Groves v. Aegerter

42 S.W.2d 974, 226 Mo. App. 128, 1931 Mo. App. LEXIS 15
CourtMissouri Court of Appeals
DecidedNovember 3, 1931
StatusPublished
Cited by7 cases

This text of 42 S.W.2d 974 (Groves v. Aegerter) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Groves v. Aegerter, 42 S.W.2d 974, 226 Mo. App. 128, 1931 Mo. App. LEXIS 15 (Mo. Ct. App. 1931).

Opinions

This is a proceeding instituted in the probate court of the City of St. Louis, for the revocation of authority of the defendant, Albert A. Aegerter, to administer a partnership estate as surviving partner.

On November 30, 1925, Albert B. Groves, a member of the partnership firm composed of said Albert B. Groves and said Albert A. Aegerter, doing business under the firm name of Albert B. Groves, Architect, died, and on December 1, 1925, said Albert A. Aegerter filed his application as surviving partner of said partnership to administer the partnership estate, and upon giving bond in the sum of $200,000, with the London Lancashire Insurance Company, as surety qualified as such surviving partner, and on January 27, 1926, filed his inventory of the estate of said partnership. On December 14, 1926, Clara B. Groves, widow of Albert B. Groves, and executrix of his individual estate, filed her petition in the probate court for the revocation of the authority of said Albert A. Aegerter to administer said partnership estate as surviving partner. On January 21, 1927, defendant, as such surviving partner, filed his first settlement in said probate court. On March 15, 1927, the petition to revoke the defendant's authority to administer on said estate as surviving partner was heard, and on June 6, 1927, the probate court entered judgment revoking his authority to administer said estate, directing him to make settlement of his accounts as such surviving partner up to the time of the said revocation of authority, and appointed Henry A. *Page 132 Baker as administrator de bonis non of said partnership estate.

From this judgment defendant appealed to the circuit court. The hearing of the petition in the circuit court, before the court, without a jury, resulted in a judgment affirming the judgment of the probate court. On March 15, 1930, defendant filed his motion for a new trial, and on May 26, 1930, said motion for a new trial was sustained by the court on the grounds. (1) that the judgment is against the weight of the evidence, and (2) that the judgment is against the law and against the evidence under the law. From the order of said court granting defendant a new trial plaintiff has appealed to this court.

The appellant insists here that the undisputed evidence shows the defendant guilty of such misconduct in the management of the partnership estate as to render the revocation of his authority to administer thereon imperative, and that, therefore, the trial court erred in granting respondent a new trial.

The respondent insists that the probate court has no power to remove a surviving partner, who has given bond and taken charge of the partnership property, for misconduct or neglect of such surviving partner. He says that the remedy is on the bond of the surviving partner, or by proceedings in equity; that the assets of the partnership must be administered and disposed of as at common law, except in so far as the rights and duties of the surviving partner are limited and controlled by the statute; and that there is no provision in the statute authorizing the probate court to oust the surviving partner of the partnership assets and deprive him of his common-law right and duty to wind up the partnership business.

The general administration law (Sec. 43. R.S. 1929) provides for the removal of an ordinary executor or administrator if he become of unsound mind, or be convicted of any felony or other infamous crime, or has absented himself from the State for the space of four months, or become an habitual drunkard, or in any wise incapable or unsuitable to execute the trust reposed in him, or fail to discharge his official duties, or waste or mismanage the estate, or acts so as to endanger any co-executor or co-administrator, or fails to answer any citation or attachment to make settlement, upon complaint in writing made by any person interested, and a finding by the court that the complaint is just. The law relating to the administration of partnership assets, being article 3 of the administration law (R.S. 1929), contains the following pertinent sections:

"Sec. 81. In case of the death of a member of a co-partnership, the surviving partner or partners, resident in this State, shall administer the effects and estate of the co-partnership in the county in which the co-partnership business was conducted, on giving bond as hereinafter provided.

"Sec. 92. The administration upon partnership effects, whether by *Page 133 the surviving partner or executor or administrator of the deceased partner, shall in all respects conform to administrations in ordinary cases, except as otherwise herein provided; and the person administering upon partnership effects, and his securities on his official bond, shall perform the same functions and duties, be governed by the same limitations, restrictions and provisions, be subject to the same penalties, liabilities and actions, as other administrators and their sureties.

"Sec. 93. All surviving partners who undertake the management of partnership estates, as provided by law, and their sureties, shall have the same powers as are conferred upon and be subject to the same duties, penalties, provisions and proceedings as are enjoined upon or authorized against executors and administrators and their securities by law, so far as the same may be applicable."

In State ex rel. Richardson v. Withrow, 141 Mo. 69, 41 S.W. 980, the authority of the surviving partner to make a general assignment of the partnership property for the benefit of creditors was involved. It was held that the surviving partner had no such authority. In so holding, the court said:

"But if the surviving partner executes a general assignment of the partnership property, an entirely different situation arises. He puts it out of his power to wind up the estate in probate in any mode, and likewise puts it out of the power of the administrator of the deceased member to perform the duty imposed on him by the law of taking charge of the property and making settlement when the survivor does not. He devolves on a stranger the trust which the law devolves on him or, in case of his default on the administrator of the deceased member's estate. . . . By assigning, he shifts the duty of allowing demands, the ownership of the property, payment, distribution, giving bond, in short, the entire responsibility to an assignee who will not and cannot recognize the probate court; he shifts jurisdiction of the estate, the allowance of demands, the approval of bonds, the passing of his accounts, the protection of the interests of creditors and heirs to another forum. A general assignment has the peculiar effect of rendering an administration in a court of probate impossible, which is not done even when the survivor proceeds to settle without bond; for then it is liable to be ousted at any time by the representative of the deceased.

"The same argument received convincing support from the Supreme Court of Maine in treating statutes even verbally like ours: `It is thus evident that the object and intent of the statute was, that ample security should be given for the protection of all interested as a preliminary to granting administration on the partnership estate, whether its affairs were to be closed by one of its surviving members or by the administrator on the estate of the deceased partner The necessity of applying to a court of equity is obviated by giving *Page 134 the judge of probate the same powers in the case of a partnership administration as in any other case of administration. It places the property under the control of an administrator, who has given security for the faithful performance of his duties, and who may

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Bluebook (online)
42 S.W.2d 974, 226 Mo. App. 128, 1931 Mo. App. LEXIS 15, Counsel Stack Legal Research, https://law.counselstack.com/opinion/groves-v-aegerter-moctapp-1931.