39 Misc. 675 | N.Y. Sur. Ct. | 1903
The above-entitled proceeding was instituted by Frank A. Timerson and Genie Timerson for a judicial settlement of their accounts as administrators, etc., of Charles W. Timerson, deceased. An answer containing objections to the account was filed by Charles A. and Ned Timerson.
The above-named deceased died intestate on August 7, 1901, leaving Genie Timerson, his widow, and Frank A. Timerson, William H. Timerson, Marian Murphy, Ned Timerson and Charles A. Timerson, his children, and only heirs-at-law. Letters of administration were issued out of this court to said Genie and Frank A. Timerson on the 15th of August, 1901.
The administrators charged themselves in' their account, as part of the assets of the deceased, with certain promissory notes, in favor of the deceased, made by Charles A. Timerson and Ned
The answer alleges that these notes are not valid or subsisting claims against the makers, and that they are not liable for the payment of the same and that all of said notes are barred by the Statute of Limitations; and further, that the deceased did not intend to collect or enforce payment of said notes or any of them, and regarded said notes as having been paid and did not hold them in his possession as evidence of a collectible debt or obligation due to him.
Upon this issue, as raised, proof has been offered by the contestants and other parties to this proceeding.
Taking up, first, the allegation in the answer that the notes are barred by the Statute of Limitations, I believe the rule of law to be well -settled in cases of this kind, that the administrators have a lien and a right of detention upon the distributive shares sufficient to pay the indebtedness, to the estate, and it is the duty of the court to make a decree accordingly. The rule is based upon the theory that the Statute of Limitations does not raise a presumption of payment, but merely creates a bar to the remedy by action. In this proceeding the administrators are not seeking to recover the claims, and as no presumption' of payment arises from the lapse of time, they are assets in the hands of the administrators, for which they must account. It is not a mere question of legal offset, but of equitable lien and right of retainer, and the right depends upon the principle that the distributee is not entitled to his distributive share while he retains in his own
To support this contention, the contestants have offered proof tending to show that the deceased had forgiven or condoned the indebtedness. It appears from the proof that the deceased died with these notes in question in his possession, and the administrators found them among his papers. There being no question but what the notes were valid in their inception; in the absence of any proof showing payment or gift of the indebtedness, the administrators would be entitled to the usual presumption which the possession of these evidences of indebtedness would raise,' and could properly ask for a decree directing that these notes be deducted from the distributive shares of the makers. The proof offered by the contestants consists of declarations made by the deceased to certain of his friends and neighbors, and it is to be determined whether these declarations overcome the legal presumption to which the administrators are entitled by virtue of their possession of these uncanceled notes. These declarations must show either payment or a gift. Mr. Bloomingdale, a neighbor and friend of the deceased, testifies that he had a talk with the deceased in the spring of 1901, in which the deceased stated “ that he had settled with his children and that they were square now; that he was going to give that to them; that he was going to call square what Frank, Med and Albert owed him, and was not ever going to ask them for it.” Mr. Bloomingdale states that the deceased did not refer to any notes or give any figures or amounts. Mr. Hereon J. Lewis testifies to a conversation with the deceased in the spring of 1901, in which the deceased stated
In the case at bar we have proof of the intentions of the deceased concerning the notes, but that is as far as the proof goes. There is no proof that the deceased ever gave or delivered these notes to the makers, or that he even told them that he had relinquished all right therein. Declarations that he never intended to require payment of the notes are not sufficient to constitute a gift without the delivery of the notes to the makers. To prove a gift the makers are required to show that the gift was complete with nothing left undone, with an actual delivery and acceptance of the notes, so that the donor parts with all right, title and interest therein. There was no delivery in this case-; in fact, according to Mr. Lewis’ testimony, there was a positive intention not to surrender up the notes. Mo presumption in favor of the contestants arises from the fact that the deceased had not at
Leaving out'the question of the 'Statute of Limitations, I do not think there is any doubt but what the deceased could have recovered judgment on the notes if the sole defense consisted of declarations of his intentions as submitted upon this hearing, for, he could have changed his mind as to collecting them at any time, and these declarations would be no defense.
I cannot see that the dealings which the deceased had with his other children or compromises made with them can have any legal bearing upon this case. The question is, did or did not the deceased give these particular notes to the contestants in his lifetime. If he did, then they should be stricken from the account. If he did not, then they must be deducted from the shares of the makers in the estate. Contestants’ counsel urges that the fact that the notes were not delivered has no force, for the reason that the notes were outlawed prior to the death of the deceased, and that the notes were no longer representative of present obligations and had no value, and that the delivery would have been idle ceremony. I cannot agree with this view however. The Statute of Limitations does not extinguish the debt,' but merely bars an action thereon if it is pleaded. The debt remains, and the Statute of Limitations may be removed by payment being made upon the debt, and we have proof in the case (offered by con-, testants) of $50 having been paid to the deceased in February, 1809, by Charles A. Timerson, and this payment, of course, must be deemed to have been paid upon the indebtedness represented by his notes.
In view of the above I think that the contestants have failed to prove either payment or a gift of the notes in question, and a decree may be entered dismissing the objections, and that the account be allowed as filed. Parties may move for further hearing upon notice.
Decreed accordingly.