Jones v. Standard Home & Savings Ass'n

18 Ohio C.C. 189
Ohio Circuit Courts·Decided June 15, 1899·Published

Opinion

Laubie, J.

This case is a proceeding in error to reverse a judgment of the court of common pleas in refusing to grant an injunction, and in dismissing the petition for want of jurisdiction, on the ground that the probate court had exclusive jurisdiction of the subject-matter of the suit.

The amended petition sets out that the plaintiffs ar® stockholders in the association or company defendant; and that instead of it being a savings association, it is a building and loan association. That on the 29th of October, 1897, a pretended assignment for the benefit of creditors was made by persons who had been directors of the company. That at the time of the making of the [190] assignment there were five of the seven directors present, but that only three of them voted for the assignment; that six of the directors were not the owners of any stock in this association at the time of this assignment, having theretofore cancelled their stock and paid themselves the full amount of the same, and had no authority to make the assignment, because they had ceased under the law to be directors from the fact that they had ceased to be holders and owners of any stock,

It is alleged that the assignee, Pratt, was in collusion with these directors in making this illegal assignment; that he had been attorney for the directors, and that he counseled and advised them to cancel their stock, and pay themselves the amount thereof and then make the assignment to him; and it is averred that he will proceed to sell the real estate of the company unless he is enjoined therefrom.

Plaintiffs further allege that the company was not insolvent; that it has assets to the amount of over twenty-three thousand dollars, and that its total amount of debts due, or to become due to outside creditors was only seven hundred and two dollars; and that except said sum of seven hundred and two dollars there were no claims against said association except such as were based upon the ownership of stock therein. That the said Pratt had in his hands at the date of the making of his inventory and appraisement as such assignee, of the moneys belonging to said association, the sum of twenty-two hundred and one dollars and forty-four cents.

It appears from the record that this cause came on for hearing in the court below on the application of the plaintiffs herein for an injunction, and was submitted to the court upon the pleadings, the affidavit of H. G. Pratt, and the affidavit of E. O. Padelford; and on consideration thereof the court refused to grant an injunction therein with the finding and order following: “And it appearing that the [191] court had no jurisdiction of the subject-matter of this action, the amended petition of plaintiffs herein is hereby dismissed, and the case is stricken from the docket”. To this there was an exception, and a bill of exceptions was taken and made a part of the record. The question, therefore, is presented: Did the common pleas court have jurisdiction of the subject-matter of this petition; that is, to adjudicate as to the legality of the assignment. -

There can be no doubt of the right of the court of common pleas to take jurisdiction of the matter, unless the probate court had exclusive jurisdiction of the subject matter, or, having concurrent jurisdiction, had already taken jurisdiction thereof, so as to prevent the court of common pleas from exercising its jurisdiction.

It was stated in argument, and conceded by counsel, that the probate court had previously passed upon the question, and held that it had no jurisdiction to determine the question made as to the illegality of this assignment, so that the two courts were in conflict in the matter.

What jurisdiction did the probate court have of . such question? Its jurisdiction is limited by'statute, is specific, and not general, and its auxiliary and incidental powers are limited to such as are necessary and proper to carry into effect the powers expressly granted.

This has been the universal-holding of the supreme court when the matter of the jurisdiction of the probate court has been considered. The leading case is Davis et al. v. Davis, 11 Ohio St., 386. That was a case where a widow had elected to take under the will of her husband, and the election was formally made and entered upon the journal, and afterwards, within a year from its probate, the probate court set it aside at her instance, and the. supreme court held that the probate court had no authority, for- want of-jurisdiction, to cancel the election previously made and'entered upon its journal, for an alleged mistake of the party so [192] electing as to the provisions and effect of the will; that such election, when made and recorded, can be vacated only on petition to the court of common pleaé — the only court having original general equity jurisdiction.

That was a case where the subject-matter was apparently more nearly within the jurisdiction of the probate court than in the case before us, for the probate judge is not oi ly required by statute to notify the widow to appear and make the election, but he is required to advise her fully as to the provisions of the will, so she may fully understand her rights and the effect thereon of her election. Under such conditions, one might well suppose, at first blush, that the probate court had sufficiently acquired jurisdiction of the subject-matter to. adjudicate upon the question of an alleged mistake as to the provisions of the will, upon part of the widow, and the effect thereof upon her rights, but the supreme court properly held otherwise.

In the opinion as given it is said:

“The probate court, as created by statute (Swan & Critchfield, 1212) is one of special and limited jurisdiction. Tts jurisdiction in probate and testamentary matters even, is special and not general, ex gra., 1. To take proof of wills, and to admit to record authenticated copies of wills executed, proved and allowed in the courts of any other state, territory or country.
2, To grant and revoke letters testamentary and of administration. 3. To direct and control the conduct, and to settle the accounts of executors and administrators, and to order a distribution of estates. 4. To appoint and remove guardians, to direct and control their conduct, and to settle their accounts, etc. And this is true of all the jurisdiction thereby conferred ; they are all grants of specific and not general jurisdiction, and the auxiliary and incidental powers of the court are expressly limited to such as are necessary and proper to carry into effect the powers thereby expressly granted.

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Jones v. Standard Home & Savings Ass'n, 18 Ohio C.C. 189 (Ohio Super. Ct. 1899).

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