Bellingham State Bank v. McCormick

215 N.W. 152, 55 N.D. 700, 1927 N.D. LEXIS 147
CourtNorth Dakota Supreme Court
DecidedAugust 20, 1927
StatusPublished
Cited by4 cases

This text of 215 N.W. 152 (Bellingham State Bank v. McCormick) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bellingham State Bank v. McCormick, 215 N.W. 152, 55 N.D. 700, 1927 N.D. LEXIS 147 (N.D. 1927).

Opinion

Nuessle, J.

This matter originated in the county court of Divide county. It relates to the administration of the estate of Ella F. McCormick, deceased. Jack McCormick was the administrator of this estate. The estate was closed and he was finally discharged on September 25th, 1925. The plaintiff is a foreign banking corporation.

The plaintiff contends that it has a claim against the estate; that *702 the administrator, Jack McCormick, was its managing officer during' the time that the estate 'was in course of probate; that McCormick had knowledge and control of the claim; that he fraudulently failed and neglected to file the claim and fraudulently procured the closing of the estate and was discharged as administrator by falsely representing to the county court that all claims had been paid. Pursuant to these contentions the plaintiff in November, 1925, applied to the county court of Divide county for an order vacating and setting aside the order of discharge and re-opening the estate for the purpose of allowing the presentation of its claim. In its petition to the county court in this behalf the plaintiff set out the facts on which it relied and prayed the issuance of an order directed to Jack McCormick as administrator requiring him to show cause why the order allowing the final account of the administrator, closing the estate, and discharging the administrator should not be vacated and set aside on account of having been fraudulently procured. No other parties than Jack McCormick were joined and service was had upon no one else. Conformably to.the order to show' cause, McCormick filed a return. Therein he denied any fraudulent failure or neglect- on his part to file the plaintiff’s claim and set forth that such claim was satisfied and discharged. He further alleged that the plaintiff with knowledge of all the facts waived any rights it might have had to file a claim against the estate.

The cause came on for hearing on the issues as made on the order to show cause and the return. At the time of hearing the defendant objected to the proceeding and moved for a vacation and discharge of the order to show cause and a dismissal upon the grounds — that the court was without jurisdiction to hear and determine the matter; that the parties interested in the proceeding had not been joined and cited to appear; that the petition did not state facts sufficient to warrant and authorize the court in opening and vacating the orders attacked. The court deferred ruling on this objection and motion, and testimony was taken pursuant to the issues as made. Thereafter the county court denied the plaintiff’s prayer for relief and dismissed the proceeding on the grounds that the court had no jurisdiction to gránt the relief prayed and that the petition did not state facts sufficient to warrant and authorize the court to proceed in the matter. The court also considered the testimony and made findings of fact and conclusions there *703 on adverse to the plaintiff. Thereupon the plaintiff perfected an appeal to the district court.

On the appeal to the district court the defendant renewed the objections made in the county court to the jurisdiction of the court and the sufficiency of the petition. The district court deferred ruling on these objections and testimony was again taken. After consideration the district court affirmed the judgment of the county court on the ground that the county court had no jurisdiction to grant the relief for which the plaintiff prayed in its petition. The district court did not consider the testimony offered and received and made no findings as to the facts. The instant appeal is from the order of the district court and from the judgment entered thereon.

The defendant’s contention in both the county and district courts and again in this court is that while the county court has power to vacate and set aside a final order or decree entered by it in a probate matter pursuant to the provision of § 8534, Comp. Laws 1913, that this power must be exercised at the time, in the manner, and for the causes as set out and prescribed in §§ 8594—8598; that in this behalf these statutes are exclusive and that the plaintiff has failed to bring its case within the requirements thereof. This was the view of both the county and the district courts and the basis of their decisions adverse to the plaintiff.

On the other hand, the plaintiff expressly disclaims that it is seeking relief under and by virtue of the statutes above referred to. It concedes that it is entitled to no relief under those statutes. It contends that aside from and independently of those statutes the'county court has the power to open .up and vacate its orders or decrees where the same have been procured by fraud and that it has established a casé of fraud. The plaintiff’s position in this behalf as stated in its brief and on argument in the county court is as follows: “It is true that the motion papers do not set forth facts that would warrant the court in vacating the order for reasons set forth in § 8595, Comp. Laws 1913, for the proceeding is not brought under said section. Nor is it a statutory proceeding at all. It is brought under the broad ground that when one procures an order from any court by means of fraud and concealment of material facts, when the revelation of such facts would have precluded the securing of said order, the court has ample common-lav/ *704 right and it is its duty to set aside the order, particularly when the granting of the order is in aid of a fraud perpetrated by the one procuring the order upon some third party.”

And again in its brief on this appeal the plaintiff says: “This proceeding is a direct attack upon the order of discharge by one never a party to any proceeding in county court. It is not an appeal, nor is it a motion by a party to reopen or set aside any proceeding. Respondent contends that petitioner is without remedy because it has not proceeded under § 8595, Comp. Laws 1913. We do not claim to be proceeding under this section. Section 8594 provides that a rehearing is a re-examination of the facts involved. This proceeding is not such a re-examination and does not purport to be. It is merely an application to set aside an order of the county court procured by the fraud of the person proceeded against.”

This Court has heretofore had occasion to consider the question of the powers of the county court with respect to the vacation and setting aside of its final orders and decrees. We have held that § 8534 must be considered and construed in connection with §§ 8594 — 8598; that § 8534 prescribes the power of the county court with reference to the opening and vacating of its decrees and that the succeeding sections prescribe the time, manner, and causes in which and for which final orders or judgments of the county court may be vacated and set aside. We think that these cases are conclusive against the plaintiff on this appeal. See Fischer v. Dolwig, 29 N. D. 561, 151 N. W. 431; Reichert v. Reichert, 41 N. D. 253, 170 N. W. 621; Kranz v. Tavis, 49 N. D. 553, 192 N. W. 176; Re Hafey, 52 N. D. 262, 202 N. W. 138.

Plaintiff’s contention in the instant case is exactly the contention made before this court in the case of Reichert v. Reichert, 41 N. D. 253, 170 N. W. 621. We think that what was said in the opinion in that case fully and exactly answers the argument advanced. Judge Bronson there said: -

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Bluebook (online)
215 N.W. 152, 55 N.D. 700, 1927 N.D. LEXIS 147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bellingham-state-bank-v-mccormick-nd-1927.