Dunn v. Sublett

14 Tex. 521
CourtTexas Supreme Court
DecidedJuly 1, 1855
StatusPublished
Cited by7 cases

This text of 14 Tex. 521 (Dunn v. Sublett) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dunn v. Sublett, 14 Tex. 521 (Tex. 1855).

Opinion

Hemphill, Ch. J.

This suit, by Michael C. Dunn, only heir of John R. Dunn, deceased, is brought to establish a claim against the estate of Philip A. Sublett, deceased, which had been rejected by the defendant, E. B. Sublett, as Ms administrator, and which claim is founded on a tripartite contract between the said John R. Dunn, the said Philip A. Sublett, and Sam Houston, by which the said Sublett and Houston sold and conveyed to the said John R. Dunn, an undivided third of certain land claims described in the agreement, in consideration of which the said John R. Dunn advanced to the said Sublett and Houston, the sum of seventeen hundred and seventy-eight dollars ; and it was further stipulated that the said Sublett and [526]*526Houston should refund to the said John R. Dunn, the said sum of money, out of the proceeds of the first sales of any portion of the lands ; and to secure payment out of the first sales, as aforesaid, the said Sublett and Houston hypothecated and mortgaged their respective portions of the said lands, to remain un-der such mortgage, until the complete reimbursement of the said sum of seventeen hundred and seventy-eight dollars ; further covenanting that they would not subtract any portion of the lands so mortgaged, to their individual or private use; and the said Sublett and Houston agreed to locate the said lands, on the said Dunn’s advancing the charges and expenses, to be refunded in the same manner and on the same conditions that the sum first mentioned was to be reimbursed. The sum subsequently advanced is alleged to be sixteen hundred and twenty-eight dollars, and this was formally acknowledged by Sam Houston, one of the obligors, before William Christy, a Notary Public in the city of New Orleans.

To each of the instruments, that is, the original contract and the acknowledgment of the last sum advanced, is attached or endorsed an affidavit, by John A. Greer, that the claim is just, and that all offsetts, credits and payments, known to the affiant, have been allowed.

It is alleged that the claim was presented to the administrator and rejected; that the said Sublett and Houston have not paid the said sums of money, or any part of them, though often requested; and judgment is prayed, to operate as an acknowledgment of said claims, and for costs.. The demurrer by defendant was sustained and petition dismissed.

Were these such claims for money as should, under Art. 1156, Hart Dig., have been presented to the administrator ? This is a question of some difficulty. The Section declares that every el aim for money against a testator or intestate shall be presented to the administrator, without discriminating between those due and those not due. Whether the Legislature intended any such distinction is a point upon which there might be, perhaps, some difference of opinion. The terms are euffi[527]*527ciently comprehensive to embrace both classes, and such construction would accord entirely with the spirit of the provision, and the dictates of justice, and equal right. It will perhaps be found not very convenient, under this view, to carry all the provisions of the Statute, requiring as speedy administration as may be consistent with the rights of creditors and heirs, into full effect, where many of the debts may not arrive at maturity until some time in the future. In New York, by Statute, no distinction is allowed between debts due and those not due, except that from the latter there is a rebate of the interest for the time unexpired. In a certain sense, no distinction is made in the administration of assets, under the general principles of English law, between debts due and those not due. At least such is the rule, where all the creditors are brought into equity by bill, that the assets may be distributed, according to established legal principles, to all the creditors, in the due course of administration. (The effect of a creditor’s bill is produced in this State, by Statute requiring all claims to be brought before the County Court that they may receive a distributive share of the funds.) This creditor’s bill lies as well by a creditor whose debt is payable in futuro, as when it is in presentí, if it be débitum in presentí, solvendum in futuro. (2 Younge & Collier, 13, 17; 1 Story Equity, Sec. 547.)

This subject is pretty fully discussed in the case of the United States v. The State Bank of North Carolina, (6 Peters, 29.) The question of the priority of debts due to the Government of the United States, as arising under certain Statutes, was involved ; and a construction was given, that this priority was not restricted to debts whose day of payment was passed, but extended also to such as were payable at a future day. The right of priority, in cases where there was an assignment in favor of creditors, was the special question for decision; but the discussion and illustration assumed a wider range. The phrase “ debts due to the United States” had been used in the Statutes, and a construction was given to the word due” as used in such connection. It was said to be sometimes used to [528]*528express a state of indebtment, and then it is equivalent to owed or owing, and sometimes to express the fact that the debt has become payable ; that in the clause of the Act declaring that the priority of the United States shall attach, “ where the “ estate of any deceased debtor shall be insufficient to pay all the debts due from the deceased,” the word “ due ” is used as synonymous with owing, and that, “ in the settlement of the “ estates of deceased persons, no distinction is ever taken be- “ tween debts which are payable before or after their decease; “ the assets are equally bound for the payment of all debts; “ the insufficiency spoken of in the Act, is an insufficiency, not “ to pay a particular class of debts, but to pay all debts of every “nature; that the term “due” includes all debts, whether “ payable in presentí or not, and that “ debts due to the United “ States,” as used in this Act, means debts owing to the United “ States.”

The effect of this decision is, that a debt, owing to the United States, would have priority over other debts of a deceased insolvent, although such debt might not be payable until a future day, on the general principle, that in the settlement of estates, no distinction is made between debts payable now or at a future day, and that debts owing, though not matured, from the deceased, may be said to be due to his creditors.

By the laws of England, and of most of the sister States, a specialty, or debt by bond, has priority over debts by simple contract, and an executor or administrator is bound to pay such debt before a debt by simple contract, although this may be past due, and the bond be not yet due. (2 Williams on Ex’ors, p. 876.) This would doubtless depend on circumstances, and would not be enforced, unless there be a deficiency of assets to satisfy all the debts. (2 Younge & Collier 13, 17.) But if there be two specialties, one due and the other not yet due, the executor must not pay the latter before the former. It appears from these authorities, that debts not due are, by the English law, entitled to consideration in the settlement of estates ; and as there is much reason and sound policy in the rule, and as [529]*529such rule is deducible, on the most fair and reasonable ¿principles of construction, from our Statute, we cannot hesitate as to its adoption, and could accede to no other, unless the language were such as to show that such must have been the intention of the Legislature.

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Bluebook (online)
14 Tex. 521, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dunn-v-sublett-tex-1855.