White v. Bannister's Executors
White v. Bannister's Executors
Opinion of the Court
delivered the opinion of the Court.
A bill to retain and to set-off a debt against rents due, has an unfavourable appearance. If creditors, purchasing from the executors, or, as in this case, renting an estate from them, shall be permitted to bring forth their claims against the testator, in discount, they might thereby gain an improper advantage over other creditors. The executors might be involved in the trouble of accounting for the assets on every purchase, and, in case of mistakes, might subject themselves to a devastavit.
The objection has additional weight in this case, where the plaintiffs were not original creditors, but purchased up the debt for the purpose of a discount | or if, in fact, they are not the real owners of the debt,
(a point not clear,) they are endeavouring to gain a preference for another, by taking an assignment in trust, whilst they complain that the executors are prefering favourite creditors.
The appellants, aware of these objections, charge that the executors were assured, and had acknowledged, that the estate would be sufficient to pay all the debts, in which case, no objection could be made to the reasonableness of the discount But this being
But another question occurs, and that is, whether q.¡e foja cannot 5e sustained as an original one, for a discovery of assets ?
1st. A creditor may, at law, either sue out execution upon a judgment obtained against the executors, and levy it on the visible property of the testator, if any; or, if none to be found, 2d. He may proceed against the executors, as for a devastavit, on account of a misapplication of assets, or for that which amounts to an admission of assets. Or, 3d. A creditor may not know the state of the assets, the amount, nor the claims against the estate. He may, therefore, file his bill in equity, to have a discovery of those matters» and on that discovery being made, may either proceed at law, or that Court may retain the cause, and determine disputes between the parties.
Now, although at law the judgment in question would be considered as amounting to an admission of assets, so as to charge the executors, and a Court of Equity would not interfere to relieve against the consequence of that judgment, yet it would not, by an original decree, charge an executor on that ground.
The bill in this case appears to be for a discovery* After charging, that the profits of the Battersea estate are assets, which would make the estate fully solvent, it calls upon the executors to set forth the amount of the assets, and of the debts due from the estate, and prays to be allowed to retain for this judgment against the rent, and for general relief. The executors answer very properly as to the Battersea estate, insisting that the profits are not assets, but are made (by the will,} a fund for the education and maintainance of the three younger sons, who are entitled to the proceeds of the estate when sold.
But as to the discovery sought for, the answer is not so proper. The executors speak of sales, but do not specify the amount; they say they have paid all that has come to their hands, in discharge of debts of superior dignity to the .plaintiffs, without stating the amount, or even the names of the creditors, and the
Upon this view of the case, three questions arise. 1st. Whether the plaintiff’s had a right to retain, or to set off. Ssdly. Whether the answer is so satisfactory, as to entitle the executors to a dismission of the bill ? and 3dly. whether the profits are in part, or in the whole assets under the will.
The first question is clear against the appellants, and therefore the injunction ouerhi not to have continued.
The second question has been shewn to be against the executors, and therefore, the bill should not have been dismissed, but a decree for a settlement of the executors accounts should have been made.
The third question is a difficult one, yet we should have decided it, if there had been a full Court. Upon a settlement of the accounts, the decision may be unnecessary.
The decree must be reversed with costs, and the injunction dissolved. An account is to be taken of
Nicolson et. al. v. Hancock, 4 Hen. & Munf, 499, 500. Gordon’s Adm. v. The Justices of Frederick, 1 Munf. 17. 20.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.