General Ins. Co. of America v. Barnes
General Ins. Co. of America v. Barnes
Opinion
Appellants claim that the trial court erred in setting aside the decree of the probate court in the final settlement of a guardianship estate. The final settlement of the guardianship was based on the verified joint petition of Dorothy Barnes, one of the appellants and mother of the appellee, and Keith Barnes, appellee and plaintiff below, who was then 21 years of age. The joint petition prayed for final settlement by consent as authorized by Code 1975, §
Within two years after the decree of final settlement, appellee filed this action in the circuit court, which was later amended, claiming that his mother as guardian was guilty of self dealing and had failed to make a proper accounting, and praying that the final settlement and order discharging *Page 1211 her as guardian be set aside because of fraud, mistake, accident, or surprise on the part of the guardian and lack of fault or neglect on his part. Appellant General Insurance Company of America, surety on the guardian's bond, was made a party defendant.
We initially note that the decree of the probate court is as conclusive as that of any other court. Venable v. Turner,
"(a) When any error of law or fact has occurred in the settlement of any estate of a decedent to the injury of any party, without any fault or neglect on his part, such party may correct such error by filing a complaint in the circuit court within two years after the final settlement thereof. The evidence filed in the probate court in relation to such settlement must be received as evidence in the circuit court, with such other evidence as may be adduced. A failure to appeal from the decree of the probate court shall not be held to be such fault or neglect as will bar the plaintiff the remedy herein provided."
Subsection (c) of §
The issue before the trial court, as stated in the pretrial order, was whether plaintiff/appellee was fraudulently induced to execute the petition for consent settlement of his guardianship and whether he was free from fault or neglect in signing the petition. The trial court indicated that Evans v.Evans,
The circuit court set aside the probate court decree of final settlement and remanded the case to the probate court for an accounting. The order of the circuit court stated:
"[N]othing in this decree is designed to infer or impute fraud to the Guardian-Mother-Defendant. However, it is unclear in the mind of the Court, from the evidence, as to whether the Plaintiff-Ward knew what he was doing when he executed the consent to settlement and whether he has received the full benefit of the guardianship fund."
The guardian and surety appeal. The issue presented on this appeal is whether the trial court erred in setting aside the final decree of the probate court.
In construing Section 3914, Code 1907, the Court in Evans v.Evans,
"should accord to a party to the final settlement in the probate court the right to review in chancery the decree, where an error of law or fact has intervened to the injury of any party without fault or neglect on his part, notwithstanding such error was the result of fraud in an extrinsic and collateral act by which the judgment or decree is directly obtained. . . ."
The Evans Court concluded that the scope of the statute was limited: "The statute was thus not permitted (nor was it ever intended) to authorize an appeal from the *Page 1212
probate court to the chancery court to retry de novo the facts adjudicated by the decree of the probate court."
". . . correcting errors committed in decrees of the probate court, where induced by the respondent, when the complainant was ignorant of the facts on which the decree was predicated, and knew no fact to put him on inquiry, and was himself `without fault or neglect' as that expression has been defined by our courts."
The statute has been interpreted as requiring fraud as "an element entering into the rendition of the decree," which results in harm or injury to the complaining party and fraud which is "extrinsic to the issues presented on the trial."Fidelity Deposit Co. of Maryland v. Hendrix,
Under the authorities cited, plaintiff must establishextrinsic fraud, mistake, or accident, that is, fraud in inducing the plaintiff to execute the petition, rather than fraud in the handling of the account.
The facts of the present case are briefly set out as follows. Appellee Keith Barnes was fourteen years old when he was struck by an automobile while delivering newspapers. His claim was settled through an attorney, and a guardianship was established with his mother appointed as guardian. Approximately $17,000 was paid into the guardianship. The guardianship was established on October 15, 1971, and was terminated on October 7, 1975.
Keith Barnes executed a consent petition for settlement on September 26, 1975, at which time he had just turned 21. The petition was signed in the office of the attorney who had handled the settlement. Evidence in the record indicates that Mrs. Barnes was not present at the time appellee signed the petition in the attorney's office. Appellee received approximately $500 after signing the petition. At the time the petition was executed, appellee did not know the exact amount of money that would be turned over to him.
It is clear from the record in this case that the relationship between the mother as guardian and the son as ward was not cordial: the ward made demands on the mother for additional financial support which were not fulfilled; the guardian did not keep accurate records of the guardianship funds and expenditures; and some of the guardianship funds were expended for the benefit of the mother individually. It is equally clear from the record that the son was aware of these expenditures prior to the execution of the joint petition for consent settlement, and that the son, after reaching the age of 21 years, was not forced or coerced in any way to sign the joint petition for consent settlement. At the time of the execution of the petition for settlement, the plaintiff/appellee was working as a manager of a night club, was not living at home and was not dependent upon his mother, and his disabilities of non-age had been removed approximately one year prior to the time he executed the petition.
We do not believe that the facts of this case present an "error of fact or law" as envisioned in §
Plaintiff/appellee argues that the guardian's failure to disclose the actual amount remaining in the trust constitutes fraud under Code 1975, §
In Motley v. Motley,
Motley v. Motley,"[I]t is alleged that the guardian did not, at any time, render his ward any account, or make known to him the condition of his estate, or render him any account of receipts and disbursements as his said guardian; and that at the time said receipt was executed, the ward was entirely ignorant of the amount and condition of the assets held by his late guardian, and that he signed said receipt in ignorance of his rights.
"These allegations are exceedingly loose. They may all be true, and yet not be the fault of the guardian. The ward's ignorance might have been due to his own gross negligence, and not in any wise to the connivance of the guardian. If he chose to act upon insufficient information when better was within his reach, it is his own fault. This does not show bad faith in the guardian. He was not asked to furnish accounts of receipts and disbursements, and it does not appear that he refused any information that was requested of him. His opinion of the amount of his liability was easily corrected, if the ward did not feel content to act upon it. It seems that he was willing to admit more even than the ward was willing to exact."
"`If they had knowledge of facts which should have put a person of ordinary prudence on inquiry, and these facts failed to quicken their diligence into an ascertainment of their rights, or a knowledge of the fraud and errors of which complaint is made, it cannot be said that they are sufficiently free from negligence to be brought within the letter or spirit of the statute.'"
The trial court's order does not specifically address the issue of neglect or fault on the part of plaintiff, but only states that the court was not certain that plaintiff knew what he was doing at the time he executed the settlement petition. Under the facts of this case, we do not believe that the plaintiff was "without any fault or neglect on his part," as is required by §
At the time the settlement petition was entered, in October 1975, the aggrieved party was allowed six months following the entry of the order discharging the guardian within which to file an appeal to the circuit court. Title 7, § 776, Code of Alabama 1940, Recomp. 1958. We must decline to *Page 1214
allow the provisions of §
REVERSED AND REMANDED.
FAULKNER, ALMON, EMBRY and ADAMS, JJ., concur.
Reference
- Full Case Name
- General Insurance Company of America and Dorothy Barnes v. Keith Robert Barnes.
- Cited By
- 3 cases
- Status
- Published