Rogers v. Burbridge
Rogers v. Burbridge
Opinion of the Court
Opinion by
These two appeals will be considered together, and as the cases have, in fact, been consolidated, only one opinion is necessary to a determination of the questions made in both records.
The appeal of W. E. Rogers, as Executor of H. W. Carson, is from a judgment rendered by the Common Pleas Court against him, and the appeal of Burbridge, Committe v. Rogers is from the Circuit Court, both cases having been tried in the Woodford Circuit Court. PI. W. Carson, appellant’s testator, was the surety of O. A. Burbridge, who' as committee had charge of the estate of Marion Burbridge, and Burbridge having misappropiated the funds held by him in his official capacity, an action was instituted in the Scott Circuit Court on behalf of the beneficiary, Marion Burbridge, against A. O. Burbridge and Carson, his surety, in which a judgment was rendered against them, and Carson, the surety, dying, by subsequent proceeding a much larger judgment was rendered against the appellant Rogers, as his executor, and against M. K. Rogers, who was the wife of the executor and the principal donee in the will of her father. Executions were issued on the
The court below disallowed the claim of the executor for the casket in which to bury the widow of the testator who. did not long survive him, also reported claim of the undertaker, to which action the executor excepted. The testator, when he made his will, evidently believed that his estate was more than ample to pay off all
The next exception is the refusal of the court to allow the executor the amount he had paid the Griffin children. Carson was the guardian of those children, and his executor paid for them some four thousand dollars, after Carson’s death, and in making a settlement with those children to ascertain what Carson’s estate owed them, they were charged with, and Carson’s .estate credited by the amount the executor had paid.
This then should have been allowed, and the evidence of payment by the executor is conclusive from the fact that Carson’s estate was credited by it. The executor should also have been allowed the accounts paid off by him for the support of the testator’s widow. He was directed to do so by the will, and the appellee is holding him liable by reason of his failure to execute the trust, and therefore its execution in favor of others must be imposed as well as in favor of the appellee. Nor do we perceive why this devise to the widow for her support, which she accepted in lieu of dower, should not be enforced. So far as such claims were refused when properly proven, the court below erred. The court also erred in refusing the claim- of Sublett and Watson. There was
The estate was insolvent, and an expenditure of such a large amount, to designate the grave of the testator, must be made by the executor at his peril. The claim paid the National Bank and the Farmers’ Bank was properly allowed. Whether to be paid in full was not determined by the court below.
In regard to the partnership existing between Carson and Rogers, it appears that shortly prior to Carson’s death the partnership was dissolved, but it, nevertheless, appears that Rogers as executor undertook the execution of the will, and as such was liable for the rents to the extent of Carson’s interests, and as the whole land was used in the payment of the partnership debts for the one-half of which Rogers, as the survivor, was liable, as between himself and Carson, we can not see how Rogers is injured by being charged with the rent of the two tracts.
He has never yet paid off the partnership debts, nor are we prepared to say that the language of the will applies to partnership debts alone, or if it does, we think with this character of trust the appellant, as executor, should be chargeable with rents. Nor is it material whether in the petition rents are claimed for the Todd farm.
The action is for a settlement of the trust, and all property invoked by it, whether mentioned in the petition or not, must be accounted for its use by the executor.
The principal error in this case consists in the failure to allow the executor compensation for his services. He had been charged with a reasonable rent and credited only by repairs made, and during a period of six or eight years he has been held to account for the proceeds of the trust estate with the interest, and we see no reason for requiring him to discharge this service gratuitously, or any action on his part that would authorize the chancellor to withhold compensation. His compensation should have been at least $500 per annum, to be deducted from the indebtedness, if anjq by appellant.
As this settlement must be again made by the commissioners and as some few items have been allowed as credits to the executor when there is no proof, they should be allowed to be corrected and additional proof offered, but the basis for the settlement will exist as found in the commissioner’s report adopted by the court below. So
The court below erred in the judgment rendered in the appeal of Burbridge, Committee, v. Rogers, in refusing any relief. The committee of Marion Burbridge has resorted to a Court of Equity for the purpose of making a discovery of accounts and subjecting the land owned by the testator in the county of Woodford to the payment of the debt. The two tracts of land are misdescribed in the petition and no lien existed as against any one for the security of appellant’s claim.
