Garver v. Thoman

135 P. 724, 15 Ariz. 38, 1913 Ariz. LEXIS 65
CourtArizona Supreme Court
DecidedOctober 8, 1913
DocketCivil No. 1312
StatusPublished
Cited by31 cases

This text of 135 P. 724 (Garver v. Thoman) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garver v. Thoman, 135 P. 724, 15 Ariz. 38, 1913 Ariz. LEXIS 65 (Ark. 1913).

Opinion

ROSS, J.

The appellees and the intervener have proceeded in the matter of their demands in the manner the statutes require creditors of the estate to proceed in order to collect their demands. Creditors of the estate are persons who are such or become such- because of some dealings or transactions with the decedent during his lifetime. Their claims are debts or obligations with which the personal representative had nothing to do originally. The law pro[42]*42vides a method for their verification and approval. Pars. 1743, 1745, 1746, Rev. Stats. 1901.

And should the executor or probate judge (superior judge) reject the claim, the holder thereof may institute suit in a proper court against the executor. Par. 1744, Rev. Stats. 1901. The duty of finding the assets of the estate, of discharging its obligations, of preventing waste, and of carrying out the expressed wishes of the testator must necessarily require financial outlays by the executor. Debts arising in the performance of these duties are classified as expenses of administration. Our statute (paragraph 1851, Revised Statutes of 1901) provides that the executor “shall be allowed all necessary expenses in the care, management and settlement of the estate,” including reasonable attorney’s fees, and for his services as executor. Paragraph 1878, Revised Statutes of 1901, provides that the executor “may retain in his hands the necessary expenses of administration.” Administration expenses are the current expenses incurred by the executor, and are accounted for by him in his current account. While these items of expenditure must be reasonable and proper legal charges, and approved by the court before crediting the executor’s accounts, it was never contemplated that they should be subjected to the formal requirements of demand against the estate, or that suit should or could be maintained by the creditor as upon a demand owing from the estate. The services here sued for are expenses of administration, if anything, and are a prior charge upon the assets of the estate. Like other expenses of administration, it must be paid before any of the general debts owing by the estate can be paid. Yet by the judgment of the trial court it is placed in the category of estate obligations, and ordered to be paid in due course of administration. Par. 1753, Rev. Stats. 1901.

If the charge is a proper one, this should not be, for it places the expenses of administration on a footing with general creditors of the estate, and, instead of being made whole in his legitimate expenses, the executor is compelled to prorate with the general creditors where estates are unable to pay their obligations in full. It violates the letter and spirit of paragraph 1878, Revised Statutes of 1901, which provides that the executor “may retain in his hands the necessary expenses of administration.”

[43]*43Dodson v. Nevitt, 5 Mont. 518, 6 Pac. 358, was a case wherein a clerk of the executor counterclaimed his wages against a suit by the executor for rent due the estate, and that court said: “It does not constitute a claim against the estate within the meaning of the sections of the statute above referred to. It did not exist, as a claim, at the date of the death of the deceased, nor did it grow out of any contract, of act, or omission of his during his lifetime. If the executor had the right to employ a clerk and salesman to take charge of said stock of goods, the pay and compensation for such service belongs to the expenses of administration, and the amount paid therefor properly goes into the accounts of the executor, to be passed upon by the probate judge. In so passing upon said account, the probate judge would inquire into the authority of the executor in contracting for such service, and whether, under the circumstances, the same was rendered in the interest of the estate.”

The court in Gurnee v. Maloney, 38 Cal. 85, 87, 99 Am. Dec. 352, the action being one to recover counsel fees, and for money and services expended for the benefit of the estate, in an opinion by Chief Justice SAWYER, made the same distinction, and, among.other things, said: “The charge now in question, if necessary and proper to preserve the estate, comes under the head of expenses of administration. . . . The whole estate is in the custody and under the control of the probate court. It has jurisdiction of the whole subject matter, and it is its exclusive province, subject to appeal to this court, to determine what items of expenditure incurred during the administration under its own supervision are proper charges against the estate.”

The fact that our Constitution, section 6, article 6, provides that “the superior court shall have original jurisdiction in all . . . matters of probate” does not alter the situation for, while the probate courts as they existed under territorial rule have been abolished, the procedure in probate matters remains the same. The superior court, in so far as it exercises jurisdiction in matters of estates of deceased persons, is a court in probate. Our probate law was mostly taken from California, where a change from probate courts to superior courts was effected as here and without any change of pro[44]*44cedure. State ex rel. Young v. Superior Court, 14 Ariz. 126, 125 Pac. 707.

In Estate of Kruger, 123 Cal. 391, 394, 55 Pac. 1056, 1057, the matter of allowance of attorney’s fees being the question before the court, it was said: “. . . It is well settled that it is within the jurisdiction of the court in probate to fix the compensation which shall be allowed to the attorney of the personal representative of the deceased. (Gurnee v. Maloney, 38 Cal. 85, 99 Am. Dec. 352; Sharon v. Sharon, 75 Cal. 38 [16 Pac. 345]; Henry v. Superior Court, 93 Cal. 569 [29 Pac. 230]; Pennie v. Roach, 94 Cal. 515 [29 Pac. 956, 30 Pac. 106]; Estate of Ogier, 101 Cal. 385, 40 Am. St. Rep. 61 [35 Pac. 900]; Estate of Blythe, 103 Cal. 350 [37 Pac. 392]; In re Levinson, 108 Cal. 450 [41 Pac. 483, 42 Pac. 479], supra.) Indeed, as early as Gurnee v. Maloney, supra, it was decided that the court in probate not only had jurisdiction to fix the value of the services rendered by an attorney to the administrator on behalf of the estate as an expense of administration, but that the court had exclusive original jurisdiction to adjust and enforce such demand. ’ ’

All persons interested in the estate, including the heirs and creditors, are entitled to be heard on, the question of the legality and amount of any charge made by the executor for money paid out or contracted to be paid out as expenses of administration, and the place for such a hearing is in the court of probate when the current accounts of administration are presented for allowance. ' This is true of all expenses incurred by the executor in his administration of the estate. Persons who have contracted with the executor are not authorized to pursue the course to enforce their contracts that is given by statute to parties who contract with the decedent. If the executor refuses to acknowledge and discharge his obligation, he may be sued personally on his contract, and, if compelled to disgorge, he may include the amount in his account current. Dodson v. Nevitt, supra; Gurnec v. Maloney, supra. It follows that the judgment in the case, to the effect that it be paid in due course of administration, is erroneous, and should he vacated and set aside.

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Cite This Page — Counsel Stack

Bluebook (online)
135 P. 724, 15 Ariz. 38, 1913 Ariz. LEXIS 65, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garver-v-thoman-ariz-1913.