Estate of Claghorn
Estate of Claghorn
Opinion of the Court
Opinion by
Julia Clagborn and J. Raymond Claghorn, widow and son of James L. Clagborn, deceased, and executors of bis will, filed tbeir first account in tbe orphans’ court May 27, 1895; tbeir testator died August 25, 1884, and tbe wife and son were tbe sole beneficiaries under his will, and from tbe date of testator’s death bad been in possession of his estate; tbe will expressly enjoined that they were not to give bond for tbe faithful performance of tbeir duty as executors. It is not clear from tbe evidence and tbe confused and tangled account filed whether tbe estate of testator was solvent at bis death; it is very clear that when the first account was filed, more than ten years after-wards, it was largely insolvent. There was for distribution, after adding a surcharge of $2,905 and deducting counsel fees and expenses, a balance of $24,867. But two creditors claimed payment out of this fund; Mrs. Emma C. F. Keller, who-demanded $36,344.34, with interest from May 1, 1894, and tbe Commercial National Bank, $4,300, with interest from March 22,1894. The court below allowed both claims and directed a distribution of tbe balance pro rata. From this decree Mrs. Keller appeals, assigning for error tbe allowance of tbe bank’s claim. It follows, if her appeal be successful, tbe payment to her will be increased $4,300, with interest from March 22, 1894. Her averment is, no valid claim against tbe fund was exhibited before the court below by tbe bank, therefore it was error to allow it.
Tbe claim of tbe bank was founded on a judgment entered by it in common pleas of Philadelphia' county against James-Raymond Clagborn and Julia Claghorn, executors of James L. Claghorn, April 19, 1894, for $10,000, conditioned for tbe payment of three promissory notes, amounting to $7,750, of which
It is argued by appellant: 1. That on the evidence, and from the record of the common pleas, the debt was that of J. Raymond Claghorn individually, and. not of the estate. 2. That the judgment from its terms is against the executors personally, and not against them in their representative capacity, therefore, it cannot be distributed to from the fund.
It is settled, that every judgment entered on a specialty with warrant of attorney to confess judgment must follow strictly the authority conferred by the warrant; the attorney who executes the warrant cannot change its terms or enlarge its scope. The bond and warrant are as follows:
“Know all men by these presents that we, Julia S. Claghorn and J. Raymond Claghorn, executors of the last will of J ames L. Claghorn, deceased, are held and firmly bound unto the Commercial National Bank of the state of Pennsylvania, in the sum of ten thousand dollars, lawful money of the United States of America, to be paid to the said obligees, their certain attorney, successors or assigns, to which payment well and truly to be made we do jointly and severally bind ourselves and our successors in the trust firmly by these presents. Sealed with our seals. Dated the twelfth day of July, A. D. 1889.
“ Whereas, the said bank held at the decease of James L. Claghorn sundry promissory notes of J. Raymond Claghorn indorsed by the decedent, and whereas the amount remaining unpaid is seven thousand, seven hundred and fifty dollars, represented by three notes of J. Raymond Claghorn, each payable three months after date — one dated May 9th, 1889, for $1500.00; one dated May 29th, 1889, for $5500.00; one dated June 21st, 1889, for $750.00 ; and the bank holds as collateral the original notes indorsed by James L. Claghorn, and the said executors have agreed to execute the present bond and warrant to prevent the claim of the bank against said decedent’s estate from being barred by the statute of limitations.
“ Now the condition of this obligation is such, that if the said J. Raymond Claghorn, his heirs, executors or administrators shall pay at their respective maturity his three notes above
“ (Signed) Julia. S. Claghorn. (Seal)
“ (Signed) J. Raymond Claghorn. (Seal)
“ WARRANT OR ATTORNEY.
“ To James W. Paul, Esq., attorney of the court of common pleas of Philadelphia, in the state of Pennsylvania, or to any other attorney of the said court or of any other court there or elsewhere : Whereas, We, Julia S. Claghorn and J. Raymond Claghorn, executors of the last will and testament of James L. Claghorn, deceased, in and by a certain obligation bearing even date herewith, do stand bound unto the Commercial National Bank of the state of Pennsylvania in the sum of ten thousand dollars, lawful money of the United States of America, conditioned for the payment at their respective maturity, of three promissory notes of J. Raymond Claghorn, all drawn payable three months after their respective dates: one dated May 9th, 1889, for $1500.00 ; one dated May 29th, 1889, for $5500.00; one dated June 21st, 1889, for $750.00; and of the payments of any of the renewals of the said notes when renewed by the said bank:
“ In default of any such payment these are to desire and authorize you to appear for us, our heirs, executors or administrators, at the suit of the said bank, their successors or assigns, on an action of debt there or elsewhere brought or to be brought against us, our heirs, executors or administrators, upon the said obligation, and confess judgment thereon against us, our heirs, executors or administrators, for the sum of ten thousand dollars by non sum informatus nihil dicit, or otherwise as to you shall seem meet, and for you or any of you so doing, this shall be your sufficient warrant.
