Farmers' Bank of Cuba City v. Wright

158 F. 841, 1908 U.S. App. LEXIS 4973
CourtU.S. Circuit Court for the District of Northern Iowa
DecidedJanuary 25, 1908
DocketNo. 298
StatusPublished
Cited by2 cases

This text of 158 F. 841 (Farmers' Bank of Cuba City v. Wright) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Northern Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers' Bank of Cuba City v. Wright, 158 F. 841, 1908 U.S. App. LEXIS 4973 (circtnia 1908).

Opinion

REED, District Judge

(after stating-the facts as above). Defendant’s first plea challenges the right of the court to establish the claim against the estate of John Wasem, deceased, because- one of the co-executors of his will, who has qualified and is acting as such with [843]*843defendant, is a citizen of South Dakota, has not appeared, and cannot be served with process within the jurisdiction of this court. It is not disputed that a nonresident creditor may establish his claim against the estate of his deceased debtor in the proper circuit court of the United States, the requisite amount and diversity of citizenship existing; but it is contended by the defendant Wright that his co-executor Wasem is jointly liable with him, and is therefore an indispensable party to this proceeding. In view of the limited jurisdiction of the federal courts the question lies at the threshold of this proceeding. It was the rule at common law that when one only of several joint obligors was sued, he could plead the nonjoinder of the others in abatement. And the rule applied to suits against joint executors to recover upon obligations of the testator. Hensloe’s Case, 9 Coke, 36 (vol. V, p. 61); Swallow v. Emberson, 1 Levin, 161; 1 Chitty’s Pl. 52 (14th Am. Ed.); Gould’s Pl. (Hamilton) p. 197. Following that rule, it was early held in the federal courts, in the absence of statute changing it, that if those not served were citizens of the same state as the plaintiff, or of some other district so that they could not be served with process within the district where the suit was brought, the jurisdiction of the court was defeated. Barney v. Baltimore City, 6 Wall. 280-286, 18 L. Ed. 825. But this rule of the common law is abrogated in many of the states, Iowa among them. The Code of Iowa 1897 provides:

“Sec. 3405. Where two or more persons are hound by contract or by judgment, decree, or statute, whether jointly only, or jointly and severally, or severally only, including the parties to negotiable paper, common orders and checks, and sureties on the same or separate instruments, or by any liability growing out of the same, the action thereon may at the plaintiff's option, be brought against any or all of them. When any of those so bound are dead, the action may be brought against any or all of the survivors, with any or all of the representatives of the decedents, or against any or all of such representatives. Am action or judgment against any one or more of several persons jointly bound shall not be a bar to proceedings against the others.”

And to avoid the effect of the rule in the federal courts, the act of February 28, 1839, c. 36, 5 Stat. p. 321, was enacted. That statute, with some unimportant changes, is section 737 of the Revised Statutes of the United States [U. S. Comp. St. 1901, p. 587], which is as follows:

“Sec. 737. When there are several defendants in any suit at law or in equity, and one or more of them are neither inhabitants of nor found within the district in which the suit is brought, and do not voluntarily appear, the court may entertain jurisdiction, and proceed to the trial and adjudication of the suit between the parties who are properly before it; but the judgment or decree rendered therein shall not conclude or prejudice other parties not regularly served with process not voluntarily appearing to answer; and non-joinder of parties who are not inhabitants of nor found within the district, as aforesaid, shall not constitute matter of abatement or objection to the suit.”

A plaintiff prosecuting his action to judgment against one of his joint debtors, as authorized by these statutes, obtains only the relief to which he is entitled as against him; and no injustice is done to the others because their rights are not affected by such judgment. Barney v. Baltimore, 6 Wall. 287, 18 L. Ed. 825. But neither of these [844]*844statutes, nor the forty-seventh equity rule, authorizes the court to .proceed to final .judgment or decree in the absence of parties who are indispensable to a final determination of the question before it. Code of Iowa 1897, § 3466; Shields v. Barrow, 17 How. 130, 15 L. Ed. 158; Minnesota v. Northern Security Co., 184 U. S. 199-237, 22 Sup. Ct. 308, 46 L. Ed. 499; Decatur Co. v. Bright, 57 Iowa, 724-729, 11 N. W. 653.

The question then is, are all of the executors, or administrators, when more than one is appointed of the estate of a deceased person under the Iowa statute, indispensable parties to a proceeding by a creditor in a circuit court of the United States in that state, to establish his claim against the estate of his debtor, who was domiciled in that state at the time of his death, and whose estate is being there administered? The federal courts, in proceedings to establish claims against the estates of deceased persons, follow and administer the local law for the allowance of claims against such estates. Aspden v. Nixon, 4 How. 467, 11 L. Ed. 1059; Security Trust Co. v. Bank, 187 U. S. 211-227, 23 Sup. Ct. 52, 47 L. Ed. 147; Mining Co. v. Blanden, (C. C.) 136 Fed. 252-254.

In Iowa, since 1886, the district court (which is the co.urt of general jurisdiction) exercises jurisdiction in the probate of wills and the settlement of the estates of deceased persons; and the powers, duties, and obligations of executors or administrators, as the case may .be, in that state with reference to the settlement of such -estates are identical; and each is charged with the obligation to apply the estate of the deceased person liable for his debts to their payment. Code 1897, § 3270 et seq. Other sections ar'e:

“See. 3338. Claims against the estate shall be clearly stated, and, if founded upon a written instrument, the same or a copy thereof and of all indorsements thereon shall be attached as a part of the statement, and if upon account, an itemized copy shall be attached, showing the balance; which statement must be sworn to and filed with the clerk of the district court and ten days’ notice of the hearing thereof — which shall be at some regular term of the court — accompanied by a copy of the claim, shall be served on one of the execmtors or administrators in the manner required for commencing ordinary actions, unless the same has been approved by the executor or administrator, in which case it may be allowed by the clerk without notice, and so entered upon the probate calendar.”
“Sec. 3341. If a claim filed against the estate is not fully admitted by the executor or administrator, the court may hear and allow the same, or may submit it to a jury, and on the hearing, unless otherwise provided, all provisions of law applicable to an ordinary' action shall apply.”
“Sec. 3410. In an action against several executors or administrators, they shall be considered one person, and judgment may be taken and execution issued against all as such, although only part were served with notice.”

Administrators were unknown to the early common law. Their ■appointment for the estates of persons dying intestate was first required by the statute of 31 Edw. III, c. 11 (A. D. 1357), which is as follows:

“That in case where a man dieth intestate, the ordinaries shall depute the next and most lawful friends of the dead person intestate to administer his goods:

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Bluebook (online)
158 F. 841, 1908 U.S. App. LEXIS 4973, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-bank-of-cuba-city-v-wright-circtnia-1908.