Detailed Answer
Short overview: When a wrongful death recovery (a claim for the decedent’s death) is paid to an estate, people sometimes reach oral agreements about how to divide the money among heirs, survivors, or others who claim an interest. Enforcing or disputing such an oral agreement in South Dakota requires understanding who has legal authority to settle wrongful death claims, how courts treat oral agreements, what evidence you will need, and what remedies are available.
1. Who controls a wrongful death claim and its proceeds?
Under South Dakota law, wrongful death actions are brought for the benefit of the decedent’s estate and interested survivors. The personal representative (executor or administrator) of the estate normally has the authority to pursue and settle claims on behalf of the estate. For the statutory framework on wrongful death actions, see the South Dakota wrongful death statutes: SDCL Chapter 21-5. If a personal representative exists, courts generally treat that representative as the appropriate party to negotiate, accept settlement offers, and distribute proceeds under court supervision.
2. Are oral agreements to divide proceeds enforceable?
Possibly, but oral agreements face obstacles. Contracts that concern the distribution of estate property or transfers of interest in real estate often run into the statute of frauds, which requires certain agreements to be in writing. Even where the statute of frauds does not apply, an oral agreement can be harder to prove than a written one.
Court enforcement depends on several factors:
- Who actually entered the agreement — the personal representative or an heir? If the personal representative made the agreement while acting within their authority, a court may enforce it or approve a settlement. If an heir or potential beneficiary made a private oral deal with another heir, the estate or personal representative may not be bound unless they authorized the arrangement.
- Evidence of the agreement — credible witness testimony, contemporaneous messages or emails, partial performance (e.g., one party paid or transferred something as promised), or a release form — strengthens enforcement.
- Whether the agreement contradicts statutory distribution rules or a court-approved probate order. Probate courts supervise distribution; agreements that conflict with court orders may be rejected.
3. How to enforce an oral agreement
- Document everything immediately. Collect texts, emails, recordings (where lawfully obtained), bank transfers, witness statements, or any notes that reflect the agreement or its performance.
- Ask the personal representative to acknowledge and implement the agreement, or to petition the probate court to approve a division consistent with the agreement.
- If the personal representative refuses or is absent, you can file a civil lawsuit asking a court to enforce the oral agreement (breach of contract) or to impose an equitable remedy (specific performance or constructive trust) if partial performance or unjust enrichment applies.
- Alternative dispute resolution (mediation or arbitration) can be faster and less expensive than full litigation. Courts often encourage settlement negotiations for estate disputes.
- Be prepared to prove the agreement by a preponderance of the evidence in civil court; if the agreement relates to probate proceedings, file an appropriate petition with the probate court asking that the agreement be recognized or enforced under court supervision.
4. How to dispute an oral agreement
- File a timely objection in the probate proceeding if the estate is open and the personal representative proposes to divide proceeds contrary to your rights. Probate courts can hear objections and decide distribution questions.
- Bring a separate civil claim if necessary. Common bases to challenge an oral agreement include lack of authority (the person who made the promise lacked power to bind the estate), fraud, duress, undue influence, mistake, or failure of consideration.
- Argue statute-of-frauds defenses where applicable if the agreement should have been in writing. Be aware that doctrines like partial performance or promissory estoppel can sometimes overcome a statute-of-frauds defense.
- Seek temporary relief when needed. If funds are at immediate risk of being dissipated, you can ask a court for injunctive relief or for the court to freeze distributions pending resolution.
5. Practical outcomes and remedies
Possible court outcomes include:
- Enforcement of the oral agreement and an order directing distribution consistent with it.
- A money judgment against a party who received funds in violation of the agreement (restitution or damages for unjust enrichment).
- Recognition that the oral agreement is unenforceable and a ruling that distribution should follow statutes, a will, or prior court orders.
- Settlement approved by the probate court allocating funds among claimants in the estate’s best interest.
6. Timing and practical deadlines
Act quickly. Evidence fades, witnesses relocate, and statutes of limitation may bar claims. While wrongful death claims themselves have time limits under South Dakota law, estate-distribution disputes and contract claims also carry deadlines. If you believe an oral agreement governs division of proceeds, preserve records and seek legal guidance promptly.
7. Where courts and probate fit in
The probate court supervises estate administration and distribution. If the estate is already in probate, raise your objection there first. If the estate is closed and someone received funds incorrectly, you may need a civil action to recover the money or to set aside the distribution.
Quick links and statutes
South Dakota wrongful death statutes: SDCL Chapter 21-5 (Wrongful Death). For probate procedures and the powers of a personal representative, consult the South Dakota probate statutes available on the state legislature website or seek local counsel.
Important reminder
This article explains general principles under South Dakota law. It does not replace legal advice about your specific situation.
Helpful Hints
- Get agreements in writing. A signed, written agreement or a court-approved stipulation avoids nearly all enforceability headaches.
- Identify the decision-maker. Confirm whether the personal representative had authority to make the oral promise. If not, the estate may not be bound.
- Collect proof right away. Save messages, emails, bank records, and witness names. Partial performance (payments, transfers, or actions taken under the agreement) strengthens enforcement.
- Save settlement paperwork. If you accepted any payment or signed a release, that document may affect your ability to later challenge distribution.
- Consider mediation. Courts often favor mediation for family and estate disputes; it is usually faster and less costly than litigation.
- Ask the probate court for instructions. If you are the personal representative, seek court approval before dividing questionable proceeds. If you are a claimant, promptly file objections in probate.
- Watch deadlines. Consult an attorney promptly to preserve your rights and meet any limitations periods.
Disclaimer: This article is for general informational purposes and does not constitute legal advice. It does not create an attorney-client relationship. For guidance about a specific case, consult a licensed South Dakota attorney.