# Opposition Brief — Shriners Hospitals for Crippled Children v. First Security Bank of Utah, N. A.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition Brief
- **Published:** January 1, 1990
- **Citation:** 496 U.S. 905

## Text

Supreme Court of the United States

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Y BANK O TAH, N.A. AND
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QUESTIONS PRESENTED

1. WHETHER THE INTERPRETATION OF THE
WYOMING SUPREME COURT OF A WYOMING STAT-
UTE DETERMINING WHETHER PETITIONER IS A
NAMED BENEFICIARY IN A WILL PRESENTS A SUB-
STANTIAL FEDERAL QUESTION.

2. WHETHER THE DUE PROCESS CLAUSE RE-
QUIRES NOTICE OF A PROBATE SALE OF ESTATE
PROPERTY OTHERWISE DEVISED TO A TRUSTEE OF A
TESTAMENTARY TRUST TO ALSO BE GIVEN TO A
REMAINDER BENEFICIARY OF THAT TRUST IF NO-
TICE OF THE SALE IS GIVEN TO THE TRUSTEE AND
IF THE TRUST’S TERMS PERMIT THE TRUSTEE TO
SELL THE PROPERTY WITHOUT NOTICE TO THE
TRUST BENEFICIARY.

RULE 29.1 STATEMENT

Respondent First Security Bank of Utah, N.A
itional banking association. Its parent corporation is
st Security Corporation and it has no subsidiary corps

—s . Beats .R eel ae
Respondent First Security Bank of Rock Springs is
A’. mMminoaoec y ~ ; ] Coe
vy YOMINZ corporation Its parent corporation 1S aisSo fFrirs

Security Corporation and it has no subsidiary corp

hraAn
its

RULE 29.4 STATEMENT

Since the proceeding draws into question the const
tutionality of Wyo. Stat. § 2-7-205(b), an act of Wyo
affecting the public interest, and neither the attorn:
general of Wyoming nor any agency, officer or employee

§ 2403(b) may

thereof is a party, it is noted that 28 U.S.C

be applicable

11]

TABLE OF CONTENTS

~~
—

JUESTIONS PRESENTED
RULE 29.1 AND 29.4 STATEMENTS

ABLE OF CONTENTS

\BLE OF AUTHORITIES

+

CONSTITUTIONAL AND STATUTOR
PROVISIONS

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WYOMING STATUTORY

B

CONCLUSION ..

iv

TABLE OF CONTENTS - Continued

Page
Petitioner Had No Property Interest In The
Pe in chou Ree Chee Ae Ove wae eae nee 17
1. As a Remainder Beneficiary of a Testa-
mentary Trust Petitioner had no Consti-
tutionally Protected Interest in the
Disposition of Assets of the Estate..... 17
2. Whatever Interest or Expectation Peti-
tioner had in the Trust Assets Was Sub-
ject to the Management and Control of
ee Ca ay us Coeveuvcetecte cues 18
3. Whatever Interest Petitioner had in the
Trust Assets is Future and Conjectural... 20
4. The Sale of the Estate Assets Did Not
Eliminate Petitioner’s Recourse Against
GI RNS a cc sfc os ehh eon tec e es 20
Under This Court’s Decisions Notice to the
Trustee Was Sufficient ................ 23
1. The Wyoming Statutory Probate Pro-
cedure Provides For Reasonable Notice 23
2. No Conflicts Disqualified the Trustee... 25
ey eee eer 29
APPENDICES
A. ORIGINAL OPINION OF THE SUPREME COURT
OF WYOMING, MARCH 21, 1989...... Al
B. OPINION ON REHEARING OF THE SUPREME
COURT OF WYOMING, NOVEMBER 15, 1989 Bl

0

D.

TABLE OF CONTENTS - Continued
Page

OPINION OF THE DISTRICT COURT IN AND

FOR SWEETWATER COUNTY, WYOMING, AU-
(GAA BN SOE ous avsegec pew err enaninekeeeeeuen Cl

CONSTITUTIONAL AND STATUTORY PROVI-
SIONS

vi

TABLE OF AUTHORITIES

CASES

Azarian v. First National Bank of Boston, 383 Mass.
aya, See Vee FOP (IGOR)... os cece acess:

Board of Regents v. Roth, 408 U.S. 564 (1972)

ONO oe ee 17, 18,

Cook v. Elmore, 25 Wyo. 393, 171 P. 261 (1918)...

In re Estate of Lacy, 54 Cal.App.3d 172, 126 Cal.
og EE | a

Farrell v. O'Brien, 199 U.S. 89 (1905)

Foster's Inc. v. City of Laramie, 718 P.2d 868 (Wyo.
1986)

a

Gropp v. Wisconsin, 400 U.S. 505 (1971) .........

Hansen v. Peoples Bank of Bloomington, 594 F.2d
Peer Grim EW, WDPD)..... 2 nc ccc cccnaesceweess

Herb v. Pitcairn, 324 U.S. 117 (1945)

Illinois v. Gates, 462 U.S. 213 (1983)

re |

Jensen v. Jensen, 4 Wyo. 224, 89 P.2d 1085 (1939).
Kerrison v. Stewart, 93 U.S. 155 (1876)...........

Kersh Lake Drainage District v. Johnson, 309 U.S. 485
(1940) ........

a a

Kind v. Markham, 7 F.R.D. 265 (S.D.N.Y. 1945) ...

Mennonite Board of Missions v. Adams, 462 U.S. 791
(1983)

Mullane v. Central Hanover Bank & Trust Co., 339
U.S. 306 (1950)

“ee ee ee ee ee eee ee ee ehhh hh hl hl

coewreceweeeer eee eee ree eee eee seeer eee eee eee eee

Page |

ree <3

19, 20

ere ~ |

ee

.... 28

Vii

TABLE OF AUTHORITIES - Continued

Page
Peterson v. United States, 41 FR.D. 31 (D. Minn.
cin Ae Te STC Ee OO eee D EE TEE 28
In re Potter’s Estate, 396 P.2d 438 (Wyo. 1964) ....... 18
Rice v. Sioux City Memoria! Park Cemetery, Inc. 349
me FRY REO pies nee is 4 owt chy ee oa el Pan ee es Ess 16
Rirte v. Board of Trustees of School District No. One,
O74 F208 ZIG (Wyo. 1983) . noc oc cciverccnccces 14
Sniadach v. Family Finance Corp., 395 U.S. 337
Ec EE REP EET REE TANS he eee a em PU LN Me cate ene 9
Street v. New York, 394 U.S. 576 (1969) .............. 14
Tobin v. Pursel, 539 P.2d 361 (1975).............000.. 14
Trimble v. Gordon, 430 U.S. 762 (1977) ............... 12
Tulsa Professional Collection Services, Inc. v. Pope,
GP FI. BI EIU 3 oir cic des vec desevacs. 20, 21, 22
Wichita and Affiliated Tribes of Oklahoma v. Hodel,
252 U.S. App. D.C. 140, 788 F.2d 765 (D.C. Cir.
Re ys ee eee ON eons ee kee gies 27
In re Matter of Estate of Wiswall, 11 Ariz.App. 314,
Te EAE WOO AOE ans secs wee OO eRe eee ek es 27
STATUTES
ees te YY.” een ein ine $, 1%, 13
ea es Pets ooh sha She ee an ee 15
WR VO. SONG. GB 2-7-2 IGF) o's 5 nv wees 11
wyo. Stat. § 2-7-2085 (ISTP. is iS S, 9,8, 1%,

Vili

TABLE OF AUTHORITIES - Continued

Page

Poe , er ere eee eT 6

Pee Se ee Ele ox s ealine Weer seve cies one 1]

We Ce 27 SD GOPPE IN so 5 Rado a'e ewe ens madd 22
Internal Revenue Code of 1954, as amended,

MND, Sora tt et Pale sls agate ea gabe yee oa) es 4
Internal Revenue Code of 1954, as amended,

EE gh Paattu ig bed Las hae oe SRE e heed eys.6 4

MiIsceELLANEOUS

G. Bogert, Trusts and Trustees (2d ed. rev. 1980) ..24, 25

United States Supreme Court Rules, Rule 10........... 16
United States Supreme Court Rules, Rule 29.4....00... 15
Wyoming Rules of Civil Procedure, Rule 60(b).......... 7
Wyoming Rules of Appellate Procedure, Rule 5.07...... 14
Shriners Hospitals for Crippled Children vs. First Se-

curity Bank of Utah, et al., Civil No. C-89-247...... 22

CONSTITUTIONAL AND STATUTORY PROVISIONS

The relevant portions of the Constitution of the Unit-
ed States, Amendment 14, Section 1, and Wyoming Stat-
utes 2-7-202, 2-7-205, 2-7-402, 2-7-614, 2-7-615 and 2-7-620
are set out in Appendix D.

No. 89-1444

4
mg

In The

Supreme Court of the United States
October Term, 1989

a
i

SHRINERS HOSPITALS FOR CRIPPLED CHILDREN,

Petitioner,
VS.

FIRST SECURITY BANK OF UTAH, N.A.,
as Personal Representative of the
Estate of Velma Rife Jones
(deceased), et al.,

Respondents.

a
-_

BRIEF IN OPPOSITION OF RESPONDENTS FIRST
SECURITY BANK OF UTAH, N.A. AND
FIRST SECURITY BANK OF ROCK SPRINGS

»
—

Respondents First Security Bank of Utah, N.A. and
First Security Bank of Rock Springs respectfully request
that the Petition for a Writ of Certiorari sought by Peti-
tioner to review the judgment of the Supreme Court of
Wyoming entered on November 15, 1989, be denied.

- ,’
wr

OPINIONS BELOW

Petitioner appealed the decision of the District Court
in and for Sweetwater County, Wyoming to the Supreme

a

Court of Wyoming. The Supreme Court of Wyoming, ina
3-2 decision, denied Petitioner’s original appeal, which is
reported at 770 P.2d 1100 (App. A, infra). Upon rehearing
the Supreme Court of Wyoming, this time in a 4-1 deci-
sion, again denied Petitioner’s appeal. That decision on
rehearing is reported at 782 P.2d 229 (App. B, infra). The
opinion of the District Court is not officially reported.
(App. C, infra).

a
i

STATEMENT OF THE CASE

Joseph George Jones, Jr, (“Mr. Jones”) and Velma
Rife Jones, (“Mrs. Jones”) owned certain real property
located in Sweetwater County, Wyoming, commonly
known as the Rife Ranch. (App. A3; R. 197.)! The Rife
Ranch included 17 non-contiguous parcels of deeded land
and various federal and state leases of government-own-
ed property spread over a thirty by twenty mile area in
southwest Wyoming.” (R. 233.) Mr. Jones, a Utah resident,

1 “R. _” denotes reference to the original record of the
District Court proceedings filed in the Supreme Court of Wyo-
ming.

