Landis' Estate

23 Pa. D. & C. 30
Pennsylvania Orphans' Court, Lancaster County·Decided January 10, 1935·No. No. 1; no. 31·Published

Opinion

Appel, P. J.,

Elmina C. Landis died intestate on September 2, 1932, leaving to survive her a son, Samuel M. Landis, sole heir. For many years, from February 2,1923, up to the day of her death, decedent was an inmate of the Lancaster County Hospital, duly committed to that institution as a weak-minded person.

The account of the Farmers Trust Company of Lancaster, her guardian, was filed in the court of common pleas on September 17, 1932, showing a balance of $4,-347.22. After the death of decedent this balance was paid to Samuel M. Landis, administrator, who filed his account May 18, 1934, showing a balance of $4,006.21. This account was called for audit on June 21, 1934, and was finally closed on July 2, 1934.

At the audit the Lancaster County Hospital presented a claim for maintenance from February 2,1923, to September 2, 1932, the day of decedent’s death, for $1,998.85, being at the rate of $4 per week. At the same time the Commonwealth of Pennsylvania presented a claim for maintenance of decedent for the same period for $1,-[32]*32000.29, being at the rate of $2 per week. There is no dispute as to the correctness of these bills, and it is agreed that nothing was ever paid on account of either of these claims. In a note on the administrator’s account it is stated that the balance for distribution is in the Farmers Trust Company in a restricted checking account. This company, under the provisions of the Act of May 4, 1933, P. L. 271, was reorganized under the name of the Farmers Bank and Trust Company of Lancaster, a new corporation. This liquidation and reorganization are still in process and have not been completed. The balance in the restricted account is $4,147.21 which includes the aforesaid sum of $4,006.21, together with $141 accountant’s commission credited in the account but not paid. In the process of liquidation and since filing the account the administrator has received on account of the restricted checking account the following: Cash in checking account, $1,753.61; 16 shares of stock of the new reorganized bank and trust company at $20 per share; and a participation certificate for $2,073.60 in the unliquidated assets of the old trust company. These items make up the balance for distribution, and in the distribution contained in the adjudication were awarded as follows:

“To Farmers Trust Company of Lancaster, creditor:
$32 participating certificate in the unliquidated assets of Farmers Trust Company of Lancaster........... $32.00
“To Commonwealth of Pennsylvania, creditor:
Cash .................... $584.50
Participating certificate in the unliquidated assets of Farmers Trust Company of Lancaster of......... 415.79
- — $1,000.29
[33] “To Directors of the Poor for the County of Lancaster, creditor:
Cash ....................$1,169.11
Participation certificate in the unliquidated assets of Farmers Trust Company of Lancaster of......... 829.74
-$1,998.85
“To Samuel M. Landis:
16 shares stock Farmers Bank and Trust Company of Lancaster; participating certificate in the unliquidated assets of Farmers Trust Company of Lancaster of......... $796.07”

Exceptions were filed by the State of Pennsylvania, by the Directors of the Poor of Lancaster County and by Samuel M. Landis, son and heir of decedent. The exceptions filed by the State and the directors of the poor relate to the award on account of their claims to each of them of a participation interest in the unliquidated assets of the old trust company, it being contended the claims should be paid in cash inasmuch as they are creditors of decedent. The exceptions filed by the son specifically object to the allowance of the claim of the directors of the poor for a period of more than 6 years.

We will now consider these exceptions, taking up, first the claims of the State and the directors of the poor. We are satisfied these exceptions must in principle be sustained. As creditors of the decedent they are undoubtedly entitled to be paid in cash and are not obliged to take as part payment participation interests in the unliquidated assets of the Farmers Trust Company. They may demand that the administrator sell the assets of decedent and pay creditors in cash. In this particular case, however, such a sale could not in our opinion be made at [34] this time except at great loss. And it seems to be agreed that such a forced sale at this time would be unwise under the circumstances. Neither the State nor the directors of the poor wish to bring about a premature sale and consequent loss. All parties in interest should be consulted and agree, if possible, when and how these assets shall be converted into money. Nothing, of course, may be awarded to the son and heir until the claims of the State and directors of the poor are paid in cash or a satisfactory equivalent. We shall, therefore, amend our adjudication, make a distribution of the money in hand and direct the administrator to hold the other assets, to wit, the stock in the Farmers Bank & Trust Company and the participation interests in the unliquidated assets of the Farmers Trust Company for a future accounting.'

The exceptions filed by the State and directors of the poor are sustained as indicated.

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Landis' Estate, 23 Pa. D. & C. 30 (Pa. Super. Ct. 1935).

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