In Re Estate of Leo George Masulla

This appeal arises from the dismissal of a verified creditor claim filed by Ned Hanson (“Mr. Hanson”) against the Estate of Leo George Masulla (“the Estate” or “Mr. Masulla”) pursuant to Tennessee Code Annotated § 30-2-307. The claim, in the total amount of $2,185,431, is for expenditures by Mr. Hanson for the “personal care” of Mr. Masulla and “farm management and improvement services” for the period from 2009 to 2022, when Mr. Masulla died. The personal representative of the estate of Mr. Masulla as well as his heirs at law timely filed exceptions to the claim denying any liability. Thereafter, the estate and heirs each filed a Tennessee Rule of Civil Procedure 12.02(6) motion to dismiss for failure to state a claim. Mr. Hanson filed a response in opposition to the motions to dismiss as well as a motion to amend the claim. The probate court denied the motion to amend as untimely. The court also dismissed the claim on multiple grounds finding “it is in violation of the statute of frauds, statute of limitations and the claim is unsubstantiated as the credit card statements are not sufficient to support the claim,” and that the claim was a collateral attack on a final judgment in a chancery court action to quiet title to Mr. Masulla’s real property in his heirs. For the reasons set forth below, we affirm the judgment of the probate court in part, reverse in part and remand for further proceedings.