In re the Estate of Below

3 V.I. 448, 1958 WL 103663, 1958 U.S. Dist. LEXIS 2273
District Court, Virgin Islands·Decided January 22, 1958·No. Probate No. 33 - 1956·Published·Cited by 1 cases

Opinion

GEORGE A. MENA, District Court Commissioner

The matter of the petition of Antilles Enterprises, Inc., a creditor of record, to revoke the Letters of Administration C.T.A. granted to Ethel May Below, generally known as Ethel May Bishop, on February 11, 1957, came on for hearing on the 22nd day of January, 1958, on the petition for revocation, answer and counterclaim for $3,000,000.00 damages of Ethel May Bishop and memorandum of Antilles Enterprises, Inc.

Maas & Bailey, by William W. Bailey, Esquire, of counsel, appeared for petitioner. Ethel May Below, Administratrix C.T.A., hereafter referred to as Ethel May Bishop, appeared personally and with her attorney, Croxton Williams, Esquire.

Testimony was taken of Ethel May Bishop, argument of counsel had, and upon deliberation in the premises and the Commissioner being satisfied, enters his opinion, findings and order as follows:

Cornelius Comstock Below, generally known as Cory Bishop, and hereafter referred to as Cory Bishop, died on September 17, 1956 and his last will and testament dated April 19, 1955, was duly probated on February 11, 1957, and on that day Letters of Administration C.T.A. were issued to Ethel May Below, generally known as Ethel May Bishop, a resident of the Virgin Islands, and [452]*452she was duly qualified and took over the administration of the estate.

During the administration it developed that Ethel May Bishop claimed that in her individual capacity she had a valid assignment of 10 shares of stock from the deceased Cory Bishop, her husband, in Antilles Enterprises, Inc., a local corporation in which Cory Bishop was organizer and one of the principal stockholders; Antilles Enterprises, Inc., as creditor of record, denied this and averred that 20 shares of stock belong to Cory Bishop at the time of his death, including the 10 shares of stock claimed by Ethel May Bishop, and that it is the duty of the administratrix to assert and defend Cory Bishop’s title to the said 20 shares of Antilles stock; and further averred that under a stockholders’ agreement, Charles Redfield Vose, one of the principal stockholders and organizers of Antilles Enterprises, Inc., had and still has the right to purchase this stock, at book value; that because of the conflicting claim of Ethel May Bishop to her personal ownership of 10 shares of stock she cannot honestly and impartially assert and defend the interest of the estate, and, therefore, should be removed as administratrix. Ethel May Bishop denies that her claim is adverse to the interest of the estate and prays as follows:

“That the Order to Show Cause be dismissed; that the cause on the counterclaim be continued on the docket until Ethel May Bishop has had ample unhurried time to inspect all the books of the said corporation so that the extent of defendant’s damage can be shown; alternatively for judgment for damages in the amount of $3,-000,000; for reasonable counsel fees and for such other and further relief as to the Court seems just and proper in the premises.”

From the above, it is clear there are two questions to be decided by the Commissioner:

[453]*4531. Whether Ethel May Bishop should be removed as Administratrix C.T.A. on account of a conflict of interest between her alleged ownership in 10 shares of stock in Antilles Enterprises, Inc., and her duty as Administratrix to assert and defend the property interests of the estate — and, in particular, the shares of stock in Antilles Enterprises, Inc., owned by Cory Bishop at the time of his death, in view of pending litigation in this court involving the stock interests of Cory Bishop (see Civil No. 113-1957; Civil No. 230-1957 and Civil No. 231-1957).

2. Whether the Probate Court, or the Probate Division of the District Court, has jurisdiction and authority to adjudicate the counterclaim for damages in the sum of $3,000,000.

Answering the first question, the Commissioner is of the opinion that there is a conflict of interest between the personal interest of Ethel May Bishop and her duty to assert and defend the interest of the estate. As stated above, there are three cases pending in the District Court involving the stock interests of this estate, namely, the stock interest belonging to Cory Bishop at the time of his death. It is the duty of the administratrix to assert and defend the interest of the estate faithfully and impartially and it can hardly be said that she can do this and at the same time assert and defend her own personal interests.

The principal duties of an executor or administrator are to collect debts due the estate, to prosecute suits in favor of and defend against his estate, and otherwise to preserve and protect it from loss. 21 Am. Jur. sec. 219. (Executors and Administrators)

The administrator’s duties are those of a trustee and he should be such a person as can and will carefully guard the interest of the estate and of the distribu[454]*454tees thereof. He should be an indifferent person as between the claimants thereto. 119 A.L.R., page 305.

One interested in an estate has the right to have its representative wholly free from conflicting personal interest, so that when the question arises as to the necessity or propriety of a judicial investigation concerning the existence of uninventoried assets such questions may be determined in the first instance by one entirely free from adverse interest or partiality. 119 A.L.R., page 308.

An executor or an administrator whose personal interests are in conflict with his duty as a representative of the estate is not a proper person to hold the office, and he should be removed. Putney v. Fletcher, 148 Mass. 247, 19 N.E. 370; In re Mills’ Estate, 22 Or. 210, 29 Pac. 443; Marks v. Coats, 37 Or. 609, 62 Pac. 488; Kellberg’s Appeal, 86 Pa. 129.

Title 15, section 161 of the Virgin Islands Code provides that the District Court may “(2) grant and revoke Letters Testamentary, and of administration.”

Title 15, section 240(b), of the Virgin Islands Code, under the caption “Revocation of Letters” provides as follows:

“Any heir, legatee, devisee, creditor or other person interested in the estate may apply for removal of an executor or administrator . . . who has in any way been unfaithful to or neglectful of his trust, to the probable loss of the applicant. The application shall be by petition and upon notice to the executor or administrator, and if the court finds the charge to be true it shall make an order removing the executor or administrator, and revoke his letters.”

Having found there is a conflict of interests between those of the administratrix and her duties as administratrix and the interests of the estate, it follows that she cannot be faithful and impartial to her trust.

Also, Title 15, section 240(c), of the Virgin Islands Code provides as follows:

[455]

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In re the Estate of Below, 3 V.I. 448, 1958 WL 103663, 1958 U.S. Dist. LEXIS 2273 (vid 1958).

3 V.I. 448 (In re the Estate of Below) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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