In re Estate of Marcia G. Abbott-Ochsner, deceased. Mark D. Abbott, Personal Representative of the Estate of Marcia G. Abbott-Ochsner, deceased, appellant, v. Cynthia J. Sellon and Russell G. Abbott, appellees.
No. S-17-528
Nebraska Supreme Court
April 13, 2018
299 Neb. 596
Nebraska Supreme Court Advance Sheets, 299 Nebraska Reports, IN RE ESTATE OF ABBOTT-OCHSNER. Filed April 13, 2018. ___ N.W.2d ___.
Judgments: Jurisdiction. A jurisdictional issue that does not involve a factual dispute presents a question of law. - Jurisdiction: Appeal and Error. Before reaching the legal issues presented for review, it is the duty of an appellate court to determine whether it has jurisdiction over the appeal.
- Final Orders. A special proceeding includes every special statutory remedy that is not in itself an action, or an integral step to commence it, join issues in it, and conduct it to a final hearing and judgment.
- Decedents’ Estates: Final Orders. A proceeding under
Neb. Rev. Stat. § 30-2457 (Reissue 2016) is a special proceeding. - Final Orders: Words and Phrases. A substantial right is an essential legal right, not a mere technical right.
- Final Orders: Appeal and Error. An order affects a substantial right if it affects the subject matter of the litigation by diminishing a claim or defense that was available to the appellant prior to the order from which he or she is appealing.
- Final Orders. It is not enough that the right itself be substantial; the effect of the order on that right must also be substantial.
- Final Orders: Appeal and Error. A substantial right under
Neb. Rev. Stat. § 25-1902 (Reissue 2016) is not affected when that right can be effectively vindicated in an appeal from the final judgment. - Decedents’ Estates: Final Orders: Appeal and Error. Orders denying a request to remove a personal representative for cause are final and immediately appealable by the person interested in the estate who petitioned for the personal representative‘s removal.
Final Orders: Appeal and Error. To be a final order, the substantial right affected must be of the appellant and cannot be claimed vicariously. - Decedents’ Estates: Final Orders. In and of itself, and without additional facts indicating otherwise, an order appointing a special administrator pursuant to
Neb. Rev. Stat. § 30-2425 (Reissue 2016) is not a final order. - Final Orders: Appeal and Error. An appellate court does not entertain direct appeals from interlocutory orders in order to avoid piecemeal review, chaos in trial procedure, and a succession of appeals granted in the same case to secure advisory opinions to govern further actions of the trial court.
- Decedents’ Estates. The underlying purpose of the Nebraska Probate Code is to promote a speedy and efficient system for liquidating the estate of the decedent and making distribution to the successors.
- Final Orders: Jurisdiction: Appeal and Error. An appellate court‘s jurisdiction to review whether the lower court acted extrajurisdictionally presupposes its appellate jurisdiction over an appeal from a final order or judgment.
Appeal from the County Court for Douglas County: Lawrence E. Barrett, Judge. Appeal dismissed.
Michael F. Coyle, Elizabeth A. Culhane, and Jacqueline M. DeLuca, of Fraser Stryker, P.C., L.L.O., for appellant.
John M. Lingelbach, James A. Tews, and Minja Herian, of Koley Jessen, P.C., L.L.O., for appellees.
Heavican, C.J., Cassel, Stacy, and Funke, JJ., and Pirtle, Judge.
Heavican, C.J.
INTRODUCTION
This case involves the probate of Marcia G. Abbott-Ochsner‘s estate, most of which consists of a trust that was the subject of a previous appeal to this court in In re Conservatorship of Abbott (Abbott I).1 Two siblings filed a petition in county court contesting the validity of the will presented for informal
Pursuant to
BACKGROUND
The “Abbott Living Trust” was created by Marcia G. Abbott-Ochsner (Marcia) and her first husband, George W. Abbott, in 1995. Marcia and George were cotrustees of the trust, which was divided into a revocable “‘Survivor‘s Trust‘” and an irrevocable “‘Family Trust.‘”2 Marcia and George had three children—Russell G. Abbott, Cynthia J. Sellon (Cynthia), and Mark D. Abbott—who were beneficiaries.
George died in 1996. Marcia suffered a stroke in 2011. As a result of the stroke, Marcia suffered from expressive aphasia—a disorder that affects the brain‘s ability to use and understand language. In March 2015, Marcia appointed Mark as successor trustee to the living trust and Mark accepted the appointment.
At the behest of Russell and Cynthia, the county court ordered the appointment of a conservator and removed Mark as trustee. At that time, the living trust was valued at approximately $2 million.
