40 N.E.3d 881
Ind. Ct. App.2015Background
- Decedent Lera V. Ferguson died intestate in 2013, survived by two children and sole heirs: Charles Ferguson (Appellant) and Nancy Mosson (Appellee), who was appointed personal representative of the estate.
- Charles filed a claim against the Estate for $1,073,833.71 for lifetime services; Mosson disallowed the claim.
- Mosson sought (and ultimately was authorized) to sell the family farm (the Farm), the Estate’s principal asset, to pay obligations of the estate.
- Charles objected and requested a bond be set to stay the sale under Ind. Code § 29-1-15-4; the trial court ordered Charles to post a surety bond of $1,133,833.71 (his claimed amount plus $60,000 in admin costs) within 30 days or the Farm could be sold.
- Charles filed an interlocutory appeal arguing the court abused its discretion in setting the bond amount; the Estate argued the appeal was improperly taken as discretionary rather than as of right.
- The Court of Appeals held Charles had an interlocutory appeal of right and reversed the trial court, directing that Charles post a bond of $60,000 (administrative costs) rather than bond for his own claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the interlocutory appeal is of right under Appellate Rule 14(A) | Charles: Order is for the payment of money (bond) so appeal is of right under Rule 14(A)(1) | Estate: Order falls under discretionary interlocutory appeals (Rule 14(B)) and Charles did not follow that process | Court: Appeal is of right under Rule 14(A)(1); financial consequences akin to final judgment justify interlocutory appeal |
| Whether trial court abused discretion by requiring bond equal to Charles’s own claim plus admin costs under Ind. Code § 29-1-15-4 | Charles: Requiring him to bond his own claim effectively forces him to post surety for himself; bond should cover only estate administrative obligations (approx. $60,000) | Estate: Statute allows bond "to pay all obligations of the estate" so court may set bond to cover all claims (including Charles’s) | Court: Abuse of discretion to require Charles to bond his own claim; ordered bond limited to $60,000 (administrative costs) to stay sale |
Key Cases Cited
- Allstate Ins. Co. v. Scroghan, 801 N.E.2d 191 (Ind. Ct. App. 2004) (interlocutory appeals are allowed only when authorized by constitution, statute, or rules and are strictly construed)
- State v. Hogan, 582 N.E.2d 824 (Ind. 1991) (orders appealable as of right involve financial/legal consequences similar to final judgments)
- Schwedland v. Bachman, 512 N.E.2d 445 (Ind. Ct. App. 1987) (purpose of appeals for payment of money is to protect parties compelled to part with funds pending litigation)