American Surety Co. of New York v. Norton
American Surety Co. of New York v. Norton
Opinion of the Court
Norton, as administrator de bonis non of the estate of George E. Chase, deceased, brought this suit against Dana E. Chase, former administrator, and his surety as such, American Surety Company of New York, alleging:
“That at the time of the appointment of said Dana E. Chase, as such administrator, he was indebted to the said estate, in that on October 16, 1911, he executed and delivered to said George E. Chase and wife, Maria L. Chase, his certain promissory note, whereby he promised to pay to the order of said George E. Chase and Maria L. Chase, for value received, the sum of $3,000, with interest from said date at the rate of 8 per cent, per annum. * * * ”
After setting up that certain small credits had been paid on this note before George E. Chase’s death, the appointment and removal of Dana E. Chase as administrator after he had duly inventoried the note as part of the estate of George E. Chase, and the subsequent appointment of himself as administrator de bonis non, Norton’s petition further charged:
“That said Dana E. Chase was required by law to account for his indebtedness to said estate, in the same manner as if it were so much money in his hands, but he has wholly failed and refused, and still refuses, to so account for said indebtedness, to plaintiff’s damage in the sum of $5,000;, and the defendant, American Surety Company, of New York, has by its said bond become obligated and bound to pay to plaintiff said sum of money.”
The terms of the surety company’s bond for Dana E. Chase as such administrator were that he “should well and truly perform all of the duties required of him under said appointment.”
In answer both Dana E. Chase and the surety company pleaded failure of consideration, denied the justness of the debt, and averred that defendant Chase had received no benefit of any kind or character on account of the execution of the noté. The surety company added an allegation that the note had been inventoried as a part of George E. Chase’s estate against the will and over the protest of Dana E. Chase, specially set up its suretyship, and prayed for judgment over against Dana E. Chase in event Norton obtained judgment against it; but neither defendant alleged that Dana E. Chase at the time of his appointment and throughout his incumbency as administrator was insolvent, nor that the note had ever been satisfied, nor either that Norton was not entitled to recover in the capacity in which he sued, or that there was any defect of parties plaintiff,
On trial, without a jury, the court rendered judgment in plaintiff’s favor against both defendants for the full amount then due as a result of the execution of the note, with *438 like judgment in the surety company’s favor over against its codefendant, Dana E. Chase.
The surety company alone has appealed. Its first contention here is that under the article of our statutes upon which the suit was grounded (R. S. Art. 3378):
“A surety on an administrator’s bond is not liable for the indebtedness of the administrator of the estate upon which he is administering as so much money in his hands where it is shown that the administrator at the time of his appointment as such was hopelessly insolvent, and continued insolvent during the entire period in which he was acting as administrator.”
The undisputed testimony of Chase to the fact that he was insolvent during the whole of his incumbency, as well as before and after that time, is then cited—the statute referred to is in this form:
‘“The naming an executor in a will shall not operate to extinguish any just claim which the deceased had against him ; and, in all eases where an executor or administrator may be indebted to the testator or intestate, he shall account for the debt in the same manner as if it were so much money m his hands; provided,, however, that if said debt was not d)ue at the time of receiving letters, he shall only be required to account for it from the date when it shall become due.”
We cannot agree, however, that the plead-, ings here really present only one substantive theory of a recoverable right, and that the judgment to the extent of one-half its amount is based upon a different and inconsistent one, because, the note being part of the community estate of George E. and Maria L. Chase, his wife, the former’s administrator had the right, indeed was under the duty, to collect it in its entirety, and the presumption of law was that he did so. Carlton v. Goebler, 94 Tex. 93, 58 S. W. 829, 830.
From these conclusions it follows that all assignments should be overruled, and the judgment affirmed. That order will be entered.
Affirmed.
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