The county court also considered evidence that Mark had refused to provide documentation concerning the trust and trust activities, had acted as trustee before being appointed, and had facilitated money transfers resulting in negative tax consequences.
The county court found that Mark had violated several of his duties under the Nebraska Uniform Trust Code, including his duty to administer the trust in good faith, his duty of loyalty, his duty of impartiality, and his duty to inform and report. On appeal, we affirmed Mark‘s removal as trustee, concluding that Mark‘s breach of his duty of impartiality was dispositive.5
In September 2015, several months after Marcia had appointed Mark as successor trustee, and apparently after a conservator had been appointed for Marcia, Marcia executed a pourover will. Marcia exercised her limited testamentary power in the family trust to change the default equal distribution between the three children to a 100-percent distribution to Mark and a 0-percent distribution to Russell and Cynthia. The pourover will provided that Mark was to be the estate‘s personal representative, with sole discretion to distribute Marcia‘s personal possessions.
Marcia died in October 2016. Mark filed an application for informal probate of the 2015 pourover will and informal appointment of a personal representative of Marcia‘s estate. That same day, Mark accepted informal appointment as
In their petition for formal proceedings, Russell and Cynthia also requested an order, pursuant to
Pursuant to
Mark argued at the hearing that the county court no longer had jurisdiction to appoint a special administrator, because the proceeding to determine whether Marcia left a valid will had been moved to the district court. Russell and Cynthia, in contrast, asserted that although the will contest had been transferred to the district court, the county court retained jurisdiction over the rest of the formal probate proceedings, such as claims by creditors.
Mark conceded that some “ancillary matters” were still to be handled by the county court, but that the appointment of a special administrator was part of the will contest proceedings in district court. When Mark pointed out that the request
In support of their argument that a special administrator should be appointed, Russell and Cynthia offered Cynthia‘s affidavit. The affidavit was admitted over Mark‘s objections on the basis of subject matter jurisdiction, hearsay, foundation, speculation, and unfair surprise. Cynthia averred in her affidavit that she had reviewed the trust activity records and believed that approximately $800,000 was unaccounted for.
Russell and Cynthia also entered into evidence the county court‘s prior order appointing a conservator for Marcia and removing Mark as trustee, as well as this court‘s opinion in Abbott I affirming the county court‘s decision to remove Mark as trustee. Russell and Cynthia argued that a special administrator was appropriate, given Mark‘s past history of breaching his fiduciary duties as trustee.
On April 10, 2017, the county court issued an order appointing a special administrator. The court did not remove Mark as personal representative of the estate. Mark appeals from the April 10 order.
ASSIGNMENTS OF ERROR
Mark assigns that the county court erred in (1) failing to dismiss Russell and Cynthia‘s petition when the case had already been removed to district court; (2) failing to dismiss for lack of jurisdiction Russell and Cynthia‘s request for a special administrator when the case had already been removed to district court; (3) entering an order appointing a special administrator; (4) allowing Cynthia‘s affidavit into evidence; (5) ruling on the petition to set aside informal probate of the will, for formal adjudication of intestacy, determination of heirs, and appointment of personal representative without allowing Mark the ability to cross-examine Cynthia; and (6) failing to restrict the special administrator from acting during the pendency of the litigation in district court.
STANDARD OF REVIEW
[1] A jurisdictional issue that does not involve a factual dispute presents a question of law.6
ANALYSIS
[2] Before reaching the legal issues presented for review, it is the duty of an appellate court to determine whether it has jurisdiction over the appeal.7 Appellate review under the Nebraska Probate Code is governed by
There has not yet been a final judgment in which the probate estate has been finally established.8 Thus, we must determine whether Mark appeals from a final order.9 Final orders are defined by
[3,4] A special proceeding includes every special statutory remedy that is not in itself an action, or an integral step to commence it, join issues in it, and conduct it to a final hearing and judgment.10
This court has never determined whether an order appointing a special administrator upon a petition for formal probate affects a substantial right of the informally appointed personal representative. A formal testacy proceeding is litigation to determine whether a decedent left a valid will.16
Russell and Cynthia filed a petition as described by
Mark asserts that his substantial rights were affected because the April 10, 2017, order appointing a special administrator “stripped Mark” of his powers to act as personal representative.20 But, as set forth above, the commencement of the formal proceedings had already limited Mark‘s power to do anything other than preserve the estate.
