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Summary of Opinion: C.W. McWhorter v. Daniel F. Bush; R. James Colling v. Daniel F. Bush

Factual and Procedural Background

F. Miles Bush died August 2, 1970, and a probate action was filed in the Spokane County Superior Court. Plaintiffs filed separate creditor's claims in the estate seeking return of, or reimbursement for, mining stock allegedly loaned for an indefinite time to the deceased. The executor rejected the claims. Plaintiffs brought actions against the estate in the Superior Court for Spokane County (filed within the existing probate proceedings rather than as separate civil causes). The trial court found for plaintiffs and awarded monetary damages. Defendant Daniel F. Bush, executor, appealed the judgment entered October 6, 1971. The Court of Appeals affirmed in part, reversed in part, and remanded.

Legal Issues Presented

  1. Whether suits on rejected creditor's claims filed within an existing probate proceeding satisfy RCW 11.40.060's requirement that suits be brought "in the proper court" (i.e., whether "proper court" refers to the superior court as a whole or to a particular division/filing classification within it).
  2. Whether the trial court's computation of damages was supported by findings of fact and evidence, or whether remand is required for additional evidence or for entry of findings and conclusions explaining the basis for the damages award.

Arguments of the Parties

Appellant's (Executor) Arguments

  • The trial court erred in denying the motion to dismiss because plaintiffs failed to properly and timely file their actions in the superior court by filing them in the existing probate rather than as separate civil causes.
  • The computation of damages awarded by the trial court is not supported by substantial evidence.

Respondents' (Plaintiffs) Position

  • Plaintiffs filed their actions within the 30-day period required by RCW 11.40.060; the actions were filed in the Superior Court for Spokane County (albeit within the probate file). Defendant received notice and had an opportunity to defend; therefore plaintiffs contend substantial rights were protected and any nonobservance of filing form was harmless.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Rutter v. Rutter, 59 Wn.2d 781, 784, 370 P.2d 862 (1962) That plaintiffs should file separate civil actions and pay required filing fees to commence suits on rejected claims. Used to state the proper procedure plaintiffs should have followed, while noting plaintiffs nonetheless complied with the statute's timing requirement.
Schluneger v. Seattle First-Nat'l Bank, 48 Wn.2d 188, 190, 292 P.2d 203 (1956) That suits on rejected claims are to be brought as separate civil actions (procedural filing principle). Referenced alongside Rutter to describe proper commencement procedure, while concluding the filing here was within the superior court and harmless.
Purnell v. Simonyi, 51 Del. 139, 140 A.2d 256, 258 (1958) The purpose of the statute is protection of substantial rights; nonobservance of mere form will not constitute noncompliance. Applied to conclude that plaintiffs' failure to file separate civil causes did not prejudice defendant's substantial rights and was therefore harmless error.
Lindsay Great Falls Co. v. McKinney Motor Co., 79 Mont. 136, 255 P. 25 (1927) Supporting authority for treating procedural form errors as nonfatal where substantial rights are protected. Invoked to support the court's conclusion that the filing within the probate did not undermine plaintiffs' compliance with RCW 11.40.060.
Peterson v. Neal, 48 Wn.2d 192, 292 P.2d 358 (1956) Authority for remanding when the basis for damages is not disclosed by findings or supported by the record. Cited to justify remand for taking additional evidence and/or entry of findings of fact and conclusions of law to support the damage awards.
Bowman v. Webster, 42 Wn.2d 129, 253 P.2d 934 (1953) Supporting the proposition that remand is appropriate where findings do not disclose the basis for an award. Applied to support remand for further proceedings to establish the basis and method of computing damages.

Court's Reasoning and Analysis

The court interpreted RCW 11.40.060's phrase "in the proper court" to mean the superior court itself, not a particular filing division or subject-matter series within that court. Because both the probate and the actions on the rejected claims were filed in the Spokane County Superior Court, plaintiffs complied with the statute's requirement to bring suit within 30 days of rejection. Although plaintiffs should have commenced separate civil actions and paid filing fees (citing Rutter and Schluneger), the court held that the procedural form error did not prejudice defendant: defendant received proper notice and had an opportunity to defend, so substantial rights were protected and the error was harmless (citing Purnell, Lindsay, and 1 C.J.S.).

Regarding damages, the court found no findings of fact or conclusions of law disclosing the basis for the monetary awards. The record contains no evidence supporting the specific amounts awarded; the court's mathematical computation suggested the trial court may have used historical bid-and-ask prices when the stocks were first loaned, but no evidence shows plaintiffs expected the same value upon return. Because the basis for the awards was not disclosed or supported, the court remanded for additional evidence and/or entry of supportive findings and conclusions (citing Peterson and Bowman).

Holding and Implications

Holding: The judgment is affirmed in part, reversed in part, and remanded to the trial court for further action consistent with the opinion.

Implications: The court upheld that filing within the superior court's probate file satisfied RCW 11.40.060's "proper court" requirement where timely notice was given and defendant was not prejudiced, rendering any procedural filing-form error harmless. The damages awards lacked supporting findings or evidence and therefore the case is remanded for further evidence and/or entry of findings and conclusions to establish the basis and method of computing damages. The opinion directs only remedial proceedings in this case; it does not purport to establish a broader new precedent beyond the principles applied.

