First Baptist Church v. Syms

51 N.J. Eq. 363
CourtNew Jersey Court of Chancery
DecidedMay 15, 1893
StatusPublished
Cited by3 cases

This text of 51 N.J. Eq. 363 (First Baptist Church v. Syms) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Baptist Church v. Syms, 51 N.J. Eq. 363 (N.J. Ct. App. 1893).

Opinion

The Chancellor.

Samuel R. Syms died at his residence in West Hoboken, in this state, in Fovember, 1891, leaving a will which bears date [364]*364•one month before his death, in and by which he first directed that his debts be paid, and then gave to his wife his household furniture and personal effects, and to certain nieces, nephews and cousins, pecuniary legacies aggregating in amount $10,000. Then he bequeathed eighty shares of the capital stock of the First National Bank of Hoboken to the cashier of that bank, in trust for specified objects, and then gave to the-complainant a pecuniary legacy of $5,000, after Avhich he made disposition ■of “all the rest, residue and remainder” of his “property, real, personal or mixed,” to his executors in trust, to take the income therefrom and distribute it during his AA'idow’s life, as the Avill directs. At the expiration of the trust, the principal thereof is to be distributed as the will provides.

The testator’s sons, Parker and Robert PI., were appointed the executors and his wife the executrix, of the will. Subsequently, the will was admitted to probate, and Robert H. Syms and the testator’s widow renounced the executorship, and Parker Syms alone assumed the duties thereof. In March, 1892, the •executor filed an inventory and appraisement of the personal estate of his father, by which it was made to appear that that estate was worth $25,394.86. In May, 1892, the testator’s widow filed her dissent to take the property which the will gave to her in lieu of dower.

On the 27th of January, 1893, the executor, by his petition, represented to the orphans court of Hudson county that the personal estate of Samuel R. Syms was insufficient to pay his debts, .and that he died seized of lands, particularly described in the petition, valued in the aggregate at $106,000, all of which lands, •except a tract in Morris county, worth about $25,000, are situate in the county of Hudson, and prayed that the lands in Hudson ■county should be sold to pay debts. With his petition he ■exhibited, under oath, an account of the debts and personal estate of the testator, in Avhich account the personal estate was shown to be valued at $37,954.63, the same having been increased by receipts, subsequent to the inventory and appraisement before mentioned, and the debts of the testator aggregated .$105,486.54, in addition to mortgaged liens upon the real estate, [365]*365■which amounted to $36,000. Thus it was made to appear that-more than $60,000 in value of the real estate would be required to satisfy the debts, exclusive of the mortgage liens.

Among the debts included in the account thus presented is-one in shape of a judgment in the supreme court of this state, against the executor and in favor of his brother, Robert H. Syms, for $58,561.25, which judgment the complainant now attacks as collusive and fraudulent. The executor has been restrained, by order of this court, from continuing the proceedings for the sale of lands until further order herein, and, under such restraint, the proceedings in the orphans court have been suspended.

The valuation of the real and personal estate, as shown by the executor’s account in his application to the orphans court, is-'not disputed, and it is observed, if that valuation be correct and the claims presented to the receiver are valid subsisting debts,, that the complainant will not be paid anything for its legacy, even though that legacy be held to be charged upon the testator’s entire estate, real as well as personal. If it should be held not to be charged upon the realty, it is apparent that it can take nothing, even though its attack upon the judgment of Robert H. Syms be entirely successful, because, without that judgment, the remaining indebtedness is sufficient to absorb the entire personal estate; consequently, in such case, an attack upon the judgment would not advantage the complainant, and its standing-in this court, to maintain a litigation which could not by possibility benefit it, may well be questioned.

The first relevant inquiry, then, is whether the legacy to the-complainant is a charge upon the entire estate. The rule laid down in Hawk. Wills 294, that if legacies be given generally and the residue of the real and personal estate be afterwards given in one mass, the legacies are a charge on the residuary real as-well as personal estate, is adopted by the courts of this state. Stevens v. Flower, 1 Dick. Ch. Rep. 340, where the cases in this-state are collected and commented upon. The reasoning upon which the rule rests is that the real and personal estate, by such gift, is treated by the testator as one mass, part of which is-[366]*366represented by the legacies, and what is given after the legacies «re paid is given minus that which has been before given, and is therefore given subject to the prior gift, and is chargeable therewith.

I think that this rule is applicable in the present case and that the complainant’s legacy is chargeable upon the real as well as personal estate of the testator.

This being so, the serious injury which- the complainant will •suffer from the continuance of a fraudulent and collusive judgment against the executor is manifested, not, perhaps (in absence of irresponsibility of the executor), in the mere fact of the payment of such a claim by him out of the proceeds of the sale of such real estate, for the propriety of such a payment may be •questioned upon his accounting, but in the necessity it occasions for the submission of the real estate to a forced and perhaps a" sacrificial sale to unnecessarily raise a large sum of money.

It is held by the prerogative court, in Smith v. Smith’s Administrator, 12 C. E. Gr. 445, that in an application for an order to sell lands for the payment of debts, the orphans court is not invested with power to determine the validity of the claims of -creditors, but that its inquiry is limited to the ascertainment •of the truth of the executor’s statement in his application, including the enumeration of claims which have actually been presented to him and their respective amounts.

The attack upon the judgment, of Robert H. Syms, questions the greater part of the claim upon which it is based, as fictitious and groundless, and asserts that the judgment itself was procured in a collusive suit between the executor and his brother, by the fraudulent withholding of facts and evidence from the court in which it was recovered, which, appearing, would clearly have demonstrated that more than nine-tenths of the claim upon which the judgment was founded was a mere pretence.

Part of the claim underlying the judgment is not disputed, and for that part the executor’s statement should stand.

Another consideration is this: If the judgment is ultimately .allowed to stand and be enforced, it will be conclusive upon the ■executor and also upon the legatees under the will, who are the [367]*367executor’s privies so far as the personalty coming to him, the primary fund for the payment of debts and legacies, is concerned (Castellaw v. Guilmartin, 54 Ga. 299 ; Redmond v. Coffin, 2 Dev. (N. G.) Eq. 437; Hooper v. Hooper, 32 W. Va. 526), and the entire personal estate may at once be applied to its payment, to the complete exhaustion of the personalty, leaving yet unpaid a portion of the judgment and the entire amount of the indisputable debts, the payment of which will be thrown upon the real estate.

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Related

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Bluebook (online)
51 N.J. Eq. 363, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-baptist-church-v-syms-njch-1893.