IN THE MATTER OF THE ESTATE OF DALE D. JONES, Deceased.
#29604-r-SRJ
IN THE SUPREME COURT OF THE STATE OF SOUTH DAKOTA
2022 S.D. 9, OPINION FILED 02/09/22
THE HONORABLE CARMEN MEANS, Judge
APPEAL FROM THE CIRCUIT COURT OF THE THIRD JUDICIAL CIRCUIT, CODINGTON COUNTY, SOUTH DAKOTA. CONSIDERED ON BRIEFS NOVEMBER 8, 2021.
DILLON P. MARTINEZ, SEAMUS W. CULHANE оf Turbak Law Office, Watertown, South Dakota, Attorneys for petitioners and appellants Doug Jones and Jessica Jones.
JOEL RISCHE, JUSTIN T. CLARKE, MATTHEW W. VAN HEUVELEN of Davenport, Evans, Hurwitz & Smith, LLP, Sioux Falls, South Dakota, Attorneys for respondent and appellee Lisa Jones.
[¶1.] Dale Dean Jones died intestate. The circuit court appointed Dale‘s wife, Lisa Jones, as his estate‘s personal representative. Dale‘s adult children, Douglas (Doug) and Jessica Jones, subsequently petitioned for the appointment of a special administrator to pursue a wrongful death claim for Dale‘s estate. They also served discovery requests on Lisa seeking information pertaining to their petition. Lisa refused to answer the discovery and filed a motion for a protective order. Doug and Jessica filed a motion to compel. Following a hearing noticed for the discovery motions, the court denied the petition for special administrator and determined the discovery issues were moot. This Court granted Doug and Jessica‘s petition for intermediate appeal. Doug and Jessica argue that the petition for special administrator was not properly noticed for hearing and the circuit court abused its discrеtion by failing to address the discovery motions before deciding the petition for special administrator. We reverse the circuit court‘s order on the latter issue and remand for further proceedings.
Facts and Procedural History
[¶2.] Dale died on January 4, 2020, after a car struck him on the side of a road while he was working as a tow truck operator. Lisa and Dale had been married for approximately 17 years at the time of Dale‘s death, but Doug and Jessica claim the couple had long since separated and had, in fact, lived apart for approximately five years. Doug and Jessica are Dale‘s children from a prior relationship.
[¶3.] Doug and Jessica petitioned for formal probate and appointment as co-personal representatives of Dale‘s estate (Estate) on January 9, 2020. On January 23, 2020, Lisa filed a petition for formal probate and appointment as personal representative. Following a hearing, the court entered an order for formal probate, determining that Dale had died intestate. The court also appointed Lisa as personal representative based upon her statutory priority for appointment as the surviving spouse under
[¶4.] On Octоber 28, 2020, Doug and Jessica filed a petition with the circuit court for the appointment of a special administrator (Petition) claiming Lisa was unable to manage the wrongful death claim for the Estate and that an independent special administrator was necessary to protect the interests of all beneficiaries. A hearing was noticed by Doug and Jessica
[¶5.] On November 5, 2020, Doug and Jessiсa served interrogatories and requests for production of documents on Lisa. The discovery requests sought information about Lisa‘s relationship with Dale, her personal finances, her tax returns and loan applications for the last ten years, documents relating to her personal accounts, and information about any governmental assistance received by Lisa in the last ten years. The requests also sought information about any benefits, including workers’ compensation benefits, that Lisa had received, or anticipated receiving, as a result of Dale‘s death, an inventory of all оf the probate and non-
probate assets, and a statement of the Estate‘s debts. Doug and Jessica also requested a date to take Lisa‘s deposition. Lisa objected to the discovery requests, and the parties attempted to informally resolve the discovery dispute without success.
[¶6.] On December 7, 2020, Lisa filed a motion for a protective order. Lisa asked the circuit court to enter an order that no discovery be had on the interrogatories and requests for production of documents served by Doug and Jessica. Lisa served a notice of hearing on her motion for рrotective order for February 11, 2021. She argued that a protective order was appropriate because Doug and Jessica were not entitled to conduct discovery in the probate proceedings and the requests were beyond the scope of discovery.
