Koonce v. First Trust & Savings Bank

197 N.E. 362, 49 Ohio App. 404, 3 Ohio Op. 280, 19 Ohio Law. Abs. 413, 1934 Ohio App. LEXIS 291
CourtOhio Court of Appeals
DecidedSeptember 7, 1934
StatusPublished
Cited by1 cases

This text of 197 N.E. 362 (Koonce v. First Trust & Savings Bank) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Koonce v. First Trust & Savings Bank, 197 N.E. 362, 49 Ohio App. 404, 3 Ohio Op. 280, 19 Ohio Law. Abs. 413, 1934 Ohio App. LEXIS 291 (Ohio Ct. App. 1934).

Opinion

Smith, J.

This case originated in an application made by the defendant in error herein to the Probate Court of Trumbull county for discharge of claim and for order on the executor, Charles Koonce, Jr., and was entitled “In Re Estate of Richard Garliek, deceased”. It was tried under favor of the provisions of Sections 10509-148 and 10509-149, General Code. The Probate Court was absent from the county, and Judge Carter, Judge of the Court of Common Pleas, acted as Probate Judge. The application stated that Charles Koonce, Jr., had been appointed executor of the estate of Richard Garliek on or about April 20, 1932, and that applicant’s claim did not accrue within *405 nine months after the date of the appointment of said executor; that the claim in question arose out of an underwriting agreement entered into by Richard Gar-lick during his lifetime with the Indian Creek Holding Company, a copy of which is attached to the application as an exhibit.

The application further stated that defendant’s claim did not accrue until April 4, 1933. This application was made under date of August 17, 1933, and on September 12, 1933, the court made the following entry:

“This day, September 12, 1933, this cause came on to be heard, on the application of First Trust and Savings Bank, Miami, Florida, as Trustee, presenting its claim to this Court before the estate of Richard Garlick, deceased, is fully administered, and asking under General Code Sections 10509-148 and 10509-149, for an order of court in respect to its claim against said estate in the amount of Four Thousand Nine Hundred Thirteen Dollars and Sixty-six Cents ($4,913.66), with interest thereon at eight per cent (8%) per annum from April 5, 1933, which claim did not accrue within nine months after the date of the appointment of the executor herein, and, without making a final adjudication of the issues involved, it appearing to the court that there is justly due on said claim from the estate of Richard Garlick, deceased, the sum of Four Thousand Nine Hundred Thirteen Dollars and Sixty-six Cents ($4,913.66) with interest thereon at eight per cent (8%) per annum from April 5, 1933, and Charles Koonce, Jr., the executor of said estate, not consenting to the payment of said claim, and none of the heirs, devisees or other persons interested in said estate offering to give bond as provided by law, it is ordered that said Charles Koonce, Jr., as executor of the estate of Richard Garlick, deceased, shall retain in his hands sufficient money to satisfy said claim if and when it shall be proved to be due in an *406 action commenced by said applicant, First Trust and Savings Bank, Miami, Florida, as Trustee; to which the executor duly excepts.”

Motion for a new trial was filed and overruled. Error is now prosecuted to this court from the decision of the Probate Court.

The defendant in error, First Trust & Savings Bank, filed a motion to dismiss the petition in error on the ground that the order in the Probate Court was not a final order from which error could be prosecuted. Hearing was had at a former term of this court on the motion to dismiss, and this court overruled said motion and held that the order in the Probate Court was a final order and that error proceedings could be predicated thereon. The case is now here on its merits.

There are four grounds of error set out in the petition in error, as follows:

1. That said court erred in overruling the motion of plaintiff in error for a new trial.

2. That the court erred in entertaining jurisdiction of said proceeding under Sections 10509-148 and 10509-149, General Code.

3. That the court erred in finding that there is justly due on the claim of said First Trust and Savings Bank, Miami, Florida, as Trustee, from the estate of Richard Garlick, deceased, the sum of $4,913.66, with interest thereon at 8% per annum from April 5, 1933, as by said court found in judgment entered by it September 12, 1933.

4. That the court erred in ordering said executor to retain in his hands sufficient money to satisfy said claim if and when it shall be proved to be due in an action commenced by said applicant, First Trust and Savings Bank, Miami, Florida, as Trustee.

The principal ground urged in the brief of plaintiff in error is that the court had no jurisdiction in this case, it being claimed that under the new Probate *407 Code, of which the sections referred to are a part, the action taken by the court was not warranted for the reason that the executor did not consent to such a proceeding. Section 10509-148 is as follows:

“A creditor whose right of action does not accrue within nine months after the date of the appointment of the executor or administrator, may present his claim to the court from which the letters issued, at any time before the estate is fully administered. If, on examination thereof, it appears to the court that the claim is justly due from the estate, by consent of the creditor and executor or administrator, it may order the claim to be discharged, as if due after discounting interest, or that the executor or administrator retain in his hands sufficient to satisfy it. If an heir of the deceased, or devisee, or others interested in the estate, offers to give bond to the alleged creditor, with sufficient surety or sureties for the payment of the demand, in case it be proved to be due from the estate, the court may order such bond to be taken, instead of ordering the claim to be discharged, or requiring the executor or administrator to retain assets aforesaid.”

Section 10509-149 is as follows:

“The decision of the court thereon shall not be conclusive against the executor or administrator, or other person interested to oppose the allowance of the claim. They shall not be compelled to pay it if disputed by them, unless it be proved to be due, in an action to be commenced by the claimant, within six months after it becomes payable.”

It is claimed by the plaintiff in error that Section 10509-134, General Code, would have been the proper section under which this claim should have been presented. That section reads as follows:

“Upon petition filed by a creditor or person deriving title from him, whose claim has not been presented within the time prescribed by law, the probate court, if after notice to all interested parties and hearing, *408 it is of the opinion that justice and equity so require, and that the petitioner is not chargeable with culpable neglect iñ failing to present his claim within the time so prescribed, may permit petitioner to file his claim for allowance, but such allowance shall not affect any payment or distribution made before the filing of such claim, nor shall it prejudice the rights of creditors whose claims were filed within the time prescribed by law.”

Section 10509-112, General Code, in so far as pertinent to this case, reads:

“Creditors shall present their claims, whether due or not due, to the executor or administrator within four months after the date of his appointment * * *.”

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Bluebook (online)
197 N.E. 362, 49 Ohio App. 404, 3 Ohio Op. 280, 19 Ohio Law. Abs. 413, 1934 Ohio App. LEXIS 291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/koonce-v-first-trust-savings-bank-ohioctapp-1934.