Cowen v. Adams

78 F. 536, 24 C.C.A. 198, 1897 U.S. App. LEXIS 1693
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 8, 1897
DocketNo. 367
StatusPublished
Cited by12 cases

This text of 78 F. 536 (Cowen v. Adams) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cowen v. Adams, 78 F. 536, 24 C.C.A. 198, 1897 U.S. App. LEXIS 1693 (6th Cir. 1897).

Opinion

SEVERENS, District Judge,

haring made the foregoing statement of facts in the case, delivered the opinion of the court.

The first question, in due order, which we are required to decide, is whether the suit is defective for the want of parties in respect to the object sought to be attained. The suggestion of the defendants is that the other legatees than William Means should have been made defendants. The object of the bill is to obtain a decree setting aside a receipt given to the administrators by William Means for the legacy given him by his father’s will, and establishing the right of the complainants to recover the amount of such legacy. It cannot be doubted that the subject-matter of the suit is one of equitable cognizance, and that the bill was filed in the proper court. Payne v. Hook, 7 Wall. 425; Byers v. McAuley, 140 U. S. 608, 13 Sup. Ct. 906. The transactions in which the receipt was obtained were conducted in behalf of the estate by the administrators, and by them only. They alone represented the estate, and they are its sufficient representatives in a suit to set it aside.

In respect to the other branch of the relief sought, attention must be given to the essential nature of the controversy. It related substantially to the question whether certain funds which had been supplied by Thomas W. Means to William Means were in the nature of a debt to the estate, and so competent to be set off against his legacy. This is the theory of the counsel who represent the administrators, and we think it is entirety correct. Ad[544]*544ministrators and executors are possessed of tlie legal title to the personal property of the estate. If there is a debt, they have a right to it in their representative capacity. In any controversy as to whether it is a debt or not, they are the proper litigants, and the only proper ones on that side of the controversy. They are trustees of the estate, and whether a certain claim is or is not parcel thereof is to be determined in a suit in which they stand for the estate. That there are legatees who are consequentially interested in the result does not make it necessary that they should be present in the suit, unless in a case where the trustees b'ehave fraudulently towards them. The beneficiaries may sometimes be proper parties, but ordinarily, at least, they are not necessary parties. The controversy, as above stated, is the only one which exists, except that which relates to the receipt. No one questions the existence of the will, or the right of William Means to the, legacy, and the only question is, as before stated, whether he owes a debt to the estate which must be set off against it. The question in this case is one relating to personal property only. The administrators have not the title to real estate. That passed directly to the devisees. The personal property they take from the hand of the administrators. We think that the administrators were the competent representatives of the estate, and the only necessary ones as the controversy now stands. It may be that the court cannot go so far as to order distribution, but it may go so far as to determine the right of complainants, and set aside the receipt, if that should be held proper. This would be no new thing. There are several cases in the supreme court and circuit court reports, where that has been the limit of the action of the court. Payne v. Hook, supra, is one of them, and is familiar. Nor is the bill premature for such purposes.

In the court below no question was raised as to the necessity of other parties until the hearing, when it seems to have occurred to the court that the suit might, on bringing in the other legatees, be treated as one for the settlement of the estate and proceed as such. In his opinion the learned judge held against the complainants on the principal question, “that the balance due by William Means to the estate of his father at his death was properly a debt, and not a gift.” The court thereupon caused to be entered an order giving leave to the complainants to amend their bill, so as to make it a bill for the general settlement of the estate of Thomas' W. Means, but that such amendment must be upon the basis of the conclusions of the court upon the issues already joined, as stated in the opinion of the court, and that, in default of such amendment, the bill be dismissed. The complainants having declined to amend, the court directed the following decree, which was entered:

“The complainants having failed and declined to amend their hill herein, as permitted hy the order entered May 25, 1S95, or within the extended time allowed ' by subsequent orders of this court, it is now adjudged and deci-eed that their said bill be, and the same is here6y, dismissed,' ¿nd the defendants shall recover their costs herein expended. But this dismissal is without prejudice to the right of complainants to recover in another suit the amount of one-fifth interest in the estate of Thomas W. Means, deceased, over and beyond the amount of the receipt [545]*545of William Moans for $136,035.75, montioned in said bill, and without prejudice to any issues not joined and found against them in this suit.”

For the reasons already stated, we think there was no defect of parties for tlie principal objects of the bill. And, clearly, at that late stage of the case, no objection of the kind having been previously taken, the defendants were not entitled to have the complainants turned out, if they were entitled to some part of the relief sought, even if the suit were so constituted that all the purposes of a bill of wider scope could not be accomplished. Mc-Gahan v.Bank, 156 U. S. 218, 15 Sup. Ct. 347; Society of Shakers v. Watson, 15 C. C. A. 632, 68 Fed. 730.

The court below must have thought that the bill was sufficient for the purposes of deciding that the advances made to William Means constituted a debt to the estate, for it entered a decree which was expressly made final on that subject. The court declined to decide whether the receipt in question was valid or not, leaving that as one which might be tested on the final settlement. But the bill alleges the title of William Means to the legacy, and, in effect, the fraudulent procurement of the receipt from Mm without payment, and with knowledge of the complainants’ rights under their assignment from the legatee. The pleadings were understood to involve the validity of the receipt while the parties were taking the testimony. We cannot doubt that this question was fairly open for decision, and we conclude ihat the proper parties were before the court for deciding as well the question of the existí nee of the claim as a debt as also the question whether the receipt was a valid recognition of it, and a release thereof.

Counsel for the administrators claim that, if William Means owed this debt, as one which survived the testator’s death, it was and is proper matter of set-off against his legacy, and we think this claim well founded; and the proposition has, in this case, the support of an additional equity arising from Use insolvency of the legatee. 2 Woerner, Adm’n, § 564; Wat. Set-Off, §§ 189, 190; Courtenay v. Williams, 3 Hare, 539; Hodgson v. Fox, 9 Ch. Div. 673; Blackler v. Boott, 114 Mass. 24; Brown’s Adin’r v. Mattingly, 91 Ky. 275, 15 S. W. 353.

Upon the merits, the fundamental question is that which relates to the construction of the will of Thomas W. Means, the fourth and fifth paragraphs of which are set out in the preceding statements of facts.

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Cite This Page — Counsel Stack

Bluebook (online)
78 F. 536, 24 C.C.A. 198, 1897 U.S. App. LEXIS 1693, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cowen-v-adams-ca6-1897.