83 N.W. 875 | N.D. | 1900
Lead Opinion
This action is brought- against Stillman W. McLaughlin and his bondsmen to recover an alleged balance in the hands of said McLaughlin as executor of the last will of Catherine L. Wording, deceased. The action was tried to- a jury, and at the close of the testimony the trial court, on motion of the defendants’ counsel, directed the jury to return a verdict in favor of the defendants. Such verdict was returned, and judgment was entered thereon dismissing the action. Plaintiff appeals to this court from such judgment.
A decision of the case will involve a consideration of the following-facts, which appear of record: The last will and testament of Catherine L. Wording appointed said McLaughlin sole executor. The deceased at the time of her death was domiciled in the county of Racine and State of'Wisconsin. The will was probated in the County Court of Racine County, and letters testamentary were issued to McLaughlin by- said court on the 16th day of May, 1890; and upon an authenticated copy of said will, and the order of said County Court of Racine County admitting the same to probate, said will was admitted to probate in the County Court of Grand Forks County, North Dakota, on the 21st day of May, 1890. On the 21st day of July, 1890, said McLaughlin delivered to the County Court of Grand Forks County his bond as executor, which is the bond in suit. Said bond was in due form, and was signed by the other defendants as sureties, and by McLaughlin as principal. On the same day said County Court of Grand Forks County issued ancillary letters testamentary to said McLaughlin as executor under said will. It further appears that on the 27th day of December, 1897, said McLaughlin filed his written resignation with said County Court for Grand Forks County, and that said resignation was subsequently, and on April 19, 1898, accepted by said court, and said McLaughlin was then and there, by an order of said court, discharged as such executor. On the day said resignation was filed bv said McLaughlin, and pursuant to a previous order made by said court in Grand Forks County, said executor filed his final account of his proceedings as executor, whereupon such proceedings were had in said court upon said account that said court entered its order and decree declaring in substance that said executor, as such, then had in his hands a balance of 'the assets of the estate of the deceased, in the sum of $8,407.91. On the same day (April 19, 1898) said court in Grand Forks County entered an order making an allowance of a certain amount as commissions and fees to said executor, to be paid out of said balance in his hands, on condition, nevertheless, that said balance, after deducting said fees and commissions, should be paid into said court by said executor within a period of fifteen days from the date of said final order and decree. None of the said orders or decrees made on the 19th day of April, 1898, was appealed from, nor have the same been judicially vacated or set aside in any manner. Upon the hearing of said final account of said executor in the County Court for Grand Forks County, as before stated, the said executor
Defendants admit that plaintiff is administrator de bonis non of said estate, and allege that letters were issued to plaintiff as such by said count in Racine county, Wisconsin, on July 8, 1898, and allege that the said County Court of Grand Forks County did, in due form, make its order appointing plaintiff administrator of said estate, and issued letters of administration with the will annexed to plaintiff on or about October it, 1898. Defendants allege in substance in their answer that said testatrix was domiciled in Racine County, Wisconsin, at the time of her death, and that under the laws of that state the County Court of Racine County aforesaid had full and exclusive jurisdiction in the matter of said estate over all the personal property belonging to said estate, wherever situated, and over all the real estate belonging to said estate, and situated in the state of Wisconsin; that after said will was probated in the County Court of said county of Racine, and before letters testamentary were issued by said court to McLaughlin as before stated, said McLaughlin filed a bond in said court in the penal sum of $60,000, in form as required in such cases by the laws of the state of Wisconsin, and conditioned in effect as follows : Thai: said McLaughlin should administer, according to the terms of said will and the laws of said state, all the property belonging to said estate, and to render just and true accounts of his administration to said court in Wisconsin. It is further alleged by the answer that said court in Wisconsin has at all times retained its said jurisdiction over the estate, and that McLaughlin, as such executor, from time to time made and filed in said court accounts of his doings as such executor, and such accounts were so filed on the following dates: October 22, 1892; January 19, 1894; April 20, 1895; April 10, 1897; and January 24, 1898. The
