Flynn v. Dougherty

250 P. 812, 77 Mont. 182
CourtMontana Supreme Court
DecidedOctober 16, 1926
DocketNo. 5,947
StatusPublished

This text of 250 P. 812 (Flynn v. Dougherty) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Flynn v. Dougherty, 250 P. 812, 77 Mont. 182 (Mo. 1926).

Opinion

MR. JUSTICE MATTHEWS

delivered the opinion of the court.

Appeal from an order denying petition for order requiring the executor of the estate of James McGovern to render final account, settle the estate, and deliver possession of real estate to the devisees.

James McGovern, a resident of Silver Bow county, died testate on October 19, 1920, leaving an estate consisting of real and personal property. His will contains but ten short clauses, of which those numbered 1 and 2 direct the burial of his remains and the payment of his debts; 3 to 8, inclusive, each declares, “I give, devise and bequeath * * * (to either surviving sisters or the children of deceased brothers and sisters) * * * an undivided one-sixth interest in my estate,” etc.; while clause 9 reads: “Should any of the beneficiaries under this will object to the probate thereof, or in anywise, directly or indirectly, contest or aid in contesting the same, or any of the provisions thereof, or the distribution of my estate thereunder, then and in that event I annul any bequest herein made to such beneficiary, and it is my will that such beneficiary shall be absolutely barred and cut off from any share in my estate in excess of five ($5.00) dollars.” Clause 10 [191]*191appointed Dougherty executor and requested that he be permitted to serve without bonds.

The will was duly admitted to probate and letters testamentary were issued to Dougherty who duly qualified and assumed the duties of executor on November 6, 1920. Notice to creditors, requiring the presentation of claims within ten months, was published November 20, 192'0. On December 29, 1920, the executor filed his inventory and appraisement showing that the estate consisted of cash on hand $58,028.38, personal property of the value of $29,760.50, and real estate appraised at $50,200, the principal item of which was a one-half interest in the “Lizzie block” in Butte, appraised at $45,000. The record discloses that the rental on this block amounted to $1,287 per month, of which one-half went to the executor during the time he has been administering upon the estate.

On February 23, 1921, the state inheritance tax was fixed, paid, and forever foreclosed. Claims amounting to $3,019.35 were filed and approved, and after the payment of these claims and other expenses of administration, state, county and city taxes, and with a substantial increase in cash from rentals, dividends, etc., the executor reported a balance of cash on hand May 5, 1921, of $53,186.72. On November 23, 1921, the court ordered distribution of $50,000 to the devisees under the will, and on December 7. thereafter the executor rendered his first “annual account,” showing an accretion from rentals, etc., of more than $6,000, the payment of the federal inheritance tax, state, county, and city taxes, and the sum of $3,000 attorney’s fees, and $1,911.59 executor’s commission on sums distributed, and this, with the distribution ordered, left a balance cash on hand of $12,363.28.

In November, 1922, the executor filed his second “annual account,” showing the collection of rentals, dividends, etc., and the payment of inheritance taxes in other states, and again the payment of local taxes and federal income tax and the payment [192]*192of an additional fee to Ms attorney of $3,000, with a balance on hand of approximately $3,000.

The third “annual account” was filed in November, 1923, showing receipts amounting to nearly $10,000, the payment of insurance premiums and taxes, executor’s commission of $1,250, and attorney’s fees of $4,000, and a balance on hand of something in excess of $5,000. No further accounts seem to have been filed.

On October 4, 1924, the court ordered the sale of certain personal property and thereafter ordered the distribution of $40,000 to the devisees, and this distribution was made.

On February 7, 1923, without a showing of necessity for the purpose of paying debts, the executor petitioned for an order of sale of the real property, alleging that such sale was for the best interest of the estate and those interested therein, for the reason that “your petitioner avers that he knows that the equal division of his estate made by the said James McGovern, deceased, into six equal parts, was intended by the said James McGovern, deceased, only to be accomplished by sale of the said property and the division under said sale of the money derived therefrom,” and that a distribution in kind would be “of no value or service and would be depreciated in value unduly, and, indeed, sacrificed to the said legatees under the will.” The order was made and the sale noticed, but no bids were received, and the order was by the court continued in force. No sale was ever made, and nothing further having been done in the matter, on November 20, 1925, or five years after the appointment of the executor, devisees under the will entitled to 25/36 of the estate filed herein their petition praying that the executor be required to file a final account, settle the estate, and deliver possession of the real estate and the rents therefrom over to the “heirs and devisees.” The petitioners showed to the court that the period for the presentation of claims had long since expired; that all claims presented had been paid, as well as all proper charges of administration; that the estate was in [193]*193condition to be settled; and that $500 would suffice for that purpose. This petition, as well as all former petitions by devisees and the executor and all former orders of the court made herein, showed the names and addresses of all persons entitled to take under the will.

A citation was issued conforming to the prayer of the petition and in answer thereto the executor admitted, in effect, the allegations of the petition, but averred the construction of the will set out in his petition for order of sale of the real property, above, and alleged that this theory had been asserted by the executor and acquiesced in by the petitioners throughout the administration of the estate and had become the law of the case, and that petitioners were estopped by such acquiescence from challenging the correctness of such theory. He set up the order of sale of the real property and asserted that it constituted a final adjudication on the subject and that petitioners’ only remedy was an application to' the court to compel a sale thereunder. He further alleged that by instituting this proceeding the petitioners violated the terms of the condition set forth in clause 9 of the will and thus forfeited their right to receive anything under the will in excess of $5.

After a hearing had the court entered its order denying the prayer of the petition and dismissing the proceeding, from which order the petitioners have appealed.

Petitioners have made several specifications of error, but these, as a whole, present but the broad questions as to whether the court was correct in accepting the executor’s interpretation of the will and was justified, under the condition of the estate, in denying the petition and dismissing the proceeding.

On June 10, 1926, counsel for the executor filed in this court his “motion on suggestion of diminution of the record” and submitted therewith a transcript of matter which he contends should appear in the record. This transcript contains a copy of an order of sale of personal property, made October 4, 1924, and a certificate of the clerk of the district court of Silver Bow [194]

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Bluebook (online)
250 P. 812, 77 Mont. 182, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flynn-v-dougherty-mont-1926.