Mark does not elaborate how appointing a special administrator to protect the estate affected his substantial rights, other than to point out that he was nominated in the contested will and that the estate and, ultimately, Mark, as an heir, will bear the costs of the special administrator‘s compensation. Mark argues that the effect on these allegedly substantial rights cannot be vindicated in an appeal from the judgment, because the costs and any potential mishandling of the estate by the special administrator cannot later be undone.
While rights of priority among persons seeking appointment, “who are not disqualified,” are set forth in
[9] We have held that orders denying a request to remove a personal representative for cause are final and immediately
We have also held that orders finally determining a personal representative‘s right to fees, as provided in
In In re Estate of Muncillo,27 we held that the court‘s denial of an application to appoint a special administrator pursuant to
We find these cases inapposite to the present appeal. Even if a personal representative‘s substantial rights are affected by an order granting a petitioner‘s request to remove for cause under
[10] Likewise, our holding in In re Estate of Muncillo does not apply to the facts of this case. To be a final order, the substantial right affected must be of the appellant and cannot be claimed vicariously.31 Given that Mark‘s status as personal representative has not been finally determined, Mark‘s remaining right allegedly affected is merely to prohibit the appointment of a special administrator to protect the estate while the underlying will contest and his qualifications as personal representative are litigated. It is unclear where such a right might come from.
Any alleged right to avoid the appointment of a special administrator is meaningfully different from the right conferred by
Other courts with similar final order jurisprudence distinguish orders appointing special administrators, which they hold are not final, from orders appointing or removing a personal representative, which they hold are final.33 The court in Estate of Keske,34 for instance, reasoned that the appointment of a special administrator is not the kind of interim order that precluded further hearing and investigation of the rights of the parties.
With regard to its effect on any right of the appellant, the April 10, 2017, order is analogous to the order we held was not final in In re Estate of Peters.35 In In re Estate of Peters, we held that an order reappointing a personal representative after an estate has been formally closed is not a final order, because it does not affect a substantial right. The estate had been reopened upon discovery that a specific bequest had not been paid, and as a result, excess distributions were made to the residuary beneficiaries of the estate.36 We noted that while reopening the estate and reappointing the personal representative forced the heirs to defend their distributions, which they claimed was an improper collateral attack, the order was not dispositive of their rights.37
[11] Similarly, here, the April 10, 2017, order did not affect with finality Mark‘s substantial rights. We hold that in and of itself, and without additional facts indicating otherwise, an order appointing a special administrator pursuant to
We note that in In re Estate of Lorenz,41 the Nebraska Court of Appeals addressed the merits of an appeal directly from an order of summary judgment in probate proceedings, which determined the allowance of the interested person‘s claim against the estate, will contest, and request for the appointment of a special administrator. But the court‘s order appeared to be a final determination of the interested person‘s claim, and the Court of Appeals did not discuss why it considered the order to be final.42
Likewise, the Court of Appeals’ decision in In re Estate of Wilson43 does not stand for the proposition that an order appointing a special administrator is final. The court did not discuss the direct appealability of the order, which, in any event, was the denial of a motion to vacate a prior appointment of the special administrator. The special administrator
[12,13] We do not entertain direct appeals from interlocutory orders in order to avoid piecemeal review, chaos in trial procedure, and a succession of appeals granted in the same case to secure advisory opinions to govern further actions of the trial court.44 The underlying purpose of the Nebraska Probate Code is to promote a speedy and efficient system for liquidating the estate of the decedent and making distribution to the successors.45 Allowing a piecemeal appeal from an order appointing a special administrator defeats that purpose.
[14] We find no merit to Mark‘s argument that even if the appeal is not from a final order or judgment, we have appellate jurisdiction to consider whether the lower court acted without jurisdiction. The legal proposition upon which Mark relies states that though we lack jurisdiction over the merits of an extrajurisdictional act, we have jurisdiction to determine whether the lower court had the power to enter the judgment or final order sought to be reviewed.46 Our jurisdiction to review whether the lower court acted extrajurisdictionally presupposes our appellate jurisdiction over an appeal from a final order or judgment.
We have never held that we have appellate jurisdiction to determine if the lower court acted within its jurisdiction in an appeal from a nonfinal order. Our appellate jurisdiction is governed by statute. Nowhere does the Legislature provide
We have already concluded in this case that the April 10, 2017, order did not affect Mark‘s substantial rights. We express no opinion on the merits of Mark‘s argument that the county court lacked jurisdiction to appoint a special administrator once the will contest had been removed to district court.
CONCLUSION
For the foregoing reasons, we lack jurisdiction over Mark‘s appeal from the April 10, 2017, order. We dismiss the appeal.
APPEAL DISMISSED.
Wright, Miller-Lerman, and Kelch, JJ., not participating.