Upon this evidence counsel for defendants moved for a directed verdict upon the following grounds : “ (1) Because the undisputed evidence in the case shows that the shortage in the accounts of S. W. McLaughlin, w'hich it is sought in this action to recover from defendants, was occasioned solely by reason of his default as trustee under the will of said Catherine L. Wording, and not by reason of any default or misconduct on the part of said McLaughlin as executor under the will of said testatrix. (2) Because the demand sought to be, recovered from defendants herein arose through the defualt of S. W. McLaughlin as trustee under the will of Catherine L. Wording, and plaintiff, as administrator de bonis non of said estate, is not the successor of said McLaughlin as trustee under said will, and has not legal capacity to maintain any action touching the trust property or any of its proceeds. (3) Because the County Court of Grand Forks County, North Dakota, had no jurisdiction to make the order or decree of April 18, 1898, in evidence, for the reason that the defaults recited in said order or decree occurred in relation to personal propertv, the situs of which was at Racine, Wisconsin, where the testatrix died, and all of which personal property the County Court of Racine county, Wisconsin, always had and retained sole and exclusive jurisdiction, and which property was ob-
The decisive question for determination in this court is whether the direction of the trial court to return a verdict for the defendants was error. To this question, in our opinion,.an affirmative answer should be given. It is our opinion that the County Court of Grand Forks County had authority to make the final order or decree which it entered in its records on April 17, i8g8. It will be conceded upon this record that the sureties on McLaughlin’s bonds are not in a position to question the authority of the court at Grand Forks to issue the ancillary letters testamentary which were issued, or to dispute the binding force of the bond which they have signed and upon which such letters were issued to their principal. The sureties, by signing the bond in suit, entered into an obligation of a specific nature, and one which is measured by the law itself. Section 6349, Rev. Codes, provides that the bonds of executors and administrators shall be “conditioned for the faithful discharge of all the duties of the trust imposed on him by law or by order of the court according to law.” We are, therefore, to inquire in this case what duties were imposed by law, or by the lawful orders of the County ■ Court of Grand Forks county, upon the executor for whom these local bondsmen became sureties. To determine the questions involved, account must be taken of certain matters which we deem to be of prime importance. It appears that Catherine L. Wording, deceased, was domiciled at the time of her death in the County of Racine, in the state of Wisconsin, and that her last will and testament appointed said McLaughlin executor under the will. The will was probated in the County Court of said Ra,cine County, and original letters testamentary were issued in due form to said McLaughlin by said court. These letters were issued in May, 1890. It further appears that later in said month of May, McLaughlin presented an authenticated copy of said will, and of the order of court in Racine County admitting the same to probate, to the County Court for Grand Forks County in this state, and that the last-named court thereafter issued to McLaughlin letters testamentary, upon his filing in said court the bond here in suit. It further appears that certain property, both real and personal, belonging to the estate of Catherine L. Wording, deceased, and of the value of $30,000, was then situated in the State of North Dakota, and in the County of Grand Forks. There is no testimony in this record showing that any inventory of the assets of the deceased was ever made or filed either at Grand Forks or at Racine, Wisconsin; and hence this court is unable, upon this record, to determine either the character or total value of the
But counsel for the appellant strenuouslv contend that the liability of the executor and his local bondsmen is res judicata; that the determination made by the County Court of Grand Forks county on April 19, 1898, wherein that court adjudged that a balance of $8,407.91 was then in the hands of McLaughlin as executor of said estate, and further directing him to pay that amount into that court within a period of 15 days thereafter, is a final judgment of a court of competent jurisdiction, and as such is entitled to all the consideration which belongs to final judgments entered in courts
It is the contention of the respondents’ counsel that the County Court, in making the decretal order of April 19th, which was based upon the final account of McLaughlin as made and filed in that court, acted without jurisdiction. The argument is that this alleged want of jurisdiction may be predicated upon either one of two entirely independent grounds: First, it is claimed that the order in question, when considered in connection with the said accounts and duplicates of accounts, — including said' final account, — discloses the fact that the adjudication assumes to pass upon and dispose of a large amount of property which had been taken possession of by McLaughlin by virtue of his original letters testamentary, and that, after being so taken possession of, McLaughlin made a list of such property, and filed the same in said County Court at Racine, Wis., and that said court had ever since retained exclusive jurisdiction over such property. A majority of this court upon the original presentation of the case were of the opinion that this contention of counsel was sustained b.y the record before us, and we then so held. But our later investigations, aided by the arguments of counsel made upon a rehearing of the case, has led us unanimously to an opposite conclusion. It is our opinion that the several accounts and duplicates thereof which were on file at Grand Forks when the decretal order was made do not show necessarily, much less conclusively, that the-situs of the property affected by the order, or any part of it, was ever in the state of Wisconsin, or that the same was originally taken possession of by McLaughlin under his domiciliary letters. None of said accounts indicate on their face the author