2 The fee land of the Rife Ranch is contiguous only by
virtue of adjacent federal or state lands which were leased by
the Rife Ranch and are completely isolated within the federal
and state lands. Additionally, about 23,360 acres of the fee
property is located on what is commonly referred to as the
“checkerboard” area in which every other section of property
was deeded to the railroad for twenty miles on either side of
the railroad line. This checkerboard effect made it difficult both
to manage and later to market the Rife Ranch. (R. 291, 399-400.)

preceded Mrs. Jones in death. As part of the administra-
tion of Mr. Jones’ estate, First Security Bank of Utah, N.A.
(“First Security-Utah”) and First Security Bank of Rock
Springs (“First Security-RS”) (collectively “Banks”), as co-
personal representatives, requested an appraisal of the
Rife Ranch to determine its “estimated” value, which
appraised at $1.2 million in 1985.? (R. 292.)

Approximately one and one-half years after Mr.
Jones’ death, Mrs. Jones, also a Utah resident, died testate
on October 19, 1986. (R. 198.) Mrs. Jones’ Will (“Will”)
contained cash bequests to six surviving cousins and left
the remainder to First Security-Utah as Trustee of a chari-
table remainder unitrust (“Trust”). (App. A3; R. 12-26.)
The Trust provides the Trustee with the ordinary powers
of a trustee to sell, exchange, and otherwise manage the
assets of the Estate. (R. 17-19.) The Trust further provides
that at the death of the lifetime beneficiary of the Trust,

3 The appraisal clearly indicates in its prefatory pages that
it is merely an “estimate” of the “highest price” the property
might bring at sale. (R. 250.) The appraiser also noted that a
substantial decline in the value of real estate in the area was
ongoing, with potential sellers and realtors alike expressing
“considerable pessimism with regard to the current real estate
market,” (R. 290) and that this substantial decline was due in
part to “very high mortgage interest, low commodity prices,
escalating expenses and a lack of direction concerning federal
agricultural programs.” (R. 290.) Furthermore, Petitioner insin-
uates throughout its Brief the impropriety of the sale without a
reservation of mineral rights, even though its Brief is devoid of
any citation to the record of the value, or even existence of the
mineral rights beyond the few sections listed in the appraisal
report. (R. 265.) The appraisal does note, however, that First
Security-Utah had information on mineral rights and that
“Imlinerals in the general area have traditionally been sold all
or in part with the surface rights, with no discernible value
contribution...” (R. 265-266.)

Mrs. Darrell Rife Mork, the remainder of the Trust would
be distributed equally to Petitioner and the University of
Utah, provided that at such time each qualified as a
charitable organization pursuant to §§ 170(c) and 2055(a)
of the Internal Revenue Code. (R. 16.)

After Mrs. Jones’ death, First Security-Utah and First
Security-RS were appointed as the co-personal represen-
tatives of Mrs. Jones’ Estate (“Estate”) (R. 2) and on
February 20, 1987 a Petition for Probate of Will was filed
by the co-personal representatives of Mrs. Jones’ ancillary
probate in Wyoming. (R. 4.) The Petition for Probate of
Will acknowledged that the Estate had an ownership
interest in the Rife Ranch and “estimated” its value at
$1.2 million, which figure was based upon the old 1985
appraisal prepared at the death of Mr. Jones. (R. 4.)

In the administration of the Estate, First Security-
Utah requested a new appraisal from the same appraiser
who had prepared the original 1985 appraisal. On Febru-
ary 24, 1987, the Rife Ranch was reappraised at an esti-
mated value of $925,000. This lower figure represented
the rapid decline in the real estate market in south-
western Wyoming over the year and a half since the
original appraisal.4 (R. 378-486.)

4 The $300,000 decrease 1n the estimated value of the Rite
Ranch over 1'/2 years was attributed to a substantial decline of
12-14% per year for recent sales of ranches in the area. The
appraiser warned that the second appraisal, which contained
estimated values ranging from a low of $820,000 to a high ot
$1.2 million, was more accurate at the low end since the real
estate market was continuing to rapidly decline. Furthermore,

(Continued on following page)

5

Several months after the Will was admitted to ancil-
lary probate in Wyoming, Respondent Southern Wyo-
ming Cattle Company, a joint venture of respondents
Rock Springs Grazing Association, Lazy VD Land and
Livestock, and Elza Eversole, (collectively “Buyers”)
made a cash offer to the co-personal representative First
Security-Utah of $820,000. (R. 488.) Upon receipt of the
cash offer, First Security-Utah contacted the appraiser
and discussed the offer in connection with the appraisal
reports. (R. 492-502.) The appraiser concluded that the
cash offer was reasonable because of its cash nature and
because the opportunity cost of the money invested, cou-
pled with the continuing decline in land values, out-
weighed the insignificant 12% differential between the
$820,000 cash offer and his $925,000 appraisal.> (R. 492-3.)

(Continued from previous page)

the appraiser warned that the sales data relied upon in the
appraisal was already eight months old and that in such a
declining market the figures were already dated. (R. 399-401

> Petitioner suggests that the Rife Ranch sold for 30% less
than its appraised value of $1.2 million, choosing to completely
ignore that: 1) the 1985 appraisal was cutdated and was not
relied upon by the Estate; 2) a second appraisal was prepared
for the Estate; and 3) the appraiser reviewed the cash offer of
Buyers and approved its reasonableness. While Petitioner at-
tempts by this artifice to imply egregious conduct, the facts
suggest otherwise. The sale of the Rife Ranch was a mere 12%
less than the estimated appraised value, which admittedly
relied heavily on old data. Furthermore, the figure of $820,001
was one of the valuation figures which the appraiser arrived at
in his appraisal, but chose not to use. (R. 400.) Thus, despite
Petitioner’s underlying suggestion of wrongdoing throughout
its Brief, nothing in the record supports such innuendo.

Accordingly, the co-personal representatives filed a
Petition for Authority to Sell Real Property and for Con-
firmation of Sale with the Court, as required by Wyo.
Stat. §§ 2-7-614 and 2-7-615. (R. 54.) Pursuant to Wyo.
Stat. § 2-7-205, the co-personal representatives contacted
each of the named beneficiaries of the Will, the Trustee
First Security-Utah and the specific devisees, and ob-
tained waivers of the notice to hearing on the proposed
sale.© (R. 58.) The reasons for the sale set forth in the
Petition for Authority to Sell the Property were that it
was in the best interest of the Estate to sell the Rife Ranch
because it was not currently in operation; the Estate was
in need of liquid assets to pay debt, costs of administra-
tion and taxes;” and the Trust, through the Trustee, had
no desire to own or operate the Rife Ranch.®

* Petitioner implies that the Banks had ulterior reasons for
not giving formal notice of the proposed sale to Petitioner or
the other Trust beneficiaries. Rather, Wyoming Stat. § 2-7-205
requires only that notice be given to the beneficiaries named in
the Will, and as a Trust remainderman beneficiary Petitioner
was not entitled to, and therefore not given, notice.

’ Petitioner mistakenly makes the assumption in footnote
7 of its Brief that sufficient liquid assets remained ($108,940)
after payment of expenses to provide for the needs of the
Estate. However, this simple arithmetic fails to take into ac-
count the future income needs of the lifetime beneficiary, Mrs
Mork who was in an enfeebled condition and required inten-
sive medical care. Petitioner also fails to take into account the
operational expenses associated with merely maintaining the
Rife Ranch. The investment income to be derived from
$100,000 would not have met either need, let alone both ot
them.

* Petitioner implies that this language means that the
Banks were representing that “Petitioner had no desire to own

(Continued on following page)

The sale of the Rife Ranch was approved by the
District Court on May 19, 1987. (R. 98.) Two months after
the sale, Petitioner moved the District Court to set aside
the sale pursuant to Wyoming Rules of Civil Procedure,
Rule 60(b), the Wyoming equivalent of the federal rule,
claiming that it was a beneficiary named in the Will and
that, regardless of the needs or best interests of the Es-
tate, its wishes as a prospective Trust remainderman that
the property not be sold should supersede all other con-
cerns of the Estate. Petitioner took this position despite
the fact that it had no legal interest in the property, no
right to notice of sale of the property under Wyoming law
and no right to notice of a sale by a Trustee under the
terms of the Trust. In fact, the terms of the Trust provide
the Trustee with the power, at its sole discretion, to sell
the property. (R. 19.) The District Court denied Peti-
tioner’s Motion for Relief. (App. C; R. 596-601.)

The Wyoming Supreme Court affirmed the District
Court’s denial of the Rule 60(b) motion in a 3-2 decision
(App. A), holding that a contingent beneficiary of a testa-
mentary trust is not entitled to notice of the proposed sale
of an estate asset, thereby making it unnecessary to ad-
dress other issues raised by Petitioner. (App. A9.) Upon
the retirement of Justice Brown, the author of the majority

opinion, Petitioner sought a rehearing of the matter. In a

(Continued from previous page)
or Operate the property.” This is inaccurate. The plain language
of the Petition indicates that the ultimate beneficiary of the Estate
was the Trust, which had no desire to own or operate the Rife
Ranch. Here, as throughout the Petitioner’s Brief, Petitioner
misleadingly suggests that it was a beneficiary of the Will
when in fact it was a remainder beneficiary of the Trust

4-1 decision, written by Chief Justice Cardine, who had
earlier dissented, the Wyoming Supreme Court affirmed
its earlier decision, except that it withdrew any categori-
zation of Petitioner as a contingent beneficiary. (App. B.)
It found such categorization unnecessary to its holding
that Wyoming law does not require notice to beneficiaries
not named in the Will. (/d. at 3.) Thus, the Wyoming
Supreme Court reasoned that “any beneficiary of a trust
created in a will is not a beneficiary under the will for
purposes of the notice requirements” of Wyoming law
(Id.)

>.
-

REASONS FOR DENYING THE WRIT

Petitioner seeks certiorari to the Wyoming Supreme
Court in order to obtain additional review of the Wyo-
ming State District Court’s refusal to set aside its order
approving the sale of the Rife Ranch. This matter has
already been considered and rejected by three courts,
once by the state district court and twice by the Wyoming
Supreme Court

This case does not involve any important federal
issue. The interpretation of a Wyoming probate statute
does not present a federal question; nor is that statute or
the Wyoming Supreme Court's interpretation of it incon
sistent with this Court’s precedent. Petitioner had pn
interest in the administration of the Estate under Wyo
ming law. Neither does petitioner have any right to con
trol the sale of the Trust’s assets. While Petitioner's
argument presupposes that it has a property interest in
the Jones’ Estate, the Wyoming Supreme Court did

al

make such a supposition. As Justice Brown cogently ob-
served in the Wyoming Supreme Court's original opin-
ion, Petitioner cannot “bootstrap” its status as a
contingent beneficiary of a trust created under a will to
transform itself into a beneficiary under the Will. (App
A9.) Likewise, Petitioner cannot “bootstrap” a conjectural
and future interest in the Trust to a constitutionally pro-
tectable interest in the Estate. Finally, even to the extent it
were determined that Petitioner holds some constitu-
tionally cognizable interest, the Wyoming probate pro-
cedure accorded those interests appropriate notice

THIS CASE DOES NOT PRESENT A SPECIAL AND
IMPORTANT QUESTION OF FEDERAL LAW.