C.W. McWHORTER, Respondent, v. DANIEL F. BUSH, as Executor, Appellant. R. JAMES COLLING, Respondent,

[1] Executors and Administrators — Creditor's Claims — Suit on Rejected Claim — Proper Court. The requirement of RCW 11.40.060 that suits on rejected creditor's claims be brought in the "proper court," refers to the court itself, i.e., the superior court, and not to any division of cases by subject matter within that court, such as probate, regular civil, etc., for purposes of assigning filing numbers. The purpose of the statute is the protection of substantial rights, and the mere nonobservance of form will not constitute noncompliance.

[2] Appeal and Error — Disposition of Cause — Remand for Findings. Where the basis for an award of damages is not disclosed by findings or conclusions, and the award is not supported by the record, the cause will be remanded for the taking of additional evidence or the entry of supportive findings and conclusions, or both. [See 5 Am.Jur.2d, Appeal and Error § 974.]

Affirmed in part; reversed in part; remanded.

Action on claims against an estate. Defendant appeals from a judgment in favor of the plaintiffs.

MUNSON, C.J.

Defendant Daniel F. Bush, executor of the estate of F. Miles Bush, appeals from an allowance of claims against the Bush estate.

F. Miles Bush died August 2, 1970; thereafter a probate action was filed in the Spokane County Superior Court. Plaintiffs filed separate creditor's claims in the estate for the return of, or reimbursement for, mining stock allegedly loaned for an indefinite time to the deceased during his lifetime. Although the record does not reflect the stock was not available for return, we assume defendant could not return the stock itself. After rejection of these claims by the executor, plaintiffs brought these actions against the estate in the Superior Court for Spokane County. The trial court found for plaintiffs and awarded monetary damages.

Defendant first contends the trial court erred in denying his motion to dismiss wherein he claimed plaintiffs failed to properly and timely file their actions in the superior court. This contention is based on the fact that plaintiffs filed the actions in the existing probate rather than filing them as separate civil causes.

[1] RCW 11.40.060 requires that suits upon rejected claims be brought "in the proper court" within 30 days of notice of rejection. The "proper court" in this instance is the superior court; this probate and the actions on the rejected claims were filed in the superior court. To commence such actions, plaintiffs should have filed separate civil actions and paid the required filing fees, Rutter v. Rutter, 59 Wn.2d 781, 784, 370 P.2d 862 (1962); Schluneger v. Seattle First-Nat'l Bank, 48 Wn.2d 188, 190, 292 P.2d 203 (1956). Plaintiffs complied with this statute by filing their actions within the 30-day period. Defendant received proper notice thereof and had an opportunity to, and did, defend. Defendant's substantial rights, therefore, have been completely protected. The validity of the procedure should not depend upon the mere observance of form, but rather upon whether substantial rights have been protected. See Purnell v. Simonyi, 51 Del. 139, 140 A.2d 256, 258 (1958); Lindsay Great Falls Co. v. McKinney Motor Co., 79 Mont. 136, 255 P. 25 (1927); 1 C.J.S. Actions § 123 at 1386, note 46 (1936). Here, the fact that the superior court clerk has one series of numbers for probate matters and another series for regular civil actions does not mean that the case was not filed in the superior court. Probate proceedings are properly within the jurisdiction of the superior court. We find any error resulting from this failure to file separate actions was harmless; defendant was not prejudiced.

"Suit on rejected claim. When a claim is rejected by either the personal representative or the court, the holder must bring suit in the proper court against the personal representative within thirty days after notification of the rejection, otherwise the claim shall be forever barred."

Defendant next contends that the computation of damages by the trial court is not supported by substantial evidence. Plaintiff McWhorter was awarded $4,620 as value for 3,300 shares of stock in Gold Placers, Inc.; plaintiff Colling was awarded $1,600 as value for 10,000 shares of stock in Superior Silver Mines, Inc.

[2] No findings of fact or conclusions of law were entered showing the basis for the trial court's computations of these damages. By our mathematical computation we discern the trial court may have used the bid-and-ask prices for these particular stocks on or near the dates when the stocks were first loaned to the deceased; no other evidence in the record supports the amount of damages awarded. Nothing indicates plaintiffs expected, or had any reason to expect, the stock would have the same value when returned as it had when loaned. Findings establishing the basis for awarding the amount of damages are, therefore, insufficient.

We must remand the case for the purpose of taking further evidence, and/or entry of findings of fact and conclusions of law, establishing the basis and method of computing damages. Peterson v. Neal, 48 Wn.2d 192, 292 P.2d 358 (1956); Bowman v. Webster, 42 Wn.2d 129, 253 P.2d 934 (1953).

Judgment is affirmed in part, reversed in part and remanded to the trial court for further action consistent with this opinion.

GREEN and EDGERTON, JJ., concur.

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McWHORTER v. BUSH
(Nov 16, 1972)