Duffy v. State ex rel. Rogers

17 N.E. 615, 115 Ind. 351, 1888 Ind. LEXIS 351
CourtIndiana Supreme Court
DecidedJune 27, 1888
DocketNo. 13,160
StatusPublished
Cited by7 cases

This text of 17 N.E. 615 (Duffy v. State ex rel. Rogers) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Duffy v. State ex rel. Rogers, 17 N.E. 615, 115 Ind. 351, 1888 Ind. LEXIS 351 (Ind. 1888).

Opinion

Elliott, J.

It is alleged in the relator’s complaint that James Duffy was appointed the administrator of the estate of Michael Carney, deceased; that Duffy received money and [352]*352property of the decedent’s estate to the value of $3,000; that for the money and property so received he has never accounted, but appropriated it to his own use prior to the 1st day of January, 1880; that. Duffy invested the amount appropriated by him in the purchase of the real estate described ; that he abandoned his trust and fled the State; that he was removed from his trust on the 17th day of September, 1883, and the relator appointed his successor; that, on the 21st dáy of November, 1883, the relator brought an action on the bond executed by Duffy as administrator, and obtained judgment against him and his sureties, McTaggart and Peirce, for $1,899 on the 4th day.of December, 1884.

It is further alleged that, in October, 1882, James Duffy conveyed the land so bought by him with trust funds to his children, his co-appellants; that, at the time the conveyances were made, he wás insolvent, and had no other property than that fraudulently conveyed by him subject to execution ; that ■he had none other at the time this suit was brought; that the grantees paid no consideration for the pi’operty conveyed to them; that the conveyances were executed for the fraudulent purpose of cheating and defrauding the creditors of Duffy. The adult appellants did not appear to the complaint, and a default was entered against them.

The administrator de bonis non had authority to bring and maintain this suit. The judgment obtained by him against Duffy for a breach of. duty was a lien on the land fraudulently conveyed. Blair v. Smith, 114 Ind. 114; Hanna v. Aebker, 84 Ind. 411.

As the relator had a lien on the property of the fraudulent grantor, he had aright to invoke the aid of a court of equity to perfect that lien and make it available for the puiqmse of his trust. Quarl v. Abbett, 102 Ind. 233 (52 Am. R. 662).

The lien was created by the judgment obtained on the bond, but, in order to remove obstructions to its successful enforcement, .the relator was entitled to the assistance of the courts. He might, had he so elected, have sold the land and left it [353]*353for the purchaser to assail the fraudulent conveyances, but this he was not bound to do, for he had a right, in the first instance, to clear away the fraudulent conveyances which -clouded his lien. Brown v. Brown, 17 Ind. 475; Johnson w. Harris, 69 Ind. 305; Stout v. Stout, 77 Ind. 537 (541).

The judgment obtained against Duffy and his sureties conclusively adjudged that the amount found due was due the .estate of the decedent, and it created a lien for that amount. It also established the further fact that the debt was part of -the assets of the estate. As the debt was due the estate, it was not only the relator’s right, but it was his duty to take measures to collect it by enforcing the judgment. It is plain, therefore; that he had.authority to make clear his way to property subject to his lien by removing the apparent claims ■of fraudulent grantees. In removing these claims he simply reduced to an available form a claim that had previously been •adjudged to be part of the assets of the estate represented by him.

■ An administrator de bonis non must, of necessity, have rauthority to prosecute all suits essential to perfect the lien of ■a judgment obtained by him upon the bond of his predecessor. He alone is entitled to collect the judgment and to distribute the proceeds, and, as this is his duty, he must possess the means necessary to enable him to perform it.

The debt for which the judgment was rendered was, it is important to keep in mind, a debt which the administrator de bonis non was authorized to collect and distribute as part ■of the trust estate. It was not a debt due the decedent in ■his lifetime, but a debt growing out of the default of the first ■administrator of his estate, and, therefore, one which the successor of the defaulting administrator was bound to collect. The collection of such debts must be made by the administrator de bonis non, since he obtains the judgment and is charged with the duty of making it available as part of the trust estate. It is not material, therefore, whether there are [354]*354creditors or not, for, as the debt was due the administrator de bonis non in his trust capacity, he was bound to use diligence to secure and distribute the avails of the judgment according to law. It follows, as a necessary logical sequence, that the relator was not bound to aver that there were unpaid debts due from the estate of his decedent. Langsdale v. Woollen, 99 Ind. 575.

If he had not obtained the judgment on a claim which accrued subsequent to the death of the intestate, there might possibly be some doubt upon this question ; but, however this may be, we think it clear that where, as here, the administrator de bonis non obtains a judgment against his predecessor for wrongfully converting the assets of the estate, he may enforce that judgment without alleging that there are unpaid claims against the estate. Either this conclusion must be correct, or it must be true that an administrator de bonis non who obtains judgment upon the bond of his predecessor can collect his judgment only in the event that there are no other-assets sufficient to pay the claims of creditors. That this last conclusion is correct we venture to assert no one will affirm.

It is, perhaps, true that the relator might, had he so elected, have issued an execution against the sureties and enforced his judgment, but it does not follow from this that the defaulting administrator and his fraudulent grantees have a right to-coerce him to pursue that course. The truth of the one proposition does not imply the truth of the other. The relator was, at all events, not bound to pass by property which in equity belonged to the principal debtor, and upon which his judgment was a lien, and compel payment from the sureties on the wrongdoer’s bond. There is neither equity' nor justice in the demand of the appellants. They occupy a position unfavored by courts of chancery. The property Avhich they seek to wrest from the creditors by fraud is equitably and legally subject to the lien of the relator’s judgment, and we can conceive of no reason for permitting them to dictate to him what course he shall pursue. There is no [355]*355merit in their claim that the relator shall leave their wrong undisturbed and compel the sureties to pay the judgment. It is not for them to fraudulently hold the property and demand that the relator shall proceed against the sureties.

Neither in law nor in equity have the appellants a right to demand that the sureties shall be compelled to pay the judgment, and they permitted to hold the property acquired by fraud. The question is not whether the relator might, if he chose, compel the sureties to pay the money, but whether he has a right to make good his lien upon the property of the principal. The lien exists, and we can see no reason why the relator may not make it available, even though it be conceded that he was not bound to do so. The question is, after all, not what he was bound to do, but, what had he a right to do.

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24 N.E. 239 (Indiana Supreme Court, 1890)

Cite This Page — Counsel Stack

Bluebook (online)
17 N.E. 615, 115 Ind. 351, 1888 Ind. LEXIS 351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duffy-v-state-ex-rel-rogers-ind-1888.