8 Ga. 388 | Ga. | 1850
By the Court.
delivering the opinion.
The Circuit Judge confirmed the award of the arbitrators, and from his judgment a writ of error is taken. The arbitrators held, as an inference of law, from the facts before them, that the executors of Murray, (Carter and Kenan,) are not jointly liable for the nine thousand dollars and upward, of choscs in action, not collected, but that Kenan alone is liable. Whether their judgment of the law upon the facts be right, is the question for our determination. It is first important to state, definitely, what those facts are; for it will be seen that the rule of legal liability,in cases like this, depends upon slight variation in the facts. The bill of exceptions states, that no evidence was before the arbitrators, but that which is afforded in the pleadings and exhibits, except that the chases in action, for the failure to collect which Kenan was made liable, were produced to the arbitrators by Kenan, as having been in his possession from the date of the inventory. We are, therefore, to look to the pleadings and exhibits alone, for the facts, upon which the award was made, except the fact that Kenan produced the choscs in action, and the farther fact, that they were produced by him as having been in his possession from the date of the inventory.
They are as follows: Carter and Kenan both qualified as executors to the will of George W. Murray. They jointly returned to the Ordinary an inventory of bonds, notes and other evidences of debt due the estate, among which, and constituting a part of which inventory, were the notes, &c. making up the amount of $9,695 10, to the payment of which Kenan alone was found lia’
The rule is stated with more latitude by Mr. Williams, as derived from the authorities, thus: “ Where, by any act done by one executor, any part of the representative estate comes to the hands of his co-executor, the former will be answerable for the latter, in the same manner that he would have been for a stranger whom he had entrusted to receive it.” Williams on Executors, marg. p. 1294. Note to Churchill vs. Hobson, 1 P. Wms. 241. 11 Ves. 335. Hardr. 314. Dick. R. 356. 1 Rees & M. 66. Sterrit’s Appeal, 2 Penn. R. 419, 422. 2 Hill’s Ch. R. 293. 4 Rawl. 157. 10 Peters, 532. 1 P. Wms. R. 81. 16 Vesey, 479, 480. 1 Meriv. 712. 1 Sch. & Lefr. 272. Ib. 341. Monell vs. Monell, 5 Johns. Ch. 294, ’5, ’6.
The counsel admits the general rule, that under ordinary circumstances, one co-executor is not hound for the devastavit of his colleague, and I do not undex-stand him to lay down the rule of exception to that general rule any stronger or broader than I have stated it. He contends, however, upon different grounds, that according to the case made in this record, Carter is liable for the devastavit of Kenan; and first, he insists that “ executors are liable for the amount of inventories returned by them, and if they
In Giles vs. Dyson, (1 Starkie’s N. P. C. 32,) Lord Ellenborough would not allow an inventory of debts due to the estate, and which were not returned as desperate, to bo considered as assets actually in the hands of the executor. ITis Lordship said, “ you must prove, presumptively at least, that these debts have been paid' — that presumption may depend upon time and other circumstances. But upon the plea ofplene administravit, it is necessary to prove that effects came to the hands of the defendant. This is the universal practico,” I apprehend that it is now settled, that
The English doctrine seems to be this, that an inventory of property is prima facie evidence to charge an executor; and an inventory of choses in action is not even prima facie evidence to charge him, but the proof must go farther, and show, presumptively at least, that the money has been collected. Such is the legal effect of the inventory, as evidence of assets in the hands of the executor. His liability for a devastavit, in not collecting choses in action, I am not now examining — my purpose being, at present, to enquire what effect is to be given to an inventory, as evidence that assets have come to the hands of the executor, There seems to have been in England, two kinds of inventories. Formerly, it was necessaiy to exhibit an inventory of the estate to be administered before probate of the will, according to the practice of the Prerogative Court of Canterbury; and this practice yet obtains in some country jurisdictions. The Statute, 21 Henry VIII, requires an inventory, yet it seems that according to the modern practice in England, neither executors nor administrators exhibit any inventory, unless cited for that purpose in the Spiritual Courts, at the instance of a party interested. 1 Phellim, 240. Toller, 250. Williams’ Exrs. 707, ’8. It is, however, prudent for the executor or administrator to exhibit an inventory for his own protection. 1 Hagg. 106. I refer to these things for the purpose of saying, that in England, the effect of an inventory, returned before probate, is different from the effect of an inventory since the Statute of Henry VIII, upon citation. It is less in the former than in the latter case. The object of the inventory before probate, was to show the estate to bo administered, for the protection of the executor, as well as for the benefit of all persons interested in the estate. That is the object of the inventory required by our Statute, and our inventory, I have no doubt, answers to the inventory formerly required in England, before probate; whereas, the inventory now required of the executor in England, upon citation, has its counterpart here, in those annual returns or inventories of his actings and doings, which the executor is, by law, required to make. The rule of evidence, there
The Statutes of Georgia, I believe, give no greater effect to the inventory of debts, than it has at Common Law. They are, indeed, confirmatory of the position, that the return, simply, of an inventory and schedule of debts, is not, of itself, evidence that assets have come to the hands of the executor. The Statute of 1764, by express words, makes the executor chargeable with “ so much of the credits only, as he, she or they, after due care and proper diligence, shall recover and receive, in like maimer as executors and administrators are made chargeable by the Common and Statute Law of England.” Prince, 222.
