In re Estate of Robbins

200 N.E.2d 735, 94 Ohio Law. Abs. 561, 28 Ohio Op. 2d 399, 1964 Ohio Misc. LEXIS 308
CourtCuyahoga County Probate Court
DecidedAugust 5, 1964
DocketNo. 617861
StatusPublished
Cited by2 cases

This text of 200 N.E.2d 735 (In re Estate of Robbins) is published on Counsel Stack Legal Research, covering Cuyahoga County Probate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Estate of Robbins, 200 N.E.2d 735, 94 Ohio Law. Abs. 561, 28 Ohio Op. 2d 399, 1964 Ohio Misc. LEXIS 308 (Ohio Super. Ct. 1964).

Opinion

Andrews, Chief Referee.

The testator, Abe Bobbins, died on November 9, 1961. His wife, Bessie Bobbins, is the sole beneficiary under his will. On December 13, 1961, Ronald C. Berghauser was appointed executor of the estate.

On April 6, 1963, the executor made a partial distribution of $14,000 to Bessie Bobbins, and on May 1, 1963, he made a final distribution to her of $3,671.45. These items appear in the executor’s final and distributive account, filed on May 21, 1963. Section 2109.30, Revised Code, provides for this type of account in the following language:

“* * * An account showing complete administration and distribution of assets shall be designated ‘final and distributive account.’ ”

The account showed that no balance remained in the hands of the executor. On July 8, 1963, this Court approved the final and distributive account.

The present motion, filed on April 8, 1964, by William B. Adelman and Moselle Adelman (whose name is erroneously spelled in some of the documents), seeks to vacate the order of July 8, 1963. The Court is also asked to reopen the estate for further administration, and to order the executor to retrieve sufficient assets from the distributee for the satisfaction of a debt allegedly due the Adelmans.

[564]*564On April 15, 1964, the Honorable Prank J. Merrick, Presiding Judge of this Court, held a hearing on the motion, and on April 23, 1964, the deposition of William R. Adelman was taken, pursuant to stipulations of counsel. Practically all the facts are stipulated.

The Adelmans’ claim arises from a cognovit note in the amount of $12,000, with interest at 8% per annum, of which note Joseph Robbins and Abe Robbins were the makers. The note is dated October 9, 1961, and is payable to the order of William R. Adelman and Moselle Adelman three years after date. In the lower left-hand corner appears the notation, “Due 10/9/64.” '

Although the face of the note indicates an absolute liability, the reverse side contains a clause subjecting it to certain conditions contained in a letter dated October 9, 1961, signed by Mr. and Mrs. William R. Adelman. Actually, there is no letter meeting this exact description, but there is a letter dated October 20, 1961, signed by Mr. Adelman alone and addressed to Joseph and Abe Robbins, and, undoubtedly, this letter, though inaccurately described, is the letter intended, and is part of the agreement between the payees and makers of the note. That a note and separate document executed as part of the agreement between the parties may be read together as constituting the whole of their agreement is indisputable. See, for example, Jacobs v. Mitchell, 46 Ohio St., 601, 22 N. E., 768 (1889). This is especially true where, as here, the language of the note expressly incorporates the other document. The incorporation also offsets the fact that the Robbins brothers did not sign the letter.

The letter from Mr. Adelman, after referring to the note, contains the following language:

“This note will only be executed in the event that a certain Lincoln Mortgage Company Investment Note No. 196 purchased by me from The Lincoln Mortgage Company of even date is in default. * * * This note will only serve as security for the fulfillment of the above conditions.”

In addition to the statement in the- letter that the note in question was given only as security for The Lincoln Mortgage Company note, there was testimony to the same effect.

[565]*565The Lincoln Mortgage Company note (which will be referred to as the Lincoln note) has the same date of issue, the same amount, the same rate of interest, and the same due date as the note signed personally by Joseph and Abe Robbins. It is payable to the order of William R. Adelman and/or Moselle Adelman. The maker is The Lincoln Mortgage Company, by Joseph Robbins, President, and Abe Robbins, Secretary.

There is some discrepancy in connection with the registered number of the Lincoln note, inasmuch as the number on the note is 8X195, whereas it is sometimes referred to as number 196. However, it is clear that the parties had the same note in mind.

From the evidence, the conclusion is inevitable that the individual note of Joseph and Abe Robbins (which will be referred to as the Robbins note), although absolute on its face, was nevertheless given as security for the Lincoln note. The consideration for the notes was a loan of $12,000 by the Adelmans to The Lincoln Mortgage Company.

The mortgage company failed to pay the June 15, 1963, interest installment on its note, and a few days later an involuntary petition in bankruptcy was filed against it. Joseph Robbins has also gone into bankruptcy.

The Adelmans contend that because of the June 15, 1963, default in the payment of interest on the Lincoln note, the Robbins note became due immediately, and thus became a matured claim against the estate of Abe Robbins.

As already observed, the due date on the Robbins note was October 9, 1964. Unless that due date was accelerated, the Adelmans are wrong in their contention that the instrument became due on June 15, 1963. Mere failure to pay an installment of interest on the Lincoln note did not even accelerate the maturity of that note. See 10 C. J. Sec., Bills and Notes, Section 251, p. 746. Much less could it accelerate the Robbins note.

There is no traditionally worded acceleration clause in either note, nor in the letter from Mr. Adelman, which the Robbins note incorporates.

The only language which, by any remote possibility, could constitute an acceleration clause in Mr. Adelman’s letter is the following:

‘ ‘ This note will only be executed in the event that a certain [566]*566Lincoln Mortgage Company Investment Note No. 196 purchased by me from The Lincoln Mortgage Company of even date is in default.”

This language is followed at the end of the letter by the sentence:

“This note will only serve as security for the fulfillment of the above conditions.”

Does Mr. Adelman’s use of the word “executed” amount to a provision that if the maker of the Lincoln note fails to pay an installment of interest, the Robbins note will become due immediately, ahead of the October 9, 1964, due date shown on its face? A clause should not be interpreted as accelerating the maturity of commercial paper unless it clearly does so. See 10 C. J. Section, Bills and Notes, Section 251, p. 748; Crumley v. Ramsey, 93 S. W. (2d), 191 (Tex. Civ. App., 1936). And there is no such clarity in Mr. Adelman’s wording. Rather, his letter appears to be stressing the point that the Robbins note was given as security for the Lincoln note, and is to have no effect whatsoever so long as the maker of the Lincoln note complies with its terms. This is a far cry from an acceleration clause.

However, in my view of the law governing the estate problems raised by the motion, it makes no difference whether the Robbins note became due on June 15, 1963, or whether it will not become due until October 9, 1964. Without deciding that point, which I understand is before the Court of Common Pleas, I will assume, for the purpose of this motion, that the note became due on June 15,1963, as contended by the claimants, Mr. and Mrs. Adelman.

Acting upon that assumption, Mr. and Mrs.

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Bluebook (online)
200 N.E.2d 735, 94 Ohio Law. Abs. 561, 28 Ohio Op. 2d 399, 1964 Ohio Misc. LEXIS 308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-robbins-ohprobctcuyahog-1964.