DO NOT CITE. SEE GR 14.1(a).
Court of Appeals Division I
State of Washington
Opinion Information Sheet
Docket Number: |
65578-7 |
Title of Case: |
Nancy Becker, App. V. Jennifer White, Pr, Res. |
File Date: |
03/12/2012 |
SOURCE OF APPEAL
----------------
Appeal from King County Superior Court |
Docket No: | 08-4-04979-2 |
Judgment or order under review |
Date filed: | 05/20/2010 |
Judge signing: | Honorable James D Cayce |
JUDGES
------
Authored by | Stephen J. Dwyer |
Concurring: | Michael S. Spearman |
| J. Robert Leach |
COUNSEL OF RECORD
-----------------
Counsel for Appellant(s) |
| Ladd B. Leavens |
| Davis Wright Tremaine LLP |
| 1201 3rd Ave Ste 2200 |
| Seattle, WA, 98101-3045 |
Counsel for Respondent(s) |
| Bruce Andrew Mcdermott |
| Garvey Schubert Barer |
| 2nd & Seneca Bldg 18th Floor |
| 1191 2nd Ave |
| Seattle, WA, 98101-2939 |
|
| Kenneth Levi SchubertIII |
| Garvey Schubert & Barer |
| 1191 2nd Ave Ste 1800 |
| Seattle, WA, 98101-2939 |
|
| Teresa R Byers |
| Garvey & Schubert Barer |
| 1191 2nd Ave Fl 18 |
| Seattle, WA, 98101-3438 |
|
| Patricia Helen Char |
| K&L Gates LLP |
| 925 4th Ave Ste 2900 |
| Seattle, WA, 98104-1158 |
Counsel for Guardian(s) Ad Litem |
| Richard Paul Lentini |
| Ryan Swanson & Cleveland PLLC |
| 1201 3rd Ave Ste 3400 |
| Seattle, WA, 98101-3034 |
|
| Lance L Losey |
| Ryan Swanson & Cleveland PLLC |
| 1201 3rd Ave Ste 3400 |
| Seattle, WA, 98101-3034 |
|
| Jennifer C. Rydberg |
| Attorney at Law |
| 8407 S 259th St Ste 203 |
| Kent, WA, 98030-7536 |
IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON
In the Matter of the Estate of: )
) DIVISION ONE
VIRGIL VICTOR BECKER, JR., )
) No. 65578-7-I
Deceased. )
)
CATHERINE JANE BECKER, ) UNPUBLISHED OPINION
CAROL-LYNNE JANICE BECKER, )
and ELIZABETH DIANE MARGARET )
BECKER, )
)
Respondents, )
)
v. )
)
JENNIFER WHITE, in her capacity as )
Personal Representative of the Estate )
of Virgil Victor Becker, Jr., )
)
Respondent. ) FILED: March 12, 2012
)
NANCY BECKER, )
)
Petitioner. )
________________________________)
Dwyer, C.J. -- Virgil Victor ("Tory") Becker Jr. died in July 2008. His
purported will, which leaves his entire estate to his minor daughter Barbara, was
thereafter admitted to probate. Tory's three adult daughters from a previous
marriage challenged the will as fraudulent and asserted numerous creditors'
No. 65578-7-I/2
claims against the estate. Following mediation, Barbara's guardian ad litem
(GAL) and the adult daughters entered into an agreement settling the will
contest and creditors' claims in exchange for granting the adult daughters a
percentage interest in the estate.
Nancy Becker, Tory's wife and Barbara's mother, refused to sign the
settlement agreement in her role as personal representative of the estate. After
her removal from that role due to irreconcilable conflicts, she appeared in the
action personally. Upon motion of the GAL, the trial court determined that
Nancy -- who is not a named beneficiary in the will admitted to probate -- does not
have standing to participate in proceedings regarding the settlement agreement.
Nancy filed a motion for discretionary review of the trial court's order,
which we granted. We conclude that neither general principles of standing nor
the Trust and Estate Dispute Resolution Act (TEDRA), chapter 11.96A RCW,
confer upon Nancy standing to participate in the settlement agreement
proceedings. Accordingly, we affirm the trial court's order.