This Statute requires an inventory to be made “of all and singular the rights and credits of the testator or intestate, whether the same be in ready money, judgments, bonds, or other specialties or notes- of hand, together with a list or schedule of the books of account of such testator.”' For the purpose of showing what is to be administered — for the protection of the executor, and doubtless,- also for the benefit of creditors, heirs and distributees, this perfect inventory is to be exhibited, not before probate of the will, as in England, but within three months after qualification. But how is he to be charged 1 Why, only with so much as he shall recover and receive, after due- care and proper diligence. Tb e law prescribes the rule of liability, as to dioses in action — it ordains a criterion of liability; and that is recovery and receipt, after due- care and proper diligence. Now,- the inventory, as evidence, can go no farther than the liability settled by the law. It does not prove assets in hand — it does not prove- recovery and receipt — it proves the receipt of the notes, bonds, book of accounts, &c. but not the money; and whilst, in one sense, they are assets, yet not assets in hand to charge the executor. They are evidences of debts duo, which may or may not be- collectable. By the Act of 1792, the inventory and appraisement of property is made evidence, but not conclusive, of the value of the estate. That may be shown to be more or less than the appraisement. Prin. 226.
For the purposes of this opinion', it is sufficient, if I have dem
1 have been endeavoring to meet the positions of the plaintiffs in error upon their own ground.
They are not compellable to join in receipts. Each is competent to act. A receipt from one will be a valid discharge. If they join, therefore, in a receipt, it is a voluntary act, and is held an admission that they are jointly accountable. 2 Fonbl. Eq. b. 2, ch. 7, §5. Fellows vs. Mitchell, 1 P. Williams, 83, note 1. Churchill vs. Hobson, 1 Ibid, 241, note 1. Leigh vs. Barry, 3 Atk. 584. Ambler, 219. Murrell vs. Cox, 2 Vern. 570. Frec. in Ch. 173. Moses vs. Levy, 3 Younge & Coll. 359, 367. Sadler vs. Hobbs, 2 Bro. C. R. 114. 3 Ibid, 90. Chambers vs. Minchin, 7 Vesey, 198. Brice vs. Stokes, 11 Vesey, 324. Joy vs. Campbell, 1 Sch. & Lef. 341. Doyle vs. Blake, 2 Ibid, 242. Hill on Trustees, 312, 313. 2 Story’s Eq. §§1280, 1281.
This rule, which charges exeewlors upon a joint receipt, I concede, is established by the weight of authority in England; yet it has been questioned, and in fact modified there, by some- of the ablest Judges of that empire. In Churchill vs. Lady Hobson, Lord Harcourt struggled against it. 1 Pr. Wm. 241. In Westly vs. Clarke, Lord Northington resisted it with convincing power. Among, other things, he said “ If it appears plainly, that
By the Act of 1764, it is declared, “ That from and after the passing'of this Act, all and every executor and administrator who shall, before the Ordinary of this province for the time being, or such person as he shall depute or appoint, (now the Inferior Court sitting as a Court of Ordinary,) qualify him, her or themselves for the administration of the estate of his, her or their testator or intestate, shall, upon oath, (the Act provides, then, for the production of the property, appraisement, and making a return to the Ordinary, and then proceeds,) together with a full and perfect inventory of all and singular, the rights and credits of the said testator or intestate, whether the same be in ready money, judgments, bonds or other specialties, or notes of hand, together with a list or schedule of the books of account of such testator.” Prince, 222. By this law, the exhibition of the inventory is made the duty of each and every executor who shall qualify. All who qualify are bound by the law to return the inventory — there is no choice about it — and if one of two or more fails to make the return, lie violates the law. In obedience to common sense and common reason, the usage is, as in this case, to make it jointly. The same thing is re-enacted by the Act of 1792. By this latter Act, the oath of the executor is prescribed, and he is required to swear, that he will make a true and perfect inventory of the goods and chattels of the estate. Goods and chattels, in the sense in which these words are used in this oath, I have no doubt, include
As to the liability of co-executors upon a joint receipt, a distinction has been made between creditors and legatees, to the effect that they are liable to the former, but not to the latter. See 2 Fonblanque’s Eq. p. 437, ’38, 4th Am. edit. Gibbs vs. Honing, Free, in Ch. 49. Brice vs. Stokes, 11 Vesey, 324. Lord Shipbrook vs. Hinchinbrook, 16 Vesey, 480. Appeal of Brown's Exrs. 1 Dall. 310.
