Cheever v. Ellis

108 N.W. 390, 144 Mich. 477, 1906 Mich. LEXIS 1078
CourtMichigan Supreme Court
DecidedJuly 3, 1906
DocketDocket No. 36
StatusPublished
Cited by8 cases

This text of 108 N.W. 390 (Cheever v. Ellis) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cheever v. Ellis, 108 N.W. 390, 144 Mich. 477, 1906 Mich. LEXIS 1078 (Mich. 1906).

Opinion

Montgomery, J.

The original bill in this case was filed by Cheever, as administrator of the estate of Leon-hard Gruner, and by the bondsmen of Leonhard Gruner, given as executor of the last will and testament of Joseph J. Ellis. The bill was filed against Caroline P. Ellis, co-executor with Gruner, and Hudson P. Ellis and John A. Ellis, legatees named in the will of Joseph J. Ellis, and prayed an accounting of Gruner’s transactions as executor. The answer and cross-bill sought to surcharge Gruner’s estate with certain items lost through his neglect. On the hearing in this court the account of Gruner was so ■surcharged with items amounting in the aggregate to a large sum. The case is reported in 134 Mich., at page 645. On the settlement of the decree it was ordered that such decree be without prejudice to the right of complainants, or any of them, to institute proceedings to enforce any rights of contribution from the coexecutrix which they might have; and upon further application a provision was inserted in the final decree as follows:

“Leave is hereby granted to the complainants to file a supplemental bill in the nature of a bill of review in this cause in said circuit court for the county of Washtenaw, in chancery, to enforce any rights of contribution from Caroline P. Ellis, coexecutrix of the estate of Joseph J. Ellis, deceased, that they may have.”

[480]*480Such a bill has been filed, setting up no newly-discovered testimony, but amplifying the statements in the original bill, and setting up certain facts which are claimed to establish complainants’ right to contribution which were omitted from the original bill. To this supplemental bill the defendants demurred on numerous grounds, many of which relate to the propriety of adopting this remedy, and some go to the merits of the whole case as presented by the supplemental bill, so called. It is perhaps inaccurate to refer to this bill as a bill of supplement. It is manifest that when the original case was before us the aim of counsel for the complainant was to secure to his clients the right to have the question of Mrs. Ellis’ responsibility considered. It was quite within the power of the court to permit an amendment to the bill and to remand the case for that purpose. Instead of making the order in this form, the amended bill authorized was designated a supplemental bill. All parties understood, and the order recites, the purpose of the bill which was authorized. While that order stands the propriety of the practice is not open to collateral attack.

The question remains, Does the supplemental bill present a case entitling complainants to the relief sought ? as the complainants expressly state that no claim is made that there is any newly-discovered evidence, but insist rather that Mrs. Ellis was liable upon the record as it was presented in the original case, and that the order permitting the filing of a supplemental bill was asked for and granted for the purpose of presenting that question. As the complainants have made the former pleadings, and the testimony taken on the former hearing as well, a part of this bill, it would seem that the demurrer may well be treated as raising the question whether the whole record presents a case showing prima facie that Mrs. Ellis should be surcharged with any portion of the loss accruing to the estate through the default or fraud of French in connection with the Ogemaw securities.

The original bill averred that Mrs. Ellis was coexecu[481]*481trix; that the inventory of the estate was a joint inventory; that joint annual accounts were filed down to 1898. The sixth paragraph reads as follows: .

“Your orators further show unto the court that while the said defendant Caroline P. Ellis was appointed coexecutor with the said Gruner of the estate of said Joseph J. Ellis, deceased, she entrusted practically the entire management of the affairs of said estate and trust to the said Gruner, except as hereinafter set forth, and that she expressed from time to time the utmost confidence in his integrity and ability and the utmost satisfaction with the manner in which the affairs of said trust were carried on.”

The important averments by way of supplement or amendment made in the supplemental bill are' briefly stated: That Myron H. French was, after due deliberation, appointed by Gruner and Mrs. Ellis as their joint agent in the management of the affairs of the estate in Ogemaw county, and that he acted as joint- agent and never as Gruner’s sole agent; that French frequently visited Ann Arbor, and at such times gave her all the information which Gruner possessed in regard to the affairs of the estate in Ogemaw county; that all the losses to the estate charged against Gruner in the. final decree were losses which were due to the conduct and acts of said Myron H. French; that Mrs. Ellis signed and swore to the annual accounts; that she participated in the management of the affairs of the estate, repeatedly signed discharges of mortgages and assignments of mortgages, and understood fully what was being done in the management of the affairs of the estate; that during the administration she received |900 as fees for her services as executrix. As to the averments in the sixth clause of the original bill, the supplemental bill avers that “while it was true that said Caroline P. Ellis, executrix, intrusted practically the entire management of the affairs of said estate and trust to said Gruner, * * * it is also equally true that said Gruner, as executor, never had the exclusive management of any of the affairs of said estate and trust, and [482]*482that such affairs were managed jointly by said coexecutors ; that said Gruner and said Caroline P. Ellis frequently consulted together, and also advised together with legal counsel in regard to the affairs of said estatethat books of account were kept by said Gruner, and were open at all times to the inspection of said Caroline P. Ellis, executrix.

It is claimed by defendants’ counsel that the averments of the supplemental bill are wholly inconsistent with the averments of the sixth clause of the original bill and with repeated references in said bill to French as Gruner’s agent. We agree with counsel’s contention to this extent: We think the whole case as made by the original bill and by Gruner’s testimony showed that Gruner assumed to manage and control the Ogemaw securities through French. We quote from Gruner’s testimony, taken in another court and appearing in the former record:

Q. You may state whether or not you are executing the duties of executor at the present time ?

“A. I am.

Q. You may state who has exercised mainly these duties, yourself or Mrs. Ellis ?

“A. I have mainly exercised these duties, but Mrs. Ellis has been generally informed.

Q. But has taken no part in adjusting or taking care of the business ?

“A. Well, no direct part; no * * *

“ Q. Since you were appointed you have had the possession of all the notes and mortgages and other papers belonging to the estate, have you not ?

“A. Yes, sir.

Q. Including the notes and mortgages and other matters in Ogemaw county?

Q. And during all the time since you have been executor you have kept possession of all the notes and mortgages that were made and executed on loans in Ogemaw county, have you not ?

[483]*483“ Q.

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Bluebook (online)
108 N.W. 390, 144 Mich. 477, 1906 Mich. LEXIS 1078, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cheever-v-ellis-mich-1906.