A. The Interpretation of a State Statute is a Matter
Exclusively Within the Province of the State
Court.

This Court does not review the judgments of state
courts except when the validity of a state statute is drawn
into question under federal law. Herb v. Pitcairn, 324 U.S
117, 125-26 (1945); 28 U.S.C. § 1257(a). This Court does
not sit as a “super-legislative body,” concerning itself
with the wisdom of state law. Sniadach v. Family Finance
Corp., 395 U.S. 337, 339 (1969). The decision of the Wyo-
ming Supreme Court dealt with its interpretation of its
own state law and this Court should not review a matter
of purely State law

*etitioner asserted at the District Court proceeding
that it was a “beneficiary named in the will” and there-
fore was entitled to notice pursuant to Wyo. Stat
S 2-7-205. (App. A5.) Petitioner argued that failure to

12

state law decision. See, e.g. Farrell v. O’Brien, 199 U.S. 89
(1905). In Trimble v. Gordon, 430 U.S. 762, 771 (1977) this
Court reaffirmed that principle, noting that:

[t]he orderly disposition of property at death
requires an appropriate legal framework, the
structuring of which is a matter particularly
within the competence of the individual
states... Absent infringement of a constitution-
al right, the federal courts have no role here,
and even when constitutional violations are al-
leged, these courts should accord substantial
deference to a State’s statutory scheme of inheri-
tance.

Certainly, the question of whether a party is a “benefici-
ary named in the will” is particularly a matter within the
competence of the state court and its statutory scheme of
probate. Review in this case would undermine the tradi-
tional deference given the states in such probate matters.

Because this Court does not substitute its own judg-
ment for a state Supreme Court’s construction of state
laws, and particularly those relating to probate matters,
and because those were the only issues decided by the
Wyoming Supreme Court, this case offers only a narrow
federal issue for the Court’s review. The only potential
role for this Court in this case would be to consider
arguments that Wyoming’s probate statute, as finally con-
strued by the Wyoming Supreme Court, “is repugnant to
the Constitution.” 28 U.S.C. § 1257(a).'°

10 Petitioner’s jurisdictional statement evades a direct
challenes to the constitutionality of the Wyoming probate stat-
ute, seeking instead to base this Court's jurisdiction on the
assertion that the Wyoming Supreme Court's decisions are
repugnant to the Constitution. Section 1257(a) does not permit

(Continued on following page)

13

C. The Issue of the Constitutionality of the Wyo-
ming Statutory Probate Procedure Has Not
Been Raised.

Petitioner has yet to assert that Wyoming’s probate
statute is unconstitutional. The Court’s certiorari jurisdic-
tion Over decisions from state courts derives from 28
U.S.C. § 1257(a) which provides that:

[flinal judgments or decrees rendered by the high-
est court of a State in which a decision could be
had, may be reviewed by the Supreme Court by
writ of certiorari . . .-where the validity of a statute
of any State is drawn in question on the ground of
its being repugnant to the Constitution.

In exercising such jurisdiction this Court has held that it
has no jurisdiction over such issues ui .ess a federal ques-
tion has been properly presented or determined in the
court below. Illinois v. Gates, 462 U.S. 213, 218 n. 1 (1983).

The Wyoming Supreme Court's original opinion and
its opinion on rehearing are both silent on the issue of the
constitutional claim of Petitioner. In the Wyoming Su-
preme Court's original opinion, the Court listed the is-
sues presented by Petitioner with no mention of a
constitutional issue. (App. A2.) Clearly the Wyoming Su-
preme Court did not address or decide the issue now
being urged upon this Court. This Court has stated that
“when, as here, the highest state court has failed to pass
upon a federal question, it will be assumed that the
omission was due to want of proper presentation in the

(Continued from previous page)

such a theory. Petitioner does not suggest a conflict with any
federal statutory law nor specially claim any title, right or
privilege under the Constitution. Therefore, Petitioner must
challenge the statute’s validity or this Court lacks jurisdiction.

14

state courts, unless the aggrieved party in this Court can
affirmatively show the contrary.” Street v. New York, 394
U.S. 576, 582 (1969).

Rule 5.07 of the Wyoming Rules of Appellate Pro-
cedure provides that “[iJn all cases both criminal and
civil .. . in which a statute is alleged to be unconstitu-
tional . . . counsel shall also serve a copy of their brief
upon the attorney general.” The reason for such a rule is
obvious: “[t]he attorney general, being the chief legal
officer of the State, has a duty to protect the interests and
the welfare of the people in declaratory judgment actions
where statutory constitutional questions are in issue.”
Ririe v. Board of Trustees of School District No. One, 674 P.2d
214, 219 (Wyo. 1983), citing Tobin v. Pursel, 539 P.2d 361,
365 (1975).!! Compliance with this rule is mandatory and
failure to comply can render an appeal vulnerable to
dismissal for lack of jurisdiction. Ririe, 674 P.2d at 220.'°
The constitutionality of the statute was not properly pre
sented to the Wyoming Supreme Court as a result of this

11 While Tobin was concerned with an appeal from a de
claratory judgment action, the Ririe decision makes it clear that
the purpose of the Wyoming Rules of Appellate Procedure are
the same and the “need for the state’s chief legal officer t
protect the public interest does not depend mh n the classifica
tion of the proceedings in which the constitutional challer
arises.” Ririte, 674 P.2d at 219

12 The appeal was not dismissed in Ririe because t!
pellant belatedly coinplied with the rule and
court was “not asked to render a decis
tionality of a state statute without the (
of the representative of the peopl tf this stat , 74
at 220.

r r

15

failure. Such failure must be assumed to be a basis for the
Wyoming Supreme Court's silence on the constitutional
issue.

Petitioner has also failed to provide appropriate no-
tice of this proceeding pursuant to United States Supreme
Court Rules, Rule 29.4. Rule 29.4 requires that “[i]n any
proceeding in this Court wherein the constitutionality of
any statute of a State is drawn into question, and the
State or any agency, officer, or employee thereof is not a
party, the initial pleading, motion, or paper filed in this
Court shall recite that 28 U.S.C. § 2403(b) may be applica-
ble and shall be served upon the attorney general of that
utate.” 28 U.S.C. § 2403(b) provides that “[i]n any action,
suit, Or proceeding in a court of the United States to
which a state or any agency, officer or employee thereof is
not a party, wherein the constitutionality of any statute ot
that State affecting the public interest is drawn in ques
tion, the court shall certify such fact to the attorney
general of the State, and shall permit the State to inter
vene . si

Petitioner has not raised the constitutionality of Wyo
ming’s probate statute and that issue, accordingly, is not
before this Court.

D. The Sufficiency of Wyoming’s Probate lro-
cedure Is Not a Special and Important Federal
Question.

Even were a challenge to the constitutionality of the
State statute properly presented, there is no generally

applicable principle of constitutional law to be derived

trom the Court’s acceptance of this case. As this Court’s

16

own rules provide, a review by writ of certiorari “is not a
matter of right, but of judicial discretion and will be
granted only when there are special and important rea-
sons.” United States Supreme Court Rules, Rule 10. This
case does not present this Court with either a special or
an important issue. Petitioner’s claim in this case de-
pends solely upon the terms of an individual Trust, the
terms of a particular Will, the application of one state’s
probate laws and the unusual circumstance that the
Trustee of a testamentary Trust also serves as personal
representative of the Estate. While such unique facts may
present an interesting intellectual exercise, they do not
supply the special and important reasons required for a
grant of certiorari; special and important reasons “imply
a reach to a problem beyond the academic or episodic.”
Rice v. Sioux City Memorial Park Cemetery, Inc., 349 U.S. 70,
74 (1955). Constitutional review of Petitioner’s claim
would necessarily be limited to the peculiar circum-
stances of this one case. This case does not provide the
Court an appropriate platform from which to establish
new constitutional principles.

Il.

THE WYOMING STATUTORY PROBATE PROCEDURE
IS CONSISTENT WITH DUE PROCESS DECISIONS
OF THIS COURT.

This Court’s decisions have established a two part
test to ascertain when a state’s notice procedures violate
due process. First, there must be a state deprivation of a
constitutionally protected interest. Second, the challenged
method of notice, to withstand constitutional scrutiny,
must be reasonably calculated under the circumstances to

17

apprise parties holding such interests of the pendency of
the action. This Court has held in Mullane v. Central
Hanover Bank & Trust Co., 339 U.S. 306, 314-15 (1950) that
“if with due regard for the practicalities and peculiarities
of the case these conditions are reasonably met, the con-
stitutional requirements are satisfied.” In this case both of
these elements are absent from Petitioner’s claim. The
Petitioner did not have a constitutionally protected prop-
erty interest in the Estate and the notice provisions of
Wyo. Stat. § 2-7-205(b) are reasonably calculated to ap-
prise interested parties of the sale of estate assets.

A. Petitioner Had No Property Interest.

1. As a Remainder Beneficiary of a Testamen-
tary Trust Petitioner had no Constitution-
ally Protected Interest in the Disposition of
Assets of the Estate.

This Court has long recognized “that [p]roperty in-
terests, of course, are not created by the constitution.
Rather, they are created and their dimensions are defined
by existing rules or understandings that stem from an
independent source such as state law.” Board of Regents v.
Roth, 408 U.S. 564, 577 (1972). Here, whether Petitioner
had a “property interest” protected under the Constitu-
tion is a matter of Wyoming law. Wyoming law, both
statutory and judicial, clearly does not grant a remainder
beneficiary of a trust a property interest in the assets of a
decedent’s estate. Wyoming statutory law provides that
title to a decedent’s property “passes to the person to
whom it is devised by his last will . . . ” Wyo. Stat.
§ 2-7-402. This has long been the law of Wyoming. Cook v.
Elmore, 25 Wyo. 393, 404, 171 P. 261, 264 (1918). The

18

Wyoming Supreme Court’s decision in In re Potter’s Es-
tate, 396 P.2d 438, 447 (Wyo. 1964), put this issue to rest
when it held that “[o]nly the executor, administrator,
spouse, next of kin, heirs, legatees, devisees and creditors
of the deceased or of the administration are parties inter-
ested in the estate.” Furthermore, the Wyoming Supreme
Court has long held that contingent or future “expectan-
cies or possibilities of inheritance which may be fulfilled
or defeated, depending upon various contingencies and
situations” are not sufficient protectable property rights.
Jensen v. Jensen, 4 Wyo. 224, 89 P.2d 1085, 1088 (1939); cf
Foster's Inc. v. City of Laramie, 718 P.2d 868, 876 (Wyo.
1986) (“To have a property interest in a benefit, a person
clearly must have . . . a legitimate claim of entitlement to
it” citing Board of Regents v. Roth, 408 U.S. 564 (1972)).

