Catlin v. U. S. Fidelity & Guaranty Co.

125 S.W. 297, 137 Ky. 208, 1910 Ky. LEXIS 559
CourtCourt of Appeals of Kentucky
DecidedFebruary 25, 1910
StatusPublished
Cited by5 cases

This text of 125 S.W. 297 (Catlin v. U. S. Fidelity & Guaranty Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Catlin v. U. S. Fidelity & Guaranty Co., 125 S.W. 297, 137 Ky. 208, 1910 Ky. LEXIS 559 (Ky. Ct. App. 1910).

Opinion

Opinion op the Court by

Judge O’Rear

— Reversing.

W. D. Gatlin- died intestate in Marion county, this state, in 1892, leaving among his heirs at law two infant children. The widow and adult heirs brought a suit in equity in the Marion circuit court against the infants to obtain a sale of the real estate descended from the intestate, because it was indivisible without materially impairing its value. A decree of sale was entered. Appellant, P. D. Catlin, became the purchaser of the land at the sale, and executed bonds for the purchase price. The sale was confirmed. Upon an adjustment by the court of the rights of the parties it was decreed that the interest of the infant defendants in the land was $519.14. The purchaser paid all the purchase price except the part going to the-infants. Subsequently, on motion of a guardian .of the infants, an order was entered directing the master commissioner and the receiver of the court, E. L. England, to collect from the pur[210]*210chaser the remaining bonds, the share dne the infants, and to loan ont the money, which was done. Subsequently there was an attempt by the nonresident guardian of the infants to get an order transferring their estate to the foreign jurisdiction. Owing to a failure to execute sufficient bond here for the purpose, the order was not entered.

In the meantime, and in anticipation of the order of transfer, the commissioner and receiver had been ordered to collect, and had collected, the money which had been loaned out under the previous order of the court. Thereafter the commissioner and receiver failed, and made default of payment of the money. A suit was brought in the Marion circuit court by the guardian of the infants in this state, Hundley, to have the infants’ interest in the proceeds of the sale made a charge upon the land, or to recover from the commissioner and the surety on his bond the sum which had gone into the commissioner’s hands for the infants.

Prom the judgment in that case an appeal was prosecuted to this court, where dt was decided (1) that the proceedings under which the infants’ real estate had been sold was an action brought under the provisions of subsection 2, sec. 490, of the Civil Code of Practice, a condition of which proceedings was (section 493) that the guardian of the infants should execute a bond before entry of the judgment of sale, to the effect that the guardian would faithfully discharge his duties as such, and account for and pay and deliver to the infants all money or property due or belonging to the infants when required; (2) that by section 497 of the Civil Code of Practice that, until the bond required by section 493 was given, the share of the infants remained a lien on the land un[211]*211til the infants became of age, “and shall not be paid by the purchasers”; (3) that the order of the circuit court directing the collection of the infants’ share of the purchase money from the purchaser before the bond required by section 493 was executed was void; (4) that, as the commissioner had not the right therefore to collect the money, it remained a lien on the land until the infants arrived at 21 years of age, or until the bond required by section 493 was executed; (5) the guardian, Hundley, having before he brought his suit executed the bond required by section 493, he had the right to collect the purchase money due his wards from the purchaser, and adjudged an enforcement of the lien on the land; (6) that, as the act of the commissioner in collecting the money from the purchaser was void, he acted not in virtue of his office, and his surety was not liable for his defalcation. See Commonwealth v. Catlin, etc., 129 Ky. 493, 112 S. W. 665, 33 Ky. Law Rep. 1049.

On a second appeal of the case it was held that, although the judgment of sale failed to expressly reserve a lien on the land in behalf of the infants, the statute reserved it for them. The judgment enforcing the lien in behalf of the infants was affirmed. Catlin et al. v. Commonwealth, 119 S. W. 769. This suit was then brought by the purchaser, P. D. Catlin, against the sureties upon the bonds of the commissioner and receiver, England, to recover the sum collected by the receiver from the purchaser on the sale bonds which had been adjudged to remain a lien on the land. All the proceedings in the case were set out and relied on as showing a breach of the covenants of his bond by the commissioner. The covenants of the bond are: “That said Edward L. England will faithfully discharge every duty of said of[212]*212fice and pay over in due time to the proper persons any money received by him as commissioner and receiver.” The circuit court dismissed appellant’s petition, deeming that the money had not come into the hands of the commissioner and receiver in virtue of his office, and that, therefore, his sureties were not answerable for it. From that judgment, this appeal is prosecuted.

Some question is made by appellant whether the first action mentioned was instituted under section 490, subsec. 2, of'the Civil Code of Practice, and an effort was made in this'ease to show that there was included in that cause an accounting of the personal estate of the decedent also. It is true there was an apparent settlement of'the decedent’s estate in that proceeding. And such may have been one of the purposes of the suit. Still it was not competent for the court in a settlement case alone to have sold any more of the lands descended than was necessary to pay the balance of decedent’s debts after the per^ sonalty had been exhausted. Gill v. Gilvin’s Heirs, 4 Metc., 197. But it was not improper to join in a suit to settle the decedent’s estate the cause of action under section 490, subsec. 2, Civ. Code Prac., for the sale of the residue of the land after paying the debts, on the ground that such residue was indivisible without materially impairing its value. Gill v. Gilvin, supra; Elliott v. Fowler, 112 Ky. 376, 65 S. W. 849, 23 Ky. Law Rep. 1676. The allegations of the petition in the original case were strictly pertinent to the proceeding under section 490, subsec. 2, Civ. Code Prac., and had no relevancy to the cause for the settlement of the estate By the sale of enough of its realty to pay its debts, if that had been all that was involved. Besides, the precise question here- — i. e., [213]*213whether the sale was under section 490, subsec. 2, Civ. Code Prac. — was presented and decided in Commonwealth v. Catlin, 112 S. W. 665, 33 Ky. Law Rep. 1049, 129 Ky. 493, and Catlin v. Commonwealth 119 S. W. 769. Section 490 of the Civil Code of Practice authorizes the sale . of real estate in an action brought for that purpose where (1). the share of each owner is worth less than $100; or (2) if the estate be in possession and can not be divided without materially impairing’ its value. Section 493, as stated, requires the bond of the guardian of an infant to be executed before the judgment of sale.

But that section is expressly made subject to section 497, which allows the sale, but requires the infant ’s share to be retained as a lien on the land until the bond is paid, or until the infant arrives at maturity. Section 493, subsec.

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Cite This Page — Counsel Stack

Bluebook (online)
125 S.W. 297, 137 Ky. 208, 1910 Ky. LEXIS 559, Counsel Stack Legal Research, https://law.counselstack.com/opinion/catlin-v-u-s-fidelity-guaranty-co-kyctapp-1910.