Distributors Supply Co. Inc. v. Estate of Shablow

92 N.W.2d 83, 253 Minn. 1, 1958 Minn. LEXIS 646
CourtSupreme Court of Minnesota
DecidedJune 20, 1958
Docket37,099, 37,100
StatusPublished
Cited by8 cases

This text of 92 N.W.2d 83 (Distributors Supply Co. Inc. v. Estate of Shablow) 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
Distributors Supply Co. Inc. v. Estate of Shablow, 92 N.W.2d 83, 253 Minn. 1, 1958 Minn. LEXIS 646 (Mich. 1958).

Opinions

Knutson, Justice.

Victor F. Shablow, during his lifetime, was engaged in the business of custom chemical aerial spraying of farm crops in the Red River Valley. He also did considerable farming in Kittson County. He died intestate on August 7, 1954, leaving him surviving his wife, Agnes Shablow; his son Robert, aged 24; his son James, aged 17; and his daughter Judy Ann, aged 8. On a petition of Robert, Agnes Shablow was appointed administratrix of the estate of her husband on September 21, 1954, and letters of administration were issued to her on September 23. In qualifying, she gave a bond in the sum of $8,000. On September 23, an order was made by the probate court allowing Mrs. Shablow $300 per month for support and maintenance of herself and her two minor children during the settlement of the estate. Certain described personal property and the homestead of decedent were set apart to Mrs. Shablow as surviving spouse by an order of the court dated October 13, 1954. No appeal has been taken from that order. At the time these orders were made, it was thought that the estate was solvent.

An inventory was filed on January 8, 1955, in which the property listed therein was appraised at $27,465, of which $3,220 is the net value of real estate and the balance is personal property consisting mainly of farm machinery — encumbered for nearly its entire worth — , book accounts, and cash. The book accounts were appraised at $18,000. The property listed was appraised by Bernard Locken and Phillip Peterson, who signed the oath of appraisers as part of the inventory on December 14, 1954. Claims were filed and allowed aggregating somewhat over $28,000. Among the claims filed and allowed were two claims of appellants aggregating $7,557.25.

When it appeared that the estate in all probability was insolvent, all nonexempt real and personal property was sold at public auction to the highest bidder. Thereafter, on May 3, 1955, the administratrix petitioned [3]*3for leave to pay 50 percent of all claims, which was ordered by the probate court. Thereupon all claimants, including appellants, were paid 50 percent of their claims.

On February 14, 1955, one of the creditors filed a petition for removal of Mrs. Shablow as administratrix and for removal of the appraisers, who, the petition states, were appointed by the court on December 14, 1954. Appellants filed a similar petition shortly thereafter. After a hearing, these petitions were denied by the probate court. In so doing, the court said in its order:

“* * * the Administratrix having duly performed all of her duties as such Administratrix to the best of her ability, without any fraud, deceit or appropriation to her own use of any of the properties of said estate, and having duly kept a complete bank account of all receipts and disbursements which she had made up to the time of said hearing and including the day of said hearing, and there being no evidence whatever of any willful intent on the part of the said Administratrix to willfully conceal from the creditors or deprive the creditors of any of their rights to any of the property involved in said estate, and it further appearing that the said Administratrix has made a complete, honest and fair disclosure of all property holdings to the best of her knowledge, information and ability and that the same will all be duly reported in the final account,
“It Is Ordered, that said petitions with respect to the prayer for removal of said Administratrix be and the same is hereby in all things denied.”

On August 5, 1955, the administratrix filed her final account. Objections to the account were filed by appellants. After a hearing, the account was allowed, with some minor adjustments. The account as allowed may be summarized as follows:

Total receipts $ 53,417.23
Disbursements:
Personal property selected by surviving spouse $ 1,200.00
Maintenance of family 3,600.00
Expenses of administration 8,188.56
Expenditures of decedent’s family 562.45
[4]*4Expenses of last sickness 1,438.77
Funeral expenses 795.00
Taxes 1,258.40
Claims of creditors1 17,574.46
General claims, 50 percent paid 13,528.85
Residue of personal property for distribution 5,270.74
Total $ 53,417.23

Of the residue of personal property on hand, the order of the court shows:

Uncollected accounts receivable $ 619.00
Cash on deposit 3,488.70
Deficiency surcharged to administratrix 1,163.04
Total $ 5,270.74

An appeal thereafter was perfected to the district court. After the case had been tried for two days, the parties entered into a stipulation in open court as follows:

“* * * it has been stipulated by the parties that without further evidence being taken, the account of the administratrix may be surcharged in the amount of $17,299.93, which surcharged amount will be in addition to that amount which the Probate Court ordered the account of the representative to be surcharged; that the said figure of $17,299.93 is composed of the following items: unlawful and improper charges made by the administratrix against the estate in the following respects:
“Appraisers’ fees $ 20.00
“Payments made to James Shablow, the minor son of the administratrix 440.00
“Payment made to Danielson Garage, attributed to harvesting and auction expense 100.00
“Payments made on alleged claims of creditors 3,541.53
“The Karlstad Bank account claimed by the administratrix, Agnes Shablow, to be a joint account 4,267.40
[5]*5“The crop allowance from the estate to Agnes Shablow personally 1,959.00
“Payments made to Agnes Shablow on accounts purchased by her and assigned to her and filed by her as claims against the estate 191.00
“Other excessive harvesting and auction expense 1,631.00
“Payments improperly made to son Robert Shablow 900.00
“Disallowance of Administratrix’s compensation 3,000.00
“Attorney fees charged in Administratrix’s account and allowed by the.Probate Court, and by stipulation disallowed 1,250.00”

Appellants contend that they have brought into the estate the amount surcharged to the administratrix’s account under this stipulation. Respondents contend that the stipulation was entered into in order to create enough paper assets in the estate so that appellants’ claims could be paid in full. Based on the contention that they had benefited the estate to the extent of the assets covered by the stipulation, appellants asked the court to allow them an attorneys’ fee of $6,000 to be paid out of the assets of the estate. The court allowed them $1,000, plus $450 expenses. This appeal involves only the propriety of the court’s allowance of attorneys’ fees.

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92 N.W.2d 83, 253 Minn. 1, 1958 Minn. LEXIS 646, Counsel Stack Legal Research, https://law.counselstack.com/opinion/distributors-supply-co-inc-v-estate-of-shablow-minn-1958.