In this case, upon the death of Mrs. Jones, the proper-
ty of the Estate passed to First Security-Utah as Trustee,
subject to possession of the personal representatives. The
Petitioner had no property interest in the Estate to pro-
tect. Petitioner only had an interest in the Trust, which
provided that Petitioner could receive, in the future, a
share of its proceeds depending upon the fulfillment of
certain contingencies.

2. Whatever Interest or Expectation Petitioner
had in the Trust Assets Was Subject to the
Management and Control of the Trustee.

The Trustee had the power, in its sole discretion,
“without order or license of any court” to “sell, exchange,
lease, pledge, mortgage, transfer, convert or otherwise
dispose of ... any and all property at any time forming a
part of the Trust Fund, in such manner . . . as the Trustee

19

may deem advisable.” (R. 17-19.) Thus, even if the per-
sonal representatives had not sold the Rife Ranch, the
Trustee had sole discretion to do so without notice to the
Trust beneficiaries.

The procedural protections accorded a property in-
terest may be limited by the terms of an instrument that
creates the interest. Board of Regents v. Roth, 408 U.S. 564
(1972). In Roth, an assistant professor at a state university
claimed that he was denied due process before being
deprived of his “property interest” in his continued em-
ployment. This Court, noting that his employment con-
tract contained a termination date with no provision for
renewal, disagreed:

[T]he terms of the [professor’s] appointment se-
cured absolutely no interest in re-employment
for the next year. They supported absolutely no
possible claim of entitlement to re-employment.
Nor, significantly, was there any state statute or
university rule or policy that secured his interest
in re-employment or that created any legitimate
claim to it. In these circumstances, the respon-
dent surely had an abstract concern in being
rehired, but he did not have a property interest
sufficient to require the University authorities to
give him a hearing when they declined to renew
his contract of employment.

408 U.S. at 578 (footnote omitted, emphasis by the court).
In this case, neither the Trust’s terms nor Wyoming pro-
bate procedure creates any “legitimate claim” for Peti-
tioner to control disposition of Trust property. Yet,
despite this fact, Petitioner argues that the due process
clause requires Wyoming to provide for notice of such
disposition in its probate procedure. Just as due process
did not expand the terms of the assistant professor’s

20

contract in Roth, that same clause cannot be read to create
some right in the Petitioner to control the sale of the Trust
property when that right is not provided by either the
Trust’s terms or Wyoming probate law.

3. Whatever Interest Petitioner had in the
Trust Assets is Future and Conjectural.

While this Court recognizes the protection due pro-
cess rights extend to property interests, “the range of
interests protected by procedural! due process is not infi-
nite.” Board of Regents v. Roth, 408 U.S. at 570. In Mullane,
this Court noted that it is not “unreasonable for the state
to dispense with more certain notice to those beneficiaries
whose interests are either conjectural or future.” Mullane,
339 U.S. at 317. “Nor is everyone who may conceivably
have a claim properly considered a creditor entitled to
notice.” Tulsa Professional Collection Services Inc. v. Pope,
485 U.S. 478, 490 (1988). “Here, as in Mullane, it is reason-
able to dispense with actual notice to those with mere
‘conjectural’ claims.” Id. Clearly this Court has recog-
nized that in the name of du» process, notice require-
ments have their limits. Petitioner in this case had no
interest in the Rife Ranch and should not be entitled to
notice of its sale. It was not a beneficiary under the Will,
it had no right to direct the Trustee concerning the Rife
Ranch and its interest in the Trust proceeds was future
and conjectural.

4. The Sale of the Rife Ranch Does Not Elimi-
nate Petitioner’s Recourse Against the
Trustee.

The Wyoming Supreme Court’s decision is consistent
with this Court’s decisions involving statutes which

21

extinguish potential causes of action. Petitioner’s reliance
on those decisions is misplaced. In Mullane, the depriva-
tion of a property right was manifested by the fact that
the New York judicial procedure eliminated the rights of
the Trust beneficiaries to “have the trustee answer for
negligent or illegal impairment of their interests.” Mul-
lane, 339 U.S. at 313. Similarly, in Tulsa Professional Collec-
tion Services, the Oklahoma statute required the filing of
claims against an estate within two months of publication
of a notice advising creditors of the commencement of
probate proceedings. The effect of the Oklahoma statute
was to “forever bar untimely claims, and by virtue of the
statute, the probate proceedings themselves have com-
pletely extinguished appellant’s claim.” Tulsa Professional
Collection Services, 485 U.S. at 488. In both cases the pro-
cedure barred any subsequent action against the Trustee
and adjudicated the rights of the beneficiaries without
notice.

Petitioner’s claims are not extinguished here. The
Wyoming District Court’s order approving the sale of the
Rife Ranch did not alter the obligation of the Trustee to
the beneficiaries, it did not settle a final accounting of the
Trust, nor did it eliminate any rights the Trust benefici-
aries may have against the Trustee for mismanagement of
the Trust. The District Court in this case noted as much,
stating that if First Security-Utah was remiss in its assent
to the sale, Petitioner’s remedy would be to sue the bank
for damages. (App. C6.) Indeed, the Petitioner has done
just that.'° Petitioner, unlike the trust beneficiaries in

'3 Petitioner has brought suit against the Trustee for dam-
ages in Wyoming District Court, Third Judicial District, State of

(Continued on following page)

22

Mullane, or the creditors of the estate in Tulsa Professional
Collection Services, has not been deprived of rights it may
have against the Trustee.

Nor is Petitioner’s claim against the Trustee diluted.
In Mullane, this Court recognized that the judicial settle-
ment of an accounting of a trust whereby the state court
ratified the fees and expenses of the trustee was a dimi-
nution of the beneficiaries’ interests, and in Mennonite
Board of Missions v. Adams, 462 U.S. 791 (1983), the Court
recognized that a tax sale whereby the mortgagee lost its
secured interest in property to a tax-sale purchaser affect-
ed the mortgagee’s interest. Id. at 798. The mortgagee in
Mennonite had a remedy directly against the property,
which the tax sale extinguished. Here, however, the sale
does not dilute nor diminish the value of a beneficiary's
claim against the Trustee. Petitioner had no right or claim
of ownership or interest in the Rife Ranch, only a cause of
action against its Trustee. That claim still exists, trust
funds still exist and no court order has granted priority
over Petitioner’s claims against the Trustee, nor extin-
guished such claims.

Petitioner’s reference to Wyoming Statute § 2-7-620
as a bar to suit against the Trustee for mismanagement is
also misplaced. Wyo. Stat. § 2-7-620 provides that “no
proceedings for sale, . . . by a personal representative of
property belonging to the estate is subject to collateral

(Continued from previous page)

Wyoming in a case entitled Shriners Hospital for Crippled Chil-
dren v. First Security Bank of Utah, et al., Civil No. C-89-247,
which is still pending.

23

attack on account of any irregularity in the proceedings
which do not deprive the court of jurisdiction.” This
statute makes no reference to a claim against the Trustee
and clearly does not bar such an action.

B. Under This Court’s Decisions Notice to The
Trustee Was Sufficient.

Even if Petitioner had a constitutionally protected
interest in the Estate, which it does not, due process was
satisfied when the Trustee, as the beneficiary under the
Will and the party with the protected property interest,
was given notice of the sale. The notice given to the
Trustee was appropriate for two reasons. First, a testa-
mentary trustee is the trust beneficiaries’ representative
with regard to such sales and for purposes of notice
thereof; a statute which assumes as much in determining
what notice is required is reasonable. Second, no conflict
existed in this case between the Trustee and the benefici-
aries or among the beneficiaries that would preclude the
trustee from acting as the beneficiaries’ representative for
purposes of notice of the sale.

1. The Wyoming Statute Provides For Reason-
able Notice.

The Wyoming probate procedure challenged by Peti-
tioner provides that the personal representative must
give mailed notice of the proposed sale to the benefici-
aries named in the will. The Wyoming Supreme Court
interpreted this provision to require notice to the trustee
of a testamentary trust as the named beneficiary in the
will, but not to that trust’s beneficiaries. (App. A9; B3.)

24

The due process clause should not be read as invalidating
this reasonable statutory procedure.

In this case, the personal representative’s notice to
the Trustee was constitutionally sufficient notice to the
remaindermen. “Generally the trustee has power to rep-
resent the beneficiary so that notice to the former is
effective against the latter.” G. Bogert, Trusts and Trustees,
§ 593 (2d ed. rev. 1980); see Kerrison v. Stewart, 93 U.S. 155
(1876). Wyoming’s statutory procedure is consistent with
this general rule. As the Wyoming Supreme Court recog-
nized, Petitioner’s argument that it was entitled to indi-
vidual! notice rather than through its Trustee ignores the
“independent life” of the Trust. (App. A8.) To permit
Petitioner to “bootstrap” its status as beneficiary under
the Trust to that of a beneficiary under the Will would
completely ignore the existence of the Trust, the Trustee's
role, and the clear intent of Mrs. Jones as the testatrix.

The Wyoming statute makes a reasonable attempt to
provide for notice to all interested parties. That is all that
is required under Mullane. No statute can anticipate every
possible conflict that might arise between a trustee and
its beneficiaries. If, because of such a conflict, the statu-
tory procedure fails to give notice to an adequate repre-
sentative of the beneficiaries of a trust, perhaps some
action against a trustee arises in favor of those parties.
But such an action would be against a private entity,
arising out of that entity’s purely private conduct. Peti-
tioner’s quarrel is with the adequacy of its representative,
not the sufficiency of Wyoming’s statutory procedure for
notice. Any imagined wrong done to Petitioner in this
case is not the result of state action, and it is not of
constitutional dimension.

Ft

2. No Conflicts Disqualified the Trustee.

Petitioner raises for the very first time the suggestion
that a conflict of interest between the Trustee and the
beneficiaries creates a basis for its assertion of a violation
of due process. This issue was never raised at any level of
this proceeding in the Wyoming courts. It was not raised
at the District Court level, nor was it raised on either of
the two proceedings before the Wyoming Supreme Court.
As such, this issue was never presented to the Wyoming
courts and should not now be appropriate for review by
this Court. Illinois v. Gates, 462 U.S. at 217-220.

In any event, no conflict between the Trustee and the
remainder beneficiary existed with respect to the Trust-
ee’s assent to sell the property in this case.!4 The law of
trusts recognizes that “the trustee may represent the ben-
eficiary in all actions relating to the trust, if rights of the
beneficiary as against the trustee, or the rights of the
beneficiaries among themselves, are not brought into
question.” G. Bogert, Trusts and Trustees, § 593 (2d ed. rev.