The reason assigned &r it is, that legatees are appointed by the testator, as well as executors, and cannot, therefore, impose the same responsibility on the executors as creditors. For myself, I see no good reason for the distinction. Lord Thurlow, in Sadler vs. Hobbs, calls it an odd distinction. That creditors have claims upon the estate, paramount to those of legatees, is true. No man can give any thing away until his debts are paid. Justice precedes generosity; and it is true, that legatees are the appointed beneficiaries of the testator, whilst creditors are rightful demandants under the law. The law protects the rights of creditors in the estate of their debtor; but how do these things affect the personal responsibility of the executor, or vary the character of his trust? The great equitable principle is, that the executor is to be responsible upon his acts, and according to the assets that come into his possession. The law declares the trust to be several — each has absolute power over the estate. How can these principles be dispensed with at all, so as to charge one for assets which his colleague has received ? and if dispensed with in favor of creditors, why not in favor of legatees ? It seems to me, that in a Court of Chancery, creditors and legatees, as to the personal liability of co-executors upon a joint receipt, stand upon the same platform. This distinction was not recognized by Chancellor Kent, in Monell vs. Monell, (5 J. C. R. 283,) and was expressly repudiated in South Carolina, in Johnson vs. Johnson, 2 Hill’s C. R. 293.
If it be true, that a joint inventory will, of itself, charge both
Upon this view of the subject, what becomes of the right of the testator to select his executors 1 A solvent executor would not qualify with an insolvent one, however honest, and however high in the confidence of the testator ; because, by so doing, he becomes his surety. The result would be, that a testator would lie under a necessity of selecting only such men to execute his will, as he might be assured would be willing to be responsible for each other, orbe limited to one executor. He must lose the services of his responsible friend, or of his trusted but [irresponsible friend. The impolicy of this doctrine is apparent. It would, also, sweep from the books all the rules, so firmly established, which recognise the several character of executors’ trusts, and which define and regulate their respective responsibility.
In Stearne vs. Mills, (4 Barn. & Adol. 655,) Mr. J. Barite speaks directly to this point, thus: “ To say, generally, that the mere circumstance of having joined in an inventory, for the purpose of obtaining probate, renders an executor liable, would be going farther than is warranted by any authority.”
In Ochiltree vs. Wright, one of the questions made was, whether one executor, consenting to a sale of property by his co-executor, and joining with him in signing an account and inventory of the sale, was liable for the devastavit of his co-executor. The Supreme Court of North Carolina held, that he was not liable under the circumstances of that case, and affirmed several of the propositions which I have stated relative to the legal character and effect of an inventory. Daniel, J. delivering the opinion of the Court, says : “ The foregoing remarks, bring us to the inquiry whether, under the circumstances of this case, Wright, by his assent to the sale, and signing the inventory and account of sales, has made himself liable for that devastavit. The signing of the inventory could not have that effect, because executors are bound to render an inventory of all the assets which
Our conclusion is, that the joint inventory of the dioses in action, is a requirement of the law, obligatory upon both executors; that its office is to exhibit to the Ordinary the dioses in action which belong to the estate, for the benefit of all parties in interest; that of itself it does not show assets in the hands of either of the executors, so as to charge them, without more. Nor does it prove a joint possession of the evidences of debt due to the testator, but leaves the actual possession in the one or the other, or in both, open to proof.
Respect, however, for the counsel who so ably advocated the cause of the plaintiffs in error, as well as the importance of the principles involved in other positions taken by him, make it the
If there is an agreement between executors, that each shall receive a certain portion of assets, and administer them, and they are lost, both have been held liable. Such a case would fall within the exception to the general rule. The agreement would be that kind of action on the part of the one, which would make him a participant in the devastavit of the other. 5 Johns. Ch. R. 294. Ram on Legal Assets, 542,’4, 558. 2 Williams’ Executors, 1119. 2 Hill’s Ch. R. 277. Hardres, 314. And as to such a case, the doctrine of the counsel would be true. But this is not such a case ; for the record furnishes no evidence that there was any understanding or agreement to the effect stated.
