Opinion
No. 2-405 / 01-1892.
Filed May 31, 2002.
Appeal from the Iowa District Court for Linn County, Kristin Hibbs, Judge.
Appellant prospective buyer appeals the approval by the district court of sale of part of an estate to another buyer. AFFIRMED.
Steven Warbasse, Cedar Rapids, for appellant.
Henry Nathanson of Johnston and Nathanson, Cedar Rapids, for appellee Davisson.
Stephen Nelson of Moyer Bergman, Cedar Rapids, for appellee Sayre.
Todd Slagter of Simmons, Perrine, Albright Ellwood, P.L.C., Cedar Rapids, for appellee estate.
Considered by Sackett, C.J., and Huitink and Hecht, JJ.
The district court was asked by the administrator of Irma Jean Kloubec's estate to approve the sale to appellee Jack E. Sayre of the land decedent owned when she died, legally described as the North One-half of the front 80 feet of Lot 1, Block 7, Daniels Park Addition to Cedar Rapids, Iowa. Appellant Momentum, Inc. also offered to buy the property, as did appellee Charles Davisson. After determining that the difference between the highest bid and the lowest bid was $3,500, the district court approved the sale to Sayre. On appeal, Momentum contends the approved sale is not in the interest of the estate. It asks that either the sale to it be approved, or that the property be sold at public auction. The administrator of the estate and appellee Jack E. Sayre ask that the district court decision be affirmed. We find appellant is without standing and affirm.
Kloubec lived in Florida and was under guardianship there. Her guardian negotiated the July 2001 contract for the sale of the Cedar Rapids property for $10,500 to Sayre. The contract formed the basis for the sale that the district court approved in the estate.
The offer also made provision for court approval and other payments by the buyer.
Kloubec died on August 8, 2001, before the guardian obtained approval from the Iowa district court to sell the property. At the time of Kloubec's death the property had been sold to Momentum at tax sale, and decedent's right of redemption was to expire on September 13, 2001. Sayre had filed a petition for administration of the estate and the appointment of an administrator. On September 7, 2001 the court appointed an administrator and authorized the administrator to borrow an amount not to exceed $4,500 from Sayre to redeem the property. If Sayre's contract to purchase was approved, he would not be repaid. If it were not approved, he would. The administrator redeemed the property. However, in the meantime, appellant had authorized the removal of certain encumbrances on the land, and a mechanic's lien against the property had been filed by Property Maintenance Co. in the amount of $6,843.20. Property Maintenance Co. is not a party to these proceedings. The State of Florida filed a claim within the statutory period, which exceeded the value of the assets in the estate. The State of Florida did not receive notice of the hearing on the sale.
On appeal Momentum contends that its bid was higher than Sayre's, and that a sale to it is in the best interest of the estate. Momentum contends that if the property is not sold to it, then the property should be sold by public auction.
The administrator resists, contending the district court's order was supported by substantial evidence and Iowa law. Sayre contends the district court did not abuse its discretion in approving the sale (1) because he had a binding and enforceable contract, (2) the sale was in the estate's interest, and (3) a public sale was not an appropriate remedy.
Whether the proceeding was legal or equitable is determinative of this court's standard for reviewing this matter. In re Estate of Wulf, 526 N.W.2d 154, 155 (Iowa 1994). Iowa Code section 633.33 (2001) provides:
Actions to set aside or contest wills, for the involuntary appointment of guardians and conservators, and for the establishment of contested claims shall be triable in probate as law actions, and all other matters triable in probate shall be tried by the probate court as a proceeding in equity.
The sale of real estate is not an issue that falls into any of the categories listed as triable in probate as law actions. In re Guardianship and Conservatorship of Jordan, 616 N.W.2d 553, 557-558 (Iowa 2000). Therefore, this court's review is de novo. Id.
First, we reject the contention that Sayre had an enforceable contract. We agree he signed a contract to buy from the Florida guardian. The proposed sale was subject to court approval. Even if it were not provided for in the contract, the authority to sell real estate is not an enumerated power under Iowa Code section 633.646. A conservator in Iowa may not sell real property without prior order of the court. Iowa Code section 633.652 provides that conservators may sell real property when it is in the best interests of the ward and directs that the sale be made by "the same procedure that is provided in this Code for sale, mortgage, exchange, pledge, and lease by personal representatives in administration of estates of decedents." See Matter of Conservatorship of Summers, 316 N.W.2d 185, 186 (Iowa Ct.App. 1981). We do not find the sale to be in the best interest of the estate or the major creditor, the state of Florida. The district court found the difference in the bids was $3,500. While a computation of the exact amount the estate would realize from either bid is difficult because their offers are different, we find no reason to disagree with the district court's conclusion as to the bid differences. We note also that Momentum agreed to assume the mechanic's lien filed on the property. While it is argued the lien may not be valid, the approved offer with Sayre appears to make it the estate's responsibility to clear the lien. It is reasonable to assume the estate probably will incur fees to contest the lien even if it is not valid.
Apparently in Florida, unlike in Iowa, a guardian can administer property of his or her ward. We assume without deciding that the Florida guardian could have petitioned for the sale of the property in Iowa.
It does not appear, however, that Momentum has standing to challenge the sale, although appellees have not challenged its standing. An "interested person" in the context of a probate proceeding is one whose interests are directly affected by a diminution of the estate assets. See In re Estate of Boyd, 634 N.W.2d 630, 638-39 (Iowa 2001); In re Estate of Plumb, 256 Iowa 938, 942-43, 129 N.W.2d 630, 632-33 (1964); see also In re Estate of Foster, 483 N.W.2d 327, 329 (Iowa 1992). A beneficiary, a claimant, or a creditor has an interest in the assets of the estate because its assets will be used to pay the claims of such a person, to the extent such claims are found valid. See Iowa Code § 633.426. Any distribution of estate assets will directly affect the interest of claimants and creditors. Momentum does not fit in any of these categories. Furthermore, there is no statutory or case authority in Iowa that permits anyone other than a personal representative to apply to probate court for approval of the sale of real estate. Summers, 316 N.W.2d at 186. A petition to sell must be filed by the personal representative; it cannot be filed by a third party. Id. Finding Momentum has no standing, we affirm the district court. If any reason for affirmance appears in the record, we affirm the district court. See Hunter v. City of Des Moines, 300 N.W.2d 121, 126 (Iowa 1981); Kelly v. Brewer, 239 N.W.2d 109, 113 (Iowa 1976); Pappas v. Clark, 494 N.W.2d 245, 248 (Iowa Ct.App. 1992).
AFFIRMED.