I
Tory Becker died on July 27, 2008 when the private airplane in which he
was a passenger crashed. At the time of his death, Tory was married to Nancy
Becker, with whom he had a child, Barbara Becker. Barbara was born on
November 28, 1997. She is currently 14 years old. Tory is also survived by
three daughters from a previous marriage -- Catherine Jane Becker, Carol-Lynne
- 2 -
No. 65578-7-I/3
Janice Becker, and Elizabeth Diane Becker.1
On August 13, 2008, the trial court admitted to probate a will which left
Tory's entire estate to Barbara. Pursuant to that will, Nancy was named as
personal representative of the estate.
On December 12, 2008, the adult daughters filed a petition challenging
the validity of the will and seeking to remove Nancy as personal representative
based upon alleged conflicts of interest. Jennifer Rydberg was thereafter
appointed to act as Barbara's GAL. The adult daughters and their
mother -- Linda Bulger, Tory's previous wife -- additionally asserted 14 creditors'
claims against the estate. Nancy, as personal representative, rejected each of
the creditors' claims, and a civil action for the claims was filed against the estate
on January 29, 2009.
On December 4, 2009, Rydberg, the adult daughters, and Bulger
participated in a meditation to resolve the disputes. Following the mediation,
they signed a "CR 2A Settlement Agreement."2 The agreement stated that the
petitioners -- the adult daughters and Bulger -- recognized the possibility that one
or more of their creditors' claims might be dismissed by the court and that their
will contest might be unsuccessful. Similarly, the agreement stated that the
respondent -- Barbara, as represented by GAL Rydberg -- recognized the
1 Catherine Jane Becker, Carol-Lynne Janice Becker, and Elizabeth Diane Becker are
referred to collectively herein as the "adult daughters." The other Becker parties are referred to
by their first names in order to avoid confusion.
2 Nancy, as personal representative of the estate, was also present for part of the
mediation. However, she was not involved in the drafting of the settlement agreement.
- 3 -
No. 65578-7-I/4
possibility that one or more of the creditors' claims might be granted by the court
and that the will contest might be successful. Accordingly, pursuant to the
agreement, the adult daughters and Bulger agreed to dismiss the will contest
and creditors' claims in exchange for granting the adult daughters a percentage
interest in the estate. The agreement further recognized that "[t]he assets that
are in the Estate as well as the characterization and value of those assets are in
dispute." Clerk's Papers (CP) at 259. The agreement did not purport to
determine those assets which made up the estate.
Nancy refused to sign the agreement in her role as personal
representative of the estate. Rydberg and the adult daughters petitioned the
court to appoint a co-personal representative for the limited purpose of
approving the settlement agreement. Rydberg additionally filed a petition to
remove Nancy as personal representative. On March 12, 2010, following a two-
hour hearing, the trial court removed Nancy as personal representative of the
decedent's estate. The court determined that Nancy had numerous direct,
irreconcilable conflicts of interest that precluded her from acting in that role.
On April 8, 2010, following her removal as personal representative, Nancy
appeared personally in this matter. Jennifer White was thereafter appointed as
personal representative of the estate.
On May 10, 2010, Rydberg filed a motion with the trial court entitled
Motion to Determine Standing of Nancy Becker Regarding CR 2A Agreement of
- 4 -
No. 65578-7-I/5
Heirs to Resolve Will Contest and Creditors' Claims, and Distribute Estate.
Rydberg sought "an order identifying those parties who are entitled to participate
in the June 11th court proceedings regarding the review and possible approval
of the pending CR 2A Agreement." CP at 173. Her motion asserted that the
effect of the settlement agreement was solely to "apportion[] whatever assets
end up in the Estate on a percentage basis between the Adult Children and
Barbara" -- not to "determine what assets are actually in or owned by the Estate,
or whether the Estate has any claim to assets which [Nancy] now claims are hers
alone." CP at 174. The motion further contended that Nancy lacked standing to
participate in the proceedings based both on general principles of standing and,
specifically, on the provisions of TEDRA that define who constitutes a "party" for
purposes of that act. Thus, Rydberg asserted, Nancy has no legally cognizable
interest in the subject matter of the agreement.
