Jacobson v. Estate of Clayton
Jacobson v. Estate of Clayton
Opinion of the Court
OPINION
In this appeal, we revisit our 1969 decision in Bodine v. Stinson,
FACTS
In September 2001, California resident Daniel Clayton was involved in an automobile collision in Washoe County, Nevada. Apparently, Clayton’s vehicle, while towing a trailer, crossed the median and crashed head on into a vehicle in which Carson City,
The Estate filed a third-party complaint against McDonald’s Travel ‘N’ Fun, the company that owned the trailer Clayton was towing when the accident occurred, for indemnity and contribution. McDonald’s moved to dismiss the complaint and the third-party complaint for lack of subject matter jurisdiction, arguing that appellants had failed to follow the probate procedures of NRS Chapter 147. The district court dismissed the complaint without prejudice. Appellants then filed a second complaint, still maintaining that they were not required to proceed through probate but also attempting to substantially comply with probate requirements before the statute of limitations for personal injury actions expired. The district court dismissed the second complaint, finding that appellants failed to follow probate procedures and that res ju-dicata barred their second action. Appellants challenge the dismissal of both complaints.
DISCUSSION
Appellants argue that no formal probate was required because the decedent’s only asset in Nevada is the proceeds of an automobile liability insurance policy. According to appellants, the district court erred in relying on Bodine v. Stinson,
Previously, we have recognized that “[statutory interpretation is a question of law reviewed de novo.”
The district court dismissed the complaint based on our 1969 Bodine decision. In Bodine, plaintiffs in a wrongful death action sued the special administrator of the defendant decedent’s estate, alleging that various assets existed, including a liability insurance policy. This court held that, although a special administrator has authority to act regarding wrongful death claims, a special administrator is not liable to estate creditors and cannot pay creditors’ claims. Therefore, a special administrator is not a “legal representative” subject to suit under the wrongful death survival statute.
The following year, in Klosterman v. Cummings, we reiterated our Bodine holding and again determined that a suit against the special administrator of a decedent’s estate was barred.
A year later, the Legislature added the following emphasized language to NRS 140.040(3):
In no case shall the special administrator be liable to an action by any creditor, on any claim against the estate, nor pay any claim against the deceased, except for claims invblving wrongful death, personal injury or property damage where the estate contains no assets other than a policy of liability insurance,10
Thus, after the 1971 amendment, NRS 140.040(3) permits the special administrator to pay wrongful death, personal injury, and property damage claims when the estate’s only asset is a liability insurance policy. NRS 140.040(3) promotes judicial economy and efficient resolution of claims by enabling a plaintiff with such claims to avoid lengthy, costly, formal probate procedures when the sole asset is a liability insurance policy.
Therefore, NRS 140.040(3), as amended, supersedes our decision in Bodine. Here, decedent’s Nevada estate contains only a liability insurance policy, and therefore, appellants properly proceeded against the Estate through the special administrator to recover damages for their injuries. Thus, the district court erred in dismissing appellants’ first complaint.
CONCLUSION
The current language of NRS 140.040(3) supersedes this court’s decision in Bodine v. Stinson. Therefore, the district court erred in concluding that, pursuant to Bodine, appellants should have pursued the formal probate proceedings of NRS Chapter 147. Under NRS 140.040(3), the special administrator may pay appellants’ personal injury claim because the sole asset in the Nevada estate is a liability insurance policy. Accordingly, in Docket No. 42082, we reverse the district court’s order dismissing appellants’ complaint and remand for further proceedings. Because we have determined that the district court erred in dismissing the first complaint, we dismiss as moot the appeal in Docket No. 42716 from the district court’s order dismissing the second complaint.
85 Nev. 657, 461 P.2d 868 (1969).
Construction Indus. v. Chalue, 119 Nev. 348, 351, 74 P.3d 595, 597 (2003).
86 Nev. 684, 476 P.2d 14 (1970).
1971 Nev. Stat., ch. 361, § 1, at 648.
Reference
- Full Case Name
- TONY ALLEN JACOBSON and AMOREENA VICTORINE v. ESTATE OF DANIEL JAMES CLAYTON, Respondent TONY ALLEN JACOBSON and AMOREENA VICTORINE v. ALAN GLOVER, Administrator of the ESTATE OF DANIEL JAMES CLAYTON, Deceased and KEMPER INSURANCE COMPANIES, INC.
- Cited By
- 1 case
- Status
- Published