‘4 Although the trend is to extend a trustee’s power of
representation, an exception to the general rule permitting
trustees to represent beneficiaries exists in the event of a
conflict between a trustee and its beneficiaries or among the
interests of the beneficiaries. G. Bogert, Trusts and Trustees,
§ 593 (2d ed. rev. 1980). The issue of the trustee’s capacity to
represent its beneficiaries in this case is one the Wyoming
Supreme Court was and is “competent finally to decide.” Kersh
Lake Drainage District v. Johnson, 309 U.S. 485 (1940). Moreover,
if the due process clause were read to mean that this narrow
exception requires state statutes to provide for notice to trust
beneficiaries whenever a possible conflict exists, the exception
would overcome the general rule.

26

1980). Here, neither the personal representative, the
Trustee, nor the beneficiaries of the Trust had any interest
in obtaining less than fair market value from the sale of
the property. Evidently, Petitioner disagreed with the de-
cision to sell. But that is only a difference in judgment; it
is not a conflict of interest that disqualified the Trustee
from representing Petitioner despite that difference of
opinion. The proceeding permitting the sale of the prop-
erty did not approve any fees of the trustee as in Mullane,
nor did it apportion the proceeds between the income
beneficiary and the remaindermen.

Petitione- cites several cases in its Brief that it sug-
gests demonstrate that First Security-Utah as Trustee was
incapable of representing the beneficiaries in this case.
None of these cases, however, support such a proposi-
tion. In each of these cases, the Trustee was positioned to
withdraw assets from the Trust for its own use, apportion
assets among beneficiaries, or foreclose some cause of
action against itself. None of these cases involve the
trustee’s management of trust assets.

In Mullane, the Court held that trust beneficiaries
were entitled to reasonable, direct notice of a proceeding
approving the trustee’s fees. The Court reasoned that in
such a proceeding, the trustee became an adversary to the
beneficiaries. Mullane, 339 U.S. at 316. Because of this
adversarial relationship, the Court held that the trustee
could not represent the beneficiaries’ interests in a pro-
ceeding to approve his own fees. Thus, the Court held
that the New York statute at issue, which provided for
only published notice of the proceedings approving the
trustee’s fees, was invalid. Id.

27

Likewise, in Hansen v. Peoples Bank of Bloomington, 594
F.2d 1149 (7th Cir. 1979), the income beneficiary of a
spendthrift trust brought an action to dissolve the trust
and thereby eliminate the interests of the remainder bene-
ficiaries. On the trustee’s motion, the Seventh Circuit
held that joinder of the remaindermen was required in a
suit to dissolve a trust. As the Court noted, the trustee
could not adequately represent the beneficiaries when the
Suit pitted the interests of the remainderman and the
income beneficiary directly against each other. Id. at 1153.

Similarly, in Wichita and Affiliated Tribes of Oklahoma v.
Hodel, 252 U.S. App. D.C. 140, 788 F.2d 765 (D.C. Cir.
1986), one income beneficiary sought apportionment of
income without joining the other income beneficiaries.
Again, that case involved a situation where the benefici-
aries’ interests conflicted because apportionment among
the beneficiaries was sought. In Azarian v. First Natiunal
Bank of Boston, 383 Mass. 492, 423 N.E. 2d 749 (1981), and
In the Matter of the Estate of Wiswall, 11 Ariz. App. 314,
321, 464 P.2d 634, 641 (1970) the trustees sought approval
of their accounts. And in Estate of Lacy, 54 Cal.3d 172, 126
Cal. Rptr. 432 (1975) an income beneficiary was not per-
mitted to represent the remaindermen in an action re-
garding the invasion of the trust corpus.

In all of the cases cited by Petitioner, the issues
involved apportionment of trust property between either
the trustee or the income beneficiaries and the remainder-
men. In such cases, as Mullane recognized, the nature ot
the proceeding is sufficiently adversarial because it di-
vides trust property among the different interests. States
may assume, however, that a trustee represents its bene-
ficiaries in actions that do not, by their nature, involve an

eal

28

adversarial relationship. Such an assumption does not
offend Mullane. Mullane, 339 U.S. at 316. Courts recognize
the principle that a trustee who may have a conflict of
interest may nevertheless represent its beneficiaries in
actions unrelated to that conflict. For example, in Peterson
v. United States, 41 FR.D. 31 (D. Minn. 1966), a case quite
similar to the facts of this case, the executors of an estate
served as trustees of a testamentary trust and one trustee
was even an income beneficiary. Nevertheless, the Dis-
trict Court held that the executors could adequately rep-
resent the interests of the income beneficiaries and the
remaindermen in an action to recover a payment made to
the IRS. The court reasoned that all the beneficiaries, as
well as the trustees and executors, had an identical inter-
est in recovering the money even though, ultimately, each
of the various interests stood to benefit differently from
any recovery. 41 F.R.D. at 134. See also, Kind v. Markham, 7
F.R.D. 265 (S.D.N.Y. 1945).

When a proceeding at issue involves only the recov-
ery or disposition of property on behalf of a trust, rather
than apportionment of that property among the various
parties interested in the trust, the trustee can adequately
represent all concerned with the trust. Here, the Trustee
has no conflict of interest with the income beneficiary or
the contingent remaindermen with respect to the sale.
The Trustee did not stand to gain any interest in the sale
of the Rife Ranch, nor did it stand to eliminate any
potential cause of action against it for the exercise of its
discretion in its assent to the sale of the property.

a
of

29

CONCLUSION

The Wyoming Supreme Court concluded that, for
purposes of probate, the beneficiaries of the Estate are the
only persons or entities having an interest in the Estate
for which notice of action is required. In that way the
intentions of the decedent are carried forward. Even
though Petitioner, as a trust remainderman beneficiary,
may desire the powers of First Security-Utah, a Trustee,
the decedent Mrs. Jones mandated otherwise. For these
reasons, and all those set forth above, First Security-Utah
and First Security-RS respectfully urge the Court to deny
the Petition for a Writ of Certiorari to the Wyoming
Supreme Court.

Respectfully submitted,

Ronny L. CutTsHALi
Counsel of Record

RANDALL N. SKANCHY

ANDREW H. STONE

Jones, Wa.po, HoLtsrook &

McDonoucH

170 South Main Street

Suite 1500

Salt Lake City, Utah 84101

(801) 521-3200

Attorneys for Respondents

First Security Bank of Utah, N.A.
and First Security Bank of Rock
Springs

Al

APPENDIX A

In the Matter of the ESTATE OF
Velma Rife JONES, Deceased.
SHRINERS HOSPITALS FOR CRIPPLED
CHILDREN, Appellant (Petitioner),

V.

FIRST SECURITY BANK OF UTAH, N.A.,
Personal Representative; First Security
Bank of Rock Springs, Resident Personal
Representative; Rock Springs Grazing
Association; Lazy VD land and Livestock;
Elza Eversole; and Lois M. Eversole,
Appellees (Respondents).

No. 88-4.
Supreme Court of Wyoming.

March 21, 1989.

Contingent beneficiary of testamentary trust estab-
lished in will sought to set aside sale of estate property.
The District Court, Sweetwater County, Kenneth G.
Hamm, J., denied motion, and appeal followed. The Su-
preme Court, Brown, J., Retired, held that contingent
beneficiary of testamentary trust was not entitled to indi-
vidual notice of proposed sale of estate asset.

Affirmed.

Cardine, C.J., dissented and filed an opinion in which
Rooney, J., Retired, joined.

Rooney, J., Retired, filed dissenting opinion in which
Cardine, C.J., joined.

* * *

Before CARDINE, C.J., THOMAS and MACY, JjJ.,
ROONEY and BROWN, Retired, JJ.

A2

BROWN, Justice, Retired.

Appellant Shriners Hospitals for Crippled Children
(Shriners), a contingent beneficiary of a testamentary
trust established in the will of Velma Rife Jones, sought
relief under W.R.C.P. 60(b) from an order authorizing and
confirming the sale of estate assets. The district court
denied the motion and Shriners appeals.

Shriners states the issues to be:

1. Whether Appellant has standing to claim relief
under W.R.C.P., Rule 60(b).

2. Whether the District Court has the authority un-
der W.R.C.P., Rule 60(b) to set aside the conveyance made
pursuant to its Order Approving Sale of Real Property
And Confirmation of Sale entered May 19, 1987.

3. Whether failure of Co-Personal Representatives
to give Appellant the notice mandated by Wyo. Stat.
(1977), §§ 2-7-615 and 2-7-205(b) nullifies the District
Court’s Order and Personal Representatives’ Deed dated
May 19, 1987.

4. Whether the purported sale of May 19, 1987 can
be set aside because it was unnecessary and not in Appel-
lant’s best interest.

5. Whether it was reversible error for this court to
cut-off Appellant’s discovery and to deny Appellant the
opportunity for a full and fair hearing of its claim under
W.R.C.P., Rule 60(b).

Answering the following question, similarly posed in
Issue No. 3, effectively disposes of all the issues raised by
Shriners: Is a contingent beneficiary of a testamentary

A3

trust entitled to separate and individual notice of a pro-
posed sale of an estate asset in addition to notice given to
the trustee? We answer that question in the negative and
affirm the trial court.

Velma Rife Jones, a Utah resident, died testate on
October 19, 1986. Her will contained specific bequests to
several named cousins, if they survived her, and the
residuary estate was left to appellee, First Security Bank
of Utah, N.A., as trustee of a testamentary trust. Darrell
Rife Mork, the decedent’s sister, was named as lifetime
beneficiary of the trust income, with the remainder to
Shriners and the University of Utah if they qualified as
organizations described in §§ 170(c) and 2055(a) of the
Internal Revenue Code.

The assets of the estate included a Wyoming ranch,
and the will was consequently admitted to ancillary pro-
bate in Wyoming. Appellees, First Security Bank of Utah
and First Security Bank of Rock Springs, were appointed
co-personal representatives. Appellees Rock Springs
Grazing Association, Lazy VD Land and Livestock, and
Elza Eversole were interested in buying the ranch, which
was appraised at $1.2 million in 1985, and was reap-
praised at $925,000 in August, 1987. They formed a joint
venture called Southern Wyoming Cattle Company and
made a cash offer of $820,000 to the co-personal represen-
tative, First Security Bank of Utah. The trust officer made
minor modifications to the offer and Southern Wyoming
Cattle Company accepted those terms.

The co-personal representatives filed a petition for
authority to sell the real property as required by WS.

A4

2-7-614 (July 1980 Repl.). The asserted reasons for the sale
were that

the Estate is in need of liquid assets to pay the
debts, specific bequests, costs of administration
and taxes of the Estate and that the ultimate
beneficiary of the Estate (a trust for the benefit
of Darrell Rife Mork, the sister of Velma Rife
Jones during her lifetime and then after her
death two charities) has no desire to own or
operate the Rife Ranch.

The petition further stated that

[t}here has been filed herein Waiver of Notice of
hearing of the above matter by the only benefici-
aries of the Estate of Velma Rife Jones, De-
ceased, and Petitioners believe that no notice of
the hearing of the Petition needs to be given.