The adult daughters filed a response in support of the motion to
determine Nancy's standing to participate in the review and approval process of
the settlement agreement. They alleged that Nancy had incurred hundreds of
thousands of dollars in legal fees in order to impede discovery and prevent the
court from considering the settlement agreement and that Nancy's further
involvement would continue to deplete the estate of resources. They also
alleged that Nancy, who had purportedly mischaracterized the assets of the
estate to her own benefit, was fearful that the adult daughters would assist
- 5 -
No. 65578-7-I/6
Barbara in recovering the true value of the estate.
On May 20, 2010, the trial court granted the motion and entered an order
determining that Nancy lacks standing to participate in judicial proceedings
concerning the settlement agreement and its proposed resolution of the will
contest and creditors' claims. In support of its ruling, the trial court entered the
following findings of fact:
1. On December 4, 2009, during a court-ordered mediation, the
GAL for Barbara Becker, and the Petitioners entered into a written
CR 2A Agreement that purports to resolve the will contest, resolve
all of the creditors' claims brought by Petitioners against the Estate
of Virgil Victor Becker, Jr., (the "Estate" herein), and distribute the
Estate. The CR 2A Agreement does not affect the prosecution or
distribution of proceeds from the wrongful death claim that arose
from the circumstances of the death of Virgil Victor Becker, Jr. (
"decedent" herein). The PR has not signed the CR 2A
[Agreement].
2. Nancy Becker is the surviving spouse of the decedent.
3. Nancy Becker has no beneficial interest in any matters
addressed by the CR 2A Agreement or in the Estate. Nancy
Becker is not an heir or beneficiary of the Estate, and has no legal
interest in the decedent's property, in this estate action.
4. Nancy Becker was removed as Personal Representative ("PR"
herein) of the Estate on March 16, 2010, and is not presently the
PR.
5. Nancy Becker is not a "real party in interest" as to the matters
addressed by the CR 2A Agreement.
6. Nancy Becker is not a party under the Trust and Estates
Dispute Resolution Act, RCW 11.96A, et seq.
CP at 231. The trial court also entered conclusions of law, ruling that:
1. Nancy Becker is not a real party in interest, nor is she a party
- 6 -
No. 65578-7-I/7
under the Trust and Estates Dispute Resolution Act, RCW 11.96A
et seq.
2. Nancy Becker has no standing to participate as a party in the
court's determination of whether a CR 2A Agreement, that resolves
the will contest and Petitioners' creditors' claims, and distributes
the estate among the heirs, reached by the Petitioners and the
GAL, or any variation thereof, should be approved by the Court.
3. Except for any proceeds that may in the future be obtained from
a wrongful death action, Nancy Becker has no standing to
participate as a party in the Court's determination of how the
assets of the Estate shall be distributed among its heirs.
4. Nancy Becker has no standing to participate as a party in the
litigation and resolution of creditors' claims made against the
Estate, or the validity of the Will admitted to probate.
CP at 232.
On June 2, 2010, Rydberg and the adult children filed a motion for court
approval of the CR 2A Agreement. The court thereafter stayed the motion for
approval of the settlement agreement pending the resolution of issues to be
presented to the minor settlement ex parte department.
On July 6, 2010, Nancy sought discretionary review in this court of the
trial court's order determining that she lacks standing to participate in
proceedings regarding the settlement agreement. On August 31, 2010, we
granted discretionary review of that order. The adult daughters thereafter filed
with this court a motion for the admission of additional evidence -- specifically, a
purported premarital agreement between Nancy and Tory that allegedly
precluded the creation of community property interests during their marriage.
- 7 -
No. 65578-7-I/8
Thus, both the trial court's order regarding Nancy's standing and the motion for
additional evidence are before us.
II
Nancy contends that the trial court erred by determining that she does not
have standing to participate in proceedings regarding the settlement of the will
contest and creditors' claims. Because general principles of standing do not
entitle Nancy to so participate, and because Nancy is not a "party" to this
proceeding pursuant to TEDRA, we disagree.
