Opinion ID: 1505106
Heading Depth: 1
Heading Rank: 5

Heading: Rehearing Before the Board.

Text: A situation is presented by this record which requires determination in order to prevent injustice either to petitioner or to respondent. While the character of the expenditures claimed as deductions is such as would or might be allowable as administration expenses under the law of Minnesota [3] , yet the amounts of those expenditures, which are quite substantial, are not shown, in this record, either to have been allowed by the Probate Court or to be reasonable. There is no testimony of either kind. It was necessary for petitioner to carry the burden of establishing the amounts claimed as well as the allowable character of the deductions as being administration expenses. This he has failed to do as to the amounts. On the other hand, it is clear from the record and the issues acted upon by the Board and presented here that this matter of amounts (if the expenditures were allowable as being administration expenses) was not a matter of contest between the parties. From these considerations arises the situation that, if we reverse the Board without more, petitioner is allowed deductions in amounts not established; while if we affirm the Board petitioner may lose upon an issue which he might have met successfully had he understood that it was really in dispute. A ready way exists to protect both parties and relieve them from these situations so that justice may be done. That is by vacating the determination of the Board that, for the reasons stated in its opinion, the claimed deductions were properly disallowed, and remanding the case with directions to afford to the petitioner an opportunity to prove that the deductions claimed were such as are allowable as administration expenses under the laws of Minnesota. [4] If, as the petitioner asserts, there is in fact no controversy between the parties as to the necessity and reasonableness of the administration expenses claimed as deductions, the case can no doubt be disposed of by the Board upon a stipulation of the parties. If the necessity and reasonableness of such expenses, or any portion thereof, is controverted, the petitioner, if so advised, may present evidence before the Board tending to establish that the several items claimed as deductions are allowable as administration expenses under the laws of Minnesota, and the respondent may also introduce evidence upon that issue. Pertinent evidence up to the time of such hearing shall be received and considered by the Board. After affording the parties an opportunity to produce such evidence as they care to produce upon that question, the Board will redetermine the deficiency in accordance with the facts disclosed by the present record as the same may be supplemented by the additional evidence adduced, if any. The determination of the Board is vacated and the case remanded with directions to afford the petitioner an opportunity to prove that the administration expenses claimed as deductions were necessary and reasonable and therefore allowable as such under the laws of Minnesota, and for further proceedings consistent with this opinion.