEYS FOR APPELLEE
Robert E. Canfield Jere L. Humphrey
South Bend, Indiana Mark E. Wagner
KIZER & NEU
Plymouth, Indiana
IN THE MATTER OF THE ESTATE )
OF CHARLES EARNEST DECKER, ) Supreme Court No.
DECEASED, ) 71S03-9511-CV-01317
Defendant-Appellant, )
)
v. ) Court of Appeals No.
) 71A03-9410-CV-389
FARM CREDIT SERVICES OF )
MID-AMERICA, ACA, )
Plaintiff-Appellee. )
________________________________________________
DICKSON, J.
This case involves the continued litigation surrounding the plaintiff-appellee's,
Farm Credit Services ("FCS"),See footnote
1
attempt to file a claim against the defendant-appellant,
Estate of Decker, more than one year after the decedent had died, in violation of Indiana
Code Section 29-1-7-7(e) (1993).See footnote
2
The trial court denied the claim as untimely filed,
notwithstanding the fact that FCS did not receive actual notice of the estate as required by
Indiana Code Section 29-1-7-7(d).See footnote
3
The Court of Appeals reversed,
finding that the
provision in question was a statute of limitation, not a nonclaim statute, and therefore
equity may allow an extension of time.
Farm Credit Services of Mid-America, ACA v.
Estate of Decker, 624 N.E.2d 491 (Ind.Ct.App. 1993)
.
The court remanded, instructing
the probate court to determine whether equity permitted FCS to assert a claim against the
estate. Transfer to this Court was not sought and the probate court found in favor of FCS.
Upon appeal by the estate, the Court of Appeals affirmed. Estate of Decker v. Farm
Credit Services of Mid America, ACA, 653 N.E.2d 534 (Ind.Ct.App. 1995). Having
granted transfer, we are called upon to decide whether equity should prevent the filing of
this claim. We conclude that it should not because Indiana Code Section 29-1-7-7(e) is a
strict nonclaim statute rather than a statute of limitations subject to equitable tolling.
The statute in question prescribes a time limit of one year after the death of the
decedent for the filing of claims against the estate. Ind. Code § 29-1-7-7(e) (1993); Ind.
Code § 29-1-14-1(d) (1993). This one-year limitation period applies whether the creditor
has received proper notice, improper notice, or no notice at all, and it is this provision
which is at issue.
Accord Estate of Jenkins v. Guyton, 912 S.W.2d 134, 138 n.3 (Tenn.
1995).
We disagree with the Court of Appeal's conclusion that this one-year limitation
provision is a statute of limitation rather than a nonclaim statute.
The distinction between
nonclaim statutes and statutes of limitation is explained in Donnella v. Crady, 135
Ind.App. 60, 185 N.E.2d 623 (1962):
[A] nonclaim statute . . . grants to every person having a claim of any kind
or character against a decedent's estate, the right to file the same in the
court having jurisdiction thereof and have the same adjudicated, provided
such claim is filed within the time specified in the statute. Unless such
claim is filed within the time so allowed by the statute, it is forever barred.
The time element is a built-in condition of the said statute and is of the
essence of the right of action. Unless the claim is filed within the
prescribed time set out in the statute, no enforceable right of action is
created.
While such statutes limit the time in which a claim may be filed or an action
brought, they have nothing in common with and are not to be confused with
general statutes of limitation. The former creates a right of action if
commenced within the time prescribed by the statute, whereas the latter
creates a defense to an action brought after the expiration of the time
allowed by law for the bringing of such an action.
Id. at 62-63, 185 N.E.2d at 624. Thus, the statute is a nonclaim statute when "there is clearly evidenced a legislative intent in [the] statute to not merely withhold the remedy, but to take away the right of recovery where a claimant fails to present his claim as provided in the statute." Rising Sun State Bank v. Fessler, 400 N.E.2d 1164, 1166 (Ind.Ct.App. 1980). W hile equitable principles may extend the time for commencing an action under statutes of limitation, nonclaim statutes impose a condition precedent to the enforcement of a right of action and are not subject to equitable exceptions. See Id.;
Anson v. Anson's Estate, 399 N.E.2d 432, 435 (Ind.Ct.App. 1980); Donnella, 135
Ind.App. at 63-64, 185 N.E.2d at 625.
Prior to the amendments in 1990, the statutes in question were unequivocally
nonclaim statutes, Anson, 399 N.E.2d at 434
, with the time element a built-in condition of
the right of action. The pertinent amendments to Indiana Code Section 29-1-7-7 include
the addition of subsection (e), which establishes the time frame within which notice must
be given:
Notice . . . shall be served within three (3) months after the first publication
of notice [of estate administration] or as soon as possible after the elapse of
three (3) months. If the personal representative or the personal
representative's agent fails to give notice to a known or reasonably
ascertainable creditor of the decedent . . . within three (3) months after the
first publication of notice [of estate administration], the period during which
the creditor may submit a claim against the estate includes the period
specified under IC 29-1-14-1 and an additional period ending two (2)
months after the date notice is given to the creditor . . . However, a claim
subject to this subsection may not be filed more than one (1) year after the
death of the decedent.
Ind. Code § 29-1-7-7(e) (1993). Amendments to Indiana Code Section 29-1-14-1 included the change in subsection (d) from "All claims barrable . . . shall in any event be barred if administration of the estate is not commenced within one (1) year after the death of the decedent" to "All claims barrable . . . shall be barred if not filed within one (1) year after the death of the decedent." Ind. Code § 29-1-14-1(d) (1993) (emphasis added). These additions and changes do not transform the one-year time limitation from a prerequisite condition for asserting claims (nonclaim) to a defense when an action is brought after the expiration of the time limitation (statute of limitation). It clearly
remains a nonclaim provision and general principles of equity do not apply, as the court is
without power to extend the time limits prescribed by a nonclaim statute. We therefore
overrule Farm Credit Services.
In addition, because the one-year provision is self-executing, the federal Due
Process Clause is not implicated. See
Tulsa Prof'l Collection Services, Inc. v. Pope, 485
U.S. 478, 487, 108 S.Ct. 1340, 1346, 99 L.Ed.2d 565, 576 (1988) ("The State has no role
to play beyond enactment of the limitations period. While this enactment obviously is
state action, the State's limited involvement in the running of the time period generally
falls short of constituting the type of state action required to implicate the protections of
the Due Process Clause."). Therefore, actual notice is not required
prior to the
termination of a claim under Indiana Code Section 29-1-7-7(e).
See footnote
4
Id.
We now remand this cause to the St. Joseph Probate Court with instructions to
dismiss the FCS claim as untimely filed.
SHEPARD, C.J., and SULLIVAN, SELBY, and BOEHM, JJ., concur.
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