Elliott v. Carter

9 Va. 541
CourtSupreme Court of Virginia
DecidedJanuary 24, 1853
StatusPublished

This text of 9 Va. 541 (Elliott v. Carter) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elliott v. Carter, 9 Va. 541 (Va. 1853).

Opinion

Lee, J.

It appeared from the report of the commisssioner made in the progress of this cause, that the assets of the estate of John Crawford deceased, other than the property specifically devised and bequeathed by the will of the decedent, were insufficient for the payment of the debts due from the estate, by the sum of 5502 dollars 84 cents; and the question arose how this deficiency was to be supplied. The chancellor was of opinion, and by the decree of the 5th of February 1834, in effect held, that it should be charged equally and ratably upon the land, the slaves and other property disposed of by the will. In this, the appellant alleges the court erred. He insists that the personal estate is the natural fund for the payment of debts, unless the rule be changed by the will of the testator, for which the general charge contained in that of the decedent in this case for payment of debts does not suffice; and that the assets should have been so marshaled that the slaves and other personal property should first have been applied to supply the deficiency before any portion of the proceeds of the sale of the real estate should have been withdrawn for that purpose.

The order in which the different funds or subjects of property constituting the estate of a deceased testa[549]*549tor, and which are liable to the payment of debts, will be applied, seems to be pretty clearly settled by the various adjudications that have been made upon the subject. The first to be so applied, is the personal estate at large not exempted by the terms of the will or necessary implication. Next to it, real estate or an interest therein expressly set apart by the will for payment of the debts. Next, real estate descended to the heir. After it, property, real or personal, expressly charged with payment of debts, and then subject to such charge, specifically devised or bequeathed. If these prove inadequate, then general pecuniary legacies, and after them, specific legacies, both classes ratably; and in the last resort, real estate devised by the will. 2 Jarman on Wills 546, and authorities cited; 4 Kent’s Com. 420, et seq.; 1 Story’s Eq. Jur. § 577. Subject to the modification indicated by this classification, and in the sense which it explains, it is the general rule that the personal estate is the primary fund for the discharge of the debts, and is to be first applied and exhausted, even in payment of debts for which the real estate may be expressly charged by mortgage. Co. Litt. 208 b., note 106; Howel v. Price, 1 P. Wms. 291 ; Cumberland v. Codrington, 3 John. Ch. R. 224, 257; King v. King, 3 P. Wms. 358. That the devisee of real estate not charged with the payment of debts, is entitled to have the assets marshaled against the claimants of the other funds of the estate in the order stated, including specific legatees, is well settled by the authorities. 2 Jarman on Wills 601; Clifton v. Burk, 1 P. Wms. 678 ; Forrester v. Leigh, Amb. R. 171; Scott v. Scott, 1 Eden’s R. 45S; Keeling v. Brown, 5 Ves. R. 359 ; Mirehouse v. Scaife, 2 Mylne & Craig 695, 14 Eng. Ch. R. 696. In the case of Long v. Short, 1 P. Wms. 403, it would seem to have been held that specific legatees and devisees of real property not charged with payment of debts, were [550]*550bound to contribute ratably for payment of debts due by specialty. But tbe authority of this case has been greatly doubted; 2 Jarman 547 n, b; and it would appear to be greatly shaken, if not entirely overthrown by the cases just cited, and especially the case of Mirehouse v. Scaife, 2 Mylne & Craig 695, in which the distinction endeavored to be maintained between specific and residuary devisees is utterly repudiated, and the principle applicable to both held to be identical.

■ This exemption of real estate devised extends as well to the case of a deficiency of personal assets for .the payment of legacies as of debts; the legatees having no right to call upon the devisee to contribute to the payment of their legacies, unless the real estate be expressly charged. Hayes v. Leaver, 2 Jarman on Wills, 547 n.

But in either case the right thus asserted on the part of the devisee to hold the estate devised, as against the legatees, free from liability for debts or legacies, is to be confined to the case of a devise of real estate not charged with the payment of debts or legacies; for it is equally clear that where the estate devised is so charged, it is applicable before legacies, and the legatees have the right to have the assets marshaled in their favor. The legacies not being charged with the payment of debts while the real estate devised is so charged, the legatees will be regarded as more the objects of the testator’s bounty than the devisee; and where the personal estate is not sufficient to pay both the creditors and the legatees, the latter will be entitled to charge the real estate devised so far as the personal estate had been applied in payment of debts. Foster v. Cook, 3 Bro. C. C. 347 ; Lutkins v. Leigh, Cas. Temp. Talb. 53; Forrester v. Leigh, Anb. R. 171; Norman v. Morrell, 4 Ves. R. 769 ; Aldrich v. Cooper, 8 Ves. R. 381, 396; Livingston v. Livingston, 3 John. Ch. R. 148, 153. Nor is there any [551]*551distinction in this regard between specific legatees and pecuniary legatees, the right to marshal the assets in the case supposed being affirmed equally in favor of the latter as of the former. Forrester v. Leigh, Amb. R. 171: Wythe v. Henniker, 2 Myl. & Keene, 365, 8 Cond. Eng. Ch. R. 162.

The principle which lies at the foundation of the right of a legatee or devisee to marshal the assets, is as has been intimated, the presumed intention or inclination of the testator in his favor. But where, as in the case now in judgment, the testator has charged his whole estate, as well the real property devised as the personal bequeathed, with the payment of his debts, there can be no stronger presumption of an inclination In favor of the devisee than of the legatee, both being equally the objects of the testator’s bounty; and between persons so taking, equity will not Interfere unless the testator has shown clearly some ground of preference or priority of the one over the other. 1 Story’s Eq. Jur. § 565. And if in such a case the property other than that specifically devised and bequeathed, prove inadequate to meet the charge, it should seem that equity to supply the deficiency, would apply its maxim that equality is equity, and levy it equally and ratably upon the property so devised and bequeathed. The principle of contribution in such a case for the purpose of meeting the common charge resting alike upon the different subjects of property disposed of among the several objects of the testator’s bounty, is dictated by a plain and obvious rule of justice, and is, I think, fully ■sanctioned by authority. In the case of Carter v. Barnadiston, 1 P. Wms. 505, the testator being seized in fee of two different manors, by his will charged all Ms real estate with the payment of Ms debts, and devised the two manors to different persons. He afterwards mortgaged one of these manors to secure the payment of the sum of 4,000 pounds and interest, and then died. [552]

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9 Va. 541, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elliott-v-carter-va-1853.