[¶7.] On January 27, 2021, Doug and Jessica filed a motion to compel. They also noticed a hearing on their motion for February 11, the date already scheduled to hear Lisa‘s motion for a protective order. Doug and Jessica argued that the circuit court could not adequately consider the Petition without a fаctual record developed following discovery. They claimed that Lisa was not fit to handle the wrongful death claim on behalf of the Estate based on her financial instability and poor relationship with Doug and Jessica. Additionally, they argued that Lisa has a conflict of interest because Lisa has every incentive to enhance the recovery of workers’ compensation benefits as Dale‘s surviving spouse, but little interest in prosecuting the wrongful death claim because of her minimal, if any, pecuniary loss1 from Dale‘s death due to the estrangement between Dale and Lisa. They argued thаt the workers’ compensation lien statutes create a tension between Lisa and themselves, as Lisa‘s workers’ compensation benefits may be reduced by any “like damages” Doug and Jessica recover from the third-party tortfeasor and that Doug and Jessica‘s potential recovery in the wrongful death claim may be reduced by the workers’ compensation benefits paid to Lisa.2 They
[¶8.] In Lisa‘s reply brief to the court, she argued that Doug and Jessica‘s allegations, though disputed, were irrelevant and immaterial to the Petition. Further, Lisa responded that neither she, nor her counsel, have a conflict of interest because the circuit court has the authority to apportion the potential wrongful death proceeds and she will fulfill her fiduciary duties to the Estate by acting in the Estate‘s best interests. Lisa requested the court to deny the Petition at the February 11, 2021 hearing.
[¶9.] At the hearing, both parties appeared personally and with their attorneys. The court initially announced the case and asked counsel to note their appearances, by stating “[t]his is the time and place scheduled for a hearing on some discovery matters in the Estate of Dale Jones, let‘s have counsel note their appearances in this matter.” (Emphasis added.) In response, counsel for Doug and Jessica stated, “Your Honor, John Knight appearing on behalf of Doug Jones and Jessica Jones in the matter, requesting that a special administrator be appointed by the [c]ourt in this matter.”
[¶10.] The circuit court observed that the discovery issues had been handled by Attorney Knight‘s co-counsel, who was not present at the hearing, and asked Attorney Knight if he was comfortable addressing those requests. Attorney Knight answered in the affirmative. The court then addressed questions to the parties concerning the grounds for the Petition. Doug and Jessica emphasized that Lisa should not be responsible for developing and presenting evidence regarding pecuniary damages in the wrongful death claim. They highlighted that Lisa‘s only incentive was to enhance the value of the workers’ compensation clаim, thereby
decreasing the proceeds available to apportion between the beneficiaries of the wrongful death claim. Doug and Jessica argued that an independent special administrator would maximize the recovery for all beneficiaries.3
[¶11.] At the conclusion of the hearing, the circuit court orally denied the Petition, finding that a special administrator was not necessary for the proper administration of the Estate and would not alleviate Lisa‘s alleged conflict of interest. The court also determined that the appointment of a special administrator would increase costs for the Estate and in turn reduce the recovery for the beneficiaries.4
[¶12.] On February 17, 2021, Lisa submitted a proposed order to the court by email, which denied the motion to compel and granted the protective order. The
order was also forwarded to Doug and Jessica‘s counsel. The circuit court entered the order on March 2, 2021. On March 3, 2021, counsel for Doug and Jessica emailed the court raising concerns for the first time that the court had considered the Petition at the February 11 hearing when only the discovery motions had been noticed. Counsel explained that Doug and Jessica only referenced the merits of the Petition in order to allow the circuit court to appreciate the need for discovery.
[¶13.] No further proceedings were conducted in the circuit court concerning the email. Instead, Doug and Jessica petitioned this Court for a discretionary appeal of the circuit court‘s order. The petition sought review of the following issues: (1) the denial of Doug and Jessica‘s Petition; (2) the denial of Doug and Jessica‘s motion to compel; and (3) the granting of Lisa‘s motion for protective order. This Court granted the petition for discretionary apрeal. Doug and Jessica have briefed two issues, which we restate as follows:
- Whether the circuit court erred in ruling on the Petition when it was not noticed for hearing.
- Whether the circuit court abused its discretion by not considering the discovery motions before hearing and determining the Petition.
Analysis and Decision
[¶14.] The interpretation of a statute is reviewed de novo. Est. of Fox, 2019 S.D. 16, ¶ 12, 925 N.W.2d 467, 471, reh‘g denied (Apr. 24, 2019). Likewise, we review conclusions of law de novo. Id. This Court reviews “a circuit court‘s discovery orders under an abuse of discretion standard.” Andrews v. Ridco, Inc., 2015 S.D. 24, ¶ 14, 863 N.W.2d 540, 546 (quoting Dakota, Minn. & E. R.R. Corp. v. Acuity, 2009 S.D. 69, ¶ 47, 771 N.W.2d 623, 636). “An abuse of discretion is ‘a
fundamental error of judgment, a choice outside the reasonable range of permissible choices, a decision . . . [that], on full consideration, is arbitrary or unreasonable.‘” Coester v. Waubay Twp., 2018 S.D. 24, ¶ 7, 909 N.W.2d 709, 711 (quoting Wald, Inc. v. Stanley, 2005 S.D. 112, ¶ 8, 706 N.W.2d 626, 629).
