Kolker v. Kolker

159 A.2d 833, 222 Md. 252
CourtCourt of Appeals of Maryland
DecidedApril 13, 1960
DocketNo. 174
StatusPublished
Cited by1 cases

This text of 159 A.2d 833 (Kolker v. Kolker) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kolker v. Kolker, 159 A.2d 833, 222 Md. 252 (Md. 1960).

Opinion

Horney, J.,

delivered the opinion of the Court.

This is an appeal from a summary judgment in favor of three infants against the executors of an estate and their surety for the aggregate amount of separate pecuniary legacies bequeathed to them by their grandfather but never paid. The executors, seeking reversal, claim the infants were not entitled to a judgment as a matter of law.

Morris Kolker died September 25, 1951, eleven days after he had executed his last will and testament. Among other things, he bequeathed $20,000 in the aggregate to his wife, two sons and a daughter, $4,000 to a sister and a niece, $2,000 to several charities and $18,000 to his grandchildren. The last mentioned bequest included legacies aggregating $5,000 to Louis, Diann and Donna Kolker, (the infants or infant plaintiffs), children of Reuben, a son of the testator. The rest and residue of the estate was bequeathed in trust to his son and son-in-law, Milton Kolker and Leon Lebow, who were also named executors. Income from the trust estate, during the lifetime of his widow, was payable 60% to her and the remaining 40% was divided equally between his son Milton and his daughter. At the death of the widow one-third of the estate was bequeathed to his daughter; one-third to his son Milton and one-third to his son Reuben in trust. [255]*255The trustees were authorized to pay Reuben $2,000 per year during his life from principal and/or income and, in their discretion, to finance a business adventure for him to the extent of $25,000. In the event his share was not exhausted in his lifetime, his children—Louis, Diann and Donna—were to receive the remainder.

Among other things, the executors, during the period of administration of the personal estate, and the trustees, during the continuance of the trust estates, were further authorized and empowered, without application to a court for approval or ratification and without liability for loss or depreciation, (a) to sell, exchange, invest and reinvest the assets of the estates; (b) to compromise and settle claims against the estates; and (c) to continue as a partner in any business in which the testator was engaged at the time of his death, to carry out the terms of any partnership agreement into which he had entered, to invest part or all of the assets of the personal estate or trust fund as capital in such partnership, to continue such agreement so long as the executors or trustees deemed it best for the interest of his beneficiaries, and to terminate the partnership and join in the transfer of such partnership to any other business or to a corporation in exchange for an interest therein.

At the time of his death the testator was not engaged as a partner in any business, but he owned 50 °fo of the capital stock of the Maryland Grocery Company, Inc., which had recently taken over the assets and business of a partnership in which the testator had had an interest. The personal estate was inventoried at $180,700, which, together with the cash receipts of $22,158.90, made a gross estate of $202,858.90, according to the administration account filed October 24, 1953. The total disbursements for funeral expenses, administration costs and executors’ commissions, and the debts of the decedent, including the federal estate tax, amounted to $39,504.62, which left a balance for distribution of $163,354.28. Payment of the bequests aggregating $20,000 to the wife, daughter and two sons were waived. The bequests [$4,000] to the sister and niece as well as the bequests [$2,000] to the several charities were distributed to them and paid in full. The in[256]*256heritance taxes [$506.14] on all of the pecuniary legacies were likewise paid in full. But the bequests to the grandchildren [$18,000], including the aggregate sum of $5,000 bequeathed to the infant plaintiffs, although entered in the account as having been distributed to them, was not paid. The shares of stock in the grocery company were distributed to the trustees under the will, less credit, however, for the administration expenditures [$40,010.76] and all bequests not waived [$24,000], aggregating $64,010.76, which, according to a notation in the distribution account to that effect, were “advanced by [t]rustees [to the executors] and waived.” The administration and distribution accounts were passed by the court upon the oaths of the executors that “they had paid or secured the payment of every sum” for which they had craved allowance.

At a hearing before the Orphans’ Court on February 24, 1959, one of the executors testified, and the other stipulated, that the legacies had not been paid and that there was no money in the hands of the executors or in the trust estate with which to pay the sums due the infant plaintiffs.

When, on March 26, 1959, suit was filed on behalf of the infants, by their mother and next friend, and the State of Maryland, to the use of the infants, against the executors and the surety on their bond, a motion for a summary judgment— on the ground that there was no genuine dispute as to any material fact—was filed at the same time. In the affidavit accompanying the motion, the mother as next friend stated that no part of the legacies had been received by or for the infants; that the executors in open court had admitted nonpayment of the legacies and that they had no money in hand with which to pay such legacies; that an administration bond in the penalty of $90,000 had been issued by the Fidelity and Deposit Company of Maryland (surety) ; and that there was justly due and owing to the infants the total sum of $5,000, with interest from October 24, 1952.

All of the defendants filed pleas and affidavits of defense. Milton Kolker, one of the executors, filed a general issue plea and in his affidavit stated that there had never been any cash in the personal estate for the payment of the legacies; that [257]*257the immediate family of the decedent had entered into a family settlement or agreement, in which, among other things, it was agreed by Reuben, as natural guardian on behalf of his children, that all cash legacies under the will, with the exception of those to the sister and niece of the deceased and to the charities named in the will, should be waived and released without payment, in order that the shares of stock of the decedent in the grocery company could be kept intact in the trust estate created by the will for the benefit of all concerned, including the infants who had a contingent remainder (if there should be any remainder) in the trust estate—one-third of the original trust fund—bequeathed to their father at the death of the widow; that such settlement represented the only prudent course to follow in order to preserve the value of the trust estate for the benefit of all the legatees under the will and beneficiaries under the trust; that all of the other parties, infants as well as adults, had made similar waivers; that said family settlement released the affiant from liability for the presently demanded payments; and, lastly, that what was done by the affiant was done on the advice of counsel. The affidavit of Reon Rebow, the other executor, was substantially the same, but he pleaded plene administravit.

The surety filed the general issue pleas usually filed in an action ex contractu as well as in an action ex delicto, and claimed the subrogation rights afforded it by Maryland Rule 617 in the event judgment was entered against the principals and surety. In its affidavit, the surety denied personal knowledge of the facts and, pursuant to Rule 610 d 2, moved the court to deny the motion for summary judgment.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Peninsula Methodist Homes & Hospitals, Inc. v. Cropper
261 A.2d 787 (Court of Appeals of Maryland, 1970)

Cite This Page — Counsel Stack

Bluebook (online)
159 A.2d 833, 222 Md. 252, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kolker-v-kolker-md-1960.