“ In witness whereof we have hereunto set our hands and seals this twelfth day of July, A. D. 1889.
“ Julia S. Claghorn. (Seal)
“ J. Raymond Claghorn. (Seal) ”
By the warrant, therefore, the judgment is against them personally ; there is no judgment or adjudication by a court of record against the estate of James L. Claghorn. The bond itself may be construed as a promise that they will not plead the statute against the bank, when the assets are for distribution ; it amounts to nothing more. And they kept this promise; they did not plead the statute against the bank on the distribution. We have, then, a promise by the two executors, one of whom was the principal debtor, and his father, the surety, that they will not plead the statute in favor of the father’s estate. To what extent does this promise bind the estate on a distribution, eleven years after the testator had contracted a simple debt, which in six years was barred by the statute ?
In Geyer v. Smith, reported in a note, 1 Dali. 347, it was held, as early as 1789, on the authority of many English cases cited, that a creditor taking a bond from an executor or administrator discharges the old debt; that calling himself executor or administrator in the bond is mere surplusage, and that he is chargeable only in his own right. This was followed by Jones v. Moore, 5 Binn. 573, Bailey v. Bailey, 14 S. & R. 195, and
This, then, is a promise by the executors not to plead the statute of limitations against this creditor when he presented his claim. It does not bind the estate; they, under the authorities, were not even bound not to plead it on distribution, but might then have set it up in the face of their original promise. They do not do so, but a creditor, this appellant, does. Would it avail her when the executors waived the right to plead it? Fritz v. Thomas, supra, by plain implication, holds the promise of the executors would not bar her right. But in Kittera’s Estate, 17 Pa. 416, the point is directly decided. It was there held that distribution of an estate of a decedent in the orphans’ court is, under the act of assembly, to be made “ to and among the persons entitled to the same; ” that the right ■of each creditor to be heard in support of his claim and in
It will be seen from these most explicit decisions that the personal representative is not answerable for a cause of action not created by the decedent; that if by a new promise he revive •a debt already barred, or prolongs the life of one not yet barred, the contract is his own, and he is personally answerable.' And, although he is not bound to plead the statute where he believes the debt unpaid, yet in the distribution of a fund, creditors whose interests are affected can plead it. Where, however, a suit is brought against him in his representative capacity on a debt barred by the statute, and he waives his right to plead it, the judgment is de bonis testatoris, and cannot be questioned thereafter on distribution of the estate.
It is argued that to disallow the bank’s claim is to question collaterally the conclusiveness of a judgment of the common pleas. But this is a mistake. An inspection of the record shows it is not a judgment against the estate, but against the executors personally; and assuming the executors could have,
We think it was error to not sustain the plea of the statute preferred by this appellant, therefore, the decree of the court below is reversed so far as it awards part of the fund to the appellee, and it is directed that as the entire fund does not pay the amount allowed on appellant’s claim the whole fund be paid over to her. And further, that appellee pay the costs of this appeal.
Reference
- Full Case Name
- Estate of James L. Claghorn, Appeal of Emma C. F. Keller
- Cited By
- 15 cases
- Status
- Published
- Syllabus
- Statute of limitations — Decedents' estates — Executors and administrators. The personal representative of a decedent is not answerable for a cause of action not created by the decedent; and if by a new promise the representative revives a debt already barred, or prolongs the life of one not yet barred, the contract is his own, and he is personally answerable, and, although he is not bound to plead the statute where he believes the debt unpaid, yet in the distribution of a fund creditors whose interests are affected can plead it. When a fund in the orphans’ court is not sufficient to pay all creditors each creditor has a right to oppose any other claimant, by showing the debt was paid or that it was barred by the statute of limitations. Decedents' estates — Executors and administrators — Bond—Statute of limitations. A creditor taking a bond from an executor or administrator discharges the old debt; the fact that the representative calls himself executor or administrator in the bond is mere surplusage, and he is chargeable only in his own right. A bond to a bank recited that “ J. and R. executors of C, deceased, are held and firmly bound ” unto the bank, and undertake that their successors in the trust shall be bound. It was further declared that the bond and warrant were executed to prevent the running of the statute against the estate of C. who was indorser for R. The condition of the bond was that if R. did not pay his debt to the bank the estate would continue answerable. The warrant was that if J. and R., executors, did not pay the notes of R. at maturity then any attorney was authorized to appear for them, their heirs, executors or administrators, at the suit of the bank, and confess judgment thereon against them, their heirs, executors and administrators. When the estate was settled more than six years after the death of C. there was not sufficient to. pay all the creditors, and one of them pleaded the statute of limitations against the claim of the bank. Held, (1) that the judgment entered upon the warrant was against the executors personally, and not against C.’s estate; (2) that the bond itself could only be construed as a promise that the executors would not plead the statute against the bank, when the assets were for distribution; (3) that a creditor could plead the statute against the bank, although the executors did not join in the plea; (4) that the action of the orphans’ court in disallowing the bank’s claim was not a collateral attack upon the judgment of the common pleas, inasmuch as the record showed that the judgment was not against the estate, but against the executors personally.