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Jacobson v. Estate of Clayton9/15/2005
In this appeal, we revisit our 1969 decision in Bodine v. Stinson, in which we determined that the probate statutes of NRS Chapter 147 provide the statutory scheme for the administration of estates and must be followed in every case regardless of the existence of insurance. We conclude that Bodine is superseded by the Legislature's 1971 amendment of NRS 140.040 to specifically allow suits against a special administrator, in place of probate proceedings, when the estate's sole asset is a liability insurance policy.
FACTS
In September 2001, California resident Daniel Clayton was involved in an automobile collision in Washoe County, Nevada. Apparently, Clayton's vehicle, while towing a trailer, crossed the median and crashed head on into a vehicle in which Carson City, Nevada, residents Tony Allen Jacobson and Amoreena Victorine were traveling. Clayton was killed, and Jacobson and Victorine suffered injuries. Kemper Insurance Companies insured Clayton at the time of the accident through a California-issued automobile liability policy. The district court appointed the Carson City Public Administrator as special administrator of Clayton's Nevada estate (Estate). The district court order appointing the special administrator stated that the liability insurance policy constituted the only asset in Clayton's Nevada estate. Jacobson and Victorine filed a complaint against the Estate to recover damages for their injuries and sought compensation from the automobile liability insurance policy.
The Estate filed a third-party complaint against McDonald's Travel 'N' Fun, the company that owned the trailer Clayton was towing when the accident occurred, for indemnity and contribution. McDonald's moved to dismiss the complaint and the third-party complaint for lack of subject matter jurisdiction, arguing that appellants had failed to follow the probate procedures of NRS Chapter 147. The district court dismissed the complaint without prejudice. Appellants then filed a second complaint, still maintaining that they were not required to proceed through probate but also attempting to substantially comply with probate requirements before the statute of limitations for personal injury actions expired. The district court dismissed the second complaint, finding that appellants failed to follow probate procedures and that res judicata barred their second action. Appellants challenge the dismissal of both complaints.
DISCUSSION
Appellants argue that no formal probate was required because the decedent's only asset in Nevada is the proceeds of an automobile liability insurance policy. According to appellants, the district court erred in relying on Bodine v. Stinson, a 1969 case, because in 1971 the Legislature specifically amended NRS 140.040 to allow a claim such as appellants' to proceed outside of probate.
Previously, we have recognized that " tatutory interpretation is a question of law reviewed de novo." We accord the plain meaning to an unambiguous statute.
In this case, the Public Administrator for Carson City filed a petition for letters of administration asking the court to appoint him special administrator so that he could accept service of process for appellants' personal injury action against the Estate. Both the petition and the district court order appointing the special administrator state that "the sole asset is available insurance coverage with Kemper Insurance Companies." Appellants and the Estate apparently proceeded with the suit under NRS Chapter 140, governing special administrators, until McDonald's moved to dismiss. McDonald's, joined by the Estate, argued that appellants should have proceeded in accordance with the probate
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