In Re the Estate of Burke

244 P. 340, 198 Cal. 163, 44 A.L.R. 1341, 1926 Cal. LEXIS 348
CourtCalifornia Supreme Court
DecidedFebruary 16, 1926
DocketDocket No. Sac. 3626.
StatusPublished
Cited by33 cases

This text of 244 P. 340 (In Re the Estate of Burke) is published on Counsel Stack Legal Research, covering California 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 Burke, 244 P. 340, 198 Cal. 163, 44 A.L.R. 1341, 1926 Cal. LEXIS 348 (Cal. 1926).

Opinion

SEAWELL, J.

—This appeal is from an order made and entered by the probate court settling and allowing the first account and report of the administrator in the above-entitled proceedings, against the objections of appellant, a creditor, whose claim had been approved and allowed for the sum of $3,376.62 by the judge of said court.

Said account included the allowance of a credit in favor of the administrator covering a loss sustained as the result of the administrator carrying out to completion two building and construction contracts, one of which was entered into by the intestate with the Odd Fellows’ Association of Los Banos, and the other was made with the city of Los Banos.

The intestate, a contractor and builder, had commenced to perform both of said contracts, and while so engaged died, and his administrator completed the performance of the covenants of the said intestate’s contracts at a loss. While the work commenced by the intestate had not greatly advanced at the time of his death, it had, nevertheless, progressed to a somewhat substantial stage. The foundations were laid and the preliminary work had been completed in both instances and considerable material, steel and timbers, had been cut and placed in preparation for the erection of the superstructure. Contracts for material had been entered into by the intestate. No complaint is made that the administrator, in completing the contracts of his intestate, urns guilty of fraud or mismanagement, or that the cost of completing said work of construction was greater than it should have been. Objection is made, however, to his undertaking the completion of said unfinished construction in the circumstances of the situation. There would have remained sufficient assets in the hands of the administrator to have discharged said creditor’s claim had not the loss been sustained in the manner above related. No objection appears to have been made by the creditor to the completion of said work at any time during its progress.

The probate court, in its order settling said account, made the following finding:

“The court finds that the administrator carried out and completed two building and construction contracts entered *166 into by deceased in his lifetime, but uncompleted at the time of his death; that said contracts did not require the personal skill of the deceased in their carrying out and completion; that in the carrying out and completion of the same a loss of $6,894.17 was suffered" and sustained; that said loss is a charge against the estate, and chargeable against the estate, as part of the cost of administration and should be allowed. ’ ’

This court is bound by the finding of the trial court on a question of fact, if the finding is supported by any substantial evidence. Appellant has not pointed out wherein the above finding is not sufficiently supported, but we have, nevertheless, examined the record and find there is sufficient evidence to support it.

The law is well settled in this state by numerous authorities that if an administrator or executor, without being authorized to do so, elects or undertakes to carry on the business in which the deceased was engaged, he does so at his peril. (Estate of Knight, 12 Cal. 200 [73 Am. Dec. 531]; Estate of Moore, 72 Cal. 335 [13 Pac. 880]; In re Rose, 80 Cal. 166 [22 Pac. 86]; Estate of Broome, 162 Cal. 258 [122 Pac. 470]; Estate of De Rome, 175 Cal. 399 [165 Pac. 919].) The rule announced in the above-cited cases is also applicable in cases wherein an administrator or executor undertakes to make new contracts or to engage in some new enterprise. In all such cases it is held that the administrator or executor, except in rare and special instances, is under no obligation or duty to continue the business of the deceased. Nor is he permitted to enter into contracts or speculate by embarking in business enterprises on behalf of the estate and, if he ventures to do so, he will be held to strict accountability for any losses thus suffered. The reasoning of those cases is not applicable in its strict sense to cases in which the administrator is charged with a duty, or vested with power to act, and the wisdom of the course to be pursued is in doubt, and who, in the performance or exercise of his duty or power, acts to the detriment of the estate, provided he acted in good faith and as a cautious and prudent man would likely act under similar circumstances. In such a case he will not be surcharged although the consequences may be bad.

*167 In the instant case, the decedent had entered into a contract binding himself and his personal representative to perform the covenants which were subsequently performed by the administrator. There is no evidence before us to sustain the conclusion, and we are not permitted to assume as a fact proved that the intestate would have performed his contract more profitably to himself than it was performed for his estate by his administrator. The solvency or insolvency of himself or his estate depended upon the wisdom or lack of wisdom evidenced by the execution of his contract as tested by the final result. We cannot say, therefore, that, had he lived, he would have been better able to pay his obligation to appellant than was his administrator. The foregoing obligations were created by his own hand and act and were not new obligations incurred by the contracts of his administrator. The parties with whom the contracts were made were entitled to have them respected, and there is no evidence or suggestion that performance was waived by them. Whether it would have been to the interest of the estate, and the creditor as well, for the administrator to have refused to perform, on the theory that any damages recovered against the estate for a breach would have been smaller than the loss suffered by performance, was at best a question addressed to the judgment of the probate judge.

The general rule is that it is the duty of an administrator to perform the contracts of his intestate unless the acts to be performed are personal, such as an author to compose a particular work, an artist to paint a particular painting, a sculptor to produce a particular piece of statuary or other work of art, or a lawyer or physician to render services. Contracts to perform such personal acts are discharged by death or by the disability of the person who was to perform said acts. This rule, however, does not apply where the services are of such a character that they may be as well performed by others (Janin v. Browne, 59 Cal. 37; McCann v. Pennie, 100 Cal. 547 [35 Pac. 158]; Husheon v. Kelley, 162 Cal. 656 [124 Pac. 231]), nor where the contract by its terms shows that performance by others was contemplated. (6 Cal. Jur. 448.) Ordinarily, a building contract is not to be brought within that class of contracts which are deemed to have been entered into because of *168 the personal skill or taste of the persons who are to perform them. (Janin v. Brown, supra; McCann v. Pennie, supra; In re Hincheon, 159 Cal. 755 [36 L. R. A. (N. S.) 303, 116 Pac. 47]; McDonald v. O’Shea, 58 Wash. 169 [Ann. Cas. 1912A, 417, 108 Pac. 436];

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Bluebook (online)
244 P. 340, 198 Cal. 163, 44 A.L.R. 1341, 1926 Cal. LEXIS 348, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-burke-cal-1926.