In re the Estate of Bailey

364 P.2d 539, 58 Wash. 2d 685, 1961 Wash. LEXIS 358
CourtWashington Supreme Court
DecidedSeptember 7, 1961
DocketNo. 35573
StatusPublished
Cited by1 cases

This text of 364 P.2d 539 (In re the Estate of Bailey) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Estate of Bailey, 364 P.2d 539, 58 Wash. 2d 685, 1961 Wash. LEXIS 358 (Wash. 1961).

Opinion

Donworth, J.

Clara Bode Bailey died intestate on March 21,1955, leaving as heirs and distributees her sisters, Louisa Bode (who has since died), Lottie Bode (hereinafter called appellant), and three adult children of a deceased brother. These children are Melba Olson, Grace Simonson and Ivan Bode (hereinafter called respondents), each of whom has a one-ninth interest in the estate. Mrs. Bailey’s estate was appraised as having a gross value of $242,702.43.

Appellant served as special administratrix of the estate from May 2, 1955, until August 1, 1955, when she was succeeded by Messrs. C. A. Graves and J. R. Schneider, who were then appointed general coadministrators of the estate. They immediately qualified and since then have administered the estate. On May 8, 1959, they filed their petition for final distribution.

Prior to her death, at the age of eighty-seven years, Mrs. Bailey (referred to as the decedent) and her two sisters lived together in Pacific county. During her lifetime, the decedent had acquired hundreds of parcels of real estate, and her principal source of income was in real-estate dealing and money lending. The condition of the decedent’s documents and records at the time of her death is described in [687]*687finding No. 17 in the court’s interim order of January 28, 1958, which approved the administrator’s final account. A portion of this finding is quoted in the margin.1

[688]*688There are some other notable events in this rather unique fact pattern. On November 7, 1958, at a public sale of certain assets of this estate, appellant was the successful bidder. For reasons not altogether apparent from the record, appellant refused to pay for these assets and the administrators were compelled to commence an action against appellant, which resulted in a judgment in their favor for $68,112.80, together with costs and interest. Furthermore, appellant has five times during the course of these proceedings been adjudicated in contempt of court for her deliberate failure and refusal to comply with court orders to deliver to the administrators the assets and records of decedent above referred to which she held in her possession. It was necessary for the administrators to have these items in order to perform their official duties. One of the contempt orders provided for appellant’s imprisonment in the county jail for sixty days, ending on December 4, 1955.

In a contempt order dated February 10, 1956, the trial court found, in part, as follows:

“1. That Lottie Bode has failed and refused to deliver to the administrators all of the assets of said estate and that prior to November 26, 1955 said Lottie Bode had in her possession hundreds of documents pertaining to the affairs of this estate including bank books, cancelled checks, approximately seventy promissory notes of the face value of approximately $50,000.00, a minimum of seventy-five contracts for the sale of real property and cash which she refused to deliver but which were located by the administrators after a search.

“2. That there are still assets in the hands of said Lottie Bode belonging to said estate and in addition she has failed to render an accounting herein as such special administra-trix all without justification and that the said Lottie Bode is in contempt of this court and has been since August 2, 1955, ...”

On December 16, 1958, respondents filed a petition asking that appellant’s share in the estate be charged with a [689]*689sum not in excess of $25,000 as recompense for the additional costs, fees, and expenses incurred in settling the estate, on the theory that such costs, fees, and expenses had allegedly resulted from (1) her refusal to pay to the administrators the amount ($68,112.80) which she had successfully bid for certain assets of the estate at public sale,2 (2) appellant’s failure to co-operate with the administrators by not furnishing information about the business affairs of decedent, and (3) her failure to turn over assets, as well as other acts of harassment and interference with the administrators.

Appellant denied these allegations and affirmatively alleged that respondents had accepted her accounting as special administratrix; that the court had previously made final orders fixing the costs of administration, none of which had been charged to appellant; that the $68,000 judgment and costs recovered by the administrators against appellant was final as to any liability connected with her purchase of certain assets from the estate; and that respondents had participated in, and consented to, the acts which delayed the closing of the estate. These affirmative defenses were denied by respondents.

Upon the trial, the court found in respondents’ favor in the amount of $25,000, ordering, on March 10, 1960, that appellant’s share in the estate of her sister be charged with that amount.

In order to understand the factual basis for this order, we set forth the following findings of the trial court:

“III. Lottie Bode was appointed as Special Administratrix of the estate of Clara Bode on the second day of May, 1955, and served as such until the appointment of C. A. Graves and J. R. Schneider on August 1, 1955, as administrators c.t.a., d.b.n., and thereafter on September 13, 1955, Lottie Bode, having failed to perform an order of this Court directing her to deliver to C. A. Graves and J. R. Schneider all goods, chattels, monies and effects of Clara Bode Bailey, was adjudged to be in contempt of this Court, and although allowed to purge herself of said contempt by the 21st day [690]*690of September, 1955, failed to do so, and on the 11th day of October, 1955, was sentenced by this Court to 60 days in jail for her contempt.

“IV. Thereafter, acting under an order of this Court, the administrators searched the home of Lottie Bode and found hundreds of documents pertaining to this estate, including promissory notes with a face value of $50,000.00, 75 real estate contracts, bank books and other documents pertaining to the financial affairs of Clara Bode Bailey, deceased, and thereafter, on the 10th day of February, 1956, Lottie Bode was adjudged to be in continuing contempt of this Court since the second day of August, 1955, because of her failure to account to the administrators and to deliver to them property of the deceased, including bank books, can-celled checks, 75 real estate contracts, cash, and 30 promissory notes with a face value of $50,000.00, and other assets unknown to the Court.

“V. On or about the month of November, 1957, Lottie Bode filed a report as Special Administratrix of this estate, and after considering said report, this Court found it to be erroneous, inaccurate and impossible to verify, and adjudged her still to be in contempt of this Court, and Lottie Bode has never purged herself of this continuing contempt of this Court.

“VI. On the 7th day of November, 1958, at a public sale of the assets of this estate, duly and regularly ordered by this court, Lottie Bode bid in all of the assets of the estate, and in a letter of November 21, 1958 filed in this cause, she objected to some matters connected with the said public sale, and pursuant to an Order of this Court of December 1, 1958, the Administrators commenced an action against Lottie Bode in Pacific County, being Cause No. 13740, and did therein obtain a judgment against her in an amount of $68,112.80, together with interest thereon at six per cent per annum and costs.

“VII.

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Bluebook (online)
364 P.2d 539, 58 Wash. 2d 685, 1961 Wash. LEXIS 358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-bailey-wash-1961.