We concede that the situs of property, and the source from which it was originally derived, may be indicated by the mere fact that it was listed, and the list filed in a certain court, out of which letters testamentary had issued; but in this case, where letters issued out of courts located in different jurisdictions, account must be taken of the schedules filed in both courts, and particular attention, we think, should be paid to the list of assets embraced in the executor’s final account. If mere inferences are to control as to the situs of property, then the inferences to be deduced from filing lists of property in the court at Racine must be offset by those arising from filing the list embraced in the final account filed at Grand Forks. The record before us does not furnish any evidence, nor as much as a suggestion, that McLaughlin or any of the numerous counsel present at the hearing had upon the final account made any question touching the right of the court in which the hearing was had to adjudicate upon all the property and subject-matter contained in the final account there being considered. It does not appear that any one claimed at that hearing that any of the property then- involved ever had a situs in the state of Wisconsin. Not only is this record silent
But counsel contend, secondly, that the record made in the County Court at the accounting at Grand Forks shows upon its face that the court then and there assumed to adjudicate upon, and dispose of by its decretal order, certain property then in McLaughlin’s hands, not as ancillary executor, but as testamentary trustee under the will. Counsel claim, and it seems to be conceded, that under the laws of the state of Wisconsin the Count}* Courts do have jurisdiction over testamentary trustees, and that the County Courts of this state have no such jurisdiction, and hence that any action taken or decree made by the County Court at Grand Forks affecting trust property in the hands of McLaughlin in his capacity as trustee would be void on its face, as made without authority of law. The assumption that McLaughlin had in his hands at the time of the accounting certain assets of the estate, which were trust funds, and held as a trustee by him, rests wholly upon the fact that it appears on the face of the accounts, and particularly by the final account filed at Grand Forks, that McLaughlin had invested funds acquired by him as executor, and particularly that said account showed that such investments had been made to an amount exceeding $14,000 during the year next preceding the date of filing the final account; that such investments appeared in the final accounts as credits, and the same was represented by certain notes and securties then in McLaughlin’s hands, and for which he was then willing to account as executor. McLaughlin claimed, of course, that such securities were in his hands as executor, and he gave himself credit for the same in his said account as executor. Nor is there a trace of evidence or reason to suppose that Me
We have seen that neither the executor nor his counsel ever advanced the idea at the accounting that the proceeds of the estate obtained under the ancillary letters' could be accounted for by simply taking credit as executor, and charging the same to himself in his capacity as trustee. No such charge was made in fact in the final account, and, as we have said, no such idea appears to have been broached at any time in the County Court. But if the executor at the accounting had sought to account for any of the proceeds of the estate by simply taking credit for the same as executor, and charging them to himself in his capacity as a trustee, we think such a charge could not have been upheld. The court at Grand Forks was wholly devoid of authority to deal with the executor in. his trustee capacity, and that capacity was wholly foreign to the relation created by the ancillary letters. Under such letters the executor’s duties were circumscribed. After paying local claims, if any, the ancillary executor was limited to the mere matter of converting the proceeds of the estate received under his letters into money, and then, after
The judgment sued on not being invalid for want of jurisdiction, counsel contend that it is merely prima facie evidence of its contents, and is not conclusive. We shall hold that the judgment is conclusive, and imports the same degree of 'verity as judgments entered by courts of record in this state. All doubts upon this point are absolutely settled by section 6186, Rev. Codes 1899, which declares, “The proceedings of a County Court in the exercise of its jurisdiction are construed in the same manner and with likefintendments, as the proceedings of courts of general jurisdiction, and to its records, orders and decrees there is accorded like force, effect and legal presumptions as to the records, orders, judgments and decrees of courts of general1 jurisdiction.” But if the judgment were mere prima facie evidence of its contents, and hence disputable, we should hold, upon grounds already stated, that the County Court was fully justified upon the evidence in entering the judgment which was entered by the full consent of all the parties interested in the estate.
