In re the Judicial Settlement of the Accounts of Jacob

5 A.D. 508, 38 N.Y.S. 1083
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 15, 1896
StatusPublished
Cited by1 cases

This text of 5 A.D. 508 (In re the Judicial Settlement of the Accounts of Jacob) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Judicial Settlement of the Accounts of Jacob, 5 A.D. 508, 38 N.Y.S. 1083 (N.Y. Ct. App. 1896).

Opinion

Hatch, J.:

After a trial, George P. Avery recovered a judgment against the executors of Elizabeth Carter, deceased, which was affirmed, on appeal and was finally entered for the sum of $4,638.44. The executors did not qualify and enter upon the duties of their trust until nearly five months after the death of their testatrix, when letters testamentary were issued to them. The inventory of the personal estate of the testatrix was not filed until nearly two years after her decease, and as then filed showed a personal estate appraised at '$1,477.91. The executrix, Josephine F. Clason, is a niece of the testatrix, and by the terms of the will took a life estate in all of testatrix’s property, real and personal. The executor, William H. Jacob, is the son of Emma Lawrence Jacob, who takes the remainder of the estate upon the termination of the life tenancy. No settlement of the accounts of the executors having been had, and nothing having been paid upon Avery’s judgment, he presented to the surrogate, on November 12, 1890, a petition upon which a citation was issued requiring the executors to show cause why a settlement of their accounts should not He had. On November 20, 1890, the return day of the citation, the executors presented a petition to the surrogate praying that their accounts might be settled ; thereupon the proceedings were consolidated, the executors filed their account, and Avery filed objections thereto. After the evidence taken upon these proceedings had been closed, Avery procured a citation to be issued requiring the executors to show cause why their letters testamentary should not be revoked. Pending its disposition and that of the proceeding for the settlement of the executors’ accounts, Avery died, and Charles R. Avery, his executor, was substituted as a party in his stead. Thereafter the surrogate entered a decree denying the motion to remove the executors, and subsequently a decree was entered settling the accounts of the executors. An appeal from both decrees brings the matter before this court.

For a proper disposition of this appeal we do not deem it necessary to consider any other questions than such as are presented by the fifteenth specification in the objections filed to the account. It appeared upon the hearing that Mrs. Carter was, at the time of her death, the owner of, or at least that she held in her name, a [511]*511certain lease of premises, No. 42 Sheriff street, in the city of New York, given pursuant to a sale for unpaid taxes aud water rates, for the term of 500 years; that some years prior to her death she had leased these premises to one John Baldwin, as tenant, for a term of twenty-one years, at an annual rental of $450. Baldwin subsequently assigned this lease to George "W. Baldwin, and the latter having died, possessed of the premises and indebted for rent under the lease, Mrs. Carter brought an action thereon against the executrix of his estate to recover the amount due, which action was pending at her death, and was thereafter successfully prosecuted by her executors, and judgment entered for $2,866.44 damages and costs. This judgment was hot inventoried or set out iu the account of the executors in any form, although there is a charge against the estate of $366 for referee’s fees paid by the executors in that action. After the objection was made which called attention to this omission, the executors filed a supplemental account alleging that the omission was an oversight, and this was the excuse made when examined upon the proceeding. In the account filed the significant statement is made that the judgment is nominally one in favor of the executors, and nowhere is it asserted that the judgment constitutes an asset in favor of the estate for its amount if collectible.' The reason for this and the real claim of the executors will more clearly appear when we consider this claim in connection with the lease of Mrs. Garter and the proceedings by which her estate has been apparently divested of title to it. Mrs. Carter’s lease from the city of New York bore date October 28,1861. A long time prior to this the father of the executrix Clason owned the same premises, and' the title passed from him at the sale by which Mrs. Carter obtained' title. After Mrs. Carter’s death, and after the judgment was recovered against the executor of Baldwin, the executrix Clason commenced an action in ejectment against the executrix of the tenant Baldwin to recover possession of the premises. In this proceeding the attorney for Clason testified : I didn’t go back of the time when Mrs. Carter got her title to the time when Mrs. Clason and her ancestors had title. In the case of Miss Clason against Baldwin I did. I' made no reference in that case to the subsequent title of Mrs. Carter in the case.” In other words, when he sued Baldwin in Mrs. Carter’s case for the rent, he relied upon Mrs. Carter’s title. When he sited [512]*512in ejectment for Miss Ciason, lie suppressed Mrs. Carter’s title, and proved the title of Miss Clason’s father and then established her relation as heir. The executor Jacob was cognizant of the suit brought to recover the reut against the executrix of George W. Baldwin, and knew of Mrs. Carter’s title and made claim to the rents in her name. lie also knew and was present at the trial when his co-executor was seeking by ejectment to defeat the title of the estate in the property. He evidently lent her aid to that end, for at no time did he Suggest that Mrs. Carter had title or seek to bring it to the court’s attention, but either actively consented or passively acquiesced in .the suppression of that title, in order that Miss Ciason might succeed in the action. The effect of this transaction was. to perpetrate a fraud upon the court. (State of Michigan v. Phœnix Bank, 33 N. Y. 9-25; Galatian v. Erwin, 1 Hopk. Ch. 54.)

And if Mrs. Carter had title to the premises under her lease, then such lease constituted an asset of her estate and should have been inventoried as such (Trustees of Elmira, v. Dunn, 22 Barb. 402 Despard v. Churchill, 53 N. Y. 192), and the suppression of her title was a fraud upon her estate and the creditors thereof. And it is quite evident, from the- supplemental account filed, and the attitude of the executors in the action by which this estate was. apparently divested of title, that their claim is that the Baldwin judgment obtained in the action for rent is not an asset of the estate, but is in fact the property of Miss Ciason, for whom Mrs. Carter held as trustee. Such was the view taken by the learned surrogate. He seems to have held that, because an appeal was. pending in the Baldwin action for rent, it did not, therefore, constitute an asset of the estate, and that in any event the evidence warranted the conclusion that Mrs. Carter simply held the lease as trustee for Miss Ciason, and that, therefore, the estate had no interest in the judgment or lease. We find ourselves unable to. agree with either conclusion upon the case as presently developed. The judgment as it stands is the property of this estate, and an asset of the estate. It does not appear that there was any stay of proceedings pending the appeal, or that there exists any obstacle standing in the way of its collection. The pendency of an appeal does not change its character as an asset or prevent its collection by any of [513]*513tlie remedies known to tlie law, and until some fact appears to relieve tlie executors of tlie duty to collect tliey are chargeable with the consequences which flow from their inaction. "We are not called upon now to determine whether Mrs. Carter’s estate has or has not an interest in this lease.

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Related

Clason v. Stewart
23 Misc. 177 (New York Supreme Court, 1898)

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Bluebook (online)
5 A.D. 508, 38 N.Y.S. 1083, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-judicial-settlement-of-the-accounts-of-jacob-nyappdiv-1896.