Hoffman v. Kiefer

10 Ohio Cir. Dec. 304
CourtLucas Circuit Court
DecidedNovember 4, 1899
StatusPublished
Cited by1 cases

This text of 10 Ohio Cir. Dec. 304 (Hoffman v. Kiefer) is published on Counsel Stack Legal Research, covering Lucas Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hoffman v. Kiefer, 10 Ohio Cir. Dec. 304 (Ohio Super. Ct. 1899).

Opinion

PARKER, J.

George W. Hoffman filed his petition in the court of common pleas, against Lottie A. Kiefer, and afterwards an amended petition — and the question here is upon the amended petition —setting forth that she was the wife of one Charles Kiefer; that Charles Kiefer was deceased; that in his life-time he became indebted to the plaintiff for a certain amount, stated in the petition, and that he had purchased certain real estate, paid for it with his own money and funds, but caused the same to be conveyed to his wife; and the plaintiff seeks to have a trust declared, holding that the wife is trustee for the benefit of himself and all other of the creditors of the deceased. He also sets forth in the petition that in his life-time Kiefer paid insurance premiums on life insurance in favor of his wife, and he seeks to reach these insurance premiums, claiming that the payment thereof, under the circumstances of Kiefer at that time, was fraudulent as to creditors. To this amended petition a general demurrer was sustained by the court below, and the plaintiff, not desiring to plead farther, a judgment was entered dismissing his petition, and upon that judgment he prosecutes error here.

The ground of the holding of the court below (as agreed by counsel), was that such an action might not be prosecuted by a creditor of the deceased; that to obtain a setting aside of this conveyance, or to [305]*305■have this trust declared, or to reach these premiums, an action must be brought by an administrator, under sec. 6139, Rev. Stat.

It is clear that under that section an administrator may, on behalf •of the creditors, prosecute such an action, if it appears that without this property, he would not have sufficient assets to discharge the indebtedness of the intestate; in other words, that the estate is insolvent.

On behalf of defendant in error, it is insisted that that is an -exclusive remedy; and that have been the view of the court below. ■Counsel Jor defendant in-error rely chiefly upon two cases, decided by our Supreme Court; one being Bustard v. Dabney, Admr., 4 Ohio, 68. But we do not find that that case is at all in point. The .action there was not to set aside a fraudulent conveyance; it was not for the purpose of reaching assets which were hidden, so that they might be administered for the benefit of creditors; but it was a bill in equity by a creditor, to subject real estate, the title to which was in the decedent at the time of his decease, and which had descended to his heirs; so that there was no fraudulent conveyance nor any occasion for setting aside a conveyance or of having a trust declared. By the simple and ordinary ■process provided by the statute, this land could have been reached and sold, and the proceeds administered by and through'an administrator; and the court held, as we think very properly, that under such circumstances, that course must be pursued, and that it is not permissible for :a creditor, by a proceeding in equity, in effect to have the estate administered, taking the'matter out of the hands of the administrator and out -of the hands of the probate court.

The other case is Davis v. Corwine, 25 Ohio St., 668, which was an action by heirs to recover specific personal property, or the value of it, and not to set aside any fraudulent conveyance; and we think the court very properly held that such an action could not be prosecuted in the name of or by the heirs; that the title to this personalty went to the representative of the deceased, for the benefit of creditors first and the ‘.heirs afterwards.

* Now, we find that this remedy through the administrator is under •.and by virtue of the statute. We have not traced this statute back any -farther than 1840. Whether there was a statute in this state upon this .subject, or giving this form of remedy, previous to that date, I am not ■prepared to say. Before the statute conferred this authority upon the -administrator, the only means of reaching such assets or property of the decedent was through an action by a creditor or creditors; such an action as ■the plaintiff in error has undertaken to prosecute here. So that the •question is not settled when we find that the remedy is given by the statute to the administrator; the question still remains: Is that the •exclusive remedy? That the administrator could not have proceeded in this way, except by virtue of the statute conferring the power, is decided in Benjamin v. LeBaron’s Admr., 15 Ohio, 518, and at page 526, of that" -decision, there is a véry plain intimation by the court that the-creditor might sue. The right of the administrator to sue in that case was found ■not to exist, because the statute was not broad enough to reach the case. One of the arguments made, giving as a reason why the administrator •should be'allowed to prosecute, was, that unless it were permitted the •creditor would be without remedy. The court says it will be time -enough to decide that question when it comes' to it, but intimate very [306]*306strongly that the remedy could be found by a creditor in a court of equity.

To the same effect is McCall v. Pixley, 48 Ohio St., 879, in the course of the decision of which the court says that the statute “advances” the remedy of the creditor There is no intimation in any of these cases that the statute gives the exclusive remedy, or takes from the creditor the remedy theretofore existing. Now the law, generally, upon this subject is stated in Wait on Fraudulent Conveyances, at secs. 112, 113. I read a part of sec. 113:

“Ordinarily an executor or administrator will not be allowed to impeach the fraudulent conveyance of his testator or intestate. Like the heirs, he is bound by the acts of the deceased. ‘As a party to a fraadulent conveyance cannot allege its illegality, with a view to its avoidance, so neither can his heirs nor representatives, coming in as volunteers, and standing, as it were, in his shoes. ’ Statutory changes supported by the tendency of the courts to prevent the confusion incident to splitting up the administration of estates between creditors and personal representatives, have led to the general establishment of the practice of permitting and imposing the duty upon executors and administrators to sue for property fraudulently alienated by the deceased in his lifetime. Thus, in New York, executors and administrators, who could not formerly impeach the conveyances of the deceased on the ground of fraud against creditors, are now enabled to do so by statute. This remedy, ,however, is not exclusive. ’ ’«

The personal representative may render himself individually liable to creditors for a failure to recover property fraudulently alienated by the testator or intestate, and he should include such property in the inventory, unless, of course, he has no knowledge of it. The personal representative, as he stands for creditors when so acting, can only attack fraudulent transfers in cases where the estate is insolvent, and with a view to recover a sum sufficient to satisfy the creditors.-

This was distinctly held in, McCall v. Pixley, supra.

The remedy of the administration is not as broad or complete or extensive as that of the creditor.

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10 Ohio Cir. Dec. 304, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoffman-v-kiefer-ohcirctlucas-1899.