American Security & Trust Co. v. Bindeman

303 A.2d 188, 1973 D.C. App. LEXIS 261
CourtDistrict of Columbia Court of Appeals
DecidedApril 2, 1973
DocketNo. 6343
StatusPublished
Cited by1 cases

This text of 303 A.2d 188 (American Security & Trust Co. v. Bindeman) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Security & Trust Co. v. Bindeman, 303 A.2d 188, 1973 D.C. App. LEXIS 261 (D.C. 1973).

Opinion

YEAGLEY, Associate Judge:

The issue presented on this appeal is whether the docketing of a duly authenticated claim against a decedent’s estate in the office of the Register of Wills tolls the general three-year statute of limitations and brings the claim within the special short term statute of limitations, D.C.Code 1967, § 20-13181 so as to protect the claimant until three months after the claim is rejected or disputed by the executor.

Appellant brought suit against the executor of the estate of a decedent who was the endorser of a promissory note. The executor defended on the basis of the general three-year statute of limitations which ran some months after the docketing of the claim. The executor also filed a third-party complaint against appellee Sodeman, the maker of the note.

The trial court denied appellant’s motion for summary judgment, granted the motion for summary judgment of appellee Binde-man and also granted the motion of appel-lee Sodeman to dismiss the third-party complaint. We find that appellant’s claim against the executor was not barred by the statute of limitations and was still valid. The judgment therefore must be reversed.

It appears from the pleadings that on March 14, 1966, appellee Sodeman (and his wife, now deceased) executed a promissory note made payable to appellant in the principal sum of $5,500 bearing interest at 6% [190]*190per annum, and due and payable 90 days after date. The note was endorsed and payment guaranteed by John H. Davis and Cora E. Davis, husband and wife. The only payment received on this note was one for interest due on June 13, 1966, in the amount of $83.41.

John H. Davis died on May 25, 1966. On December 14, 1966, his will was admitted to probate and appellee Bindeman was appointed and qualified as executor of his estate.

Appellant, on August 26, 1966, docketed an authenticated claim2 against appellee Bindeman’s decedent with the Register of Wills pursuant to D.C.Code 1967, § 20-1301 et seq. On January 12, 1967, in response to a request, appellant notified the executor’s attorney of the claim by letter and attached thereto a copy of the original note. Appellee Bindeman, the executor, took no action, neither affirming nor rejecting this claim and now contends that he was not bound to acknowledge, reject or dispute the claim since it had not been “exhibited against an executor or administrator” as provided in section 20-1318 of the Code. He argues further that consequently the general three-year statute of limitations was not tolled, and the time having run, it was a bar to this action.

The trial court agreed basing its ruling against appellant upon a finding that even though appellant had docketed its claim, it had never been exhibited, legally authenticated, to appellee Bindeman pursuant to D.C.Code 1967, § 20-1318, citing Lewis v. Smith, D.C.Mun.App., 151 A.2d 188, 190 (1959). Although the appellee’s attorney had been notified of the claim by counsel for appellant, strictly speaking a legally authenticated claim had not been exhibited to the executor.

The question of whether claimants are protected as against an executor or administrator by the docketing of an authenticated claim with the Register of Wills is important to practitioners, for if they are not protected, the general statute of limitations may run while the estate is pending, as occurred here.

It has been said that:

If the bar of the statute, [of limitations] has not yet matured when the claim is filed, proof and presentation of the claim under Sec. 18-509 et seq. would operate to suspend the running of the statute according to an early dictum in the Court of Appeals.3 While that would appear to be a sensible result,4 the point is unsettled and there is considerable doubt and difference of opinion about it among members of the bar. [Mersch, Probate Court Practice in the District of Columbia § 1335, at 35 (2d ed. 1952); footnotes renumbered.] 5

[191]*191D.C.Code 1967, § 20-1323 provides that the Register of Wills shall enter in a suitable book all claims against a decedent as they are passed by the probate court. It provides further “and the entry of a claim upon the docket constitutes notice to the executor or administrator of its existence.” [Emphasis supplied.]

In this regard we find in D.C.Code 1967, § 20-1315, the following language relevant to the foregoing provision:

Where a claim is known to him, although it is not exhibited, he shall retain the assets, or a just proportionable part, for the benefit of the creditor. Where an executor or administrator has actual knowledge of a claim which has not been exhibited or passed he shall give notice in writing to the creditor, requiring the claim to be either exhibited or passed, as provided by this chapter, within 30 days if the creditor is a resident of the District of Columbia, and within 90 days if he is a nonresident. .

This the executor did not do. Considering that statutory provision in connection with the provision in section 20-1323, previously mentioned, to the effect that the docketing of a claim shall constitute notice to the executor of its existence, we conclude that it was the purpose of Congress to afford a claimant protection against the statute of limitations upon the docketing with the Register of Wills of a duly authenticated claim.6 That is, the docketing of a duly authenticated claim is intended to protect the claimant as does the institution of a suit by tolling the general three-year statute of limitations.

The claimant upon filing his claim, as required, will come within the special three-month statute of limitations regarding claims against estates when the claim is disputed or rejected by the executor or administrator.7 Lacking such rejection by the executor here, the three-month statute had not begun to run and since the general statute was tolled with the filing of the claim 8 the motion of appellant for summary judgment should have been granted as to liability.

Appellee B indeman contends that there is no obligation on the executor to reject or dispute an authenticated and docketed claim until it has been duly “exhibited” to him in accordance with D.C.Code 1967, § 20-1318, and that appellant, having failed to “exhibit” its claim to the executor, cannot come within the protection of the special three-month statute. He suggests further that his position is supported by Lewis v. Smith, supra.

Appellee’s reliance on that case would seem to be supported only by dictum. The court there said that the executor’s rejection of the claim based on his knowledge [192]*192of it stemming from its having been docketed was ineffective and did not trigger the running of the special three-month statute of limitations. The court explained that the only way in which the claim could be effectively rejected was if there had been an actual exhibition of the claim to the executor. See D.C.Code 1967, § 20-1318. Finding that the exhibition of the claim even though it was prior to the day the executor qualified was adequate, it affirmed the decision of the trial court. The question therefore was merely one of under what circumstances an executor may reject a claim.

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Cite This Page — Counsel Stack

Bluebook (online)
303 A.2d 188, 1973 D.C. App. LEXIS 261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-security-trust-co-v-bindeman-dc-1973.