In re Estate of Adelung
306 Neb. 646
| Neb. | 2020Background
- Madeline Adelung held a life estate in the family farm; her son Kent farmed, collected rents, and later rented the land to others.
- In July 2008 Madeline signed a durable power of attorney naming Kent (and a sister) as agents; it included a broad gifting clause and an exoneration clause drafted by Kent’s attorney.
- From about 2000 through 2014 Kent received farm rents and monthly $2,000 checks (made payable to him or his wife); Madeline moved to assisted living in Aug 2010 and died Oct 21, 2014.
- In Feb 2016 Lynda Heiden (daughter) as personal representative filed, in the county probate case, a petition for an equitable accounting seeking recovery of rents and funds Kent received as agent.
- The county court found Kent liable for rents and $2,000 payments after Aug 2010, entered judgment (~$190,550), but did not address statute-of-limitations in its entry; Kent appealed and Heiden cross-appealed.
Issues
| Issue | Plaintiff's Argument (Heiden) | Defendant's Argument (Adelung) | Held |
|---|---|---|---|
| County-court subject-matter jurisdiction over accounting and POA conduct | County court has jurisdiction over matters relating to decedents’ estates and powers of attorney and properly heard the equitable accounting. | County court lacked jurisdiction for POA-related and equitable claims; those belong in district court or were otherwise outside county court authority. | County court had concurrent original jurisdiction to hear this equitable accounting and POA conduct under the Probate Code and § 24-517(13). |
| Failure to pay filing fee defeats jurisdiction | N/A (Heiden paid no fee but court accepted filing). | Lack of fee means court never acquired jurisdiction. | No authority shown that nonpayment of filing fee defeated subject-matter jurisdiction; argument rejected (court retained jurisdiction). |
| Applicability/retroactivity of NUPOAA to pre-2013 acts | NUPOAA governs the POA and agent duties (argued in part). | NUPOAA should apply to acts before Jan 1, 2013 (benefiting defendant); or defendant argued specific NUPOAA provisions protect his conduct. | NUPOAA governs proceedings commenced after Jan 1, 2013 but does not affect acts done before that date; pre-2013 agent conduct governed by prior law/common law. |
| Statute of limitations for equitable accounting (4-year rule) | Recovery may be allowed for the full period; some transactions not known to principal so accrual may be later. | Transactions accruing before Feb 1, 2012 are time-barred because petition filed Feb 1, 2016. | Cause of action for accounting is governed by 4-year statute; because decedent knew and authorized earlier conduct, claims before Feb 1, 2012 are barred. |
| Authority to make gifts; strict construction; exoneration clause | The 2008 gifting clause and exoneration clause permitted gifts and insulated Kent from liability. | Gifting clause and exoneration clause are valid and allow Kent’s conduct; NUPOAA broad authority controls. | Gifts by agent are strictly construed; NUPOAA (as applied) limits gifts via general grants; the exoneration clause is invalid/unenforceable because drafted/caused by agent and not adequately communicated to principal; Kent liable for improper transfers after Feb 1, 2012. |
| Laches defense | N/A (defendant raised laches). | Kent argued plaintiff’s delay and the decedent’s long course of conduct bars relief by laches. | Laches did not apply; mere delay without prejudicial change does not bar remedy; court rejected laches. |
Key Cases Cited
- Lambie v. Stahl, 178 Neb. 506, 134 N.W.2d 86 (1965) (distinguishing probate vs. other forums for title disputes; historical treatment of probate jurisdiction)
- In re Estate of Steppuhn, 221 Neb. 329, 377 N.W.2d 83 (1985) (county courts exercising probate jurisdiction may apply equitable principles)
- Crosby v. Luehrs, 266 Neb. 827, 669 N.W.2d 635 (2003) (agent duties under power of attorney; limits on self-dealing and gifts)
- Archbold v. Reifenrath, 274 Neb. 894, 744 N.W.2d 701 (2008) (fiduciary duties of agents and principals under durable powers of attorney)
- Eggleston v. Kovacich, 274 Neb. 579, 742 N.W.2d 471 (2007) (when an agent has or has not "used" a power of attorney in account contexts)
- Fraser v. Temple, 173 Neb. 367, 113 N.W.2d 319 (1962) (accrual of a cause of action and statute-of-limitations principles for equitable claims)
- In re Trust Created by Inman, 269 Neb. 376, 693 N.W.2d 514 (2005) (retroactivity principles for uniform trust law and when new statutes affect earlier acts)