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