Fidelity & Deposit Co. of Maryland v. Lindholm

66 F.2d 56, 89 A.L.R. 279, 1933 U.S. App. LEXIS 2537
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 12, 1933
Docket6901
StatusPublished
Cited by27 cases

This text of 66 F.2d 56 (Fidelity & Deposit Co. of Maryland v. Lindholm) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fidelity & Deposit Co. of Maryland v. Lindholm, 66 F.2d 56, 89 A.L.R. 279, 1933 U.S. App. LEXIS 2537 (9th Cir. 1933).

Opinions

SAWTELLE, Circuit Judge.

Albert L. Lindholm, deceased, was, at the time this action was commenced, the administrator of the estate of Peter L. Lindholm, deceased. Peter L. Lindholm, deceased, was the father of said administrator and of appellee, Emil G. lindholm. His estate was probated in tlie Superior Court of the state of California for the county of Los Angeles. The decree of distribution of said estate, dated March 2, 1927, ordered that the cash belonging thereto, in the amount of $18,-230.09, “be distributed to Emil G. Lindholm, son of decedent.” Emil G. Lindholm’s distributive share of his father’s estate remaining unpaid, on August 2.7, 1930, he commenced this action in the court below against his brother, Albert L. Lindholm, the administrator, and joined as defendant the appellant surety company, surety on the administrator’s bond. Defendants’ demurrers to the complaint, on the ground that the action was barred by the three-year period of limitations contained in section 338 of the Code of Civil Procedure of California, were overruled.

The defenses interposed by the answer of the surety company were, first, the bar of the statute of limitations, and, second, that a fraud had been committed upon the surety by reason of a false account having been filed in the probate proceeding by the administrator of Peter L. Lindholm’s estate, with the knowledge and consent of plaintiff-appellee, for the purpose of concealing from the probate court “the fact of the numerous transactions and dealings which plaintiff and defendant Albert L. Lindholm had conducted with said estate proper and for the purpose of facilitating the approval by said probate court of said account and for the purpose of avoiding the necessity of a full disclosure to said probate court of the many and devious transactions and dealings with said estate property which had been carried on by plaintiff and the said defendant Albert L. Lindholm, jointly and in concert.”

The ease came on for trial before a jury. Appellee made out a prima facie ease by showing that the amounts provided for in the decree of distribution were unpaid. Evidence was introduced which proved counterclaims in favor of the administrator amounting to $583.37. The surety sought to introduce evidence relating to payments made by the administrator to the appellee prior to the date of the decree of distribution. The court sustained an objection to this evidence under 'circumstances hereinafter set forth. The court instructed the jury to bring in a verdict for appellee in the sum of $17,646.72, representing the amount provided for in the de,cree of distribution, less the amount of the administrator’s counterclaims, with interest from the date of ihe decree, total $22,762.58.

November 14, 1927, prior to the commencement of this action, appellee instituted a suit in equity in the court below against the administrator and appellant, his surety, for the purpose of vacating the decree of distribution, claiming that a further accounting would show a balance due from the administrator of $315,000 instead of the amount provided in the decree of distribution. The decree in that suit was in favor of the defendants, on ihe ground that the decree of distribution had become final and was not open to attack, there being no showing of extrinsic fraud.

Albert L. Lindholm, the administrator of the estate of Peter L. Lindholm, deceased, died pending this appeal, and, on motion of the administrator of the former, the appeal of Albert L. Lindholm to this court has been dismissed.

The surety contends in its brief that the court erred in overruling its defense of the statute of limitations, and in excluding evidence of transactions antedating the decree of distribution and relating to the alleged falsity of the final account filed by the administrator in the probate proceeding.

Appellant has raised the statute of limitations by demurrer and by answer. The administrator’s bond was given pursuant to sections 1388 and 1390 of the California Code of Civil Procedure (now section 541, Probate Code). The former section provided as fol[58]*58lows: “Every person to whom letters testamentary or of administration are directed to issue, must, before receiving them, execute a bond to the State of California, with two or more sufficient sureties, to be approved by the superior court, or a judge thereof. In form the bond must be joint and several, and the penalty must not he less than twice the value of the personal property, and twice the probable value of the annual rents, issues and profits of real property belonging to the estate, which values must be ascertained by the superior-court, or a judge thereof,"by examining on oath the party applying, and any other persons.”

