Clover v. Peterson

281 N.W. 275, 203 Minn. 337, 1938 Minn. LEXIS 716
CourtSupreme Court of Minnesota
DecidedAugust 26, 1938
DocketNo. 31,610
StatusPublished

This text of 281 N.W. 275 (Clover v. Peterson) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clover v. Peterson, 281 N.W. 275, 203 Minn. 337, 1938 Minn. LEXIS 716 (Mich. 1938).

Opinions

Gallagher, Chief Justice.

Appellant’s husband, Carl J. Peterson, died testate April 13, 1916. After devising their homestead to his wife, Augusta Peterson, who is appellant here, and disposing of the bulk of his personal property by specific bequests, he made certain general bequests. His executor was directed to set aside $8,000 to be invested “in farm mortgages or bank certificates of deposit” as the executor should see fit and to pay the income therefrom to appellant. If alive 15 years after his death, “the said sum of eight thousand ($8,000) dollars shall be paid to her,” but if she died before that moment the fund was to be distributed among designated persons. The other recipients of general legacies were his parents, who were to be paid $500, and four of his children, whose bequests totaled $7,500. To secure money to establish the fund and to discharge the other legacies, the will directed the executor to sell his farm of 280 acres. The only other resources available for these purposes were six shares of stock in a local starch company and one share in a local cooperative creamery. There was no cash. The dispute is strictly limited to administrative transactions affecting the general legacies and the assets devoted to them; other aspects of the will and of the estate may be ignored.

May 26,1916, letters testamentary were granted respondent, John W. Clover, the executor named in the will. Toward the close of that year an inventory and appraisement listed the total value of the [339]*339farm at $17,000; it was subject to a mortgage of $2,500. The starch stock was estimated to be worth $300 and the cooperative share $30. These assets were dedicated not only to the payment of the general legacies but also to the satisfaction of the allowed claims of creditors and the expenses of administration.

At the time of his death testator was under a contract obligation to his parents to support them, and they were lienors of a part of the farm to secure its performance. In December, 1916, they consented to release their lien and claim for support in consideration of the payment of their legacy of $500 and $300 in addition. The probate court in its license to settle the claim recited the complete terms of the settlement, but, feeling evidently that the legacy was absolutely due, made its order in January, 1917, authorizing settlement of the claim for support for $300. Eespondent "was also authorized in the same month to increase the mortgage on the farm to $5,000 to secure funds to pay off these sums as well as the allowed claims of other creditors. The March following respondent paid grocery bills amounting to $88 incurred by the parents after testator’s death.

In November, 1917, respondent sold 80 acres for $5,500 cash. A month later he disposed of the remaining 200 acres to one Nelson under a contract for deed requiring the payment of $16,500. According to its terms, $1,000 was to be paid at the time the contract was made, a like amount April 1 following, $500 annually thereafter through April 1, 1923, $750 annually through April 1, 1930, the balance April 1, 1931, and six per cent interest on unpaid principal. Nelson met principal and interest payments until the spring of 1921, when he defaulted the principal payment. In 1922 he defaulted as to both principal and interest. In 1923 he brought the interest payments up to date and paid the three principal payments then due from the proceeds of the sale of 40 acres of the farm which he persuaded respondent to conclude with a third party for $1,500. In January, 1924, he surrendered his interest in the land by quitclaim deed to respondent. During the life of the contract he paid $4,500 of the principal sum and $4,493.60 in interest.

[340]*340Upon the sale of the 80 acres in the fall of 1917, $1,700 was paid the mortgagee to secure its release from the mortgage; for the same reason $700 was paid on the mortgage at the time of the sale of the 10 acres. The total mortgage indebtedness was increased by a second mortgage for $1,000 consummated in the spring of 1922. The greatest part of the receipts of cash listed above was applied to the legacies provided for the children. Seven hundred dollars was paid for this purpose in 1917; $3,000 in 1918; $800 the succeeding year; the year following $2,311; in 1921 $320; and in 1922, when the last payment was made, $850 was devoted to this purpose. No order of the probate court decreeing this disposition of the funds was ever made.

In 1918 and again in 1927 respondent’s intermediate accounts setting forth all of these receipts and disbursements were settled and allowed. Notice of the hearings was given appellant, but she neither appeared nor entered objections to the account. At the close of the latter year respondent’s payments to or on behalf of appellant amounted to $2,530.21.

Since Nelson’s withdrawal from the contract for deed the farm has been rented on shares, but the income it produced proved scarcely sufficient to pay current expenses. Early in 1927 it became necessary to make extensive repairs to the barn. Appellant was informed of the defects and of the plans respondent proposed to follow in repairing them as well as of the lack of funds in the estate with which to carry them out. The work was financed by loans secured by respondent and his own advances. In January, 1928, appellant loaned $2,600 to the estate to retire the loans and to reimburse respondent.

In 1931, about 15 years after testator’s death, respondent filed his final account, and thereby began a litigious epilogue to his administration which has embraced a hearing in the probate court, two trials in the district court, and this, the second appeal to this court. See In re Estate of Peterson, 197 Minn. 344, 267 N. W. 213. The assets reported were the same shares of stock, now worthless, and the remaining 160 acres of land. The latter is mortgaged for [341]*341$3,600, and $1,390.22 is owed appellant on her loan. Although the legacies to the parents and the children have been paid, no fund is in existence to satisfy appellant’s claim, nor were there any other assets from which the fund could be created.

The probate court surcharged respondent with the amounts paid the parents and children and for the appraised value of the stock; his claim for compensation as representative was denied, as was his prayer for an allowance of attorney’s fees. Respondent appealed to the district court, which arrived at opposite conclusions in all of these matters, and this appeal is taken from its judgment. Seventy-five assignments of error are preserved, but appellant forbears discussing many of them and conveniently groups the remainder under a few heads.

For the purpose of this opinion, the items which appellant insists should be surcharged against respondent in his final account may be considered under two subheads: (1) The legacies paid to decedent’s children during the course of administration, and (2) all other contested items, including principally representative’s fees, counsel fees, and the stock which became worthless before being-disposed of by respondent.

The vital question for determination concerns the payment to decedent’s children of legacies aggregating $7,500. Appellant contends that her bequest of $8,000 was entitled to priority in payment and bases her contention upon the claim that having waived her right to take under the statute and having elected to take under the will, she became a purchaser of her legacy, which put her in a preferred class if abatement of legacies became necessary.

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213 N.W. 40 (Supreme Court of Minnesota, 1927)
In Re Trusteeship Under Last Will of Melgaard
274 N.W. 641 (Supreme Court of Minnesota, 1937)
Schaefer v. Nylin
202 N.W. 439 (Supreme Court of Minnesota, 1925)
In Re Estate of Peterson
267 N.W. 213 (Supreme Court of Minnesota, 1936)
In Re the Accounting of Martin
90 N.E. 46 (New York Court of Appeals, 1909)
Brook v. Chappell
34 Wis. 405 (Wisconsin Supreme Court, 1874)
Dimond v. Manheim
63 N.W. 495 (Supreme Court of Minnesota, 1895)
Erickson v. Robertson
133 N.W. 164 (Supreme Court of Minnesota, 1911)

Cite This Page — Counsel Stack

Bluebook (online)
281 N.W. 275, 203 Minn. 337, 1938 Minn. LEXIS 716, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clover-v-peterson-minn-1938.