Opinion
9795-24
08-15-2024
KIM DOUGHERTY & EDMUNDO DOUGHERTY, DECEASED, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Kathleen Kerrigan, Chief Judge.
On August 13, 2024, respondent filed a Motion to Change or Correct Caption. In that Motion, respondent indicates that: (1) petitioner Edmundo Dougherty (decedent) was deceased at the time the Petition was filed on June 14, 2024, (2) no fiduciary has been duly appointed as a representative of the decedent's estate, (3) California law is applicable with respect to petitioners, (4) under California law, petitioner Kim Dougherty is the successor in interest of the decedent, and (5) as successor in interest, petitioner Kim Dougherty has the capacity to represent the decedent in this case. A copy of the relevant successor in interest's declaration is attached to the Motion.
It is well settled that a case filed with this Court must be filed by a proper party. As relevant here, unless the petition is filed by the taxpayer, or by someone legally authorized to act on the taxpayer's behalf, we are without jurisdiction as to that taxpayer. Fehrs v. Commissioner, 65 T.C. 346, 348-349 (1975). In determining whether an individual has the capacity to litigate in this Court, we look to the law of that individual's domicile. Rule 60(c), Tax Court Rules of Practice and Procedure. The appointment of a personal representative, executor, or administrator by the appropriate State court having jurisdiction over the estate of the decedent generally is necessary to establish the capacity of a person to litigate on behalf of a decedent's estate. See Rule 60(c). However, under California law, "[a] cause of action that survives the death of the person entitled to commence an action or proceeding passes to the decedent's successor in interest . . . ." Cal. Civ. Proc. Code §377.30 (West 2022); see also Estate of Galloway v. Commissioner, 103 T.C 700 (discussing capacity to litigate under California law). Further, California law gives this Court the power to appoint a decedent's successor in interest as special administrator to prosecute an action in this Court when doing so is in the interest of justice. See Cal. Civ. Proc. Code §377.33 (West 2022); Estate of Galloway, 103 T.C. at 703-704. On the record presented, the Court is satisfied that Kim Dougherty, as the decedent's successor in interest, is the appropriate person to appoint as special administrator of the decedent's estate for purposes of this case.
Upon due consideration of the foregoing, it is
ORDERED that respondent's Motion to Change or Correct Caption is recharacterized as a Motion to Substitute Parties and Change Caption. It is further
ORDERED that the Motion to Substitute Parties and Change Caption is granted in that Kim Dougherty is appointed special administrator of the Estate of Edmundo Dougherty, Deceased, for purposes of this litigation. It is further
ORDERED that the Estate of Edmundo Dougherty, Deceased, Kim Dougherty, Special Administrator is substituted in this case for petitioner Edmundo Dougherty, Deceased. It is further
ORDERED that the caption of this case is amended to read "Kim Dougherty and Estate of Edmundo Dougherty, Deceased, Kim Dougherty, Special Administrator, Petitioners v. Commissioner of Internal Revenue, Respondent".