Hyder v. Hyder

66 S.W.2d 235, 16 Tenn. App. 64, 1932 Tenn. App. LEXIS 39
CourtCourt of Appeals of Tennessee
DecidedMay 27, 1932
StatusPublished
Cited by7 cases

This text of 66 S.W.2d 235 (Hyder v. Hyder) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hyder v. Hyder, 66 S.W.2d 235, 16 Tenn. App. 64, 1932 Tenn. App. LEXIS 39 (Tenn. Ct. App. 1932).

Opinion

*66 I

PORTRUM, J.

This record is in this court for a partial review of six consolidated causes upon three discretionary appeals, prayed and granted at as many times during the progress of the cause in the loAver court. The ultimate purpose of the six suits is to bring within the jurisdiction of the court the assets and funds of a former husband and wife, and to distribute these assets among the creditors of each. The record originally was composed of four volumes of more than a thousand pages, and was supplemented by another upon the suggestion of a diminution, but all the record in the lower court is not included. We cannot hope to make a satisfactory statement of the facts within a reasonable compass.

(a) On April 8, 1927, Dr. R. B. Hyder and wife, Annie G. Hyder, entered into a contract to sell John W. Lacy and Bruce A. Lacy their residence property, consisting of a house' and nine acres of ground, located'in Washington County, on the Memphis-to-Bristol Highway, for the sum of $10,000; $100 was paid and the deed was to be executed and delivered as soon as it was prepared and an abstract of title examined, and one week was allowed to perfect the sale. Before the expiration of this week and the delivery of the deed, I)r. Hyder found another purchaser at a better price by the name of John P. Rhea, and he sold and conveyed this property to Rhea for the sum of $10,500, reciting that the cash consideration was paid, when as a matter of fact Rhea executed his notes for the sum of $3000 for the deferred payments. The Lacy Brothers were disappointed, and in May they brought a suit against Dr. and Mrs. Hyder, and against the purchaser, John P. Rhea, seeking a specific performance of their contract, but prayed that if they were not entitled to this relief they be granted damages for the breach of the contract on the part of Dr. Hyder, and Mrs. Hyder. This suit was prosecuted through the Appellate Court and the relief of specific performance was denied on the theory that John P. Rhea was an innocent purchaser, but the court decreed a breach of the contract, and that the Lacys were entitled to damages against the Hyders, and remanded the case for a reference to ascertain the damages.

(b) In the latter part of 1927 or 1928, Dr. Hyder, having become infatuated with a young saleswoman in Johnson City, deserted his wife and two minor children and ran away with this woman, settling in Jersey City, New Jersey, where he lived with her as his wife. At first Mrs. Annie G. Hyder refused to seek a divorce from her husband as he wished, but later she filed a bill for divorce and was granted a divorce and the custody of the children in the Circuit Court. Prior to this she had filed a bill in the Chancery Cffurt seeking alimony, and averred that John P. Rhea had exe- *67 euted to her and her husband his notes in amount of $3000, and this fund belonged to her and her husband in equal amounts. This fund was impounded and the Court decreed her the husband’s interest, or $1500, as alimony.

(c) The creditors of Dr. and Mrs. Hyder having discovered this fund due from the purchaser to them, instituted independent attachment bills and garnishment bills against the Hyders and the purchaser Rhea, for the purpose of holding the fund and having it applied to the joint obligations of Dr. and Mrs. Hyder. It is not necessary to name each of the suits and describe the obligations.

(d) The purchaser, John P. Rhea, then filed a so-called bill of interpleading', admitting his obligation on the notes and prayed to be permitted to pay it into court.

Up until this time the litigation was over the funds representing the deferred payments for the house and lot.

(e) At the time Dr. Hyder eloped he carried with him two policies of life insurance in amount of $12,000, and in which his wife was named as the beneficiary. In New Jersey he made application to the insurance companies to change the beneficiary in the two policies from the wife to his estate, and in due time this change was made. On November 12, 1929, Dr. Hyder died suddenly in Jersey City, intestate. His estate there consisted of a case of medical instruments, of no value, and the two policies of insurance. At the request of a brother-in-law of Dr. Hyder, and his mistress, an undertaker prepared the body for burial and shipped it to his former home at Johnson City, Tennessee. These insurance policies were turned over to the undertaker, it having been represented to the undertaker that the insurance was a part of the deceased’s estate. These policies were later turned over to an agent of the companies’ who had gone from Johnson City to Jersey City to procure them, and the agent returned them to the State of Tennessee, where an administrator for the estate of Dr. Hyder was appointed, namely G. C. Dickson, and with the assistance of the agent the policies were paid to the administrator.

(f) Frank Miller Company of Johnson City was a creditor of the estate of Dr. Hyder in a sum less than $300; it filed its claim and made demand upon the administrator to pay it, this he declined for the reason that he had no assets of the estate in his hands to pay debts, the only assets of the estate being the insurance money, which fund he was advised went directly to the heirs-at-law free from the debts of the deceased. The creditor did not assent to this conclusion, but insisting that Dr. Hyder died a resident and with a domicile in the State of New Jersey, and because of this his persona] estate is distributed under the laws of New Jersey. And further, that the laws of New Jersey do not *68 exempt insurance payable to the estate of the deceased from the debts of the deceased. The administrator denies that the deceased’s domicile was in New Jersey, or that the laws of New Jersey distributed the insurance payable to the deceased’s-estate to his creditors. He took no steps to initiate a proceeding to determine this question in court.

(g) Following this dispute the complainant Frank Miller &• Company, as a creditor of the estate, filed what it designates as a general creditors’ bill against the administrator, on its behalf and the behalf of all other creditors; it made the heirs at law, the two minor children, defendants, and prayed for the appointment of a guardian ad litem to represent them. This bill did not allege that the estate was insolvent or that a suggestion of insolvency had been made in the County Court, but did allege that the reason the insolvency was not suggested in County Court, was that the estate wras in fact solvent. That the insurance money had become a fund for the payment of creditors under the laws of New Jersey and perhaps this fund was sufficient to pay the debts. It sought an adjudication upon this issue. The right to file and maintain the bill was denied in the answer of the administrator. Late in the proceeding the trial court by decree sustained the bill as a general creditors’ bill and as one to wind up an insolvent estate of a deceased.

A general creditors’ bill is not maintainable against an administrator, but a suit to administer an insolvent estate is, provided the administration has been removed from the County to the Chancery Court. Shannon’s Code, Sections 4102-4108; to remove the administration and denude the County Court of jurisdiction it is essential that a suggestion of insolvency be made in the County Court. Arnold v. Burks, 157 Tenn., 18, 5 S. W. (2d), 633.

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Bluebook (online)
66 S.W.2d 235, 16 Tenn. App. 64, 1932 Tenn. App. LEXIS 39, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hyder-v-hyder-tennctapp-1932.