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Muhlbauer v. Estate of Olson
801 N.W.2d 446
| S.D. | 2011
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Background

  • Glenn Olson died testate in 2002; Wayne Olson appointed personal representative of the estate that held land specifically devised to James Olson and six other nieces and nephews.
  • The estate was informally probated; Wayne sold part of the specifically devised land at public auction to the Muhlbauer buyers without notice to heirs, in violation of SDCL 29A-3-715(b).
  • The sale did not indicate court approval was needed; some heirs questioned the sale soon after closing.
  • James and another heir, Gary Olson, objected to confirmation; the trial court confirmed the sale; on appeal, this Court held the personal representative lacked authority and reversed, remanding for further proceedings and allowing Muhlbauers to intervene.
  • Muhlbauers intervened and sought to confirm the sale or damages; heirs moved to intervene; the trial court granted summary judgment for Muhlbauers; this Court affirmed on remand.
  • On remand, the issue became whether Muhlbauers were good faith purchasers for value protected by SDCL 29A-3-714; the Court held they were and affirmed summary judgment.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Muhlbauers are protected as good faith purchasers for value under SDCL 29A-3-714 Heirs: sale void; lack of authority invalidates transfer; protections do not apply to innocent purchasers. Muhlbauers were good faith purchasers for value and had no knowledge of lack of authority; protected by 29A-3-714. Yes; Muhlbauers protected; summary judgment affirmed.

Key Cases Cited

  • In re Estate of Olson, 2008 S.D. 4 (S.D. 2008) (held personal representative lacked authority to sell specifically devised land)
  • In re Olson, 2008 S.D. 126 (S.D. 2008) (remanded for intervention by third-party purchaser)
  • In re Estate of Kappenmann, 82 S.D. 91 (S.D. 1966) (executor may sell under power of sale in a will; precedential value)
  • Hawke v. Deffenbach, 22 N.W. 490 (Neb. 1885) (good faith definition as without notice)
Read the full case

Case Details

Case Name: Muhlbauer v. Estate of Olson
Court Name: South Dakota Supreme Court
Date Published: Jul 27, 2011
Citation: 801 N.W.2d 446
Docket Number: 25761
Court Abbreviation: S.D.