Attached to the petition were waivers of notice exe-
cuted by the recipients of the five specific will bequests
and First Security Bank of Utah as trustee of the testa-
mentary trust.! No notice was given to Shriners or the
University of Utah. On May 19, 1987, the court entered an
order approving and confirming the sale.

On July 6, 1987, Shriners filed a W.R.C.P. 60(b) mo-
tion for relief from the order, requesting the court to set
aside the sale and declare it void. Shriners asserted that
the failure to provide notice to the contingent benefici-
aries Or remaindermen violated the statutory notice re-
quirements. The relevant notice statutes provide:

' The waiver from the bank initially states that First Inter-
state Bank of Utah is waiving notice. This no doubt is a
typographical error.

A5S

Upon filing of the petition, the court shall fix the
time and place of hearing of the petition, and the
personal representative shall give notice of the hear-
ing as provided in W.S. 2-7-205, * * * . At the
hearing and upon satisfactory proof the court
may order the sale, mortgage, exchange, pledge
or lease of the property described or any part
thereof at such price and upon such terms and
conditions as the court may authorize.

W.S. 2-7-615 (July 1980 Repl.) (emphasis added).

Unless waived in writing by the parties entitled
thereto, the notices required in W.S. 2-7-202,
2-7-203, 2-7-204, 2-7-615, 2-7-806, 2-7-807 and
2-7-811 shall be mailed not less than ten (10)
days prior to the date of hearing, the date for
filing objections, or sale, as the case may be, to
the surviving spouse, if any, and to all of the
heirs of a decedent dying intestate or to all of the
beneficiaries named in the will of a decedent dying
testate.

W.S. 2-7-205(b) (July 1980 Repl.) (emphasis added).

Shriners asserted that it was one of the “beneficiaries
named in the will” and was therefore entitled to notice. In
response, the co-personal representatives argued that
Shriners, as a trust beneficiary, was not entitled to notice,
that Shriners was not entitled to file a motion for relief
under W.R.C.P. 60(b), and that the motion for relief was
an impermissible collateral attack on the district court’s
order. In disposing of the motion, the district court did
not address the question of whether Shriners was one of
the “beneficiaries named in the will” as that term is used
in W.S. 2-7-205(b). Instead, the court relied on WS.
2-7-620 (July 1980 Repl.), which provides:

No proceedings for sale, mortgage, pledge,
lease, exchange or conveyance by a personal

A6

representative of property belonging to the es-
tate is subject to collateral attack on account of
an irregularity in the proceedings which do not
deprive the court of jurisdiction.

Relying on Hartt v. Brimmer, 74 Wyo. 338, 287 P.2d 638
(1955) and Security-First National Bank of Los Angeles v.
Superior Court of Los Angeles County, 1 Cal.2d 749, 37 P.2d
69 (1934), the district court concluded that the estate
administration was an in rem proceeding and, because
the court had jurisdiction over the property and the per-
sonal representative, failure of notice to Shriners was not
a jurisdictional defect. In addition, the court apparently
concluded that Shriners’ motion constituted a collateral
attack concerning a non-jurisdictional matter. Shriners
appeals from the denial of its W.R.C.P. 60(b) motion.

Although our legal analysis of the issues in this case
differs from that employed by the trial court, the end
result is the same.

Shriners contends that it is a beneficiary under the
will and that its interest is vested, rather than contingent,
and as a vested beneficiary it was entitled to notice of the
proposed sale of an estate asset. In support of this reason-
ing, Shriners cites In re Potter’s Estate, 396 P.2d 438 (Wyo.
1964); McGinnis v. McGinnis, 391 P.2d 927 (Wyo. 1964);
and W.S. 2-7-402, 2-7-615 and 2-7-205. The cases cited by
Shriners do not support its contentions.

Potter’s Estate involved, among other things, the
question of the vesting of real property in the heirs at law
of a decedent who died intestate and the necessity of
selling estate property. In that case, this court stated that
“{o]nly the executor, administrator, spouse, next of kin,
heirs, legatees, devisees, and creditors of the deceased or

A7

of the administration are parties interested in the estate.”
In re Potter’s Estate, 396 P.2d at 447.

In support of its contention that it is a vested bene-
ficiary or vested remainderman, Shriners cites McGinnis.
That case has nothing to do with determining the nature
of Shriners’ interest. In McGinnis, a family owned a ranch
and in 1941 assigned the oil and gas royalties in trust toa
bank. In 1956, one famil, member received royalty pay-
ments and refused to pay the royalties to the trustee. The
rest of the family sued the relative, and he defended on
the grounds that the assignment was illegal on the basis
of the “rule against perpetuities,” and that it was an
unreasonable restraint on alienation. This court held the
trust was valid. Neither McGinnis nor Potter’s Estate in-
volves notice or lack of notice to contingent beneficiaries
or contingent remaindermen and has no relevancy in the
case before us.

Clearly Shriners’ interest in the trust property is not
vested. “[A] vested remainder is one which is limited to a
person in being, whose right to the estate does not de-
pend on the happening or failure of any future event. Safe
Deposit & Trust Co. v. Bowse, 181 Md. 351, 29 A.2d 906
[(1943)]. 8 Maryland L.Rev. 142.” 28 Am.Jur.2d Estates,
§ 242, n. 6 (1966). There is at least one future circumstance
that would prevent Shriners from ever receiving any
benefits under the trust-if, at the time of his death of the
life beneficiary of the trust, Shriners is nct an “organiza-
tion described in Section 170(c) and Section 2055(a) of the
Internal Revenue Code of 1954 as amended * * * .” The
resolution of the problem of notice does not depend,
however, upon whether Shriners was a vested beneficiary

A8

or a contingent beneficiary. It still was not a “beneficiary
named in the will.”

W.S. 2-7-402 (July 1980 Repl.) states in pertinent part:

Except as otherwise provided in this code, when
a person dies the title to his property, real and
personal, passes to the person to whom it is
devised by his last will, or in the absence of
such disposition to the persons who succeed to
his estate as provided in this code. However, all
of his property is subject to the possession of the
personal representative and to the control of the
court for the purposes of administration, sale or
other disposition under the provisions of
i kek

Under W.S. 2-7-402, title to decedent’s property passed to
the person to whom it was devised. In this case it passed
to First Security-Utah, as trustee, not Shriners or the
University of Utah.

W.S. 2-7-615 requires that notice of the hearing for
the sale of real property to be given as provided in W.S.
2-7-205 (July 1980 Repl.) “to all of the beneficiaries named
in the will of a decedent dying testate.” W.S. 2-7-615 and
2-7-205 in combination simply provide that notice of a
hearing for the sale of estate property be given to “bene-
ficiaries named in the will of a decedent dying testate.” In
this case, the beneficiary named in the will is the First
Security Bank of Utah, not Shriners or the University of
Utah. Shriners and the University of Utah are contingent
beneficiaries under the testamentary trust established by
decedent. Coincidentally, the terms of the will and the
trust are set out in the same instrument, but each has
independent life without regard to the other. Stated an-
other way, the will is not dependent on the trust for its

a

A9

legal existence nor is the trust dependent on the will.
Shriners cannot “bootstrap” its status as a contingent
beneficiary under the trust to a beneficiary under the will
just because the terms of the will and the terms of the
trust are set out in the same instrument. Furthermore, just
because the testator of the will and the trustor or settlor
of the trust is the same person does not make the bene-

ficiary of the trust also the beneficiary “named in the
will.”

Limiting the requirements of notice to the benefici-
aries named in the will, as required by W.S. 2-7-205 and
as we have done here, has practical significance. If the
contingent beneficiaries of the trust were a large group of
persons, an intolerable burden on the administration of
the estate would develop and lead to expensive, endless
and needless litigation if notice of the sale of an estate
asset need be given to each individual contingent bene-
ficiary under the testamentary trust.

Our holding in this case is simply that a contingent
beneficiary of a testamentary trust is not entitled to indi-
vidual notice of the proposed sale of an estate asset. This
holding makes it unnecessary to address other issues
raised by Shriners.

Affirmed.

CARDINE, C.J., files a dissenting opinion in which
ROONEY, Retired J., joined.

ROONEY, Retired J., files a dissenting opinion in
which CARDINE, C.J., joined.

CARDINE, Chief Justice, dissenting, with whom
ROONEY, Justice, Retired, joins.

A10

I would reverse.

On the issue of notice, Shriners advances two argu-
ments. First, it asserts that it is one of the “beneficiaries
named in the will” as that term appears in W.S.
2-7-205(b). Second, it argues that, because of its property
interest in the estate, notice is required by the Due Pro-
cess Clause of the United States Constitution. I would
hold that appellant is correct on both counts. Shriners,
however, was a “beneficiary” named in the will, and that
alone was sufficient to require notice.

It is quite astonishing that the court concludes that
contingent beneficiaries are not beneficiaries and there-
fore not entitled to notice of disposition at private sale of
a significant asset. Even more astonishing is the sugges-
tion that a will containing trust provisions is not a will or
that trust provisions in a will are not part of the will. The
instrument involved here is titled “Last Will and Testa-
ment of Velma Rife Jones.” Within the body of the instru-
ment is established a trust in which appellant is a named
beneficiary. There is no settled law of which I am aware
that permits the court to hold that what it does not like in
a will simply is not in the will.

To complete this strange circle of result justification
is the suggestion that some policy is served by denying
notice because contingent beneficiaries may be “a large
group of persons” and notice to them would be “expen-
sive,” an “intolerable burden” and lead to “end-
iess * * * litigation.” And so for expediency, the court
approves this sale without the beneficiary, in whom title
may ultimately vest, receiving notice or having the right

to be heard. The result in this case was sale of a ranch

—————————————

All

first appraised for $1,200,000 being sold for the sum of
$820,000. Perhaps the amount received for sale of the
ranch was reasonable. But one cannot help but wonder,
why not give notice of the sale to named beneficiaries.

The Wyoming probate code does not define the term
“beneficiaries.” When construing statutes, however,
“[wlords and phrases shall be taken in their ordinary and
usual sense” and “technical words and phrases having a
peculiar and appropriate meaning in law shall be under-
stood according to their technical import.” W.S. 8-1-103.
In its ordinary and usual sense, the term “beneficiary”
means “one who receives something.” Webster’s Third
New International Dictionary (1971). In law, “benefici-
ary,” standing alone, is defined as “[o]ne who benefits
from [the] act of another.” Black’s Law Dictionary (5th ed.
1979). Shriners surely receives something and benefits
from the act of the testatrix, Velma Rife Jones. If it meets
the qualifications set forth in the will, it is entitled to a
remainder interest in the estate. In addition, Shriners is
unquestionably “named in the will.” Notice, therefore,
was required by W.S. 2-7-615 and 2-7-205(b).

