Allen v. United States National Bank

187 P.2d 156, 182 Or. 246, 173 A.L.R. 1334, 1947 Ore. LEXIS 241
CourtOregon Supreme Court
DecidedSeptember 18, 1947
StatusPublished
Cited by15 cases

This text of 187 P.2d 156 (Allen v. United States National Bank) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allen v. United States National Bank, 187 P.2d 156, 182 Or. 246, 173 A.L.R. 1334, 1947 Ore. LEXIS 241 (Or. 1947).

Opinion

LUSK, Acting Chief Justice.

This is an appeal from the order of the Circuit Court for Multnomah County, Department of Probate, overruling objections to the executor’s final account in the estate of Louise M. Feehely, deceased. The objectors (herein called the appellants) are beneficiaries under the will of the deceased. Their objections all go to certain items of compensation for *250 services rendered by the executor and its attorney and allowed by the court.

1. BASIS OF EXECUTOR’S STATUTORY COMPENSATION

The appraised value of the estate as of the date of decedent’s death was $22,738.00. During administration the executor collected rentals from real property of the estate aggregating $17,100.30. The executor claimed, and the court allowed, a statutory fee of $908.76, based upon the original appraised value of the estate plus the amount of the income moneys accounted for by the executor. The appellants contend that the fee should have been based upon the appraised value alone, and that no consideration should have been given to income subsequently accruing. This contention involves construction of the statute governing the compensation of executors.

Section 19-1011, O. C. L. A., provides:

“The compensation provided by law for an executor or administrator is a commission upon the whole estate accounted for by him, as follows: “(1) For the first $1,000, or any less sum, at the rate of seven per centum thereof”.

Then follow the percentage rates on sums above $1,000.00.

The decision turns upon the meaning of the words “upon the whole estate accounted for by him”. Counsel for the appellants say that this phrase refers to the appraised value of the estate as fixed in the inventory, and cite Stewart v. Baxter, 145 Or. 460, 28 P. (2d) 642, 91 A. L. R. 818; and Estate of McDermid, 109 Or. 633, 222 P. 295. But in neither of these cases was this question raised. It is true that in the Stewart case this court appears to have computed the adminis *251 trator’s statutory fee on the appraised value of the estate, and one reading the opinion might infer, though it is not clear, that the administrator had received rental moneys which were not considered. The question with which we are now dealing, however, was not suggested. The administrator apparently was insisting on his right to compensation under an agreement with the heir. The court held that the agreement should be influential in fixing his compensation, determined the statutory commission on the appraised value, and added enough to that amount for extraordinary services to make the total equal to the agreed compensation. In the McDermid case the principal question, in so far as the fee of the administrator was concerned, was whether or not he was entitled to commissions on the value of the real estate. He was held to be so entitled. But we can find nothing in the opinion which indicates that the court thought that income received by the administrator should or should not be considered in fixing his compensation. In any event, under our statute, properly construed, the appraised value of the estate is prima facie the amount on which commissions are to be reckoned; and, as there appears to have been no claim in these cases that the appraised value was not the actual value, the court rightly used the appraised value in its calculations.

No other Oregon cases have been cited, and the question seems tu be res integra in this state.

In other jurisdictions having statutes identical or substantially identical with ours it is held that the appraised value of the estate, as shown in the inventory, is only prima facie evidence of the value of the estate accounted for and is not conclusive for the purpose of fixing the representative’s commission, the amount *252 of which should be fixed upon the value of the estate at the time of the settlement, the appraised value being disputed. In re Pringle’s Estate, 51 Wyo. 352, 67 P. (2d) 204, 110 A. L. R. 987; In re O’Connor’s Estate, 200 Cal. 646, 254 P. 269, 271; Estate of Fernandes, 119 Cal. 579, 585, 51 P. 851; In re Ricaud, 70 Cal. 69, 11 P. 471; In re Hagerty’s Estate, 97 Wash. 491, 166 P. 1139; In re Sour’s Estate, 17 Wash. 675, 50 P. 587, 588. In adopting this construction the California, Washington and Wyoming courts considered, with the statute fixing the compensation of personal representatives, other provisions of their statutes similar to §§ 19-1007 and 19-1008, O. C. L. A., which are as follows:

19-1007. An executor or administrator is chargeable in his account with all the property of the estate which may come into his possession, at the value of the appraisement contained in the inventory, except as in this chapter otherwise provided.”
“§ 19-1008. He shall not make profit by the increase in value of the property of the estate, nor suffer loss for the decrease in value or the destruction thereof, without his fault; and if any of the property of the estate sell for more than its appraised value, he shall account for the excess; and if any such property sell for less than its appraised value, he shall not be responsible for the loss, unless occasioned by his fault. He shall not be accountable for the debts due the estate, if it appear that they remain uncollected without his fault. He shall not purchase any claim against the estate which he represents, and if he satisfies any such claim for less than its nominal value, he is only entitled to charge in his account the sum aeutally paid.”

Construing these provisions in pari materia with § 19-1011, which states that the representative shall have a commission “upon the whole estate accounted *253 for by him”, it seems logical to say that the estate upon which the representative’s commissions are to be based is the same estate for which he mnst account. This is the estate at its value at the time of settlement, which includes, of course, accretions by way of rents, interest, etc. In the Pringle case, supra, the court said:

“The final account of a personal representative should show the items he is chargeable with at their inventory value as this may be corrected by reappraisement or actual sale of the several items or by evidence introduced before the court indicating their actual value, or by loss or destruction of property. To this should properly be added all accretions to the estate which have come into the possession of the executor, such as interest, profits on sales, etc. It is then an easy matter for the court to compute, under the statute, the amount of the estate ‘accounted for’ by its officer.”

There is language in the Ricaud case, supra, which indicates the same construction of the California statute. It is said by the appellants that these statements are dicta.

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Bluebook (online)
187 P.2d 156, 182 Or. 246, 173 A.L.R. 1334, 1947 Ore. LEXIS 241, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allen-v-united-states-national-bank-or-1947.