Bell v. Thompson

79 P. 358, 145 Cal. 646, 1905 Cal. LEXIS 602
CourtCalifornia Supreme Court
DecidedJanuary 3, 1905
DocketS.F. No. 3653.
StatusPublished
Cited by2 cases

This text of 79 P. 358 (Bell v. Thompson) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bell v. Thompson, 79 P. 358, 145 Cal. 646, 1905 Cal. LEXIS 602 (Cal. 1905).

Opinion

HENSHAW, J.

This is an appeal by the special administratrix from the order of court settling her final account as special administratrix and refusing to allow certain expenditures charged therein.

1. The court refused to allow certain items charged as expenditures in the matter of the collection of the claims of the Bell estate from the estate of Robinson. The circumstances briefly were these: L. L. Robinson had executed his promissory note to Thomas Bell in his lifetime for the sum of twenty-nine thousand dollars. This note Bell had deposited with the Bank of California as security for debts owing by him. The Bell estate had a separate claim against the Robinson estate for $1,287. Upon both of these claims there was accumulated interest. The Robinson note having been given to the Bank ■of California as security for the debt of Bell, it is apparent *648 that it was to the interest o£ the estate of Bell to realize as, much as possible upon that note, since for any deficiency the estate of Bell was responsible over to the bank. The principal asset of the estate of Robinson was the Los Medaños Rancho, in Contra Costa County, which was heavily encumbered by mortgage. It was important to secure a purchaser who would pay such price for the ranch as to leave sufficient funds over for the liquidation of the claims of the Bank of California and of the estate of Bell. Mr. Blakeman, the attorney for the special administratrix herein, had himself substituted as attorney for the Bank of California and as its attorney undertook the collection of the claims. The result was, that the rancho was sold for money enough to pay the claims of the bank and of the Bell estate in full. Mr. Blake-man testified that he proceeded to sell the Bobinson ranchojust the same as an owner would do, and for that purpose had to and did employ real-estate agents and agents to get special information, to search out prospective purchasers, to make maps and the like. The payments for these purposes are timones which the court refused to allow in settling this account.. The court found, it should be added, that the special administratrix in incurring the expenditures and in-paying these-sums acted in good faith and in accordance with what she-believed to be the best interests of the estate of Bell, and believed the expenses to be necessary expenses in connection with her proceedings to collect and preserve the assets of the-estate of Bell and to collect the claims of the estate of Bell against the estate of Robinson. Notwithstanding the benefits-, which accrued to the estate of Bell, the court properly refused tc allow these expenditures. They were not lawful expenditures for the special administratrix to make, and the court-in probate well summed up the matter when it said: “The-special administratrix of the estate of Bell had no authority derivable from the statutes of this state to engage in contracts, with real-estate or other agents for the payment from the-funds in her charge of commissions on sales made of property belonging to the estate of Robinson.” The matter of these expenditures is rigidly and properly governed by the express language of the codes, and to say in this or in any case that an expenditure not authorized by the law as necessary for the preservation of the estate, could be allowed be *649 cause made in good faith, or because benefit resulted to the estate from it, would be not only to subvert the law, but it would substitute for the wise rule which the law has laid down the judgment, caprice, or whim of the court in probate.

Nor can these claims be countenanced and allowed, as appellant seeks to have them, under section 2273 of the Civil Code. That section provides that “A trustee is entitled to the repayment, out of the trust property, of all expenses actually and properly incurred by him in the performance of his trust. He is entitled to the repayment of even unlawful expenditures, if they were productive of actual benefit to the estate. ’ This, it is true, is the express rule of law made applicable to trustees generally, but the foundation of appellant’s argument—namely, that a special administratrix, being a trustee, comes within the provisions of the section—is completely overthrown by section 2250 of the Civil Code, which, being a part, of the same chapter as the section above quoted, declares:. “The provisions of this chapter apply only to express trusts, created for the benefit of another than the trustor, and in which the title to the trust property is vested in the trustee not including, however, those of executors, administrators, and guardians, as such.” We have not considered it necessary to discuss separately each of the items growing out of' the transactions of the Robinson estate which the court rejected. From what has been said it is plain that one and all they were properly disallowed.

2. The estate of Thomas Bell owned shares of stock in the North Bloomfield Mine. The special administratrix employed a Mr. Gassaway to examine and report upon the condition of" the mine. He did so, and she paid him $565. The Robinson estate also owned stock in the North Bloomfield Mine. The-expenditure is justified by the special administratrix upon the ground that it was her duty to inform herself of the value-of the stock “because she was pushing the Robinson estate stock to sale, and there were parties seeking to purchase the-Bell estate stock.” This item was likewise properly rejected. It was no part of the duty of the special administratrix, nor, indeed, "was it within her power as special administratrix to-sell this property. Her duty, so far as the Bell estate was. concerned, was to preserve it, and, for the reasons heretofore given, the expenditure was not authorized as being am *650 effort to determine the value of the stock of the Bobinson estate.

3. The court refused to allow an item of $120 paid to a detective agency for services in watching the office occupied by Mr. Staacke and Mr. Maxwell, the former executors of the will of Bell, who had been removed at the suit of Mrs. Bell. The special administratrix testified that Staacke and Maxwell had not yet turned over all the papers to her, and that she believed that they were criminals, but she failed to cite any instance in which either of them ever endeavored to conceal or make away with any of the papers, and the utmost shown in this regard was, that certain letters addressed to George Staacke, and relating to some of the property in which the Bell estate was interested, were handed to one of the detectives by Mr. Maxwell when demand was made. She admitted that Mr. Staacke had readily given her all of the papers that she called for, and that he never refused to produce any paper when asked. In this state of the evidence it cannot be ■said that the court was not justified in refusing to allow this item as a necessary or proper expenditure.

4. In her account as special administratrix Mrs. Bell charged the estate with expenditures incurred by her in her ■successful efforts to remove the executor George Staacke from -office. The amount so charged was $12.50 by way of taxable costs, and more than $500 for expenses in no sense taxable as •costs, and consisting of $220 paid to a bookkeeper for examining the books of the executor, $126.60 to the stenographic reporter of the court for transcribing notes of testimony, $55.80 paid H. S. Crocker & Co. for printing briefs and the oral argument in the supreme court. These items were one and all properly rejected. Mrs.

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Bluebook (online)
79 P. 358, 145 Cal. 646, 1905 Cal. LEXIS 602, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bell-v-thompson-cal-1905.