Heath v. Maddock

86 A. 945, 81 N.J. Eq. 469, 11 Buchanan 469, 1913 N.J. Prerog. Ct. LEXIS 22
CourtNew Jersey Superior Court Appellate Division
DecidedMarch 27, 1913
StatusPublished
Cited by7 cases

This text of 86 A. 945 (Heath v. Maddock) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heath v. Maddock, 86 A. 945, 81 N.J. Eq. 469, 11 Buchanan 469, 1913 N.J. Prerog. Ct. LEXIS 22 (N.J. Ct. App. 1913).

Opinion

Walker, Ordinary.

This is an appeal from an order of the orphans court of Essex county revoking letters of guardianship granted to tire appellant of the person and properly of the respondent, a minor. The proceedings were instituted by the respondent m propria persona. They ought to be amended by introducing a next friend, as an infant always sues by next friend. See 1 Dan. Oh. PI. S. Pr. 69.

■ The ward, who will be twenty-one in June next, inherited' $20,000 from her grandfather, which came into the possession of her guardian. She is also the residuary beneficiary of her grandmother’s estate to the extent of $100,000 and upwards, which is to he enjoyed-by her, when she arrives at the age of twenty-five years. After the death of her grandfather, the grandmother was appointed her guardian, who was succeeded by the appellant in December, 1906. Numerous circumstances are adverted to in the opinion of the court below, as manifesting that the guardian “has abused the trust and confidence reposed in him,” some of which are unsupported by evidence, and others are not of a character sufficient to warrant a invocation. I have carefully read the testimony to discover, if possible, cause to justify removal, but without success.

At the time the appellant was appointed guardian, he was one of the executors and trustees of the estate of the grandmother of his ward. That this situation was concealed from the then presiding judge of the orphans court, and that consequently the letters were procured by fraud, is the opinion of the court below, but, as I view it, this conclusion is unsupported by the evidence. Indeed, a presumption, if permissible, prevails in favor of a full disclosure.

By the will of the grandmother, the appellant and his co-nominee were not only appointed executors and trustees, but were also constituted guardians of the respondent and enjoined

[471]*471“that the greatest care be given to the moral training and education of my said granddaughter Carlotta C. Heath, and that she be brought up and instructed in the doctrines of the Methodist 'Episcopal Church.”

It may fairly be assumed tliat in fixing the penalty of the guardianship bond, the court was fully'apprised of the amount and source of the guardianship estate, the instrument by which it was brought into being, and the provisions thereof. And even though the court was in ignorance of the pending trust under the will, there is no reason for adversely criticising the appellant’s acceptance of the guardianship. If, from the fiducial duality a conflict of interest and obligation arose, which seems remote, it is a necessary sequence of the course of conduct prescribed by tire testatrix who created the trust estate, and of which the court would have taken heed and likely followed, had it been brought to its attention.

The appellant is further arraigned for having, as executor and trustee of the grandmother’s estate, invested funds upon slender security by the purchase of mortgages aggregating $21,500, covering premises of which he was the owner, and for which he had then recently paid only $28,500. These mortgages were of the grandfather’s investments and held by his widow and executrix as part of his estate. The purchase of the mortgages by the appellant and his co-executor was authorized by. an order of the orphans court, presumably after full investigation. In the petition praying leave to make the investment, it was stated that the appellant was the owner. There is no testimony that the court was not informed of the consideration price paid for the land. In support of the petition two real estate dealers of good standing testified that in their opinion the premises were of the market val ue of $45,000 and upwards. At the hearing in this controversy a witness testified that the property was worth $50,000, which was not controverted. It was also made to appear that the assessment value for taxing purposes was $36,500. In view of these estimates the purchase price is of little or no moment. Hone of the- circumstances attending the purchase are given, and no effort was made to challenge the appraisement, nor is there any contention that the estate suffered, nor proof offered that the fund at any time was in jeopardy.

[472]*472The appellant as executor and trustee was charged with dereliction of duty in failing to file an inventory and to account for the estate, since his appointment in 1906. It is also alleged against him that as guardian he has not accounted since 1908. It does appear, however, that when the counsel for the minor made demand, shortly before these proceedings were commenced, the appellant promised an immediate compliance and promptly accounted in the orphans court in both of the estates. Uo attack is made upon the integrity of the accounts, nor is bad faith alleged as a motive und eriying the failure to account within the time prescribed by the statute. In explaining his omissions, the appellant says that he was prompted by a desire to protect the estate from litigation threatened by a sister of the minor, which came to his knowledge through a brother of the ward, shortly after the grandmother’s death. The grandmother’s estate was a large one, in which the ward fared.vastly better than her brother and sister. That his course was discreet and in the interest of the estate is obvious. That it did not accord strictly with the requirement of the statute is true, but it was not done in bad faith, and my attention has not been drawn to any authority, nor have I found one, in which a trustee, whether as guardian or in other capacity, was removed from office for the reason that he failed to account within the statutory period, -without any other attendant circumstances.

The provisions of the Orphans Court act requiring guardians to file inventories and accounts -within a prescribed time is merely directory. A non-compliance, unattended by fraud, gross neglect or indifference to duty is not a cause for removal from office. Pfefferle v. Herr, 75 N. J. Eq. (5 Buch.) 219; affirmed, 77 N. J. Eq. (7 Buch.) 271. The conduct of the appellant is free from any such imputation. Upon two occasions, when he cautioned her against extravagance, his ward asked him how much she was worth. This was evidently by way of answering his comments, and not in an effort to secure the information the querjr implied. A few months before tire present application, the appellant canvassed with Carlotta his record of securities, and of his administration, but, because of her inexperience, she says she was unable to comprehend him. When called upon by counsel to do so, he [473]*473promptly filed Ms accounts, which, so far as the testimony shows, are in nowise assailed.

The appellant is charged with wasting the decedent’s estate. He had made his home with the grandmother of his ward for many years, and by her will the testátrix gave him the privilege of living in the homestead, with his ward, in the same manner, free of charge, until the latter attained her majority, provided he remained single. Two years before this action he married. His ward requested him to continue in, and to bring his wife into, the household. They lived together happily until about the time of the commencement of this litigation. The appellant contributed from $16 tó $20 per week, about what it would cost outside for board, as he says, and his wife took the place of housekeeper, during the last year. It is urged that the infant’s invitation is nugatory, and therefore its acceptance and enjoyment was a breach of the trust contained in the will.

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Bluebook (online)
86 A. 945, 81 N.J. Eq. 469, 11 Buchanan 469, 1913 N.J. Prerog. Ct. LEXIS 22, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heath-v-maddock-njsuperctappdiv-1913.