And section 1390 provided that: “The bond must be conditioned that the executor or administrator shall faithfully execute the duties of the trust according to law.”

Appellant contends that, inasmuch as the statute requires the giving of the bond and prescribes the terms and conditions thereof, it follows that the bond is a statutory bond and that any liability created thereunder is a liability created by statute within the meaning of section 338 of the California Code of Civil Procedure, which provides that “an action upon a liability created by statute, other than a penalty or forfeiture,” must be commenced within three years.

Appellee, on the other hand, contends that the action is not one on a liability created by statute, but is “one to recover from the surety a sum of money distributed to appellee in the probate action,” and hence the three-year-limitation above set forth is not applicable, but the applicable statute is section 336 of the Code of Civil Procedure, which prescribes a period of five years for the commencement of actions “upon a judgment or decree of any court.”

Section .1666 of the Code of Civil Procedure (now section 1021 of the Probate Code) provided as follows: “In the order or decree, the court must name the persons and the proportions or parts to which each shall be entitled, and such persons may demand, sue for, and recover their respective shares from the executor or administrator, or any person having the same in possession. Such order or decree is conclusive as to the rights of heirs, legatees, or devisees, subject only to be reversed, set aside, or modified on appeal.”

It is frankly stated by appellant that “there is no provision in the statutory law of California dealing specifically with the statutory period for the institution of an action to enforce distribution of an estate. Our research has failed to disclose any California case which deals with this question. There are numerous authorities from other jurisdictions but they,, of necessity, cannot answer our question directly because the period of limitation for the commencement of an action is provided solely by statute and we must be controlled here by the statutes of California.”

Again, “There are eases, however, dealing with bonds of public officers, which are exactly analogous in principle and which show that the three-year period is applicable to the case at bar,” citing, among others, the following: County of Sonoma v. Hall, 132 Cal. 589, 62 P. 257, 312, 65 P. 12, 459; Norton v. Title Guaranty & Surety Co., 176 Cal. 212, 168 P. 16; Peterson v. Title Guaranty & Surety Co., 35 Cal. App. 103, 169 P. 239; Hellwig v. Title Guaranty & Surety Co.) 39 Cal. App. 422, 179 P. 222.

We have carefully examined all of these cases and are of opinion that they are not applicable here.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

San Francisco Opera Ass'n v. Flickinger
201 Cal. App. 4th 971 (California Court of Appeal, 2011)
Liberty Transport, Inc. v. Harry W. Gorst Co.
229 Cal. App. 3d 417 (California Court of Appeal, 1991)
Becket v. Welton Becket & Associates
39 Cal. App. 3d 815 (California Court of Appeal, 1974)
Gay v. Straube
245 Cal. App. 2d 683 (California Court of Appeal, 1966)
United States v. Barbone
283 F.2d 628 (Third Circuit, 1960)
United States v. Salvatore Apuzzo
245 F.2d 416 (Second Circuit, 1957)
City of Los Angeles v. Belridge Oil Co.
271 P.2d 5 (California Supreme Court, 1954)
Johnson v. Richards
52 N.W.2d 737 (Nebraska Supreme Court, 1952)
In Re Dryden's Estate
52 N.W.2d 737 (Nebraska Supreme Court, 1952)
Hallinan v. United States
182 F.2d 880 (Ninth Circuit, 1950)
Cannon v. Miller
155 P.2d 500 (Washington Supreme Court, 1945)
Bottemueller v. Wilson & Co.
57 F. Supp. 766 (W.D. Missouri, 1944)
Whitley v. Bryant
31 S.E.2d 701 (Supreme Court of Georgia, 1944)
Smith Engineering Works v. Custer
1944 OK 211 (Supreme Court of Oklahoma, 1944)
Abram v. San Joaquin Cotton Oil Co.
46 F. Supp. 969 (S.D. California, 1942)
Lorenzetti v. American Trust Co.
45 F. Supp. 128 (N.D. California, 1942)
Baldwin v. Fenimore
89 P.2d 883 (Supreme Court of Kansas, 1939)
Citizens Banking & Savings Co. v. Spitzer, Rorick & Co.
29 N.E.2d 892 (Ohio Court of Appeals, 1938)

Cite This Page — Counsel Stack

Bluebook (online)
66 F.2d 56, 89 A.L.R. 279, 1933 U.S. App. LEXIS 2537, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fidelity-deposit-co-of-maryland-v-lindholm-ca9-1933.