Dyer v. Jacoway

42 Ark. 186
CourtSupreme Court of Arkansas
DecidedNovember 15, 1883
StatusPublished
Cited by18 cases

This text of 42 Ark. 186 (Dyer v. Jacoway) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dyer v. Jacoway, 42 Ark. 186 (Ark. 1883).

Opinion

EakxN, J.

Appellants, creditors of the estate of Samuel Dickens, deceased, on behalf of themselves and other creditors of said estate, filed this bill in 1878, against the administrator Jacoway, his sureties on his bond, and Mrs. Elizabeth D. Jacoway. The object of the bill was to set aside for fraud the settlements made by Jacoway in the probate court, to restate the accounts, to hold the sureties liable, and to subject to any decree to be rendered, certain real estate to which Mrs. Jacoway had legal title, A demurrer to the bill for want of equity was sustained, whereupon complainants rested. The bill was dismissed and they appealed.

The bill is long, containing thirty-one charges as to matters in the course of the administration alleged to be fraudulent.

It appears from the bill, which with regard to matters which should have been answered must be taken as true, that Dickens died intestate, on the second of March, 1867, and that Jacov'ay gave bond and was appointed bis administrator. Claims to the aggregate amount of $23,597.62 were duly probated against his estate in favor of complainants and numerous other creditors, which to a great extent remained unpaid.

1. Administration Chancery jurisdiction to correct errors and frauds.

The administrator filed an inventory, and made several settlements of his accounts current, respectively, on the nineteenth of May, 1868; on the seventh day of July, 1869 ; on the fourteenth day of April, 1870, and the fifth day of July, 1871; all of which were approved and confirmed. Subsequently, on the fifteenth day of April, 1875, he filed a fifth settlement, in lieu of the four former ones, purporting to render an account, and statement of all his administration down to that time, from the beginning, which was also duly approved and confirmed.

The jurisdiction of courts of chancery to interfere with proceedings for the settlements of estates in the probate A ' -1-courts, rests upon the same grounds with their interference with the judgments and proceedings of any other ■courts whatever. It does not rest upon any jurisdiction of the original subject matter, but upon this broad principle that courts of equity will not allow the proceedings of any other courts to be made the means of perpetrating successful frauds, or will relieve against accidents or mistakes which other courts could neither prevent nor cure, but which, unrelieved, would cause irreparable wrong and injustice. And the interference goes no further than is reasonably demanded by the necessity. When the fraud is corrected, or the impediment to justice removed, the other courts, if there be anything further to do, will be left to proceed with the subject matter of their respective jurisdictions, especially if it be peculiarly intrusted to them by the Constitution.

Most usually the appeal is made to this power of equity courts in the settlement of estates, as to which probate courts have original exclusive jurisdiction. In this special connection, it has become the established doctrine that courts of equity should not interfere for the mera correction of errors which might be corrected on appeal, nor on account of irregularities in settlements, which, although illegal, have been prompted by no fraudulent intent, and have resulted in no substantial injustice; nor after a long-period, when explanations may have become difficult, and evidences have been lost, which, in the nature of things* might have shown things which appear illegal, on the record to have been really equitable. Courts of probate are not, nor ever were, strictly speaking, common law courts. In England they were part of the system of ecclesiastical courts ; and here within the range of the subject matters intrusted to them, they proceed upon equitable, as well as legal rules of right. Besides, the judges are not required to be learned in the technicalities of the law,- it being far-better that they should be men of sound, practical business qualifications, with a wholesome sense of right and wrong-

2. Same:

Those who wish to confine them to the strict letter off the law, have ample opportunity to do so, by paying attention to all proceedings in which they have an interest, and filing exceptions, and talcing appeals from erroneous rulings. If they do not, the peace of the community and the security of property, especially the safety of sureties* demand that they be not allowed, at pleasure, to-object to anything which rnay be merely illegal or irregular, and demand new settlements, when it may, from loss of witnesses or destruction of documents, or failure of memory* be impossible to make them. On the other hand it has-been equally well settled that if fraud be shown in a settlement, either by actual and direct proof, or by such an array of circumstances as will fairly authorize a Chancellor to infer intentional fraud, relief will be readily granted * and as the case may require, the accounts will be surcharged and falsified, or set aside altogether, and settlements "required de novo. West and wife v. Waddell et al. 33 Ark., 575; Reinhardt v. Gartrell, Ib., 731; Mock et al. v. Pleasants, 34, Ark., 63; Shegogg v. Perkins et al., Ib., 117, Jackson v. McNabb et al., 39 Ark., 111; Price v. Peterson, 38 Ark., 496; Nathan v. Lehman et al., 39 Ark., 256; Trimble and wife v. James, 40 Ark., 393.

In this case, of the thirty-one specific charges of facts which are assumed to indicate fraud, some of them, taken alone, have not that effect. Of this nature may be noticed the claim for attorney’s fees, without having been authorized to employ an attorney; the failure of the administrator to charge himself with interest on money which came into his hands; the claim of commissions above that prescribed by law; and improper claims of credits for securities which might have been made useful. These, for example, are things generally wrongful, but which belong-to the class of errors, and might have been passed upon by the probate court without any imposition practiced upon it, or intent to deceive. Even double credits, which constitute part of the specifications, might be in single instances the result of simple mistakes.

But there are charges of a much graver nature, which, if proven on hearing, would clearly indicate a fraudulent intent in the settlement, and which should be answered and denied, or explained. Without recapitulating all, it will be sufficiently illustrative to say that there are charges of large credits claimed and allowed of money, property at appraised value, and interest thereon, paid to the widow,, without any corresponding charge against the administrator of these items. There are charges of credits claimed and allowed of insolvent notes, which had been actually paid to the administrator. It is charged that the administrator failed to charge himself with interest on the price of property sold for the estate, when bonds for the purchase money were taken bearing interest. There are many charges of like nature. They may be all answered, and, so-far as we know, successfully denied or explained, But taken for true, as they stand on demurrer, they afford sufficient ground to surcharge and falsify the accounts ; or, if the Chancellor should be of opinion that the fraud pervaded all the accounts, of setting them aside altogether, and ordering an account <le novo.

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Bluebook (online)
42 Ark. 186, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dyer-v-jacoway-ark-1883.