In Re Estate Of Hines

715 A.2d 116 (1998)

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Nature of the Case

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Facts

Charles died on February 25, 1981. He devised a life estate in the family home on Florida Avenue, N.W., to his wife Ruth, with the remainder to their three children, William Hines, Marjorie Burke, and Sallie Archie, in equal shares, as tenants in common. Charles died on February 25, 1981. He devised a life estate in the family home on Florida Avenue, N.W., to his wife Ruth, with the remainder to their three children, William Hines, Marjorie Burke, and Sallie Archie, in equal shares, as tenants in common. Charles designated William Hines as the personal representative of the estate, but William never submitted the will to probate. William predeceased his mother and left his one-third interest in the property to his children, D, and Gary Hines, in equal shares. Ruth died on December 30, 1992. D petitioned the court to appoint her as the personal representative of the estate of Charles. On January 29, 1993, Marjorie, Tanya, Sallie, D, and Gary met at the office of D's attorney to discuss what should be done with the house. They agreed to retain an appraiser to determine both the fair market value and the fair rental value of the property. They agreed (1) that Marjorie's daughter, Linda Johnson, could live in the house temporarily, on condition that she pay rent and not interfere with efforts to sell the property; (2) that the property would be listed for sale with a Realtor; and (3) that the net proceeds of the sale would be distributed according to the terms of Charles' will. The property was appraised at a fair market value of $75,000. The property was in need of repair after an extended period of deferred maintenance. An inspection revealed more than 100 housing code violations. A contractor was hired to repair and refurbish the property at a cost of about $10,000. In May 1993 Marjorie told D that she wanted to purchase the house for herself. Marjorie and D executed a sales contract which provided, among other things, that the sales price would be $ 70,000, that the property would be sold 'as is,' that the seller (the estate) would pay $3,000 toward the closing costs, that the seller could declare the contract null and void if the purchaser (Marjorie) failed to obtain financing within fifteen days, and that settlement was to occur within sixty days after the date of the contract. By June 1994, Marjorie had not settled on the property. D had received only one other offer to purchase the property. On June 14 D and her brother Gary executed a contract to purchase the property for themselves. The sale price would be $70,000 and the seller (the estate) would pay $3,000 toward closing costs. D signed the contract both as seller (on behalf of the estate) and as purchaser. The contract was silent as to who would pay for repairs to the house, nor did it expressly disclaim any warranties. D concealed the transaction from Marjorie, failed to obtain court approval for the purchase, and did not obtain consent for the transaction from either Marjorie or Sallie, the other two principal heirs. On July 1, 1994, after the repairs were done, the property was reappraised at $84,000. Linda was told that the property was to be sold and that she would have to vacate the premises. On September 7 D and Gary closed on the purchase of the property. D reported to the court that the estate had received $60,481.15 from the sale of the property to herself and her brother Gary. Marjorie (Ps) filed a complaint seeking D's removal as the personal representative and asking the court to set aside the sale of the property. D confessed to all the transgressions in the complaint. The court granted Ps' motion and set the sale aside. D appealed.