Standing is a question of law subject to de novo review. In re Irrevocable
Trust of McKean, 144 Wn. App. 333, 339, 183 P.3d 317 (2008). "A party has
standing to raise an issue if that party has a distinct and personal interest in the
issue." Paris Am. Corp. v. McCausland, 52 Wn. App. 434, 438, 759 P.2d 1210
(1988). That interest must be present and substantial, rather than "a mere
expectancy, or future, contingent interest." Primark, Inc. v. Burien Gardens
Assocs., 63 Wn. App. 900, 907, 823 P.2d 1116 (1992). "Standing requires that
the plaintiff demonstrate an injury to a legally protected right." Sprague v. Sysco
Corp., 97 Wn. App. 169, 176 n.2, 982 P.2d 1202 (1999). Consistent with
principles of standing -- although a doctrine distinct from standing -- CR 17(a)
requires that "[e]very action shall be prosecuted in the name of the real party in
interest." See Sprague, 97 Wn. App. at 176 n.2. "The real party in interest is
the person who possesses the right sought to be enforced." Sprague, 97 Wn.
- 8 -
No. 65578-7-I/9
App. at 176 n.2.
TEDRA provides various methods for resolving disputes concerning wills
and trusts. One such method is a "binding nonjudicial procedure to resolve
matters through written agreements among the parties interested in the estate or
trust." RCW 11.96A.210; see also RCW 11.96A.220-.250. The procedure is
applicable to the resolution of any "matter," as defined by the act. RCW
11.96A.220.3 "If all parties agree to a resolution of any such matter, then the
agreement shall be evidenced by a written agreement signed by all parties.
Subject to the provisions of RCW 11.96A.240, the written agreement shall be
binding and conclusive on all persons interested in the estate or trust." RCW
11.96A.220.
Thus, pursuant to TEDRA, those persons whose agreement must be
obtained in order to resolve by written agreement a dispute regarding a will are
those "persons interested in the estate." RCW 11.96A.220; see also RCW
11.96A.210. TEDRA further defines who constitutes a "party" for the purposes
of that statute. See RCW 11.96A.030(5). A "party" means each person listed
within RCW 11.96A.030(5) "who has an interest in the subject of the particular
proceeding." RCW 11.96A.030(5). The statute then lists numerous individuals
who may constitute "parties" in a proceeding, including, as relevant here, "[t]he
3 See RCW 11.96A.030(2)(c) (defining "matter" as "any issue, question, or dispute
involving . . . [t]he determination of any question arising in the administration of an estate or
trust, or with respect to any nonprobate asset, or with respect to any other asset or property
interest passing at death"); see also In re Estate or Kordon, 157 Wn.2d 206, 211, 137 P.3d 16
(2006). (holding that "[a] will contest presents a 'question arising in the administration of an
estate,' and therefore is clearly a 'matter' subject to TEDRA").
- 9 -
No. 65578-7-I/10
surviving spouse or surviving domestic partner of a decedent with respect to his
or her interest in the decedent's property." RCW 11.96A.030(5)(f).4 TEDRA
further provides that "'[p]ersons interested in the estate or trust'" means . . . "all
persons beneficially interested in the estate or trust." RCW 11.96A.030(6).
As the trial court determined, Nancy is not a "party" pursuant to TEDRA.
The statute provides that the persons who constitute "parties" are those persons
who are both listed within RCW 11.96A.030(5) and have "an interest in the
subject of the particular proceeding." RCW 11.96A.030(5). Moreover, a
surviving spouse is a party only "with respect to his or her interest in the
decedent's property." RCW 11.96A.030(5)(f) (emphasis added). Nancy has an
4 RCW 11.96A.030(5) provides in full:
"Party" or "parties" means each of the following persons who has an interest in
the subject of the particular proceeding and whose name and address are known
to, or are reasonably ascertainable by, the petitioner:
(a) The trustor if living;
(b) The trustee;
(c) The personal representative;
(d) An heir;
(e) A beneficiary, including devisees, legatees, and trust beneficiaries;
(f) The surviving spouse or surviving domestic partner of a decedent with
respect to his or her interest in the decedent's property;
(g) A guardian ad litem;
(h) A creditor;
(j) Any other person who has an interest in the subject of the particular
proceeding;
(j) The attorney general if required under RCW 11.110.120;
(k) Any duly appointed and acting legal representative of a party such as
a guardian, special representative, or attorney-in-fact;
(l) Where applicable, the virtual representative of any person described
in this subsection the giving of notice to whom would meet notice
requirements as provided in RCW 11.96A.120;
(m) Any notice agent, resident agent, or a qualified person, as those
terms are defined in chapter 11.42 RCW; and
(n) The owner or the personal representative of the estate of the
deceased owner of the nonprobate asset that is the subject of the particular
proceeding, if the subject of the particular proceeding relates to the
beneficiary's liability to a decedent's estate or creditors under RCW
11.18.200.