Or, if it were agreed that the possession and control of the assets should be joint, the liability would be joint. If, for example, it were proven that two executors had placed the assets in a com
2dly. He had the power to call him to account, and to take the possession and control out of his hands, after he had taken the possession. If ho had either of these powers, I concede that it was his duty, under the will, to exert them, to prevent a waste of the estate and a loss to the legatees ; and failing to do so, he is chargeable. I apprehend that neither of these propositions is true. As before stated, the power of the executors over the assets is equal. That power has no regard to the solvency or insolvency of the executor, to his ability to manage them, or to his integrity as a man. It springs out of the will — it is by virtue of the confidence which the testator reposes in him. If he chooses to trust him, it is immaterial whether he has misplaced his confidence or not. If he be, in fact, unworthy of confidence, his co-executor is not necessarily to suffer. He is not compelled to qualify — ho may disclaim. And if he does not, he is still safe, if he gives no aid or co-operation to a breach of the trust. The great equitable rule, that each is liable only for his acts, protects him. How, then, is it possible for him, consistently with these principles, to say to his colleague, you shall not take in hand these assets ? If he can prevent him from taking into his possession a part, he can all; and thus it results, that one executor can defeat, altogether, all the powers of his associate — nullify his appointment, under the will, and prevent the confidence which the testator may rightfully repose. In Douglass vs. Satterlee, Kent, Ch. J. says, “ It is also equally well settled, that each executor has the control of the estate, and may release, pay or transfer, without the agency of the other, and that executors and administrators stand on the same ground, and their powers and responsibilities in respect to each other are the same.” 11 Johns. R. 16, See, also, Edmonds et al. vs. Crenshaw, 14 Peters, 169. Jacomb vs. Harwood, 2 Ves. 267.
The Master of the Rolls, in Langford vs. Gascoyne, says, “ The rule in all cases is, that if an executor does any act by which money gets into the possession of another executor, the former is equally answerable with the other, not where an executor is merely passive by not obstructing the other in receiving it.” 11 Vesey, 333. Southerland vs. Brush, 7 Johns. Ch. R. 22. Harg
In Williams vs. Maitland, Judge Gaston says, “One lias as much authority to receive the assets as the other, and there is no obligation on either to prevent his companion from getting them into possession,” 1 Iredell’s Eq. R. 106.
If these things are so generally, with what irresistible force do they not apply to a ease like the present, where there is nothing in the evidence to show that when Kenan took possession of these dioses in action, he was not trustworthy — nothing proven which was calculated to arouse the suspicions of Carter, that he would waste them or fail to collect them?
The same principles and the same reasonings deny to Carter the power to call Kenan to account, and to take these assets out of his hands after he acquired possession. It does not appear from the record, that he knew of Kenan’s neglect. He denies that he knew any thing of his management of the estate, except what he learned from his returns. It is argued that he might have known, if he himself was in the proper discharge of his own duties; but it does not follow that a discharge of his duties, as required by the law, would make him cognizant of the defaults of his colleague. But suppose he was, however : it may be true, that it was a moral obligation to do all he could do to prevent a loss to the legatees, yet the law does not make him the supervisor of the conduct of his co-executor. It has not clothed him with power to compel him to do his duty. He cannot call him to account; and if he cannot, how iniquitous would it not be to hold him responsible, because he does not call him to account? The Supreme Court of the United States, in Edmonds et al. vs. Crenshaw, say, “Each executor has a right to receive the debts due to the estate, and discharge the debtors, but this rule does not apply as between the executors. They stand upon equal ground, having equal rights, and the same responsibilities. They are not liable to eadi other, but each is liable to the cestui que trust, to the full extent of the funds he receives.” 14 Peters, 169.
Precisely the same point was made in the case of Ochiltree vs. Wright, before the Supreme Court of North Carolina, in regard to which that Court speaks as follows : “ The true answer to this position may be given, almost in the words in which the opinion of this Court was expressed in the case of Clarke et al. vs. Cot
See the case of Clark et al. vs. Cotton et al. (2 Dev. Eq. R. 51,) where the same question is considered, and the same views explicitly sustained.
Athough this is the relation which one executor bears to his-co-executor — although one cannot prevent assets from going into the hands of the other, and cannot take them out of his hands when there ; yet legatees and distributees are not left to the tender mercies of a faithless or neglectful trustee. The law intervenes for their protection. They can go into a Court of Chancery, and there compel him to account, and there receive that protection which the actual condition of the trust may require'; and that they may know whether he is acting in good faith, or with proper care and diligence, he is required, by law, to make annual returns of the condition of the estate in his hands, whiclr are open to their inspection. If he does make regular and full returns, they are thereby advised of the condition of the estate-, and if he does not, the omission is-a warning to them that something is wrong.
Not only so, but the Statutes of Georgia have made the Court of Ordinary the guardian of their interests. The Ordinary is the' legally constituted supervisor of executors, administrators and guardians. The Ordinary can call them to account — it is their duty to do it; and they have power to provide for the faithful and efficient execution of their trusts, or revoke them. Prince, 232, 249, 245, ’6. Hotchkiss, 476 to 479.