ROONEY, Retired Justice, dissenting, with whom
CARDINE, C.J., joins.

I join in the dissent of Chief Justice Cardine. In
addition to that said by him, I note that this is a testamen-
tary trust. Contrary to that said in the majority opinion, it
does not have any “independent life without regard to”
the will, and it is “dependent on the will [for its legal
existence].” Appellant benefits only because of the will,
albeit through a trust established therein. As expressly set
forth in the will, the intent of the testator was to benefit

Al2

the appellant-not the trustee. Appellant was a beneficiary
named in the will as provided in W.S. 2-7-615.

It would serve no purpose to address in this dissent
the other issues presented in this case which become
pertinent once appellant is recognized to be a beneficiary
under the will. Whether or not I would find reversible
error therein is not important.

Bl

APPENDIX B

In the Matter of the ESTATE OF
Velma Rife JONES, Deceased.
SHRINERS HOSPITALS FOR CRIPPLED
CHILDREN, Appellant (Petitioner),

V.

FIRST SECURITY BANK OF UTAH, N.A.,
Personal Representative, First Security
Bank of Rock Springs, Resident Personal
Representative; Rock Springs Grazing
Association; Lazy VD Land and Livestock;
Elza Eversole; and Lois M. Eversole,
Appellees (Respondents).

No. 88-4.
Supreme Court of Wyoming.
Nov. 15, 1989.

On Rehearing of Appeal from the District Court of
Sweetwater County; Kenneth G. Hamm, Judge.

* * *

Before CARDINE, C.J., THOMAS, MACY and GOLD-
EN, JJ., and ROONEY, J., Retired.

ORDER DENYING PETITION FOR REHEARING
AND CONFIRMING PRIOR DECISION

CARDINE, Chief Justice.

This case came on before the Court upon the Petition
for Reargument and Rehearing of Appellant, Shriners
Hospitals for Crippled Children, filed on April 5, 1989;
Appellant’s Brief in Support of Petition for Reargument
and Rehearing, filed April 5, 1989; Appellant’s Supple-
mentai Brief upon Rehearing Pursuant to the Court’s
Order Dated April 21, 1989, filed May 18, 1989; Answer of
Appellees, Rock Springs Grazing Association, Lazy VD

B2

Land and Livestock, Elza Eversole and Lois M. Eversole
to Petition for Reargument and Rehearing of Appellant,
filed May 19, 1989; Brief on Rehearing of Appellees Rock
Springs Grazing Association, Lazy VD Land and Live-
stock, Elza Eversole and Lois M. Eversole, filed May 19,
1989; Answer and Supporting Brief on Rehearing of Ap-
pellees First Security Bank of Utah, N.A. and First Securi-
ty Bank of Rock Springs, filed May 22, 1989; and Brief of
Amicus Curiae University of Wyoming upon Rehearing,
filed May 22, 1989; and the oral argument of counsel, and
the Court, having reviewed the file and record of the
Court and the opinion of the Court in Matter of Estate of
Jones, 770 P.2d 1100 (Wyo. 1989), finds and holds that:

The primary interest of the University of Wyoming as
amicus Curiae is expressed in its statement of the issue as
follows:

“|. Whether the property interest of the remain-
derman of a charitable remainder trust is a con-
tingent interest or vested interest subject to
complete defeasance.”

The Shriners Hospitals for Crippled Children also ex-
pressed concern about its categorization as a contingent
beneficiary.

The Court is of the opinion that the prior decision of
the Court should be confirmed insofar as it is expressed
in the essence of the ratio decidendi:

“The resolution of the problem of notice does
not depend, however, upon whether Shriners
was a vested beneficiary or a contingent bene-
ficiary. It still was not a ‘beneficiary named in
the will.’ ” Matter of Estate of Jones, 770 P.2d at
1103.

B3

The Court now is of the opinion that the description
of the Shriners Hospitals for Crippled Children and the
University of Utah as contingent beneficiaries of the tes-
tamentary trust is not a material concern with respect to
the disposition of this case. Consequently, the Court with-
draws that categorization and those portions of the prior
opinion that seem to depend upon, or discuss, the status
of Shriners Hospitals for Crippled Children and the Uni-
versity of Utah as contingent beneficiaries.

The Court understands that the requirement in the
testamentary trust that those beneficiaries qualify as or-
ganizations described in §§ 170(c) and 2055(a) of the
Internal Revenue Code is verbiage that is necessary to
assure that the trust will be treated as a charitable re-
mainder trust by the Internal Revenue Service. Conse-
quently, it would appear that the point made by the
University of Wyoming as amicus curiae that these bene-
ficiaries should be perceived as vested beneficiaries
whose interest may be defeated by the loss of their status
as a charitable organization is sound and should be re-
spected. We do not deem it necessary to se hold, how-
ever, any more than we now deem it to have been
necessary to identify Shriners Hospitals for Crippled
Children and the University of Utah as contingent bene-
ficiaries.

The crux of this case is that any beneficiary of a trust
created in a will is not a beneficiary under the will for
purposes of the notice requirements of §§ 2-7-615 and
2-7-205, W.S. 1977. We need to make no further categoriz-
ation of the status of Shriners Hospitals for Crippled
Children than to conclude that it was not a “beneficiary
under the will.”

B4

IT, THEREFORE, IS ORDERED that the Petition for
Reargument and Rehearing of Appellant, Shriners Hospi-
tals for Crippled Children, be, and the same hereby is,
denied, and the opinion of the Court in Matter of Estate of
Jones, 770 P.2d 1100 (Wyo. 1989), is confirmed except that
is modified to withdraw therefrom any categorization of
Shriners Hospitals for Crippled Children and the Univer-
sity of Utah as contingent beneficiaries.

ROONEY, Justice, Retired.

I would have granted the petition for the reasons set

forth in my dissent and in the dissent of Chief Justice
Cardine.

Cl

APPENDIX C
(Letterhead of)

THE STATE OF WYOMING
THIRD JUDICIAL DISTRICT

August 27, 1987

Mr. Calvin E. Ragsdale Mr. Henry A. Burgess

Attorney at Law Attorney at Law

20 East Flaming Gorge Way P.O. Box 728

Green River, Wyoming Sheridan, Wyoming 82801
82935

Mr. Michael J. Finn Mr. Robert James Wyatt

Attorney at Law Attorney at Law

P.O. Box 1152 P.O. Box 728

Rock Springs, Wyoming Sheridan, Wyoming 82801
82902

Re: Estate of Velma Rife Jones
P-87-18

Gentlemen:
Section 2-7-620, W.S. 1977 provides:

“No proceedings for sale, mortgage, pledge,
lease, exchange or conveyance by a personal
representative of property belonging to the es-
tate is subject to collateral attack on account of
any irregularity in the proceedings which do not
deprive the court of jurisdiction.”

Security-First Nat. Bank of Los Angeles v. Superior
Court in and for Los Angeles County, et al., 37 P.2d 69
(Cal. 1934) seems particularly pertinent here, and I quote
at some length from it:

“The application to vacate the orders approving

the first nine accounts of the trustee was made

by W.R. Thomas, one of the nephews of the

testatrix and a remainderman under the trust
provisions and the decree of distribution. The

C2

motion was addressed to the respondent court
sitting in probate in the matter of said estate.
The grounds of the motion were that the respec-
tive orders were void because the trustee failed
to include in its petition for settlement the
names and addresses of, and to give notice to,
the beneficiaries as required by sections 1120
and 1200 of the Probate Code and section 1629
of the Code of Civil Procedure; and on the fur-
ther ground that the petition in each instance
falsely stated that Sallie B. Wolcott was the sole
beneficiary of the trust, when, in fact, the trustee
knew that W.R. Thomas was such beneficiary
and that he resided at Houston, Texas.”

* * *

“For the purposes of this proceeding, the peti-
tioner does not dispute the fact that the remain-
dermen, as well as the cestul que trust, Sallie B.
Wolcott, were beneficiaries under the trust, and
that addresses of the beneficiaries and partic-
ularly of W.R. Thomas were alleged in the peti-
tion for the probate of the will. The respondents
contend that these facts prove conclusively the
lack of jurisdiction of the probate court to make
the several orders settling the nine accounts of
the trustee and the consequent invalidity there-
of, for the reason, so it is claimed, that the court
acquired no jurisdiction of W.R. Thomas in said
nine proceedings.”

* * *

“The question is not concluded by the undis-
puted facts. A proceeding pursuant to section
1699 of the Code of Civil Procedure, or section
1120 of the Probate Code, like other successive
proceedings in the probate and execution of a
will or the administration of an estate, is a pro-
ceeding in rem.” (Citations omitted).

i

* * *

“The same presumptions as to the validity of its
final orders and decrees apply as to judgments
and orders of any court of general jurisdiction.”
(Citations omitted).

* * *

“Therefore a subsequent application in the adminis-
tration of the same estate to set aside a previous
order entered in the course of probate jurisdiction
after the same has become final is a collateral attack,
and, unless the order is void on its face, it may not
on such attack be set aside.” (Citations omitted).

The Wyoming case of Hartt v. Brimmer, 287 P.2d 638,
648 (Wyo. 1955) held the failure to give a notice in a

probate proceeding was not jurisdictional. The Court
said:

“Before proceeding any further we should men-
tion the fact that we have held, though under
facts somewhat different, that such notice is not
jurisdictional. In re Lane’s Estate, 50 Wyo. 119,
58 P.2d 415, 60 P.2d 360, and cases cited. There
are, it is true, authorities to the contrary. The
question was discussed at length in In re Town-
drow’s Will, 47 N.M. 173, 138 P.2d 1001, in
which notice was given by publication but no
personal service was had as required by statute.
The court held that such personal service was not
jurisdictional and that the decree admitting the will
to probate could not be attacked collaterally. We
think we should adhere to the rule heretofore an-
nounced by us. It is more consonant with the
common law rule at which a will probated ex
parte and without any notice to the heirs was a
valid order. In re Towndrow’s Will, supra.”

And, on page 649:

C4

“The proceeding for admitting the will to probate is
in rem. The court, as stated in the petition here-
in, recited that due notice had been given to the
parties. It then had jurisdiction in the case and its
decree cannot be attacked collaterally. In re Town-
drow’s Will, supra; In re Lane’s Estate, supra.
The situation here presents at most a defect or
irregularity in the service of the requisite no-
tite.”

As counsel notes:

“The situation in the case at bar is nearly identi-
cal to Hartt. The only difference is that the activ-
ity at issue in the case at bar is a sale of estate
property rather than admission of a will to pro-
bate. It is axiomatic that the sale of estate prop-
erty is an in rem proceeding. Thus the factual
difference between Hartt in the case at bar is of
no import.”

It is also clear that the Court had subject matter
jurisdiction inasmuch as district courts have jurisdiction
over probate matters, and also that the Court had juris-

diction over the real property and the personal represen-
tative.

