Section 9392 Of Article 3. Litigation Where No Claim Required From California Probate Code >> Division 7. >> Part 4. >> Chapter 8. >> Article 3.
9392
. (a) Subject to subdivision (b), a person to whom property is
distributed is personally liable for the claim of a creditor, without
a claim first having been filed, if all of the following conditions
are satisfied:
(1) The identity of the creditor was known to, or reasonably
ascertainable by, a general personal representative within four
months after the date letters were first issued to the personal
representative, and the claim of the creditor was not merely
conjectural.
(2) Notice of administration of the estate was not given to the
creditor under Chapter 2 (commencing with Section 9050) and neither
the creditor nor the attorney representing the creditor in the matter
had actual knowledge of the administration of the estate before the
time the court made an order for final distribution of the property.
(3) The statute of limitations applicable to the claim under
Section 353 of the Code of Civil Procedure has not expired at the
time of commencement of an action under this section.
(b) Personal liability under this section is applicable only to
the extent the claim of the creditor cannot be satisfied out of the
decedent and is limited to the extent of the fair market value of the
property on the date of the order for distribution, less the amount
of any liens and encumbrances on the property at that time. Personal
liability under this section is joint and several, based on the
principles stated in Part 4 (commencing with Section 21400) of
Division 11 (abatement).
(c) Nothing in this section affects the rights of a purchaser or
encumbrancer of property in good faith and for value from a person
who is personally liable under this section.