Equitable Life Assurance Society of U. S. v. Lunning

265 N.W. 876, 64 S.D. 168, 1936 S.D. LEXIS 24
CourtSouth Dakota Supreme Court
DecidedMarch 21, 1936
DocketFile No. 7830.
StatusPublished
Cited by8 cases

This text of 265 N.W. 876 (Equitable Life Assurance Society of U. S. v. Lunning) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Equitable Life Assurance Society of U. S. v. Lunning, 265 N.W. 876, 64 S.D. 168, 1936 S.D. LEXIS 24 (S.D. 1936).

Opinion

■CAMPBELL, J.

In 1923 Christina Lunning was the dluly appointed, qualified, and acting administratrix of the estate of Helge H. Lunning, deceased, which estate was in process of probate in the county court of Lincoln county, S. D. On October 30, 1923, said! administratrix filed in the county court of Lincoln county her petition (which contained all the information, particulars and recitals contemplated iby statute. Sections 3334, 3425, R. C. 1919), asking leave and authority to mortgage certain realty of said estate for the sum of $24,000. 'Due notice of hearing upon said, petition was given to the parties and in the manner and form required by law, and as a result of 'hearing thereon the county court of Lincoln county, on November 27, 1923, duly made and entered its order to the following effect: "It is therefore ordered by the court that said Christina Lunning, as administratrix of the estate of said deceased, be and she is hereby authorized to borrow the sum of $24,000 and to execute her promissory note therefor and a mortgage in form as mentioned in said petition to secure the payment thereof on the property hereinafter described; said note to be payable five years from date, in lawful money of the United States and to bear interest from date, not exceeding 5% percent per an *170 num, and that the buildings on said premises may be insured for further security of the lender, provided that the said administratrix pay only debts properly chargeable against the estate, and that the balance of said loan be distributed among the heirs according to law.”

Pursuant to the authority of this order of the county court the administratrix borrowed the sum of $24,000, executing therefor her promissory note as such administratrix, together with a mortgage upon realty of the Helge H. Lunning estate securing the same.

Plaintiff, Equitable Life Assurance 'Society, purchased this note and mortgage from the payee therein named for full value before maturity and has ever since continued to be the owner and holder thereof. Default having occurred, plaintiff, in 1933, instituted this action in the circuit court of Lincoln county, S. D., to foreclose the mortgage, defendants being interested in said realty as the heirs and distributees of Helge H. Lunning, deceased, or as successors in interest of such heirs.

The complaint was in the usual form for foreclosure. By their answers the defendants contend that the note and mortgage were void in their inception and that the order of the county court of Lincoln county purporting to authorize the execution thereof was likewise void because it was beyond the power or jurisdiction of the county court of Lincoln county to authorize the borrowing of money and mortgaging of assets of the estate for the purposes for which this administratrix desired to borrow said money and mortgage said assets as disclosed by her petition.

The matter coming on for trial, findings, conclusions, and. judgment were in favor of the plaintiff, awarding foreclosure of the mortgage, from which judgment and from a denial of their application for new trial defendants have appealed.

That the answers interposed in the court below constitute a collateral attack upon the order of the county court of Lincoln county dated November 27, 1923, authorizing the execution of the mortgage sought to be foreclosed is perfectly clear.. One of the issues between the parties in the court below and on this appeal is Whether such order is open to collateral attack. Respondent maintains that it is not, while appellants contend that it is, citing and relying upon the language of this court in Reddin v. Frick (1929) 54 S. D. 277, 223 N. W. 50.

*171 Section 20, art. 5 of the 'Constitution of this state provides in part that “County courts shall be courts of record and shall have original jurisdiction in all matters of probate, guardianship and settlement of estates of deceased .persons.”

•Section 3173, R. C. 1919, relating to county courts, provides: “The proceedings of this court are construed in the same manner, and with like intendments, as the proceedings of courts of general jurisdiction, and to its records, orders, judgments and decrees there are accorded like force, effect and legal presumptions as to the records, orders, judgments and decrees of circuit courts.”

The conclusion seems inescapable that under the Constitution of this state county courts, so far as concerns matters of probate, guardianship, and settlement of estates, are courts of general jurisdiction, and this court has always so held. Blackman v. Mulhall (1905) 19 S. D. 534, 104 N. W. 250; In re Estate of Stroup (1918) 40 S. D. 37, 166 N. W. 155.

In many states the purposes for which an executor, ad-mini-, strator, or guardian may sell or mortgage property of the estate are quite narrowly limited and specifically and exclusively defined by statute. Manifestly, in those states the court of probate lacks power and authority to authorize sale or mortgage when it clearly and affirmatively appears from the face of the record that the purpose for which leave to sell or mortgage is asked is outside of and foreign to the purposes stated and limited by the terms of the statute. In those states the jurisdiction of the court of probate with reference to selling and mortgaging is in a sense a special, as distinguished from a general, jurisdiction.

We have no statutes limiting in these particulars the general jurisdiction of the county court in probate or guardianship or specifying any purposes for which, and' for which only, such courts may grant leave to sell or mortgage. Indeed our statutes affirm the broad and general powers of the county court in reference thereto-. Section 3547, R. C. 1919, provides that a guardian may mortgage “•by leave of the county court,” and- section 3548 provides that the guardian shall file a petition setting forth the condition of the estate and the facts and circumstances by reason of which he desires to make the mortgage and that the court may make an order authorizing such mortgage to be given if the court shall find! “that *172 the interest of the ward and of the estate require the mortgage to be made.” By section 3.534, R. 'C. 1919, selling of property by a guardian may be authorized when it appears to. the satisfaction of the court that it is for the benefit of the ward. By section 3333, R. C. 1919, the county court may authorize a mortgage by an executor or administrator “When it is shown to the satisfaction of the court * * * that it will be for the benefit of the estate” and by the same section a mortgage may be authorized for the purpose of paying an existing lien or mortgage on the property or for renewing an existing mortgage “or for any other purpose for which a sale may be ordered.” By sections 3426 and 3430, R„ C. 1919, sale by an executor or administrator may be ordered “If it appears to the satisfaction of the court that it is necessary, or that it is for the advantage, benefit and best interests of the estate and those interested therein, to sell the whole or any part of the property of the estate.”

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Bluebook (online)
265 N.W. 876, 64 S.D. 168, 1936 S.D. LEXIS 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equitable-life-assurance-society-of-u-s-v-lunning-sd-1936.