- 10 -
No. 65578-7-I/11
interest neither in the subject of the settlement agreement proceeding nor in the
decedent's property. Nancy is not a named beneficiary in the will. Nor has
Nancy challenged the validity of the will, as have the adult daughters, such that
she has a beneficial interest in the resolution of the will contest. Indeed, having
not challenged the will within the four-month statutory period, Nancy cannot now
do so. See RCW 11.24.010 (requiring that will contests be filed within four
months following the probate of a will).
Moreover, even if Nancy and Tory owned community property prior to his
death,5 "[a]t death, the community [was] dissolved and the former community
property [became] the separate property of the decedent's estate and of the
surviving spouse." In re Estate of Mell, 105 Wn.2d 518, 523, 716 P.2d 836
(1986) (quoting deNoskoff v. Scott, 36 Wn. App. 424, 426-27, 674 P.2d 687
(1984)). Nancy obviously has an interest in that portion of any such community
property which, upon Tory's death, became her separate property. She does
not, however, have any interest in the separate property of Tory's estate,
regardless of whether any such property once constituted community property.6
5 Whether Nancy and Tory owned community property during their marriage is disputed.
However, the settlement agreement at issue here does not purport to determine the
characterization of any property within the estate. Thus, we need not determine whether any
such community interest existed. Moreover, we note that any such determination is properly
made by the trial court, not by an appellate court in the first instance. For these reasons, we
deny the adult daughters' motion to admit as additional evidence, for purposes of this review, the
purported premarital agreement between Nancy and Tory precluding the creation of community
property interests during their marriage.
6 Nancy asserts that she has standing to participate in the settlement agreement
proceedings due to her interest in the community property within the estate. She contends that
joint ownership of any property with the adult daughters would diminish the value of that
property. Moreover, she asserts that community property in which she has an interest may be
required to be sold due to the settlement agreement. However, as explained above, Nancy has
- 11 -
No. 65578-7-I/12
Nevertheless, Nancy asserts that she has an interest in the will
contest -- and, thus, in the settlement of the will contest -- because she would be
entitled to inherit a part of the estate through intestacy were the will in probate
determined to be invalid. She contends that if the will contest were successful,
she, as an heir, would be entitled to an intestate share of the estate. Moreover,
she asserts, in the event that the challenged will is invalid and an earlier-
executed will is determined to be valid, she would be entitled to inherit as an
omitted spouse.
However, Nancy stands to benefit from the will contest -- such that she
has a beneficial interest in that matter -- only if the will is invalidated, such that
she could inherit a percentage of the estate through intestacy. But, as already
noted, Nancy has not herself challenged the will. Rather, she has maintained
throughout the proceedings that the will, which, acting as personal
representative, she sought to have admitted to probate, is valid. RCW
11.96A.210, which authorizes parties to enter into settlement agreements such
as that contemplated here, is a dispute resolution mechanism. Nancy is not
involved in this dispute. The trial court did not err by determining that she is not
entitled to participate in its settlement.7
no beneficial interest in the estate, even had some of that property been community property
prior to Tory's death. Speculation regarding the distribution of property within the estate does not
confer upon Nancy standing to participate in the settlement agreement proceedings.
7 The settlement agreement does not purport to determine what property is a part of the
estate; nor does it purport to determine the character of any such property. The trial court's
order does not preclude Nancy's participation in future proceedings in which she has a beneficial
interest.
