First Trust & Savings Bank v. United States Fidelity & Guaranty Co.

194 N.W. 376, 156 Minn. 231, 1923 Minn. LEXIS 519
CourtSupreme Court of Minnesota
DecidedJune 29, 1923
DocketNo. 23,546
StatusPublished
Cited by14 cases

This text of 194 N.W. 376 (First Trust & Savings Bank v. United States Fidelity & Guaranty Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Trust & Savings Bank v. United States Fidelity & Guaranty Co., 194 N.W. 376, 156 Minn. 231, 1923 Minn. LEXIS 519 (Mich. 1923).

Opinion

Dibell, J.

This action is brought by the plaintiff, First Trust & Savings Bank of Winona, as administrator de bonis non of the estate of Robert Peterman, to recover of the United States Fidelity & Guaranty Company as surety upon the bond of John R. Leak, a former administrator. Judgment was entered by default on January 17, 1923, in the sum of $10,317.75. On February 2, 1923, the defendant moved to vacate the judgment and for permission to answer. This motion was denied on March 3, 1923. On March 7, 1923, the court [233]*233issued an order to show cause returnable March 19, 1923, why the order of March 3, 1923, denying the defendant’s motion to be relieved from the default judgment and for leave to answer should not be vacated, the default opened and the defendant permitted to serve its proposed answer and make a defense. This motion was denied by an order dated March 21, 1923. The appeal is from the latter order.

The plaintiff first urges that the order should be sustained because there was no leave of the court to renew the first motion, citing Carlson v. Carlson, 49 Minn. 555, 52 N. W. 214. It was there held that well established practice requires that a motion once heard and determined shall not be renewed and the same questions raised except on leave of court first had. Such consent may be given when the motion is brought on for hearing, and it may be evidenced by a recital in the order made on the hearing. Fletcher v. Southern Colonization Co. 148 Minn. 143, 181 N. W. 205. The overruling of an objection to the hearing of the second motion upon the ground that leave was not had is the equivalent of an order granting leave. McLaughlin v. City of Breckenridge, 122 Minn. 154, 141 N. W. 1134, 142 N. W. 134. An order to show cause why certain relief should not be granted is sufficient leave to renew a motion asking like relief ¡previously heard and denied. Goodrich & Terry v. Hopkins & Busy, 10 Minn. 130 (162). That case is this case. The order to show cause was a sufficient grant of leave. It may be noted too that the grounds of the second motion are not precisely those of the first.

The summons was served on the insurance commissioner on December 27, 1922. This was good service. The main office of the company is at Baltimore. It had an arrangement with the insurance commissioner that copies of process served should be mailed to its local office in Minneapolis at the time that copies were mailed to Baltimore. Because of a change in the office force this was not done. The summons and complaint were mailed by the commissioner to the home office in Baltimore and in regular course of mail should have reached there within 2 or 3 days. They did not receive attention until January 15, 1923, the day before the time for an[234]*234swering expired. Some one blundered. Tbe company then sent tbe summons and complaint to the Minneapolis office. Judgment bad been entered, and tbe plaintiff refused tbe defendant additional time for answering. Tbe first motion was made some days thereafter.

There was negligence on tbe part of tbe defendant. Whether a default shall be opened is largely, or as it is sometimes said, almost wholly, within tbe discretion of tbe trial court, and its ruling will not be disturbed on appeal except for an abuse of discretion. Gummison v. Johnson, 149 Minn. 329, 183 N. W. 515; Paper, Calmenson & Co. v. Sigelman, 149 Minn. 199, 183 N. W. 136; Standard L. & P. Co. v. Twin City M. S. Co. 138 Minn. 294, 164 N. W. 986.

From tbe memorandum of tbe trial court it appears that its exercise of discretion against tbe defendant was largely because of its view that it did not show that it bad a defense. Under such circumstances it is the view of tbe court that, if the defense of tbe defendant is sufficient in point of substance to justify a bearing and a judicial determination, tbe default should be excused and an answer permitted.

Tbe plaintiff’s cause of action is based upon tbe accounting judgment of tbe probate court entered June 23, 1922. There is involved tbe nature and effect of such a judgment, the relation to it of a surety not a party to tbe proceeding for an accounting ,and tbe construction of tbe particular judgment entered. These questions we now consider.

The probate court settles tbe account of the administrator, has exclusive jurisdiction to do so, and its judgment is not subject to collateral attack. Pierce v. Maetzold, 126 Minn. 445, 148 N. W. 302; Connecticut Mut. Life Ins. Co. v. Schurmeier, 125 Minn. 368, 147 N. W. 246.

Tbe administrator’s bond is “conditioned for tbe faithful discharge of all tbe duties of bis trust according to law.” G. S. 1913, § 7416. Tbe surety contracts that be will so discharge tbe duties of bis trust and is bound by tbe judgment of tbe probate court though not a party .to tbe proceeding. Connecticut Mut. Life Ins. Co. v. Schurmeier, 125 Minn. 368, 147 N. W. 246; Pierce v. Maetzold, 126 Minn. 445, 148 N. W. 302.

[235]*235On October 15, 1918, John R. Leak was appointed administrator of Peterman by the probate court of Winona county, and on October 27, 1919, his bond in the sum of $10,000 with the defendant as surety was approved. On April 28, 1922, Leak was removed and the plaintiff was appointed in his stead. On June 23, 1922, the probate court adjusted his account. Under the head of “receipts” it charged him with “personal estate omitted from the inventory * * * $10,178.03.” Under the head of “disbursements and credits” were a number of items aggregating $161.82 credited to him. This amount was deducted from the so-called “receipts” leaving, as it is designated in the judgment, “residue on hand for distribution * * * $10,016.21.” The account was thus adjusted and allowed as the final account and it was “further ordered that said John R. Leak, as administrator as aforseaid, be and he hereby is charged with the sum of ten thousand and sixteen and 21/100 dollars ($10,016.21), the amount of the funds and property in his hands belonging to said estate.” Upon this judgment this action is brought.

The proper construction of the probate judgment is not clear. In construing it we cannot be helped by affidavits. There is ground for argument that the money amounts stated, being “the amount of the funds and property in his hands belonging to said estate,” are not dollars and cents which Leak should pay to the new administrator. There is ground for argument that the judgment determines that Leak has property coming within the designation of “personal estate omitted from the inventory,” which he should deliver to the new administrator, and that his doing so will satisfy the judgment. It is not clear that the probate court found this amount of money in his possession, or surcharged his account in this sum for negligence in administration. Barring this trouble of construction, the judgment is sufficient as a judgment upon an accounting. Balch v. Hooper, 32 Minn. 158, 20 N. W. 124.

At the best the judgment is imperfect. It cannot be amended by the district court. If it -is construed as a determination of the amount stated in money, to be satisfied only by a payment in money, the defendant has no present defense; but in such a case, if in court [236]*236with an answer, it could apply for a stay and seek relief, if entitled to any, in the probate court. If the judgment is construed as determining that Leak has personal property and funds which he should turn over to the administrator, the defendant meets the objection that the personal property is not described and that there is no way of satisfying the judgment.

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Bluebook (online)
194 N.W. 376, 156 Minn. 231, 1923 Minn. LEXIS 519, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-trust-savings-bank-v-united-states-fidelity-guaranty-co-minn-1923.