It was, however, a lis pendens in so far as the executor was concerned, as the express purpose was to subject all the estate in the hands of the executor necessary to satisfy the demand. Process had been executed upon the executor and devisee and there was at the date of filing the petition nothing to prevent the chancellor from granting the relief sought. Grady who had sold the land to Carson and Rogers had his lien that was superior to the claim of any other creditor. It- was a vendor’s lien and the right of Grady to proceed at any time to enforce it can not be controverted. The refusal of the executor to pay the debt authorized Grady to bring his action to enforce his lien and whatever motive may have prompted the executor to decline making further payment can not affect Grady or his lien. He has been guilty of no fraud, but has only pursued the remedy afforded him for making his recovery.
The executor may have been anxious to avoid the payment of this security debt and doubtless because it deprived the wife and daughter of the inheritance left by her father and his refusal to pay originated doubtless from the fact that he saw that there would be nothing left of the estate unless he could purchase under Grady’s judgment and obtain the land for less than its value. He stood in the position of trustee with the right to control the land for the purpose of paying the partnership debts. He was in the possession and had been for years attempting to remove the burden that was upon it. This was not regarded by the testator or by his executor as a liability for which the estate of Carson was bound. Still the appellant, by a judgment of the court, had established his claim and
It is not necessary in a case like this that actual fraud should be alleged or proven, nor do we think any actual fraud was practiced by Rogers. He felt his estate, or rather that of Carson, was not primarily liable for the Burbridge claim; that no consideration was received for it, and that out of the wreck of a valuable estate he would save what he could by requiring the land to be sold and becoming the purchaser: His position as a trustee for creditors, particularly when he had been sued for a settlement of his accounts and a sale of the realty belonging to his testator, precluded him from speculating in the property of the estate to the injury of the creditors, whether partnership or individual. We know of no rule of law or equity that will permit an executor who had charge of the realty of the testator for the purpose of paying debts whether partial or general, although his power over the realty is to rent it out, and when sued for a settlement of the estate, to become himself a purchaser of the estate in any proceeding so as to affect the rights of creditors.
The facts of this case as they are stated show that this executor purchased this estate after the suit had been brought to coerce this demand on Carson’s estate, and that the executor in possession had the suit instituted by Grady, and made the purchase for greatly less than its value. Under such circumstances the sale- should either have been set aside or the committee allowed to pay Grady’s debt, the chancellor then ordering a resale to pay the debt.
Now, if, as counsel for the executor contends, the appellee, Rogers, was even innocent of the intention of Grady to sue, his purchase could avail him nothing as against this appellee.
He might -and could stand in the place of Grady when paying
If a sale had been ordered by the chancellor in 'the action of Burbridge against the executor for a settlement, the latter could not have purchased so as to affect creditors, nor will he be permitted while such a suit is pending to purchase at the suit of a creditor so as to cause a sacrifice of the estate. Executors and administrators are fully within the application of these principles, being considered in equity as trustees for creditors, legatees and heirs, and in that character disabled from purchasing at sale of either lands or chattels under a power from the will, or a power derived from the courts, for as they always have power and duty to sell lands under áuthority of the court so far as may be necessary to pay debts, the trust in its nature embraces both classes of property, and by virtue of these powers and duties both in respect to lands and personalty, they are substantialljr trustees and therefore disabled from purchasing for their benefit and to the loss of those for whom they are intended.
A purchase, therefore, direct or indirect, entire or partial, by one or more executors or administrators at their own sale, whether by a power in the will or under an order of court, will always be set aside on an application of any of the heirs or unsatisfied creditors, or other parties interested. 1 Leading Cases in Equity, 246.
It is admitted by the pleadings that the purchase of the land by the brother of the executor was for the benefit of the executor. This executor knew the condition of the estate and if he had declined to pay Grad)’’, should himself file a bill for the settlement of his accounts and the sale of the realty. Such actions may be brought by the representative, legatee, distributee or creditor as provided by Sec. 1 of Chap. 3, Civil Code, and an action having been instituted to which the appellant, as executor, was a party, he was then in court representing the estate and his purchase inured to the benefit of creditors.
If Grady has received his money, he should not be compelled to refund it but the executor must be regarded as holding the land in trust for creditors, and the land should be sold.
If Grady has not received his money, there should be a resale, the executor accounting for the rents to the extent of Carson’s
Judgment reversed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.