Furthermore, as noted in Hartt, supra, whether the
attack is collateral or direct is immaterial. The Court said,
on page 654:

“The authorities are divided on the question as
to whether an action in equity to set aside a
judgment or an order is a direct or a collateral
attack. 31 Am. Jur. § 614, p. 206. The author of
the Annotation in L.R.A. 1918D, 470 seems in-
clined to the view that it is a direct attack. See
Poston v. Delfelder, 39 Wyo. 163, 270 P. 1068, 273
P. 176, on rehearing. We need not decide the
point. We think it makes no difference which view is
taken so far as this case is concerned. The probate

C5

proceedings involved were proceedings in rem. The
court had jurisdiction to enter the order admitting
the will to probate. There was at most a defect or
irregularity in the process. As we have seen, courts
of equity are, to say the least, ordinarily hesitant to
set aside a judgment for mere irregularity in the
process, see also 34 C.J.S., Executors and Admin-
istrators, §§ 527, 528, pp. 447, 448, note 92, and
will not do so if the attack thereon is not made
promptly and so belatedly as in the case at bar.
The effect is the same as though the attack were
collateral. See Poston v. Delfelder, supra, on re-
hearing. We do not say what should be the rule
if a case of real hardship should be presented.
We have no such case before us. We think the
result herein should be the same even if we do
not consider the probate court to be distinct
from the district court.”

It is questionable that the giving of notice to Shriners
Hospital would have made any difference whatsoever.
The original offer to buy was made April 28, 1987, a
counter-offer made April 30, 1987 and accepted May 1,
1987. The petition for authority to sell was filed May 19,
1987, the sale was confirmed May 19, 1987, and on the
same day various deeds were executed and delivered. It
was not until July 6, 1987 that the Motion for Relief was
filed by Shriners and only shortly before that that the
alleged prospective purchaser disclosed that he was will-
ing to pay a higher price for the property. Therefore, had
Shriner been told of the pending sale for $820,000.00, it
would not have had before it any other offer to consider.
The University of Utah, on July 20, 1987, joined with
Shriners’ motion, yet the executive director of the Univer-
sity, on July 23, 1987, wrote the vice-president of the First
Security Bank saying “It was wonderful news about the

C6

selling of the Wyoming property. I appreciate you keep-
ing me informed.”

There is some suggestion in the file that possibly the
First Security Bank may have been remiss in failing to
seek out other possible buyers. If that is so, perhaps
Shriners’ best remedy is to sue the bank for damages.

I regret that I have not addressed all of the issues
presented in counsels’ excellent briefs as it is my general
custom, but I am inundated at the moment, and feel that
the above approach resolves the problem. However, I also
adopt by this reference all other legal arguments and
principles submitted by counsel for the purchasers and
the First Security Bank, in support of their position to the
extent they are applicable. Shriners’ counsel is also re-
minded that all briefs are required to be on 8 1/2 x 11
paper by Rule 403 of the Uniform Rules for the District
Courts.

Mr. Ragsdale will please prepare an order denying
the Motion, send a copy to Mr. Burgess and Mr. Finn and
the original to me for signature.

By the Court,

/s/ KENNETH G. HAMM
Kenneth G. Hamm
District Judge

KGH/cjv

C7

November 4, 1987

Mr. Calvin E. Ragsdale Mr. Henry A. Burgess
Attorney at Law Attorney at Law
20 East Flaming Gorge Way P.O. Box 728
Green River, Wyoming Sheridan, Wyoming 82801

aaner Mr. Robert James Wyatt
Mr. Michael J. Finn Attorney at Law
Attorney at Law P.O. Box 728
P.O. Box 1152 Sheridan, Wyoming 82801
Rock Springs, Wyoming

82902
Re: Estate of Velma Rife Jones

P-87-18

Gentlemen:

The opinion I write on the above matter, dated Au-
gust 27 , 1987, was based upon a point of law. That point
of law was that the proceedings concerning the sale of the
property could not be collaterally attacked. Therefore, as
I saw it then and see it now, further discovery will not
change that point of law. Pace v. Hadley is not applicable
as far as this case is concerned.

Accordingly, movants Objections to Proposed Order
Denying Motion for Relief From Order Under Wyoming
Rules of Civil Procedure, Rule 60(b) of Shriner’s Hospi-
tals for Crippled Children are denied.

By the Court,

/s/ KENNETH G. HAMM
Kenneth G. Hamm
District Judge

KGH/cjv

D1

APPENDIX D
U.S.C.A. Const. Amend. 14

* * *

Section 1. All persons born or naturalized in the
United States, and subject to the jurisdiction thereof, are
citizens of the United States and of the State wherein they
reside. No State shall make or enforce any law which
shall abridge the privileges or immunities of citizens of
the United States; nor shall any State deprive any person
of life, liberty, or property, without due process of law;
nor deny to any person within its jurisdiction the equal
protection of the laws.

* * *

TITLE 2. Wills, Decedents’ Estates and Probate Code
CHAPTER 7. Administration of Estates
ARTICLE 2. Notices

§ 2-7-202. Public auction of real or personal property;
contents.

(a) When a sale or real or personal property of a
decedent is ordered and is to be made at public auction,
notice of the time and place of sale shall be published in a
daily or weekly newspaper of general circulation in the
county in which the probate is pending and in the county
in which such property is situated once a week for three
(3) consecutive weeks next before the sale, except in the
case of perishable and other personal property likely to
depreciate in value or which will incur loss by being kept,
and as much other personal property as may be necessary
to pay the allowance made to the family of the decedent.

D2

(b) Notice shall set forth the time and place of sale
and a description of the property offered for sale, and
may provide that any and all bids may be rejected by the
personal representative.

(c) A copy of the notice shall also be mailed as
provided in W.S. 2-7-205.

(Laws 1979, ch. 142, § 1; 1980, ch. 54, § 1.)

TITLE 2. Wills, Decedents’ Estates and Probate Code
CHAPTER 7. Administration of Estates
ARTICLE 2. Notices

§ 2-7-205. Parties entitled to receive.

(a) A true copy of the notice required in W.S.
2-7-201 shall be mailed by ordinary United States mail,
first class, to:

(i) The surviving spouse, if any, and to all
of the heirs at law of the decedent and to all of
the beneficiaries named in the will of the dece-
dent. The mailings shall be made not later than
one (1) week after the first publication of the
notice in the newspaper; and

(ii) Each creditor of the decedent whose
identity is reasonably ascertainable by the per-
sonal representative within the time limited in
the notice to creditors. The mailing shall be
made not later than thirty (30) days prior to the
expiration of three (3) months after the first
publication of the notice in the newspaper.

(b) Unless waived in writing by the parties entitled
thereto, the notices required in W.S. 2-7-202, 2-7-203,
2-7-204, 2-7-615, 2-7-806, 2-7-807 and 2-7-811 shall be
mailed not less than ten (10) days prior to the day of
hearing, the date for filing objections, or sale, as the case

a

D3

may be, to the surviving spouse, if any, and to all of the
heirs of a decedent dying intestate or to all of the bene-
ficiaries named in the will of a decedent dying testate.

(c) Notice of all intended sales of real property not
requiring an order of the court shall be mailed or deliv-
ered not less than ten (10) days prior to the sale to the
surviving spouse, if any, and to the heirs of a decedent
dying intestate or to all of the beneficiaries named in the
will of a decedent dying testate.

(Laws 1979, ch. 142, § 1; 1980, ch. 54,
§ 1; 1989, ch. 114, § 1.)

TITLE 2. Wills, Decedents’ Estates and Probate Code
CHAPTER 7. Administration of Estates
ARTICLE 4. Marshalling Assets

§ 2-7-402. Title to decedent’s property; subject to ad-
ministration and payment of debts; priori-
ties.

Except as otherwise provided in this code, when a
person dies the title to his property, real and personal,
passes to the person to whom it is devised by his last will,
or in the absence of such disposition to the persons who
succeed to his estate as provided in this code. However
all of his property is subject to the possession of the
personal representative and to the control of the court for
the purposes of administration, sale or other disposition
under the provisions of law, and his property, except
homestead and other exernpt property, is chargeable with
the payment of debts and charges against his estate.
There is no priority between real and personal property,
except as provided in this code or by the will of the
decedent.

D4

(Laws 1979, ch. 142, § 1; 1980,
ch. 54, § 1.)

TITLE 2. Wills, Decedents’ Estates and Probate Code
CHAPTER 7. Administration of Estates
ARTICLE 6. Sale and Other Disposition of Property

§ 2-7-614. Petition to sell, etc.; generally.

A petition to sell, mortgage, exchange, pledge or
lease any real or personal property shall set forth the
reasons for the petition and describe the property in-
volved. It may apply for different authority as to separate
parts of the property, or it may apply in the alternative
for authority to sell, mortgage, exchange, pledge or lease.
Whenever it is for the best interests of the estate, real and
personal property of the estate may be sold, mortgaged,
exchanged, pledged or leased as a unit.

(Laws 1979, ch. 142, § 1; 1980,
ch. 54, § 1.)

TITLE 2. Wills, Decedents’ Estates and Probate Code
CHAPTER 7. Administration of Estates
ARTICLE 6. Sale and Other Disposition of Property

§ 2-7-615. Petition to sell, etc.; notice and hearing; ex-
ception; court order.

Upon filing of the petition, the court shall fix the time
and place of hearing of the petition, and the personal
representative shall give notice of the hearing as pro-
vided in W.S. 2-7-205, but as to personal property and as
to the lease of real property not specifically devised for a
period of not to exceed one (1) year, the court may hear
the petition without notice. In those instances where no-
tice is required, the notice shall state briefly the nature of
the petition. At the hearing and upon satisfactory proof

D5

the court may order the sale, mortgage, exchange, pledge
or lease of the property described or any part thereof at
such price and upon such terms and conditions as the
court may authorize.

(Laws 1979, ch. 142, § 1; 1980,
ch. 54, § 1.)

TITLE 2. Wills, Decedents’ Estates and Probate Code
CHAPTER 7. Administration of Estates
ARTICLE 6. Sale and Other Disposition of Property

§ 2-7-620. Collateral attacks precluded.

No proceedings for sale, mortgage, pledge, lease,
exchange or conveyance by a personal representative of
property belonging to the estate is subject to collateral
attack on account of any irregularity in the proceedings
which do not deprive the court of jurisdiction.

(Laws 1979, ch. 142, § 1; 1980,
ch. 54, § 1.)

* * *

Wyoming Rules of Appellate Procedure

Rule 5.07. Service of briefs on attorney general.

In all cases both criminal and civil, in which the state
is a party, or in which any of its property is involved, or
in which a statute, ordinance or franchise is alleged to be
unconstitutional, including criminal cases upon reserved
questions, and cases arising upon exceptions taken in a
criminal case by the prosecuting attorney, counsel shall
also serve a copy of their brief upon the attorney general.

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385020_1223%3A2. Public record. Not legal advice.