We might safely place our ruling upon an additional ground, not before mentioned. It is this: We have seen that there is not a particle of evidence in this record that at any time prior to the accounting in question, or since that time, McLaughlin ever claimed to act in his capacity of trustee under the will. It is equally true that no evidence is in this record tending to show that he had taken the steps which the law requires to be taken in order to relieve himself or his bondsmen from liability for his acts done as ancillary executor. It seems to be settled by the decided weight of the adjudications that where an executor is also a trustee under a will,
But it is urged that the sureties on the executor’s bond who did not appear at the accounting, and were not cited to appear, are not bound by the adjudication made at the accounting. There is some authority sustaining this contention, and holding that the questions settled as against the executor may be relitigated in an action brought against the bondsmen, and that in such an action the record of the adjudication is only presumptive and not conclusive. See Lipscomb v. Postell, 38 Miss. 476; Gibson v. Robinson, 90 Ga. 756, 16 S. E. Rep. 969; Bird v. Mitchell, 101 Ga. 46, 28 S. E. Rep. 674. But, in our judgment, the better rule, and that supported by a very decided weight of authority, is to the contrary. In Wolff v. Shaeffer, 74 Mo. 154, the court said, ‘‘The surety on an administrator’s bond is concluded by, and cannot attack collaterally, a final settlement from which there has been no appeal. See, also, Dix v. Morris, 66 Mo. 614; State v. Creusbauer, 68 Mo. 254; Slagle v. Entrekin, 44 Ohio St. 637, 10 N. E. Rep. 675; Wehrle v. Wehrle, 39 Ohio St. 365; Casoni v. Jerome, 58 N. Y. 315; Braiden v. Mercer, 44 Ohio St. 339, 7 N. E. Rep. 155; Irwin v. Backus, 25 Cal. 214; Heard v. Lodge, 20 Pick. 53; Garber v. Com., 7 Pa. St. 265; Salyer v. State, 5 Ind. 202; People v. White, 11 Ill. 341; Ralston v. Wood, 15 Ill. 160; Holden v. Curry (Wis.) 55 N. W. Rep. 965; Jenkins v. State (Md.) 23 Atl. Rep. 608. This rule is firmly settled in Wisconsin. See Meyer v. Barth, 72 N. W. Rep. 748; Shepard v. Pebbles, 38 Wis. 373. Of course, this rule does not preclude a collateral attack upon a final judgment when made by the bondsmen upon the ground of fraud and collusion, but in the case at bar there is no fraud or collusion charged. But respondents’ coxtnsel concede that, while the rule as above stated is established by a preponderance of authority, the same is not sound in principle, and that it has been swept away and the opposite rule established by the statute; citing chapter 69 of the Civil Code, which defines and regulates contracts of indemnity. While it is true that bonds of executors, administrators, and guardians are obligations in their
Concurrence Opinion
I concur in the result announced in the opinion formulated by Tustice AVallin. I do not believe, and for the reasons stated by my associate, that these defendants can be heard to say that their principal held the property for which he was charged by the County Court of Grand Forks county in the capacity of testamentary trustee, and not as executor. Nor do I believe that these defendants can assail 1he final order made by said court on any grounds other than fraud, collusion, or want of jurisdiction. They do assail it in this case for want of jurisdiction of the subject-matter. We have nothing before us except the documentary record upon which such final order was based. We must indulge in support of that order every presumption that would be indulged in support of the final judgment of a court of general jurisdiction. Rev. Codes, § 6186. It follows that jurisdiction must be presumed unless the record conclusively shows the want of jurisdiction. I wish to examine that record briefly, because the principal opinion does not clearly disclose the reasons that control my decision.
Catherine L. Wording died testate about March T, 1890, at Racine county, in the state of Wisconsin; she being- domiciled in said county at the time of her death. Bv the terms of her will, one McLaughlin, a resident of Grand Forks county, in this state, was named as sole executor. Such will was duly proved and admitted to probate by the proper court in Racine county, Wis., on May 6. 1890, and bond required. The record does not show whether any bond was given or not, but, as will appear, it does show that the executor proceeded with his duties as such in such court. In due time a copy of the will, with proof of probate thereof, was filed in Grand Forks county, in this state, with the petition of the executor asking that the will be admitted to probate in said county. The petitioner alleged that there was real and personal property belonging to the estate, and situate in this state, of the value of $30,000. Such