State v. Wilson
State v. Wilson
Opinion of the Court
The state of the case agreed upon by the parties, presents a question, upon the construction of the 3d Section of the act concerning the estates of persons who die insolvent. Rev. Laws, 766.
By this section, when an estate has been represented by an executor or administrator, to be insolvent, in the maimer therein specified, the court are to “ direct the executor or administrator to give public notice to the creditors of the estate, to exhibit to such executor or administrator, under oath or affirmation, their claims and demands against the estate, within such time, as the court shall direct and appoint, not exceeding eighteen months, nor less than six months, by setting up such notice, in five of the most public places in the county, for the space of two months, and also for advertising the same, for the like period, in one or more newspapers, &c.
The administrator of Thomson N. Sims, having represented his estate to be insolvent, in the manner prescribed by the act, the Orphans’ Court of Burlington county on the 6th day of November, in the term of November 1830, made an order, that the administrator should give notice to the creditors of the intestate, to exhibit under oath or affirmation, to the said administrator, their claims and demands against the estate of the intestate, within six months of that time, by setting up notices, etc. as in said act, is directed. A copy of this order
The claims and demands of some of the creditors, were not exhibited to the administrator, under oath or affirmation, within six months from the 6th ot November, the date of the order, but were so exhibited, within six lunar months, from the 30th of November 1830, the day on which the last notice was set up. At the August term of 1831, the Surrogate stated and reported the accounts of the administrator, with a list of all the claims put in, including those just mentioned, and showing the periods, when the several claims had been respectively exhibited. Thereupon a rule was granted by the court, on motion of the plaintiffs in certiorari, (they being creditors, and having exhibited their claims in due form of law, within six months from the date of the order,) for leave to file exceptions to some of the' claims put in by other -persons. Exceptions were filed accordingly; but at a special term in December 1831, the court dismissed the exceptions, without hearing them, on the ground that they ought to have been filed at the August term, and that the court had no right to allow the exceptants, thirty days or any adjourned period, within which to file them. Afterwards, in February term 1833, the court decreed a distribution among all the creditors, including those, who had not presented their claims, within six months from the date of the order just mentioned.
The prosecutors of this certiorari, are of the class of creditors who exhibited their claims within the limited period ; and therefore insist upon a distribution among themselves, to the exclusion of the others.
It is admitted by the counsel for the defendants, that if the decree of distribution, includes creditors whose claims were not presented in due time, it is • erroneous, according to the decision of this court, in Vandyke et. al. v. Chandler, 5 Halst. R. 49. But they insist, that by a just .construction of the act, the time limited by the court, whether it be six or eighteen
However wise it might have been in the legislature, thus to have restricted the court, by inserting in the 3d Section of the act, after the words “ six months,” the words “ after such notice has been given for two months.” Or however prudent it would be in the Orphan’s Court, to specify the time within which, the order should be published and put up, and to allow the creditors six months or more, after it had been so published and put up, we cannot in effect, insert any such clause in the act, by adopting either construction contended for by the defendant’s counsel. By the terms of the statute, the court are to dii'ect the executors or administrators to give notice to the creditors to exhibit their claims within such time, as the court shall direct, and appoint a time not exceeding eighteen or less than six months; and then it prescribes the manner of giving notice; leaving it to the court however, to direct a further notice if they think proper.
Now the statute does not, in terms, fix the period when the six or eighteen months, or other limited time, shall commence running; but by very plain, if not necessary construction, it is to begin from the time of making the order, unless some other time is fixed for that purpose; and so is the order in this case.
I am therefore of opinion, the decree in this case is erroneous, and ought to be set aside: and that the funds in the hands of
This renders it unnecessary to decide the only other controverted point in this case — to wit, whether the court did not err, in dismissing the exceptions filed by the plaintiffs, to the claims of the other creditors? For I understand from the state of the case, the only ground of exception, was the failure to exhibit those claims in due time and manner.
