181 Ky. 230 | Ky. Ct. App. | 1918
Opinion of the Court by
Reversing.
In May, 1915, Miss Florrie Hood, a most eccentric and peculiar woman, died intestate, childless and unmarried, at her home in Lebanon, Kentucky, she being about seventy years of. age, and the owner by inheritance of several houses and lots and some, acreage property in the city of Lebanon, and quite an amount of personal property, the whole aggregating in value between thirty and forty thousand dollars. There were no close relatives living so far as known. Some very distant relatives by the name of Harrison and one Mrs. Buena McGoodwin, also a distant relative, began- to assert claim to the estate left by Florrie Hood, and to insist that they, the Harrisons and Mrs. McGoodwin, were the sole and only heirs of the deceased maiden lady. It was known, however, that one Thomas C. Shelby, a nephew of Miss Florrie Hood, had many years before left Marion county on account of trouble and had gone to Florida or some southern state, and had not been heard from since his departure, so far as the public was advised. Whether Thomas C. Shelby was living or dead, or if dead, had he left heirs, became a very important question in the settlement of the Hood
After much investigation as to the legitimacy and racial attributes of the three Shelby children, the Harrison heirs and Mrs. McGoodwin decided to contest the right of the Shelby children to inherit the estate of Miss Hood for two reasons: (1) they were begotten and born
“Now, therefore, in order to avoid the delay, uncertainty, and expense of litigation; and to adjust and settle the said difference and dispute in a manner deemed reasonable and just to both parties; it is hereby covenanted and agreed as follows:
“As inducement to this contract the following is included :
“Whereas, the said Florrie Hood, in Marion county, Kentucky, has lately died intestate, childless and unmarried, and without other collateral kindred nearer than the second parties, save the infant first parties who are the children of Thomas C. Shelby, deceased, who was a
By paragraph one of said agreement, it is provided:
“The second parties will, in the suit for the settlement of the estate of Florrie Hood now pending in the circuit court of Marion county, Kentucky, promptly file an amended pleading disclaiming any resistance to or contest of the claim of first parties to inherit the said estate as the legal heirs of said Florrie Hood.”
By the fourth paragraph of the agreement, it is provided as follows:
“Before any part of the estate of Florrie Hood, to be received by the said guardian, shall be removed from -Marion county, Kentucky, the said guardian will pay two-thirds thereof to the second parties,- this amount and payment being the consideration for the second parties now abandoning their contemplated contest of the claim of the first parties to be the legal heirs.”
After this compromise agreement was entered into the Harrisons and McGoodwin heirs withdrew their claim "to the 'estate, as per their agreement, and a judgment 'was entered, finding and declaring the three children of Thomas C. Shelby the sole and only heirs of Florrie Hood, deceased, and entitled to the entire net estate. Mr. Lockey, the guardian from Florida, was in attendance upon the Marion circuit court in Kentucky when Mr. Yowell, by a pleading, brought to the attention of the court the fact that an agreement or compromise had been entered into between the three claimants to the estate, whereby the Shelby heirs who had been adjudged by the court the sole and only heirs of Florrie Hood, were to receive only one-third of the net estate out of which they were to pay ten per cent., as fees, to the attorneys. Upon this being brought to the attention of the court the chancellor on his own motion caused an investigation to be instituted for the purpose of learning the true inwardness of the compromise agreement;
“The above consolidated causes coming on to be heard on all matters not hereto adjudicated and being now submitted to the court upon the pleadings, exhibits proof and argument of counsel, the court advised is of opinion and now adjudges: 1st, that the so-called compromise agreement made and entered into by and between W. C. Lockey, guardian, for the infant defendants herein, to-wit: Wm. Hood Shelby, Sudie Shelby, and Ann Shelby, upon the one part, and the defendants, Mrs. Buena McGoodwin, John S. Harrison and other defendants named therein, on the other part, was unauthorized, was without consideration and is null and void; 2nd, the court having had a personal view of the infant defendants, Wm. Hood Shelby, Sudie Shelby and Ann Shelby, and having carefully considered all the proof addressed on the subject is of opinion and now adjudges that there is no negro or mulatto blood in the said infant defendants and hence, therefore, again adjudges that the said infant defendants, Wm. Hood Shelby, Sudie Shelby and Ann Shelby are the sole and only heirs at law of the decedent, Florrie Hood, and are alone entitled to receive the net proceeds of her estate; 3rd, as to the motion of Wm. M. Yowell, for an allowance of $3,000.00 for the benefit of his attorneys, S. A. Russell, P. K. McElroy, and Lafe S. Pence, upon proof heard in open court the advised is of opinion andv. adjudges that the sum of three hundred dollars
From this judgment, denying the Harrisons and Mrs. McGoodwin, right to participate in the estate under the compromise agreement and also from certain allowances to attorneys, they appealed. A cross-appeal is also prosecuted by the guardian on behalf of the Shelby children from the order allowing attorney fees.
Was the compromise agreement made between the guardian of the Shelby children and the Harrisons and Mrs. McGoodwin valid and binding*? Ws it founded
To sustain appellants’ contention that the compromise was made in good faith and for sufficient reason as well as consideration they review the facts in the possession of the guardian , at the time he made the agreement.
