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Estate of Robert Samuel Reed, Richard Gossum, Administrator C.T.A., John R. Reed v. R. S. Reed and Sons, Inc.

Citation: Not availableDocket: W2003-00210-COA-R3-CV

Court: Court of Appeals of Tennessee; July 1, 2004; Tennessee; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In this case concerning the Estate of Robert Samuel Reed, the administrator, Richard Gossum, filed a lawsuit against R.S. Reed and Sons, Inc. to recover a debt of $198,500 owed to the estate. The dispute arose between the decedent's sons, John R. Reed (Appellee) and Joseph Spencer Reed (Appellant), over the estate's administration. The trial court permitted John R. Reed to intervene, resulting in a consent order for a pro rata asset distribution to creditors. Joseph Spencer Reed, however, filed a Rule 60.02 motion to vacate the consent order, alleging mistake and neglect. The trial court denied the motion, citing the Appellant's lack of standing, as he was not a party to the suit. The appellate court affirmed this decision, emphasizing that Rule 60.02 is a remedy applied cautiously and that the Appellant was not entitled to relief due to his non-party status. The costs of the appeal were assigned to the Appellant and his surety, with execution allowed if necessary.

Legal Issues Addressed

Appellate Review of Discretionary Decisions

Application: The appellate court reviewed the trial court's denial of the Rule 60.02 motion for abuse of discretion, affirming the decision due to the Appellant's non-party status.

Reasoning: The appellate court affirmed the lower court's judgment, emphasizing Appellant's non-party status and the lack of grounds for relief from the consent order.

Distribution of Estate Assets

Application: A consent order directed a pro rata distribution of the corporation's assets to creditors, with only the Appellee allowed to intervene in the proceedings.

Reasoning: John R. Reed sought to intervene in the case, which the court permitted, resulting in a consent order detailing the corporation's financial status and directing a pro rata distribution of assets to creditors.

Rule 60.02 Motion for Relief

Application: The Appellant’s Rule 60.02 motion to vacate the consent order was denied due to lack of standing and insufficient grounds for relief.

Reasoning: Appellant filed a Rule 60.02 motion to vacate the consent order, claiming mistake and neglect. The trial court denied this motion, ruling that Appellant lacked standing as he was not a party to the suit and had been informed of the proceedings.

Standing in Legal Proceedings

Application: The court determined that the Appellant lacked standing to challenge the consent order because he was not a party of record in the lawsuit.

Reasoning: The trial court denied this motion, ruling that Appellant lacked standing as he was not a party to the suit and had been informed of the proceedings.