1. Failure to notice a hearing on the Petition.
[¶15.] Doug and Jessica argue that the Petition was not noticed for hearing as required by
(a) If notice of a hearing on any petition is required and except for specific notice requirements as otherwise provided, the petitioner shall cause notice of the time and place
of hearing of any petition, together with a copy of the petition, to be given tо any interested person . . . . Notice shall be given:
- By mailing a copy of the notice of hearing and of the petition at least fourteen days before the time set for the hearing . . . to the person being notified . . . ;
- By delivering a copy of the notice of hearing and of the petition to the person being notified personally at least fourteen days before the time set for the hearing[.]
(Emphasis added.); see also Matter of Est. of Petrik, 2021 S.D. 49, ¶ 23, 963 N.W.2d 766, 771 (holding that a petition for termination of joint tenancy filed in a probate action was a formal proceeding that required notice and hearing).
[¶16.] There is no dispute that the Petition was not noticed for the February 11 hearing. The motion for a protective order and the motion to compel were the only matters noticed for the February 11 hearing. The circuit court‘s introductory comments at the start of the hearing confirmed that it was “the time and place scheduled for a hearing on some discovery matters in the Estate of Dale Jones[.]”
[¶17.] Nevertheless, we decline to address Doug and Jessica‘s procedural claim because Doug and Jessica have waived the issue concerning the lack of notice for hearing on the Petition. “Generally, questions over . . . notice must bе raised at the first reasonable opportunity or they are waived. Moreover, actual participation in legal proceedings waives irregularities in notice and service procedures and even a lack of formal notice.” State v. Fifteen Impounded Cats, 2010 S.D. 50, ¶ 31, 785 N.W.2d 272, 282 (internal citation omitted). In State v. Fifteen Impounded Cats, this Court held that the defendant waived her claim of insufficient notice because she actually participated in the hearings without any objection to the sufficiency of notice. Id. ¶ 32, 785 N.W.2d at 283; see also Wollenburg v. Conrad, 522 N.W.2d 408, 411-12 (Neb. 1994) (holding that notice may be waived through unequivocal conduct such as voluntary appearance or filing a lawsuit); Mattingly v. Charnes, 700 P.2d 927, 928 (Colo. App. 1985) (“One who is notified, appears, and participates in a hearing, cannot later be heard to complain as to the sufficiency of notice he received.“).
[¶18.] Doug and Jessica appeared, with counsel, and addressed the merits of the Petition at the February 11, 2021 hearing without any mention that a hearing had not been noticed on the Petition. Further, Doug and Jessica failed to assert an
objection to the sufficiency of the notice at any time before the court signed the order denying the Petition. Doug and Jessica‘s untimely email, raising concerns with the lack of notice after the court had already entered the ordеr, does not negate Doug and Jessica‘s waiver. As such, Doug and Jessica waived their objection to the sufficiency of the notice for the Petition heard at the February 11 hearing.
2. Discovery issues.
[¶19.] Doug and Jessica contend the circuit court abused its discretion in denying their Petition before considering the discovery motions and that they were prejudiced by the circuit court‘s decision because discovery was necessary for the court to properly evaluate the Petition. They argue that the circuit court ignored the applicable Rules of Civil Procedure and that their discovery requests were within thе broad scope of discovery under
[¶20.] Lisa claims that the circuit court properly declared the motion to compel
the probate proceeding and because the requests were beyond the scope of permissible discovery.
[¶21.] The circuit court did not decide whether Doug and Jessica had a right to conduct discovery in the probate proceedings or whether the specific requests were relevant to issues in the case. However, in determining that the discovery issues were moot, the court stated, “The idea that we‘re just going to in every probate case have formal discovery, I mean I don‘t think there‘s any basis for thаt. If there‘s issues presented, yeah, then there‘s got to be discovery as to those issues, but now if I‘ve made a decision on this issue I‘m not really sure on what basis [discovery is appropriate.]” The court continued, “[Counsel] presented to me in his submissions that he needed to have this discovery to litigate the issue of appointment of a special administrator. Now if I‘ve made that decision already, why are we having discovery on that?”
[¶22.] In summarizing its ruling, the circuit court explained,
I will say this, it‘s clear to me from the submissions that [counsel] intended for the discovery to be sought on the issue of whether or not a speciаl administrator should be appointed. From his perspective, at least from the written submissions that I reviewed, he was saying maybe we shouldn‘t even talk about that issue today because we need to resolve the discovery issue . . . . I‘m just going to find that there is no reason to consider [Doug and Jessica‘s] motion to compel because the motion to compel was an effort to obtain discovery on whether or not a special administrator should be appointed. If the attorneys think I‘m wrong about that then we can have a second hearing on that issue, but that‘s my feeling on that.
