Dunne v. American Surety Co.

43 A.D. 91, 59 N.Y.S. 429, 1899 N.Y. App. Div. LEXIS 1933
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 1, 1899
StatusPublished
Cited by3 cases

This text of 43 A.D. 91 (Dunne v. American Surety Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dunne v. American Surety Co., 43 A.D. 91, 59 N.Y.S. 429, 1899 N.Y. App. Div. LEXIS 1933 (N.Y. Ct. App. 1899).

Opinions

Barrett, J.:

We are all agreed in this case except as to the question whether it was necessary for the plaintiff to obtain leave to bring the action. It is proper that we should give the reasons which, in the judgment [92]*92of the majority, call for a different conclusion upon this point from that reached by Justice Rumsey.

A few words, too, may not be inappropriate as to the other questions. Our agreement with Justice Rumsey as to the plaintiff’s right to maintain the,action does not rest wholly upon the authority of Walton v. Walton (4 Abb. Ct. App. Dec. 512). The allegation of the complaint there was that the deceased executor had-in his hands at the time of his death unadministered assets of his testator. It was held that the administrator de bonis non could recover these assets from the executor of the deceased executor'; in specie, if unconverted — their value, if converted into money. The conversion without an. appropriation of the money to the purposes of the estate was deemed but a. partial administration. “ Administration of assets,” said Justice Hogeboom, “implies such a complete disposition of them as not only to collect them from the debtor of the estate — if they are in that condition — but, finally, to place them in the hands of the creditor, legatee, or distributee to whom, after undergoing the process of administration, they finally belong. As before stated, they had not undergone this latter process, and we are obliged, in the state of facts in which the parties have presented the case to us, to assume that the assets required further administration.” The question whether the action could have been maintained for a devastavit was not discussed. Nor was - it discussed in Clapp v. Meserole (1 Keyes, 288). The court there simply held, following Walton v. Walton, that an administrator de bonis non can maintain an action against the representatives of a deceased executor who died without applying the assets which ha'd come to his hands. In the case at bar the allegation is,that the deceased administrator converted the proceeds of his testator’s property to his own use. There would seem to be no substantial ..distinction in principle between the cases. In legal intendment the proceeds of the property sold were here in the hands of the deceased administrator. These proceeds were not administered, in the sense of administration, as defined in Walton v. Walton, Practically it is immaterial whether incomplete, administration, resulting from the failure to place these proceeds in the hands of the persons to whom they finally belonged, was caused simply-by-their retention or by the administrator’s personal use of the funds. It is correctly [93]*93stated in the American and English Encyclopaedia of Law (Vol. 11 [2d ed.], 1331) that the authority of administrators de bonis non has been extended in the United- States far beyond that which was accorded to them at common law ; and in many States of the Union it has been expressly held that such an administrator may recover against his predecessor, or his predecessor’s representatives, for any devastavit or malad ministi’ation. (See cases cited in note 1 of the volume referred to.)

We prefer, however, to fortify our conclusion that.the plaintiff may maintain this action by a reference to the provisions of the statute. Section 2606 of the Code of Civil Procedure provides that where an executor or administrator dies, the Surrogate’s Court has the same jurisdiction upon the petition of his successor, to compel the executor or administrator of the decedent to account which it 1 would have against the decedent if his letters had been revolted by a surrogate’s decree. Upon such revocation of letters, the surrogate has full jurisdiction to compel the person whose letters have been revoked to account for or deliver over money or other property, and generally to settle his account. (§ 2605.) Section 2606 further provides that “with respect, to the liability of the sureties in, and for the purpose of maintaining an action upon, the decedent’s official bond, a decree against his executor or administrator, rendered upon such an accounting, has the'same effect as if an execution issued upon a surrogate’s decree against the property of decedent had been i returned unsatisfied during decedent’s lifetime.” Section 2608 then provides: “ Where letters have been revoked by a decree of the Surrogate’s Court, the successor of the executor, administrator, or guardian, whose letters are so revoked, may maintain an action upon his predecessor’s official bond, in which he may recover any money, or the full value of any other property, received by the principal in the bond, and not duly administered by himand to the full extent of any injury, sustained by the estate of the decedent or of the infant, as the .ease may -be, by any act or omission of the principal. The money recovered in such an action is regarded as part of the estate in the hands of the plaintiff; and must be distributed or otherwise disposed of .accordingly.”

It is apparent from these provisions that the purpose of the Legislature was to leave no further trace in the law of this State of [94]*94the common-law rule that assets converted by the executor, or administrator were, technically speaking, administered. We agree with the. learned-'author of the notes to the Lawyers’ Reports Annotated (Book 40, p. 54) that “ in 1880 the provisions-of the Code authorized a recovery by the administrator de bonis non from Lis predecessor -for a balance, or accounting, or conversion, . or maladministration.” It should be observed in this connection that'where letters are revoked and a successor appointed, no provision-, is made for leave- to sue upon the bond. (§ 2608.) Where, however, letters are revoked and no successor is .appointed, the .person aggrieved, who desires to sue upon the bond, must obtain leave. - (§ 2609.) The reason is obvioits. In the latter case, -the person, aggrieved is not exclusively vested with the cause of action. His action is “ in .behalf of himself and all others interested.” In the former ease, - however, the successor, when appointed, is" exclusively vested with-the cause- of action, Pie represents the estate, the creditors, next of kin, and all persons who may be interested in the estate.

By analogy, the same rule applies in the case of a deceased administrator. Upon the appointment of his successor, the latter succeeds -to all the powers and,duties of his predecessor. The administration of the successor is no longer regarded as separate and distinct from the preceding administration, as it was at common law, but rather as a continuation of it, -the- one beginning where the other left off.. (11 Am. & Eng. Ency. of Law. [2d ed.], 1331.)

The Code, however, makes one important distinction. between a deceased administrator and' one -whose letters have been revoked. In the formei case, where a successor is not appointed, no provision is made for an action upon the administrator’s bond by any “ person aggrieved,” while .in the latter such provision is made. The Code does not seem to contemplate the possibility of failure to -appoint, a successor to a.deceased administrator. At all events, the effect of this distinction is to limit an “aggrieved person’s” right of action at law upon an administrator’s bond’ to cases of revocation. In the case of death, such a persom can proceed at law only through the instrumentality of a successor. Neither of these sections, however, has any relation to an action in equity based, upon .the impossibility of securing redress at law.

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Related

Bank of New York v. New Jersey Title Guarantee & Trust Co.
256 A.D. 609 (Appellate Division of the Supreme Court of New York, 1939)
Wright v. Clark
81 Misc. 527 (New York Supreme Court, 1913)
Dunne v. American Surety Co.
34 Misc. 584 (New York Supreme Court, 1901)

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Bluebook (online)
43 A.D. 91, 59 N.Y.S. 429, 1899 N.Y. App. Div. LEXIS 1933, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dunne-v-american-surety-co-nyappdiv-1899.