Phoenix Mutual Life Insurance v. Harris
Phoenix Mutual Life Insurance v. Harris
Opinion of the Court
delivered the opinion of the Court:
Under the provisions of see. 323 of our Code, which became effective in 1901, no executor or administrator may sell any property of his decedent without first procuring an order of the probate court, and any sale made, without such an order is declared to be void and to pass no title to the purchaser. It is the contention of the plaintiff that inasmuch as it does not appear that the consent of court to the assignment of this policy had first been obtained, the courts of this jurisdiction, in view of the public policy expressed in said see. 323, ought not to recognize this assignment.
While fit does not definitely appear where this assignment was made, it does appear that the estate was settled in New Jersey, where Mrs. Harris, the beneficiary, was domiciled at her death; and inasmuch as this policy constituted an asset of her estate, although not mentioned in the list of assets filed by the administrator, probably for the reason that its value to the estate was negligible, it is not a violent assumption that the assignment was made during the course of administration in New Jersey. And as it does not appear that the common law had been modified in New Jersey, it is apparent, prima facie at least, that this was a perfectly valid assignment there. Vreeland v. Schoonmaker, 16 N. J. Eq. 512, 530. Indeed, it is conceded that the assignment was valid in New Jersey, the situs
"Whether, at the time this assignment was made in New Jersey, when the rights of the parties became fixed, the law of this jurisdiction denied the right of local executors and administrators to make such an assignment, we do not deem it necessary to determine, but see Miller v. Williamson, supra, and Marbury v. Ehlen, 72 Md. 206, 20 Am. St. Rep. 467, 19 Atl. 618. In our view, even if we assume that such a prohibition existed, no rule of public policy would be offended by giving force and effect to this contract. We think it quite obvious that the provisions of sec. 323 of our Code were intended to apply merely to local executors and administrators dealing with property within this jurisdiction. The section declares that if any executor or administrator shall sell, pledge, or dispose of any property without an order of court, his letters may be revoked, clearly indicating, we think, that the prohibition was not intended to extend to contracts made by executors and administrators of other jurisdictions. In other words, this statute was addressed to the constituent elements or validity of a local contract by executors and administrators, rather than to the procedure to be followed in establishing all contracts by executors and administrators, wherever made.
Nor do we perceive any points of similarity between this contract and that involved in Emery v. Burbank, 163 Mass. 326, 28 L.R.A. 57, 47 Am. St. Rep. 456, 39 N. E. 1026, cited by counsel. That case involved an oral agreement made in Maine, by the terms of which a resident of Massachusetts agreed to leave all her property at her death to a resident of Maine, in consideration that said resident would go to Massachusetts and care for the promisor (see Scudder v. Union Nat. Bank, 91 U. S. 406, 412, 23 L. ed. 245, 248). After the death of
Being of opinion that the affidavit of defense here interposed was made in good faith and that, prima facie at least, plaintiff has no right to recover (Codington v. Standard Bank, 40 App. D. C. 411), we reverse the judgment, with costs, and remand the cause for further proceedings. Reversed and remanded.
Reference
- Full Case Name
- PHOENIX MUTUAL LIFE INSURANCE COMPANY v. HARRIS
- Status
- Published
- Syllabus
- Executors and Administrators; Assignments; Life Insurance; Public Policy; Affidavits. 1. At common law an executor or administrator had absolute power of disposal over all personal property coming into his hands, including ehoses in action, and sales by him protected purchasers, except where fraud appeared; and statutes providing for the granting of decrees of court as to sales are generally construed to be for the protection of the executor or administrator, and not as a limitation of his power. 2. Section 323, D. O. Code (31 Stat. at L. 1240, chap. 854), providing that no executor or administrator shall sell any property of his decedent without first procuring an order of the probate court, and that any sale made without such an order shall be void and pass no title to the purchaser, does not affect the validity of an assignment made in New Jersey to the insured of a policy of insurance by the administrator there of the beneficiary, so as to prevent such assignment being set up as a defense to an action brought here by the New Jersey administrator against the insurance company after the death of the insured. 3. Where an affidavit of defense is made in good faith and makes out a prima facie defense, a summary judgment for the plaintiff will not . be granted. (Citing Codington v. Standard Bank, 40 App. D. C. 411.)