Gulf Nat. Bank v. Shelton

182 S.W. 337, 1916 Tex. App. LEXIS 28
CourtCourt of Appeals of Texas
DecidedJanuary 10, 1916
DocketNo. 5657.
StatusPublished

This text of 182 S.W. 337 (Gulf Nat. Bank v. Shelton) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gulf Nat. Bank v. Shelton, 182 S.W. 337, 1916 Tex. App. LEXIS 28 (Tex. Ct. App. 1916).

Opinion

MOURSUND, J.

On March 27, 1913, in cause No. 88 in the district court of Jefferson county, styled Gulf National Bank v. T..H. Bass, O. L. Bass, and Mally Eastham, the plaintiff recovered a judgment against all of the defendants for $3,468.33, with interest thereon at the rate of 8 per cent, and for foreclosure of lien on 25 shares of stock in the Union Trust Company. On November 22, 1914, plaintiff filed its affidavit for a writ of garnishment against H. H. Shelton, Dwight E. Potter, and Luisa Wilhelmi, as executrix of the estate of Dolores G. Wil-helmi. The writ of garnishment was issued and served. Luisa Wilhelmi answered on *338 December 24, 1914, by certain exceptions to tlie affidavit and writ of garnishment, and prayed that the application be quashed. On December 24, 1914, she answered that she was not, and had not been at the time the writ was served upon her, indebted to O. L. Bass, and that she had no effects belonging to him, etc. On December 31, 1914, the Gulf National Bank filed an affidavit controverting Luisa Wilhelmi’s answer, in which it was alleged that defendant O. L. Bass had performed legal services for the estate of Dolores Wilhelmi, deceased, of which Luisa Wil-helmi is executrix, which estate is pending in Bexar county, Tex., and for which services 1-Ion. J. R. Davis, judge of said court, has approved and allowed a fee to said O. L. Bass amounting to $7,500, and duly entered an order of which a copy was attached to the controverting affidavit. It was further alleged that the approximate value of the estate is $60,000; that plaintiff is informed and believes that all first-class claims against the estate have been paid and satisfied, and that in due course of time the claim of said Bass, being a second-class claim, will be paid; that the total sum of all second-class claims against said estate outside of the sum due Bass does not exceed $5,000;' that ijo part of said fee has been paid by said executrix, but that she, as executrix of said estate, is still indebted to the defendant Bass in the said sum of $7,500. The order by the probate court, after reciting the finding that the amount of $7,500 was the reasonable value of the services of Bass, provides as follows:

“Wherefore it is considered, ordered, adjudged, and decreed that O. L. Bass do have and recover the sum of $7,500, together with 6 per cent, interest per year from date hereof, from the estate of Dolores Gonzales Wilhelmi, and that same classed as a second-class claim as defined under article 3458 of Revised Civil Statutes of the state of Texas, and that said sum. shall be paid to said Bass by Luisa Wilhelmi, as executrix of the will of Dolores Gonzales Wilhelmi, or by any successor of said executor, out of any funds, available and that may become available for such purpose.”

The cause was transferred to the district court of Bexar county, fifty-seventh district. C. L. Bass filed his amended petition of intervention, and Luisa Wilhelmi her answer to the controverting affidavit. The court sustained the general demurrers urged by Bass and Mrs. Wilhelmi to the garnishment proceedings and the controverting affidavit, and the plaintiff having failed to amend, and announced that it would not do so, judgment was entered that plaintiff take nothing against the garnishee Luisa Wilhelmi, as executrix of the estate of Dolores G. Wilhelmi. The proceedings were dismissed as to Shelton and Potter.

The only question to be decided is whether, under the allegations of the controverting affidavit, the claim of Bass evidenced by the order of the county court can be subjected to the payment of appellant’s judgment by means of garnishment proceedings instituted against Luisa Wilhelmi, executrix.

[1] The rule formerly was that executors and administrators were not subject to garnishment at all unless the right was given by statute. But, as this rule was based upon the proposition that one court could not be permitted to interfere with or encroach upon the jurisdiction of another, and not upon the theory that persons justly indebted to others should have assets exempted from the payment of their just debts because they collected them through an officer of the probate court, it was found by many courts that some modification of the original rule was called for. It'was therefore held that, when a decree of distribution has been made whereby each share is finally and definitely determined, such share may be reached by garnishment on the theory that a cause of action exists in favor of the distributee in his individual capacity. Boyer v. Hawkins, 86 Iowa, 40, 52 N. W. 659; Richards v. Griggs, 16 Mo. 416, 57 Am. Dec. 240; Harrington v. La Rocque, 13 Or. 344, 10 Pac. 498; Re Nerac, 35 Cal. 392, 95 Am. Dec. 111. Mr. Woerner, in his work on the American Law of Administration, vol. 1, § 177, says:

“And, since the ownership is in the first place always that of executor or administrator, it is incumbent upon any one who would attach a right to the assets derived from or through the executor or administrator personally to show that the original title has been changed, and that he holds the property in some other capacity, which may be done by proving a sale, conversion, or merger in any of the methods by which a personal representative may divest the title of his testator or intestate. Hence, since an order of distribution, or to pay debts or legacies, operates to change the representative’s official to a fixed personal liability, it follows that he may thereafter, and before payment, be summoned as garnishee by an attaching or execution creditor of the beneficiary to whom the executor or administrator is ordered to pay. Conversely it is generally held that, while holding in his representative character, he is not subject to garnishment process, unless he is made so by express statutory provision, as is the case in a large and increasing number of the states.”

In section 411 the author describes the order to pay debts meant by him in the above quotation. Briefly stated, it is an order made after the time for proving debts has expired, or the time for proving the preferred class has expired, and the administrator or executor has made a complete statement of the condition of the estate. The author says:

“The court will thereupon decree the payment of the debts which have been proved, in the order of the classes to which they were assigned, each class to be paid in full before the next inferior class receives anything; and when the assets are sufficient to pay a part, but not the whole, of the debts of any one class, the creditors of that class will be payable pro rata. The order or decree of payment so made corresponds in some measure to the judgment de bonis pro-priis at common law, because, having ascertained the amount of assets in the administrator’s hands available for the payment of debts, *339 and also the amount to which each creditor is entitled, the court, by its order or decree, renders judgment against the administrator, making him liable personally to the creditor for the specified amount, which is enforceable by execution against him, and by suit on the bond of his sureties, and subjecting him thereafter, in most states, to garnishment by a creditor of the creditor whom he is ordered to pay.”

Mr. Freeman, in his work on Executions, in section 131, says:

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Related

Turner v. Gibson
151 S.W. 793 (Texas Supreme Court, 1912)
Turner v. Gibson
152 S.W. 839 (Court of Appeals of Texas, 1911)
Loftus v. Williams
59 S.W. 291 (Court of Appeals of Texas, 1900)
Pace v. Smith
57 Tex. 555 (Texas Supreme Court, 1882)
In re Estate Nerac
35 Cal. 392 (California Supreme Court, 1868)
Harrington v. La Rocque
10 P. 498 (Oregon Supreme Court, 1886)
Boyer v. Hawkins
52 N.W. 659 (Supreme Court of Iowa, 1892)
Richards v. Griggs
16 Mo. 416 (Supreme Court of Missouri, 1852)

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Bluebook (online)
182 S.W. 337, 1916 Tex. App. LEXIS 28, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulf-nat-bank-v-shelton-texapp-1916.