In Re Mason, Unpublished Decision (10-25-2004)
In Re Mason, Unpublished Decision (10-25-2004)
Opinion of the Court
{¶ 2} Richard and Wilma Mason had previously been married, but were divorced sometime in 1989. Pursuant to the divorce decree, Richard was required to provide Wilma with periodic support payments, but he never complied with that obligation. On November 18, 1991, Wilma obtained a post-divorce lump sum judgment against Richard for unpaid spousal support from the years 1989 and 1990 in the amount of $22,529.00 plus interest. On August 13, 1992, Wilma acquired another post-divorce lump sum judgment against Richard for past due spousal support from 1991 in the amount of $11,795.00.
{¶ 3} In January of 1994, Rakestraw Rakestraw represented Richard in certain legal matters, but Richard failed to pay the resulting bill. On August 19, 1994, Rakestraw Rakestraw obtained a judgment against Richard for unpaid legal bills in the amount of $4,251.50 plus court costs and interest.
{¶ 4} Richard's mother, Dorothy Mason, died on December 3, 1999. Her will was admitted to probate on January 10, 2000, and Richard Mason was listed in her will as an heir and devisee of her estate. On June 12, 2000, Rakestraw Rakestraw revived its 1994 judgment against Richard. On October 3, 2000, Rakestraw Rakestraw filed a garnishment for property other than personal earnings against Richard in the amount of $9,133.85, which was then served on the executrix of Dorothy's estate.
{¶ 5} On October 31, 2001, the Hancock County Child Support Enforcement Agency ("HCCSEA"), filed a motion to intervene on behalf of Wilma in the probate of Dorothy's estate. HCCSEA presented the executrix of Dorothy's estate with a creditor's bill in the amount of $73,481.29, representing the sum Richard owed Dorothy on the two previously obtained judgments for past due spousal support and interest. That same day, the trial court granted an order prohibiting the distribution of any funds to Richard out of Dorothy's estate without authorization.
{¶ 6} On February 7, 2002, the executrix petitioned the trial court for authorization to distribute funds to Richard. On February 12, 2002, a home in Dorothy's estate was sold, resulting in approximately $60,000.00 becoming available for distribution to Dorothy's heirs. The executrix determined that Richard's share from the sale was approximately $15,000.00.
{¶ 7} On February 15, 2002, Rakestraw Rakestraw filed a motion to intervene in the probate of Dorothy's estate to present a claim against Richard's interest in the estate in the nature of a creditor's bill. On March 4, 2002, this motion was granted.
{¶ 8} On March 7, 2002, Appellee, Lila Fagan, obtained a judgment against Richard in the amount of $40,000.00 plus interest. On March 12, 2002, Fagan filed a garnishment for property other than personal earnings against Richard for the full $40,000.00. That garnishment was then served on the executrix of Dorothy's estate.
{¶ 9} On March 14, 2002, the executrix of Dorothy's estate received a form on behalf of Wilma from HCCSEA entitled, "Order/Notice To Withhold Income For Child Support." On April 4, 2002, Wilma revived both of the judgments she had previously obtained against Richard.
{¶ 10} On April 26, 2002, Fagan filed a motion to intervene in the probate proceedings regarding Richard's share of Dorothy's estate. She presented her claim in the nature of a creditor's bill.
{¶ 11} On October 16, 2002, the attorney for Dorothy's estate filed an affidavit with the probate court. The affidavit stated that the executrix of the estate had $15,000.00 available for distribution to Richard. This amount resulted from the February 12, 2002 sale of a home in Dorothy's estate.
{¶ 12} The trial court reviewed the facts of the case and the relevant law and found that the $15,000.00 should be made available to the parties to satisfy their various judgments against Richard in the following order: first, Fagan; second, Rakestraw Rakestraw; and third, Wilma. From this judgment Wilma appeals, presenting four assignments of error for our review. Additionally, Rakestraw Rakestraw have filed a cross-appeal, presenting one assignment of error for our review.
{¶ 13} Because of the nature of the assignments of error, we elect to address them out of order.
{¶ 15} A judgment that is not executed upon within five years after its issuance becomes dormant and is no longer a valid judgment. R.C.
{¶ 16} It is undisputed that Wilma had her unpaid installment support orders from the years 1989, 1990, and 1991 reduced to two lump sum judgments. It is also undisputed that Wilma never executed upon either of her judgments against Richard within five years after the issuance of these lump sum judgments. According to well established law, Wilma's lump sum judgments were subject to the dormancy and revivor statues and became dormant five years after they were issued. Furthermore, Wilma did not revive her judgments until April 4, 2002; over five months after she had filed her creditor's bill. Therefore, Wilma's judgments were dormant at the time she attempted to attach Richard's interest through a creditor's bill.
{¶ 17} Accordingly, we overrule Wilma's second assignment of error and affirm the judgment of the trial court.
{¶ 19} Rakestraw Rakestraw asserts that because the executor is statutorily allowed to disperse funds at any time, a legatee's interest becomes subject to garnishment immediately after an executor is appointed. Alternatively, Rakestraw Rakestraw argues that a legatee's interest becomes attachable through garnishment once the legatee has the statutory right to petition the probate court to force distribution.
{¶ 20} A creditor's bill is well recognized as an equitable remedy. Union Properties, Inc. v. Patterson et al. (1944),
{¶ 21} On the other hand, a garnishment is an action at law. Id. In a garnishment the judgment creditor seeks satisfaction of his debt out of an obligation owed to the judgment debtor by a third party. Id.
