Arkwright v. Gonser

59 F.2d 702, 1932 U.S. App. LEXIS 3450
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 24, 1932
DocketNo. 6621
StatusPublished

This text of 59 F.2d 702 (Arkwright v. Gonser) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arkwright v. Gonser, 59 F.2d 702, 1932 U.S. App. LEXIS 3450 (9th Cir. 1932).

Opinion

SAWTELLE, Circuit Judge.

L. W. Hutton and Mary Arkwright Hutton, husband and wife, owned, as a community, practically a one-tenth interest in properties owned by the Hercules mining co-partnership, in the Cceur d’Alene district, Shoshone county, Idaho. From the profits derived from their part ownership in the Hercules properties, the Huttons purchased valuable holdings in Spokane, Wash.

Mrs. Hutton died on October 6, 1915. Her will, dated December 2, 1913, was probated in-.Spokane county, Wash., where the Huttons were domiciled. Her husband was named as her executor. The will contained the following paragraph: “Sixth. All the rest, residue and remainder of my estate both real and personal, wherever situated, I give, devise and bequeath to my husband, L. W. Hutton, with full power to use, retain, hold, manage, invest, and keep the same invested, and receive and retain the rents, issues and profits thereof for and during the term of his natural life, if he should so long remain my widower, and upon his re-marriage or death, or in case’ he shall not survive me, I give, devise and bequeath to the said Eliza Grombacher, to the said Lyman B. Arkwright, to the said Delan[n]y Arkwright and to the children of the said William Arkwright each an undivided one-fourth part thereof, absolutely and in fee.”

The defendants-app ellees admit that at the same time Mrs. Hutton made her will, her husband executed his own will, containing analogous provisions, whereby he left his wife a life estate in his property, with remainder over to his brothers and sisters.

Ancillary probate of Mrs. Hutton’s will was had in Shoshone county, Idaho.

The complainants below, the appellants herein, are the sons and daughters of Lyman [703]*703B. Arkwright, Delanny Arkwright, and William Arkwright, named in the extract from the will quoted above.

In their answer, the defendants-appel-lees admitted that L. W. Hutton represented, in the ancillary proceedings in the Idaho probate court, that, according to the statutes of that state, Mrs. Hutton did not have the right to bequeath her community property to the appellants, and that, there being no children from the marriage, Hutton inherited all the decedent’s share of the community property in Idaho. The appellees further admitted that the above representation was partly incorrect, in that they have later learned that the personal property of the community was subject to he disposed of by will by either spouse without restriction.

A number of objections to the final settlement of account and the distribution of the estate were filed by the present appellants, through their attorneys, in both the Washington and tho Idaho courts. In the picturesque language of Frank T. Post, one of the attorneys for the appellants in the probate proceedings, some of the papers filed on behalf of the appellants were of a “pestiferous” nature. We advert to this fact as indicating that the appellánts were at least vigorously and energetically represented in those matters. Indeed, the learned District Judge who tried the present case found that there was “nothing here to east the slightest suspicion upon the fidelity” of the Ark-wrights’ attorneys “in the performance of their duties to their clients,” and he further found that “there is no doubt of their ability.” We therefore accept it as a fact that the appellants were well represented in the probate proceedings.

Among other ob jections "filed by the appellants herein to the proceedings in the Idaho court was that the executor, Hutton, had “fraudulently omitted from the inventory by him heretofore herein filed each and every item of personal and real property owned by the estate of the said deceased, and by said deceased with the said L. W. Hutton as a community,” etc.

Petitions for “construction of will” were filed both in the Washington and in the Idaho courts.

Planning to endow with his fortune the Hutton Settlement, an eleemosynary institution established by Hutton near Spokane for the purpose of conducting an orphanage, Hutton “consented,” according to tho appel-lee’s answer filed in the court below, that one Russell F. Collins. should go to Ohio during the latter’s trip east, and “confer” with, tho remaindermen, who were the appellants herein and their ancestors. The appel-lees admit that Collins, in asking Hutton’s consent, offered to endeavor to assist in negotiations for the purchase by Hutton of the remaindermen’s interest in Mrs. Hutton’s estate.

There is considerable conflict in the testimony as to Hutton’s part in the trip made by Collins, and also as to the representations made by the latter to tho remaindermen, two of whom were old men in necessitous circumstances. We will discuss this phase of the case more fully hereafter.

It is admitted that in July, 1917, and in December, 1917, Collins did visit the re-maindermen in Ohio and did make certain representations to them, tending to convince them that it was advisable for them to enter into a settlement with Hutton.

On May 2i, 1917, a decree of settlement of account and final distribution was entered in tho Idaho court. A notice of appeal from that decree was filed on behalf of the Arkwright heirs on June 291,1917.

On January 16, 1918, the remaindermen sold and deeded to Huttqn all their interest in the estate of Mary A. Hutton for $175,000. Ho money was paid and no deed was transferred, however, at that time.

On March 7, 1918, a stipulation was entered, into. between the parties, agreeing to tho dismissal of the appeal from the order, judgment, and decree of settlement of final account and the decree of final distribution in the Idaho court, with prejudice; and, pursuant to such stipulation, a judgment of dismissal of the appeal was entered the same day.

On April 22i, 1918, pursuant to a stipulation between the parties, an order was entered for the dismissal of the amended petition for construction of will in the Spokane court.

On July 11,1918', a decree of distribution in the matter of the estate of Mrs. Hutton was entered by the Spokane court.

Appellants concede that “no money was to be paid” under the settlement between Hutton and the remaindermen until Hutton had technically “divested himself of his garments as executor and trustee.” They contend, however, that the “contract was fully executed during Hutton’s trusteeship.”

Section 7655 of the Idaho Compiled Statutes for 1919 provides: “Ho executor or administrator must, directly or indirectly, pur[704]*704chase any property of the estate he represents, nor must he be interested in any sale.”

The Idaho decree of distribution settled and approved Hutton’s “first and final account” as executor, awarded him a life estate'in the residue of. the separate property of Mrs. Hutton, under the will, and gave him the residue of the community property of the estate absolutely and in fee, to the latter of which the court held' that Hutton was “by law entitled.” The Separate property of' the Idaho estate consisted solely of one-half interests in two Idaho mining claims. VA11 the rest, of the estate was community property.

The Washington decree distributed to Hutton all the residuary property of the estate. The decree held that all the property in Washington was community property, and recognized the settlement made between Hutton and the remaindermen.-

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Bluebook (online)
59 F.2d 702, 1932 U.S. App. LEXIS 3450, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arkwright-v-gonser-ca9-1932.