Bemmerly v. Woodward

57 P. 561, 124 Cal. 568, 1899 Cal. LEXIS 1036
CourtCalifornia Supreme Court
DecidedMay 31, 1899
DocketSac. No. 573
StatusPublished
Cited by44 cases

This text of 57 P. 561 (Bemmerly v. Woodward) 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
Bemmerly v. Woodward, 57 P. 561, 124 Cal. 568, 1899 Cal. LEXIS 1036 (Cal. 1899).

Opinion

TEMPLE, J.

This is an action against the executrix of a deceased executor to compel an accounting and to recover property of the estate. The plaintiffs are respectively administrator and administratrix, with the will annexed, of the estate of Michael Bemmerly, deceased. The complaint shows that Bemmerly died in 1877, testate, and leaving an estate of great value.

G. W. Woodward and Henrietta Bemmerly were named in the will as executor and executrix, and both were appointed and duly qualified in June, 1877. Mrs. Bemmerly resigned as executrix in 1879, and G. W. Woodward took into his possession the entire estate, and continued in the exclusive possession thereof until the twenty-first day of December, 1894, when he died. While executor he received the rents, issues and profits of the estate, and “thereby made and received large profits.”

The will is not set out in the complaint, hut it imposed upon the executors a continuing trust, in addition to the ordinary duties of executors. The fourth subdivision reads as follows:

“4th. I direct that all the balance of all my real estate of which I may die possessed shall not he sold or divided, except as hereinafter provided; that is to say: Whenever one of my chil[570]*570dren becomes of age or it shall be entitled to his or her share of the estate then remaining in the hands of my executors, and they are hereby directed and authorized to deliver up such child’s portion by fair division made of the lands then belonging to the estate.”

It is charged that on the 2d day of January, 1884, the executor filed his last annual account, which was settled and approved by the court, and from which it appears that he then had in his hands, in cash, seventeen thousand four hundred and thirty-three dollars and seventy-four cents. The estate consisted of a large amount of real estate and personal property, and it is charged that since the above annual account Woodward has made no return, but has rented the land and sold the product, from which he has realized large sums, which he has kept and mingled with his own property.

The complaint contains allegations in regard to specific pieces of real estate, and as to each it is charged that Woodward received rents and profits, which he commingled with his own money. Also statements of profits over and above expenses of each year, showing that at all times since the last annual account rendered, to his death, Woodward had a large amount of money in his hands belonging to said estate. Also that he yearly made sales of grain and other products without any order of court, and never made any report of such sales.

There is also a general averment that all receipts from the estate were commingled by Woodward with his private funds, and were used in his private business, and for his own profit and gain, and have been so used since his death by the defendant, who is his executrix.

The complaint contains no express averment that Woodward neglected to keep the money of the estate invested, as his duty was as trustee.

The amended and supplemental complaint avers the due presentation of a proper claim against the estate of Woodward, but also shows that such presentation and rejection was after the commencement of this action.

The answer admits nearly all the facts stated in the complaint, including the charge that Woodward received the moneys and made large profits from the use and advantage thereof. By a [571]*571very generous construction it may be understood as denying that Woodward commingled the funds of the estate with his, or used them in his private business. It is worthy of note, however, tnat, while the answer admits that W'oodward had in his hands for many years large sums belonging to the estate, no investments on behalf of the estate are set out. There is, however, in the complaint a general allegation that Woodward, while executor, acquired other property, from which he received rents and profits, and one piece of property so acquired is specified. The answer also includes a statement of the accounts of Woodward Avhich itself shows that Woodward, at all times since 1884, had on hand large sums of money which he did not invest for the advantage of the estate. ■

The findings are generally in favor of plaintiffs, but upon the questions of fact principally litigated and discussed they are strangely indistinct and unsatisfactory. The main point of difference at the trial was Avhether Woodward had mingled the funds of the estate with his private funds and had used the estate money in his own business and for his private advantage. I think it appears by necessary inference from the findings that Woodward did use the money of the estate in his private business, but it is not distinetty so found, nor is there a finding of any special investment made of estate moneys for his own advantage.

The next most important issue Avas whether Woodward had neglected to invest money in his hands as trustee for the advantage of the trust. There is no express finding upon the subject, but, as in regard to the other matter, I think it appears by necessary inference that the trustee had and held in his hands for years sums of money which he ought to have invested for the advantage of the estate, and did not. Whether such inferences are necessary from the findings is matter of argument, and the most troublesome question presented by the appeal.

It is found that Woodward took possession- of the estate, rented the land for one-fourth of the crop; that the yearly crops were placed in the Avarehouse by the tenants and Avere sold by WoodAvard without any order of court, and no report of such sales, or showing receipt of the money, has ever been made. Also that WoodAvard dealt with the property as his oavu, and his man[572]*572agement thereof was prudent; also that he kept no account with a bank of the funds of the estate, but had a general account in his own name with the Bank of Woodland, where he deposited his own money and that of the estate, and checked out of this account money for his private use and for current expenses of the estate. At times he drew all the money from the bank, and occasionally the account was overdrawn; and frequently there was less money in the account than the money due from Woodward to the estate. Also that he mingled the funds of the estate with his own and used them indiscriminately.

It does not appear necessarily from this finding that Woodward used the estate money for his own advantage. The evidence shows that during this time Woodward purchased fifty thousand dollars’ -worth of real estate for himself, and that immediately after each purchase the general bank account was much depleted, and sometimes overdrawn. The findings are, however, .strangely silent upon these important matters.

Still, there is a finding which contains a statement of an account from the last annual settlement made in January, 1884. This shows the receipts and expenditures of each year, and that since the year 1884 Woodward had, or should have had, constantly on hand a large sum of money belonging to the estate; and there is no finding that Woodward ever made any investments or loans for the estate. Indeed, it is not alleged that he did so in the answer. At the best the answer only denies that he mingled the funds or used the money of the estate for his private purposes.

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Bluebook (online)
57 P. 561, 124 Cal. 568, 1899 Cal. LEXIS 1036, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bemmerly-v-woodward-cal-1899.