Cole v. Ottawa Home & Savings Ass'n

246 N.E.2d 542, 18 Ohio St. 2d 1, 47 Ohio Op. 2d 1, 1969 Ohio LEXIS 355
CourtOhio Supreme Court
DecidedApril 2, 1969
DocketNos. 68-230 and 68-292
StatusPublished
Cited by12 cases

This text of 246 N.E.2d 542 (Cole v. Ottawa Home & Savings Ass'n) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cole v. Ottawa Home & Savings Ass'n, 246 N.E.2d 542, 18 Ohio St. 2d 1, 47 Ohio Op. 2d 1, 1969 Ohio LEXIS 355 (Ohio 1969).

Opinion

Matthias, J.

The important issues raised by these two cases are identical, viz.:

1. Who are to be considered as proper parties to a hearing upon exceptions to an inventory filed pursuant to Section 2115.16, Revised Code?

2. Is the summary procedure provided for under Section 2115.16, Revised Code, a proper proceeding in which title to assets may be determined, and, if it is, is that determination subject to attack in a subsequent action by a person not a party to the original hearing in Probate Court?

Section 2101.24(C), Revised Code, grants jurisdiction to the Probate Court “to direct and control the conduct and settle the. accounts of executors and administrators and' order the distribution of estates.”

As a concomitant to this power, Section 2115.16, Revised Code, provides for a hearing on the filing of an inventory by an executor. Pursuant to Section 2115.16, Revised Code, certain persons must be served with notice of this hearing, but are not thereby made parties to the hearing since their appearance or nonappearance is discretionary. Provision is made for exceptions to be filed to the inventory “by any person interested in the estate or in any of the property included in the inventory.” When exceptions are filed, the only persons to whom notice of the exceptions is required to be given are the “executor or administrator and his attorney.” No provision for notice to. other persons is made mandatory by the statute, although as a matter of practice notice is given to those persons who were notified of the hearing in the first instance. This is exactly what happened in case No. 68-230 with respect to plaintiff, Mary Cole.

Persons who are proper parties to a hearing on exceptions to an inventory, and are therefore bound by the determination of the Probate Court as to degree of right, title, and. interest in those assets which are the subject of the hearing have been identified in the case of In re Estate [7]*7ó† Haas, 174 Ohio St. 277, the syllabus of which provides:

“In a proceeding in the Probate Court, where an exception to the inventory and appraisement in an estáte is filed on the ground that a claim against a certain person should be included in the inventory and appraisement, and an application by the executor of the estate is filed to amend the inventory and appraisement to include such éláim against this person, the exceptor and the executor áre parties in the proceeding. The person against whom if is- contended such claim should be made has a collateral interest in this proceeding, but he is not a party in such proceeding, where he does not enter his appearance therein and oppose the proposed changes in the inventory.”

• Thus it is that this court has upheld a determination by the Probate Court that the proceeds from a joint and survivorship account should not have been included in the inventory of an estate filed by the executor where the survivor named in the account contract was the exceptor to the inventory. In re Estate of Hatch, 154 Ohio St. 149. Also, this accounts for this court having allowed the. defense of res judicata to an action in the Court of Common! Pleas to impose a trust on certain property by one who had already excepted to the inclusion of that saíne property in the inventory of her late husband’s estate and had had the matter determined adversely to her in the hearing upon exceptions in Probate Court. Bolles v. Toledo Trust Co., 136 Ohio St. 517.

We can find no instance where this court has évér-held that a person not a party to the summary proceeding, contemplated by Section 2115.16, Revised Code, would fee» precluded from attacking that judgment.

While there have been statements made by this court that the Probate Court has the power to determine title to assets' claimed by the executor or fey the exceptor as belonging in the inventory of an estate in. a summary proceed-' ing pursuant to Section 2115.16, Revised Code, nowhere can we find á declaration that this determination would [8]*8bind any person not a party to the proceedings. See In re Estate of Gottwald, 164 Ohio St. 405; Bolles v. Toledo Trust Co., supra (136 Ohio St. 517); In re Estate of Haas, supra (174 Ohio St. 277).

It is clear that where the assets are in the hands of a third party, not the executor or the exceptor, a determination by the Probate Court that those assets properly belong in an inventory of the estate amounts to a directive to the executor that a chose in action exists in favor of the éstate which should be pursued. In re Estate of Gottwald, supra (164 Ohio St. 405); In re Estate of Haas, supra (174 Ohio St. 277); In re Estate of Apger, 111 Ohio App. 164.

In order for the principle of res judicata to apply, the parties to the subsequent action must be identical to those of the former or have been in privity with them. Norwood v. McDonald, 142 Ohio St. 299. Since no persons, other than the executor and the exceptor, were parties before the Probate Court in either of the instant actions, no other persons can be bound by the determination in the summary proceeding contemplated by Section 2115.16, Bevised Code.

In case No. 68-230 (Cole), the defendant bank asserts that it had no alternative but to pay the claim into Probate Court upon the order by that court to do so. The defendant bank was mistaken as to its obligation, since it was not a party to those proceedings.

Section 1105.09, Bevised Code, as in effect at the time of this action (now Section 1107.08, Bevised Code), allows a bank to pay the proceeds of a joint and survivorship account to the survivor and be acquitted of any further obligation. This the defendant bank did not do. Furthermore, it is clear that the defendant bank could have filed a declaratory judgment action in either the Probate Court or the Court of Common Pleas and . had all interested parties before the court and acquired a final determination binding upon plaintiff, Mary Cole. In re Estate of Morrison, 159 Ohio St, 285; Streeper v. Myers, 132 Ohio St. 322; Sec[9]*9tion 2721.02, Revised Code. We can find no merit in defendant bank’s argument that Mary Cole is estopped from bringing this subsequent action because she refused to participate in the hearings on exceptions to inventory in' the Probate Court to the defendant’s detriment.

Appellant bank’s other argument — that the Probate Court had power to determine that the joint and survivor-ship contract entered into by the decedent, the plaintiff, and the defendant bank was void ab initio because of the existing incompetency of the deceased as of the date óf formation of the contract (November 2, 1962) and reliance upon the case of Quinn v. State, ex rel. Leroy, 118 Ohio St. 48, for the proposition that a party in privity to a contract cannot sue upon the contract after it has been adjudicated illegal in a competent court of jurisdiction— is ill-founded. No party in privity to the contract was á party to the proceedings in the Probate Court. Certainly plaintiff, Mary Cole, was not, as she made no appearance; nor was defendant bank, as it was not recognized by the Probate Court as a party or even recognized for the purpose of a motion to stay approval of the final account pending the outcome of the present litigation, and defendant bank could not have appealed the determination of the Probate Court, however made.

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Cite This Page — Counsel Stack

Bluebook (online)
246 N.E.2d 542, 18 Ohio St. 2d 1, 47 Ohio Op. 2d 1, 1969 Ohio LEXIS 355, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cole-v-ottawa-home-savings-assn-ohio-1969.