Lindsley v. Dodd

53 N.J. Eq. 69
CourtNew Jersey Court of Chancery
DecidedOctober 15, 1894
StatusPublished

This text of 53 N.J. Eq. 69 (Lindsley v. Dodd) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lindsley v. Dodd, 53 N.J. Eq. 69 (N.J. Ct. App. 1894).

Opinion

Pitney, V. C.

This action, as originally framed, was brought by the administrator de bonis non cum testamento annexo of Stephen H. Dodd, late of the county of Essex, deceased, against the several heirs-at-law and devisees of the executors named in the will of said Dodd. Its object is to recover the amount of the estate of said Stephen H. Dodd, once in the hands of his executors, and which has been lost, as is alleged, by their neglect.

The particular act of neglect relied upon is the failure to cause-to be filed for record a mortgage for $1,500, given by one Van Orden to the executors, to secure his bond to them for that amount, payable in one year, with interest. After the giving of the mortgage, the land which it covered was sold away from Van Orden by the sheriff of Essex county, by virtue of judgments against Van Orden, and came to be held by bona fide purchasers without notice of the unrecorded mortgage, whereby —Van Orden having died insolvent — a total loss has occurred.

The first question is as to the right of the administrator cum. testamento annexo to maintain the action.

I think the clear weight of authority in this state, as well as elsewhere, is that, in the absence of a statutory provision giving an ordinary administrator de bonis non such right, it does not exist. There is no such statute in tin's state except in the case of a removal of an executor, administrator or trustee for misconduct, by the probate court, and the appointment of a successor to take his place. In such case, a suit of the nature of the-present is expressly authorized, as pointed out by the chief-justice in McDonald and Glynn v. O’Connell’s Administrators, 10 Vr. 317. The case of Beall v. New Mexico, 16 Wall. 535, seems precisely in point against the right of the administrator to recover in this action, and many authorities are collected by [71]*71Mr. Justice Bradley iu his opinion in that case. That suit was, in form, an action by the Territory of New Mexico against the first administrator and his sureties upon his official bond, to recover the amount of the estate of the decedent, as shown by the inventory thereof, made by the first administrator, and which, it was alleged, he had lost by selling it upon credit and failing to take proper security for it. The action, though in the name of the territory, was prosecuted by and for the use of the administrator de bonis non, and it was held it would not lie. In the course of his opinion the learned judge says: “For the delinquency of the former administrator in not prosecuting [claims which it was his duty to prosecute], he is responsible to the creditor, legatees and distributees directly, and not to the-administrator de bonis non.”

This rule was distinctly recognized and applied by Chancellor Zabriskie in Carrick v. Carrck, 8 C. E. Gr. 364, and is stated to-be settled law by the chief-justice in McDonald and Glynn v. O’Connell, supra; and see, also, Bradway v. Holmes, 5 Dick. Ch. Rep. 311. The only authority looking the other way is Lindsley v. Personette, 8 Stew. Eq. 355, decided by Chancellor Runyon. For the reason stated in Bradway v. Holmes, I feel constrained not to follow Lindsley v. Personette, and come to the conclusion, that the action cannot be maintained by the administrator.

However, this point was not taken in the answer, but the defendant answered fully to the merits, and they were fully gone into at the hearing. The wife of the complainant is the sole legatee and devisee in remainder of the testator, and is the real complainant in the cause. Motion has been made to amend by making her complainant in place of the present complainant, and making him a party defendant. A perusal of the bill shows that this can be done without materially altering its frame or prayer or stating any new matter requiring an answer. Under these circumstances, I think the motion should be allowed. A similar course ivas pursued in Bradway v. Holmes.

Looking at the merits, complainant’s case, briefly stated, is this: Calvin Dodd and Philip Ward, surviving executors of Stephen H. Dodd, deceased, on the 28th of November, 1873, [72]*72. held the bond of Isaac L. Van Orden for $3,000, secured by a -■ mortgage given to them as such executors by Van Orden and •wife, on land in Essex county, which was ample to secure it. 'The bond and mortgage bore date March 3d, 1858, and the mortgage was duly recorded on September 1st, 1858, in the ..proper book of records. Ou or about the 28th of November, 1873, they surrendered these securities to Van Orden and took •in their place a new bond and mortgage to them as executors of 'Stephen H. Dodd, to secure $1,500 in one year, with interest, the mortgage covering a small part only of the land which had been covered by the first mortgage. The actual surrender of the old mortgage and the taking of the new mortgage was probably done on or about the 18th or 19th of December. On the date last named Van Orden caused the old mortgage for $3,000 to be canceled of record, but the executors failed and aieglected to cause the new mortgage to be registered or recorded. 'Van Orden shortly afterward became financially embarrassed, 'judgments were recovered against him, executions thereon were ' levied upon the lands covered by the mortgage, and the same ■ were subsequently sold thereunder by the sheriff of Essex county, .- and the title became vested in bona fide purchasers for value ■ without notice of the unrecorded mortgage. Van Orden died insolvent, and the debt is wholly lost. It abundantly appears that the value of the property covered by the $1,500 mortgage is, and always has been since it was given, ample to secure it. It also appears that neither the complainant nor her mother, who are the sole beneficiaries under the will of Stephen H. Dodd, • ever had any knowledge or suspicion of the existence of the •' $1,500 mortgage until about July, 1889, whén it was accidentally < discovered among the papers of Calvin Dodd, one of the executors, after his death. He died in 1878. In the meantime both mother and daughter supposed that they had some right and ' interest in the lands covered by the old mortgage, which lands ' had belonged to Stephen H. Dodd’s father, Samuel Tyler Dodd, . and they had made industrious and continued inquiries into the affair with the view of ascertaining what that interest was, and s. whether the purchaser at sheriff’s sale of Van Orden’s right had [73]*73notice of it. Sucli inquiries commenced shortly after the death •of Calvin Dodd in 1878, and the death, which occurred a year •or two later, of Eliza Dodd, who was the widow of Samuel Tyler Dodd, and entitled to a life estate in the lands. Such inquiries resulted in discovering the unrecorded mortgage above stated, and that no proof could be produced to show that the holders of the title had any notice. It is proper, however, to remark here that no burden was cast upon the beneficiaries under •the will of Calvin Dodd, to show lack of notice to the holders •of the title of the lands. The natural presumption is against ■such notice, and the burden is on the executors or their representatives to show the contrary.

No account was ever rendered by the executors of Stephen II. Dodd of their dealing with the estate, either privately to ■the beneficiaries, or to the orphans court, or otherwise, so far as ■appears.

Now it seems to me that these facts show a complete case ■against the deceased executors.

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

Related

Beall v. New Mexico
83 U.S. 535 (Supreme Court, 1873)
In re Merrill
102 A. 400 (New Jersey Superior Court App Division, 1917)

Cite This Page — Counsel Stack

Bluebook (online)
53 N.J. Eq. 69, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lindsley-v-dodd-njch-1894.