{¶ 22} In Orlopp v. Schueller (1905),
{¶ 23} In interpreting the above case law, the probate court appropriately noted that subsequent to the holdings in Orlopp
and Union Properties there have been statutory changes to the Ohio Revised Code that have altered the probate process. Under the old statute, any distribution of assets from a decedent's estate required the approval of the probate court through an order of distribution. G.C. 10509-182. The current statute, R.C.
{¶ 24} The probate court herein relied on the Eighth District's decision in Fidelity and Deposit Company of Marylandv. Walton House (June 14, 1979), 8th Dist. No. 39003. InFidelity, the Eighth District addressed Orlopp and whether an order of distribution was still required before a garnishment could attach to a legatee's interest. The Court held that, "where the sum to be received is definite and not subject to any contingencies which could defeat the heir's interest, an order of distribution by the probate court is not necessary in order for the money to become the property of the heir." In discussing the holdings in both Orlopp and Fidelity, the probate court found that "a testamentary gift does not become the property of a distributee, and thus does not become subject to attachment, until the distributee's right to possess that gift becomes certain. Before such time, the right of the legatee to possess a testamentary gift is merely a contingency, and a creditor's bill is the only means to reach it." Judgment entry of the probate court, page 3.
{¶ 25} The probate court went on to discuss R.C.
{¶ 26} The probate court's ruling focused on portions ofOrlopp that cite the presence of unknown creditors of the estate as a factor that makes a legatee's interest in the estate contingent prior to distribution. Orlopp,
{¶ 27} The distinction the Supreme Court drew in Orlopp was the difference between an equitable claim and a legal claim. While the estate is unsettled and the property to be distributed to the legatee is undetermined, the legatee's claim remains in the hands of the executor and is an equitable claim subject to attachment only through a creditor's bill. However, once the executor has in his possession a definite amount ready for distribution to the legatee, the claim becomes legal and is subject to a garnishment action.
{¶ 28} Rakestraw Rakestraw asserts that the statutory language in R.C.
{¶ 29} Alternatively, Rakestraw Rakestraw argues that R.C.
{¶ 30} Accordingly, we hold that a legatee's interest in an estate remains equitable, and thus only attachable through a creditor's bill, until such time as the executor has a definite amount ready for distribution to the legatee. Once this occurs, the legatee's interest becomes legal and may be attached by a garnishment order.
{¶ 31} In this case, a portion of Richard's share of Dorothy's estate became a definite amount ready for distribution on February 12, 2002. On that day, a home was sold by the executrix and she stood ready to distribute a specific sum of money to Richard. Thus, this portion of the estate became a legal interest and subject to garnishment. However, prior to the February 12 sale, this portion of Richard's share of the estate was equitable and could only have been attached by a creditor's bill. Applying this logic to the timeline of events and facts before us, we find that only Wilma filed a creditor's bill prior to February 12 and that only Fagan filed a garnishment after February 12.
{¶ 32} To be enforceable, a creditor's bill must be based upon a valid judgment. Harris v. Craig, 8th Dist. No. 79934, 2002-Ohio-5063, at ¶ 24. As stated earlier in this opinion, Wilma's judgments were dormant at the time she filed her creditor's bill and were no longer valid. Wilma's creditor's bill, while filed at the correct time, was of no force because it was based on dormant judgments. Therefore, Wilma failed to properly attach Richard's interest in the estate.
{¶ 33} That leaves Fagan's garnishment as the only instrument properly attaching to Richard's interest. This is in accordance with the trial court's udgment finding that Fagan had first priority to the funds from the February 12 sale. Furthermore, we agree with the probate court's finding that as between Wilma and Rakestraw Rakestraw, Rakestraw Rakestraw was the first to revive its judgment and to file any action against Richard's share of the estate. Consequently, we uphold the judgment of the trial court finding that Rakestraw Rakestraw should be afforded second priority.
{¶ 34} Accordingly, we find the judgment of the trial court holding that one year after a decedent's death a legatee's interest automatically becomes an attachable legal interest is in error. However, we also find that the trial court correctly determined the order of priority among the parties as to the $15,000.00 that was available for distribution after February 12. Therefore, although the reasoning of the trial court was flawed, the outcome was correct, and we affirm the judgment of the trial court based upon different grounds.
{¶ 36} Furthermore, Wilma's reliance on the form filed by HCCSEA entitled "Order/Notice To Withhold Income For Child Support" is inappropriate. The record before us shows that Wilma's judgments against Richard are based solely on delinquent spousal support. Nowhere in the record is it indicated that Richard ever owed Wilma any amount for delinquent child support. Indeed, Wilma never even attempts to put forward this argument. Child support orders and awards of spousal support are inherently different in nature. Woodrome v. Woodrome (March 26, 2001), 12th Dist. No. CA2000-05-074, citing Cherry v. Cherry (1981),
{¶ 37} Accordingly, Wilma's third and fourth assignments of error are overruled.
{¶ 38} Having found no error prejudicial to either the appellant or cross-appellant in the particulars assigned and argued, we affirm the judgment of the trial court.
Judgment affirmed. Cupp and Bryant, J.J., concur.
Reference
- Full Case Name
- In Re: The Estate of Dorothy L. Mason (Wilma J. Mason Claimant-Appellant-Cross-Appellee) (Rakestraw Rakestraw Cross-Appellants).
- Cited By
- 3 cases
- Status
- Unpublished