Appellants charge that at that time the guardian knew that the administrators and presumptive heirs were prosecuting a search for other possible heirs of the estate; and further knew ‘ ‘ that Thomas C. Shelby, a first cousin of Florrie Hood, had many years ago, become a fugitive from Kentucky, and had gone to an isolated portion of Calhoun county, an undeveloped portion of the state of Florida; that from that point, he had gone to Jackson county, Miss., taking with him, as mistress or concubine, W. M. Scott’s daughter, Mary, who at that time went by the name of Stone, having one child by Murdick Stone whom she claimed to have been her husband, and another, a younger child, by another man, one Bhames, whose name she had not assumed; that in Mississippi she and Shelby lived, and passed in the community as husband and wife, having two bastard children born to them, all of whom, together with her child by Bhames, were called Shelby; that before the birth of her third child by Shelby, he and she had gone to Pensacola, Fla., and procured a marriage license in her name of Mrs. Mary E. Stone, but the license was not returned to the office nor any record made' showing an actual marriage ceremony; that, meantime, about fifteen years before the death of Florrie Hood, W. M. Scott had removed from Calhoun county, to Chipiey in Washington county, Florida, with his daughter, Samantha a younger sister of Mary; that Shelby, about the year 1908, died in Moss
While the Florida statutes contain no provision fixing the powers of guardians to compromise claims of their wards, the common law on the subject in force in that state is much the same as in Kentucky, according to the testimony of lawyers and judges of that state who appeared as expert witnesses. Our rule allows a statutory guardian to compromise and settle doubtful, contested claims of his ward where to do so will avoid litigation, or otherwise advance or protect the interest of the ward. In the case of Manion, By &c. v. Ohio Valley Railway Co., 99 Ky. 504, is it said: “Without statutory restraint a guardian may compromise, settle and release claims and demands clue to or made by or on behalf of his ward, and the ward will be bound thereby, unless it is done in bad faith or in fraud of his rights. ’ ’ The general rule as laid.down by text-writers and courts generally is, that a guardian can do no act to the injury of his ward and if he attempts so to do, his acts are not binding upon the ward, especially if they are a disadvantage to him. The guardian máy, without order of the court, sell personal property of the ward in his possession and reinvest the proceeds. While a guardian has no power to release valid or liquidated debts or claims due the ward, nor to compromise and receive property for his ward, yet he may compound and settle a doubtful claim or demand due his ward and the latter will be bound by such compromise unless the guardian is guilty of bad faith.
It is also laid down in Cyc. vol. 21, page 74, that a guardian has authority to submit to arbitration questions and controversies respecting the property and interest of his ward and the award will be valid and binding, whether ratified by the ward when sui juris or not. In the case of Worthington’s Exors. v. Worthington’s Devisees, 35 S. W. 1039 (Ky.), a controversy arose between certain heirs and devisees among whom were in
In the case of Bunnell, &c. v. Bunnell, 111 Ky. 580, in discussing the power of a guardian to compromise doubtful claims of his ward, this court said: “So compromises are encouraged. But there must be in reality a controversy, and a basis for it, before it can form the consideration of such a settlement. Necessarily at last the right, and therefore the law, must be on one side or the other of the controversy, and it would not do to say that the doubtful case must be one concerning which no judicial interpretation has been applied.' But it must be one about which well informed lawyers and judges may easily differ, and about which the parties -themselves differ.” The facts in this case bring it clearly within the rule stated -in the Bunnell case, because the parties as well as their attorneys differed widely as to the rights of the several claimants,-and there was ground for honest difference, and there remains much doubt as to who had the better claim. Confronted with such a situation it appears to us that the guardian acted wisely in entering into the compromise agreement whereby he certainly fixed the right of his wards to a one-third undivided interest in the net proceeds of the Hood estate. He,’ no doubt, was moved to do this by the fact that he and his wards were residents of the state of Florida, while his contenders were on the scene in Kentucky, fully acquainted with the surroundings, the courts, the juries, and all of the facts. They could better afford to enter into a long siege of litigation at home than could the guardian and the unknown and discredited heirs, residing many hundreds of miles away.
The Shelby children were not entitled to participate in the estate of Florrie Hood if (1) they were bastards, or were born out of wedlock and their parents were not thereafter married; or (2) if they are mulattoes. The statutes, section 166 says:
‘ ‘ Every child shall be deemed a bastard who shall be begotten and born out of lawful wedlock.”
Section 2098 says:
‘ ‘ The issue of an illegal or void marriage ■ shall be legitimate, except, . . . the issue ... of a marriage between a white person and a negro or mulatto, shall not be legitimate.”
Upon the cross-appeal we are of opinion that the allowance of fifteen hundred dollars made by the lower court to the attorneys for the administrators was larger than it should have been; considering the same attorneys were representing other clients in the same matter, we think one thousand ’dollars will be a sufficient allowance under all the circumstances: No allowance should have been made to counsel for Yowell, because the real purpose of his suit and connection with the case was the recovery of his claim, originally about twenty-four thousand dollars. In the recent case of Girty v. Girty’s Admr., et al. 180 Ky. 786, it was held that where a creditor of an estate, who had recovered, judgment against the administrator, brought suit to settle the estate, but the real purpose of the suit was to collect his judgment, and the services rendered by his attorneys were alone for his benefit and not for the benefit of the estate as such, his attorneys were not entitled to a fee payable out of the estate.
The allowance to the guardians ad litem should have been one fee only and should not have exceeded two hundred dollars. The expenses allowed the guardians ad litem, going to Florida to investigate the facts, was proper..
In recapitulation, we„may say that the appellants’ contention (1) that the Shelby children are not the issue of marriage and that their parents were not married after the birth of the children; and (2) if the parents were in fact married, the marriage was void, because between a white man and negro or mulatto woman is even now
We, therefore, conclude that the trial court erred in holding- that the compromise agreement was unauthorized, without consideration, null and void. It was also in error in making the allowance to attorneys as above indicated.
For these reasons the judgment is reversed with directions to enter an order adjudging the compromise agreement valid and binding, fixing- the attorneys’ fees as above set forth, and for further proceedings not inconsistent with this opinion.