Counsel for Lisa then requеsted that the court grant her motion for a protective order based upon the court‘s mootness ruling and requested an award of costs to
Lisa. The court denied the award of costs but granted the motion for a protective order stating, “I don‘t think there‘s any need now to continue with discovery.”
[¶23.] South Dakota‘s version of the Uniform Probate Code applies the Rules of Civil Procedure to formal probate proceedings “[u]nless specifically provided to the contrary” or “unless inconsistent with its provisions[.]”
[¶24.] Lisa relies on
[¶25.] Lisa‘s argument that
[¶26.] Moreover, the scope of discovery is broad under
Further, interrogatories and requests for production may relate to any matters which can be inquired into under
[¶27.] While we generally review a circuit court‘s decision on discovery matters for an abuse of discretion, there is no showing that the court exercised its discretion in this instance to determine whether any of the requests were within the scope of discovery. Instead, the court concluded the discovery issues were rendered moot by its decision to deny the Petition. This was not a circumstance where Lisa answered some discovery and objected to other requests. Rather, she asked the circuit court to approve her refusal to respond to any discovery. Aside from Lisa‘s claims that the requested discovery was not appropriate and beyond the scope of discovery in this probate proceeding, she failed to provide justification for her complete refusal to answer any discovery.6
order to show that the information sought is not discoverable and harmful to the party‘s interest. Bertelsen v. Allstate Ins. Co., 2011 S.D. 13, ¶ 59, 796 N.W.2d 685, 704-05. “Once the party opposing discovery makes that showing, ‘the burden then shifts to the party seeking discovery to show that the information is relevant to the subject matter of the lawsuit and is necessary[.]‘” Id. ¶ 59, 796 N.W.2d at 705 (quoting In re Remington Arms Co., Inc., 952 F.2d 1029, 1032 (8th Cir. 1991)). “If the party seeking discovery shows both relevance and need, a court must weigh the injury that disclosure might cause against the need for the information.” Id. (emphasis added). The court may then “issuе a protective order to safeguard the rights of the parties[.]” Id.
[¶29.] “Good cause is established on a showing that disclosure will work a clearly defined and serious injury.” Id. ¶ 57, 796 N.W.2d at 704 (addressing good cause in the context of confidential matters). “The injury must be shown with specificity.” Id. “Broad allegations of harm will not suffice.” Id. The court did not find that Lisa had shown good cause, that any particular requests were designed to embarrass, annoy, oppress, or create an undue burden or expense as required by
[¶30.] Lisa‘s general objection to answering any discovery, without a showing of good cause, is insufficient to justify a protective order denying all discovery to Doug and Jessica in a contested formal probate proceeding. See Gen. Dynamics Corp. v. Selb Mfg. Co., 481 F.2d 1204, 1212 (8th Cir. 1973) (“The burden is therefore upon the movant to show the necessity of its issuance, which contemplates ‘a particular and specific demonstration of fact, as distinguished from stereotyped and
conclusory statements . . . .‘” (citation omitted)). Lisa‘s conclusory assertion that all of the discovery requests were outside the scope of discovery or were designed to embarrass, annoy, and burden Lisa does not satisfy her burden to show that good cause existed to issue a protectivе order.
[¶31.] Under these circumstances, the circuit court failed to apply the Rules of Civil Procedure when it entered a protective order denying Doug and Jessica all discovery without determining whether good cause existed to grant the motion for a protective order, and without considering the merits of the motion to compel. Discovery rules are “designed to compel production of evidence and to promote, rather than stifle, the truth finding process.” Magbuhat v. Kovarik, 382 N.W.2d 43, 45 (S.D. 1986). As such, the circuit court erred in denying Doug and Jessica‘s Petition before properly addressing the parties’ discovery motions.
[¶32.] Doug and Jеssica were also prejudiced by the circuit court‘s decision to deny the Petition before addressing the discovery motions. This case presents
Lisa‘s interests and their own interests based on
[¶33.] The circuit court has discretion to determine if a special administrator is “necessary to preserve the estate or to secure its proper administration including its administration in circumstances where a general personal representative cannot or should not act.”
[¶34.] We reverse and vacate the circuit court‘s order denying the Petition, denying the motion to compel, and granting the motion for a protective order. We
remand for further proceedings directing the circuit court to address the discovery issues before addressing the merits of the Petition.
[¶35.] KERN, SALTER, DEVANEY, and MYREN, Justices, concur.