- 12 -
No. 65578-7-I/13
Nancy is not a "party" pursuant to TEDRA such that she is entitled to
participate in the settlement of the will contest and creditors' claims, as she does
not "[have] an interest in the subject of [this] particular proceeding." See RCW
11.96A.030(5). Furthermore, although Nancy is the decedent's surviving
spouse, she has no "interest in the decedent's property" that would confer upon
her standing pursuant to TEDRA. See RCW 11.96A.030(5)(f). Finally, because
Nancy has not demonstrated that she has a "distinct and personal interest in the
issue," general principles of standing do not confer upon her the right to
participate in the settlement agreement proceedings. See Paris Am. Corp., 52
Wn. App. at 438.
The trial court did not err by determining that Nancy is not entitled to
participate in the settlement agreement proceedings.8
III
The adult daughters, Nancy, and Rydberg all request an award of
attorney fees "on appeal."9 We decline to grant an award of fees to the adult
8 Nancy additionally contends that the trial court erred by determining that she is not an
"heir" to the estate. See RCW 11.02.005(6) (defining "heirs" as "those persons, including the
surviving spouse or surviving domestic partner, who are entitled under the statutes of intestate
succession to the real and personal property of a decedent on the decedent's death intestate").
In so doing, she mischaracterizes the trial court's order, which states that Nancy "is not an heir or
beneficiary of the Estate, and has no legal interest in the decedent's property, in this estate
action." CP at 231 (emphasis added). The trial court did not determine, as Nancy implies, that
Nancy would not be entitled to inherit a portion of the estate through intestacy.
Nancy also requests that we vacate any trial court order entered in this matter
subsequent to the standing order challenged herein. She asserts that any such order is "tainted"
by the erroneous determination that she does not have standing to participate in these
proceedings. Because the trial court did not err by determining that she does not have standing,
we decline to vacate any subsequent orders.
9 This matter is not on appeal. Rather, this is a discretionary review proceeding.
Nevertheless, the same standards apply with regard to resolving a request for an award of
attorney fees for work performed litigating matters in this court.
- 13 -
No. 65578-7-I/14
daughters or to Nancy, but we determine that Rydberg is entitled to be paid for
her services as Barbara's GAL.
TEDRA confers upon us broad discretion in granting an award of attorney
fees. It provides that
any court on appeal may, in its discretion, order costs, including
reasonable attorneys' fees, to be awarded to any party: (a) From
any party to the proceedings; (b) from the assets of the estate or
trust involved in the proceedings; or (c) from any nonprobate asset
that is the subject of the proceedings. The court may order the
costs, including reasonable attorneys' fees, to be paid in such
amount and in such manner as the court determines to be
equitable. In exercising its discretion under this section, the court
may consider any and all factors that it deems to be relevant and
appropriate, which factors may but need not include whether the
litigation benefits the estate or trust involved.
RCW 11.96A.150(1).
Nancy requests that we order the adult daughters and Rydberg to pay her
attorney fees for work done in this court on this matter. She contends that such
an award is warranted because, she asserts, by seeking review she benefitted
the estate by aiding the prevention of the approval of the settlement agreement.
Because we determine that Nancy does not have standing to participate in
proceedings regarding the settlement agreement, we decline her request for an
award of attorney fees.1
The adult daughters request an award of appellate attorney fees to be
paid personally by Nancy. They contend that such an award is warranted due to
1 Moreover, we note that the interests of the estate are represented by the personal
representative of the estate -- not by Nancy. Moreover, the approval of the settlement
agreement is not at issue in this discretionary review proceeding.
- 14 -
No. 65578-7-I/15
Nancy's failure to produce the purported premarital agreement in discovery,
coupled with Nancy's appellate arguments that, they contend, contradict that
agreement. However, the validity of the premarital agreement has not been
determined. We decline to grant an award of fees on this basis.
Finally, Rydberg contends that she is entitled to be paid for her services
as GAL pursuant to RCW 11.96A.160(4), which provides that "[t]he guardian ad
litem is entitled to reasonable compensation for services . . . to be paid from the
principal of the estate or trust whose beneficiaries are represented." There is no
indication in the record that Rydberg has acted in bad faith or made
unmeritorious arguments. Thus, we order that Rydberg be paid her reasonable
fees incurred for work in this court, to be paid by the estate pursuant to RCW
11.96A.160(4), in an amount to be established by the superior court on remand.
RAP 18.1(i).
WE CONCUR:
- 15 -
No. 65578-7-I/16
- 16 -
|