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IN THE COURT OF APPEALS 10/15/96 OF THE STATE OF MISSISSIPPI
NO. 94-CA-01030 COA

IN RE: THE ESTATE OF VANDERBILT NMN DUCK, SR., DECEASED: SINGING RIVER HOSPITAL SYSTEM APPELLANT v. VANDERBILT DUCK, JR., ADMINISTRATOR OF THE ESTATE OF VANDERBILT NMN DUCK, SR., DECEASED APPELLEE

THIS OPINION IS NOT DESIGNATED FOR PUBLICATION AND MAY NOT BE CITED, PURSUANT TO M.R.A.P. 35-B

TRIAL JUDGE: HON. WILLIAM H. MEYERS COURT FROM WHICH APPEALED: CHANCERY COURT OF JACKSON COUNTY ATTORNEY FOR APPELLANT: BRETT K. WILLIAMS ATTORNEY FOR APPELLEE: W. HARVEY BARTON NATURE OF THE CASE: APPEAL OF MOTION TO DISBURSE LAWSUIT PROCEEDS AND EXCLUDE CREDITORS TRIAL COURT DISPOSITION: MOTION GRANTED

BEFORE BRIDGES, P.J., BARBER, AND MCMILLIN, JJ.

BARBER, J., FOR THE COURT:

The administrator of the estate of Vanderbilt Duck, Sr. entered a motion in the Chancery Court of Jackson County to disburse the proceeds of an asbestosis lawsuit settlement. The chancery court granted the motion to allow disbursement of the proceeds to the heirs of Duck. The court, following the provisions of section 85-3-19 of the Mississippi Code, precluded disbursement of any of the proceeds to the estate's creditors. The Singing River Hospital System (Singing River) appeals to this Court submitting only one issue, whether section 85-3-19 should be construed to allow creditors' claims for last illness and burial expenses to be paid from the asbestosis lawsuit settlement. FACTS Vanderbilt Duck, Sr. died in November of 1989. He was survived by six children who were his only heirs. Prior to his death, Duck received $6,163.04 in medical care from Singing River. The bill for these services had not been paid at the time of his death and was not paid by the estate because it had insufficient assets to satisfy the claim. Prior to his death, however, Duck had filed an asbestosis lawsuit against several manufacturers of asbestos alleging an asbestosis-related illness as a result of his exposure to their products. After Duck's death, the asbestosis claim was continued by the administrator of his estate, and a significant settlement was received in August of 1994. The administrator moved to disburse the settlement proceeds to Duck's heirs, to the exclusion of the estate's creditors, in accordance with the provisions of section 85-3-19 of the Mississippi Code. The cause of Duck's death and the last illness treatment provided by Singing River were unrelated to the asbestosis claim. ISSUE I. WHETHER PROCEEDS FROM THE ASBESTOSIS SETTLEMENT SHOULD PASS TO THE HEIRS OF DUCK FREE FROM THE CLAIMS OF SINGING RIVER HOSPITAL SYSTEM, PURSUANT TO SECTION 85-3-19 OF THE MISSISSIPPI CODE.

ANALYSIS Singing River argues that section 85-3-19 of the Mississippi Code should be construed to permit creditors of an estate to recover last illness and burial expenses from lawsuit proceeds received by a debtor's heirs as a result of pre-death actions filed by the debtor. According to Singing River, section 85-3-19, which provides that proceeds of a civil action that is begun during the life of an injured party and continued after his death by the administrator of his estate shall pass to his heirs free from all liabilities, is inconsistent "with the overall statutory scheme" in Mississippi. Singing River bases its argument on several Mississippi statutes which provide that proceeds from a lawsuit are exempt from the claims of creditors only to a limited degree. See Miss. Code Ann.

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Mississippi Law