But if the court dismissed those exceptions, upon the ground, that they had inadvertantly and without lawful authority, given the exceptants time to file them, I am clearly of opinion that the court committed an error in doing so. The 6th Section of the act says, “ It shall and may be lawful for any creditor or other person interested, by himself, or attorney, to appear at the said term,” (that is the term to which the executors or administrators shall report the claims and demands,) “ and file exceptions,” &c. — and afterwards, the court are authorized, “ at the same or any subsequent term,” as may be expedient, to hear and determine the exceptions. Now if the party appears, by himself or attorney, at the term, and takes exception to any of the accounts, he is entitled to be heard, and it would be most unreasonable to deny to him, a proper time to examine into the transactions and documents, and specify the grounds of his exceptions in writing, so that the court and all concerned may understand them, and that they may be intelligently heard and disposed of. When a rule is granted for leave to file exceptions in thirty days, or any other period, they are to be considered as put in, when the exception is taken. The power of granting such a rule, is incident to the court, and to deny it to them, would be to suppose the legislature intended to mock the party with a show of justice, and yet deny to him the means of obtaining it. In the absence of any restrictive words in the statute, I cannot yield to such a construction.
Ford, J. This certiorari is brought on a decree of the Orphan’s Court, of the county of Burlington, ordering a ratable
But it is alleged, that the order, limiting a certain time for the exhibition of demands, had not been duly advertised, as the statute directs it to be done ; and if this be so, then the order itself is lost, so that no dividend can be lawfully decreed under it, and all the proceedings must be set aside; in consequence of which, the administrator would have to apply for a new order.
The 3d Section requires the administrator “ to give public notice” of the time so limited, “ by setting up such notices in five of the most public places in the county, for the space of two months.” This means that he shall set them up; but it is agreed on both sides, not to mean that he shall keep them up day and night, for the space of two months; such being no part of his duty, nor is proof of their having-been so kept up, even required by the court. To “ set up notice,” means “ to give notice; ” both phrases are found in this section, and they mean the same thing. And to give notice “ for the space of two months,” is not susceptible of any other meaning, than two months before the expiration of the limited time, which was actually done.
The defendants insist on a different meaning; that notice
The statute could have directed the order to be published on the day it was made, but notice of it for two months was deemed to be sufficient, and why is it not ? Real estate may be sold upon two months’ notice, Rev. Laws, 432, Section 9. Widows, orphans and creditors, have only two months’ notice, that the accounts of executors and administrators, will be closed in the Orphans’ Court, Rev. Laws, 786, Section 30; and why should creditors have a longer notice to present their demands ? They are bound to look after their debtors, and the estates of their debtors, by the common law, without any notice whatever, or they will be precluded by those who are more diligent. Notice is a gratuity introduced by the statute, and if two months be reasonable time, after which, widows and orphans, and creditors, shall be precluded in one case, why should it not be in another ?
It is impracticable for an administrator to_ give all these notices on the very day that the order is made; such a requirement would defeat nearly all these decrees. The order must be obtained in court, notices of it drawn and set up in five
But no just and equitable distributioai could be añade among creditors, without a fair investigation of the accounts of the administrator, aaid of the demands of persons pretending to be creditors, when perhaps nothing might be due to them. He must have a reasonable time to do it, in this as in all other cases ; for being no party to the accounts or demands, but a perfect stranger, aaid deeply interested in them, the right of investigation would be worthless, if a reasonable time for the exercise of it were deaiied to him. The statute says — “ it shall be lawful for any person interested to appear at the said term, and file exceptions.” It says he must appear at the term; it does not say he must file exceptions at the term; therefore the court has a discretion to allow him such reasonable time, as the circumstances of the case, in their opinion may require. If the court has any reasonable suspicioia that his exceptions are only frivolous and for delay, and he does not disclose them, by affidavit or otherwise, to the satisfaction of the court, it may, in its discretion, refuse him time, and then he will be limited to the term. This discretion is not only common to all tribunals, but so necessary to attain the ends of common justice, that the court ought not to be deprived of it by construction, where it is not taken away,
Ryerson, J. concurred.
Decree set aside.
Cited in Gould v. Tingley, 1 C. E. Gr. 503.
Reference
- Full Case Name
- THE STATE—P. V. COPPUCK, PROSECUTOR v. WILSON AND OTHERS, CREDITORS
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- Published