Estate of Smith, 968 N.W.2d 157

Background

William E. Smith died in October 2017; Scott L. Smith and Kristen J. Hackmann were appointed co-personal representatives (co-PRs); Charlene Smith (wife) and LeeAllen Smith (stepson) were other interested parties.
On November 2, 2018 the district court entered a judgment approving inventory, final account, settlement, and distribution of the estate (the 2018 Judgment), with a clause allowing increased administrative and legal fees. No appeal was taken from that judgment.
In 2019–2020 the co-PRs filed supplemental inventories and multiple post-judgment motions seeking to alter distributions, to exclude Charlene and LeeAllen from distributions, and for injunctive relief; Charlene filed a motion to compel enforcement of the 2018 Judgment.
The district court held a hearing on October 13, 2020 focused on the issue of finality of the 2018 Judgment.
On February 17, 2021 the court found the November 2, 2018 Judgment final, denied the co-PRs’ post-judgment motions as attempts to circumvent the final judgment, found those motions frivolous, and awarded attorney fees against the co-PRs personally.
The co-PRs appealed, challenging denial without further hearing, the court’s adoption of proposed findings, and the imposition of personal attorney-fee liability.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Finality of Nov. 2, 2018 judgment	Judgment was not final because it reserved increased fees and other relief and ongoing contests (elective share, will challenge) left distribution unresolved	2018 Judgment was a final approval of accounting and distribution; reserved fee language did not defeat finality	Judgment was final; reserved items were calculable and did not prevent finality
Denial of a hearing on post-judgment motions	Co-PRs were denied an opportunity for a hearing on their post-judgment motions	Co-PRs had the opportunity to argue at the Oct. 13, 2020 hearing on the dispositive finality issue	No denial of hearing; co-PRs had opportunity to be heard on dispositive issue and further hearings were unnecessary once judgment found final
Adequacy of district court findings (adoption of proposed order)	Adoption of opposing party’s proposed findings without more failed to explain the decision and mirrored Ryberg reversal concerns	Adoption is permissible if findings adequately explain basis and are supported by record	Findings adequately explained decision, were supported by the record, and were not clearly erroneous despite substantial adoption of proposed findings
Award of attorney fees against co-personal representatives personally	Fees and costs were proper fiduciary acts and, if any, should be charged to the estate; co-PRs acted in good faith to effectuate the will	Motions were frivolous and an improper unilateral attempt to modify a final judgment; personal liability appropriate under N.D.C.C. § 30.1-18-12	Fee award affirmed; court did not abuse discretion in finding motions frivolous and imposing personal liability on co-PRs

Key Cases Cited

Estate of Ketterling, 515 N.W.2d 158 (N.D. 1994) (when informal proceedings become formal and effect of that change)
Estate of Cashmore, 787 N.W.2d 261 (N.D. 2010) (final approval of accounting and distribution concludes estate proceedings)
Dixon v. Dixon, 960 N.W.2d 764 (N.D. 2021) (ambiguity about a court’s intent regarding finality)
Ryberg v. Landsiedel, 956 N.W.2d 749 (N.D. 2021) (reversal of conclusory order entered without hearing or evidence)
Estate of Albrecht, 938 N.W.2d 151 (N.D. 2020) (findings adopted from a party’s submission are upheld if they adequately explain the basis)
Estate of Flaherty, 484 N.W.2d 515 (N.D. 1992) (personal representative may incur fees for good-faith litigation to effectuate testamentary intent)
Federal Land Bank v. Ziebarth, 520 N.W.2d 51 (N.D. 1994) (courts’ inherent power to control docket and protect judgments)
Strand v. Cass Cnty., 753 N.W.2d 872 (N.D. 2008) (court must award fees when claim is frivolous under statute)
Estate of Dion, 623 N.W.2d 720 (N.D. 2001) (definition of frivolous claim)
Estate of Pedro v. Scheeler, 856 N.W.2d 775 (N.D. 2014) (application of frivolous-claim standard)
Botteicher v. Becker, 910 N.W.2d 861 (N.D. 2018) (discussion of frivolous pleadings and fee awards)
Industrial Comm’n v. Noack, 721 N.W.2d 698 (N.D. 2006) (discretion to award appellate sanctions)