Trusts & Estates – Statute of Limitations – Claim Against Estate – Denial – 3-Month Time Limit

Wesley Chavis Jr., Funeral Home v. Estate of Radcliffe. (Lawyers Weekly No. 11-16-0441, 6 pp.) (Robert N. Hunter Jr., J.) Appealed from Mecklenburg County Superior Court. (Richard Stone, J.) N.C. App. Unpub. Click here for the full text of the opinion.

Holding: Even though, when she closed the estate, the administratrix filed an affidavit saying she would address any claim by the funeral home in court, this did not make the estate’s prior denial of the funeral home’s claim any less definite. Since the funeral home filed this lawsuit more than three months after the estate denied its claim, the funeral home’s claim is time-barred.

We affirm the trial court’s sua sponte entry of a directed verdict for the administratrix.

“If a claim is presented to and rejected by the personal representative or collector, and not referred as provided in G.S. 28A-19-15, the claimant must, within three months, after due notice in writing of such rejection, or after some part of the claim becomes due, commence an action for the recovery thereof, or be forever barred from maintaining an action thereon.” G.S. § 28A-19-16.

The time constraint imposed by § 28A-19-16 does not apply when the estate representative’s rejection of a claim leaves payment up to negotiation.

However, the estate’s letter rejecting the funeral home’s claim was absolute and unequivocal: “This letter serves to formally notify you that your claim for funeral expenses from the Estate of Peter Radcliffe has been rejected by the administrator of said estate. Said funeral and related expenses were not authorized by the Estate, nor were they authorized by Mr. Radcliffe’s heir.”

The administratrix’s affidavit says she “agrees to address any claim for judgment in a court of law made by Wesley Chavis Funeral Home against the Estate or herself personally and, further, states that she will accept the findings of such court of law and will be personally responsible for any amounts of money ordered to be paid to Wesley Chavis Funeral Home.”

The affidavit does not waive the statute of limitations, nor does it indicate she intends to negotiate. When read in conjunction with the rejection letter, the affidavit indicates the administratrix will contest any claim in court, rather than abscond with estate funds.

The affidavit did not waive the three-month statute of limitations; therefore, plaintiff failed to bring its claim within the applicable time period.

Contrary to plaintiff’s argument, the statute of limitations applies even if the administratrix’s refusal to pay was willful.

Even though the trial court’s power to direct a verdict on its own motion should be used sparingly, it was used properly here, particularly because the administratrix and the estate were not represented by counsel.

Affirmed.