MacPherson v. Valley Nat. Bank

269 P.2d 600, 77 Ariz. 196, 1954 Ariz. LEXIS 198
CourtArizona Supreme Court
DecidedApril 13, 1954
DocketNo. 5703
StatusPublished
Cited by1 cases

This text of 269 P.2d 600 (MacPherson v. Valley Nat. Bank) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MacPherson v. Valley Nat. Bank, 269 P.2d 600, 77 Ariz. 196, 1954 Ariz. LEXIS 198 (Ark. 1954).

Opinion

STANFORD, Justice.

On March 29, 1950, appellant, John Frederick MacPherson, was appointed guardian of the person and estate of his mother, Pearl L. Farson, a mentally incompetent person. The estate was appraised at $322,-125.75. In the course of the administration of this estate, appellant submitted two accountings which were approved in the routine manner. On October 31, 1951, he filed his third account and report which ,tyas heard December 6, 1951, and was not approved. December 31, 1951, the Probate Judge wrote the attorney for appellant, stating:

“I feel that I would be derelict in my duty if I were to approve the third account and report filed in this court * * * >
“I understand that the guardian is the only heir of the estate of the ward,' and that some years ago the ward ex-' ecuterl a will naming the guardian as sole beneficiary. I also understand that the ward is very seriously ill and in all probability cannot live many months longer. I also understand that the expenditures made from the ward’s estate by the guardian were not made in bad faith and that there was no attempt by the guardian to defraud anyone or to pursue any fraudulent course of action. I also understand that the ward’s estate is probably in excess of $200,000.00, which is probably far more than ample to keep her in comfort for the remainder of her life.
“The fact remains, however, that this account and report shows an expenditure of more than $40,000.00 between January 1, 1951, and September 1, 1951. I cannot * * * justify expenditures of this size * * * which constitute a reduction of the principal of the estate by one-sixth or perhaps as much as one-fifth.
“While it appears that the guardian is the only heir, I cannot take judicial notice of such a fact any more than I can take judicial notice of the validity of the apparent last will and testament of the ward or whether it is * * * the ward’s last will and testament. While it is apparent * * * the ward will not live another 10 years, I cannot say as a matter of fact that she will not live that long and if expenditures were approved at the same rate in the future as they have been' [199]*199made in the past, it is obvious that the ward would be pauperized long before her death. I cannot justify the maintenance of a home in which a relative of the ward, the guardian, and a servant lived and were supported from the ward’s estate, the more particularly so when the ward was hospitalized during most of the time. I cannot justify the expenditures of money from the ward's estate for the maintenance of an automobile and a jeep when the ward was totally bedridden during that period. There are many other items in the account and report which cannot be justified at the present time.
“I am further disturbed by the fact that the file shows petitions for orders presented to a judge other than the probate judge of this court and the securing of the signature of said judge upon said orders during a time when the probate judge was present and should have been given the opportunity to consider said petitions. This is particularly true of the order signed on December 8, 1951, pursuant to a petition filed on the same date at a time when you knew that I had under advisement the matter of approval of the acts of the guardian heretofore performed herein.
“The first and second accounts and reports * * * were approved * * *, but the guardian should take warning that the approvals of annual or intermediate accounts are not conclusive and are .only prima facie evidence of the correctness of the account and are subject to re-examination upon the hearing of the guardian’s final account.
“For the reasons stated herein, therefore, I regretfully inform you', that I am unable to approve the third annual account and report.”

January 28, 1952, appellant filed a third amended account and report. Hearing was had thereon, February 16, 1952. At the close of the testimony offered to explain and justify the expenditures in the account, the court found that there was no substantial change in this account and report from. the original third account and report. Reiterating what he had said in his letter and explaining that therefore the amended account and report were unacceptable, the court entered the following orders: Third, amended accounting, disapproved; appellant removed as guardian of the .estate; appellee, bank, appointed guardian upon qualifying and posting proper bond; froze the estate checking account and ordered that outstanding checks not be honored; and, froze the personal safety deposit box of appellant. And, the lower court stated, as added grounds for these orders, the fact that appellant had been authorized only two’ months before the hearing to borrow $5,000 for the estate; that the court had received many calls and similar notices from nurses and persons employed by the estate and [200]*200who had hot been paid for their services; and that the court could not ascertain why, in the light' of the large expenditures incurred by appellant and the above authorized borrowing, such bills obviously contracted for the benefit of the ward had not been. paid. '

According to the testimony at the hearing'on- the amended accounting, appellant was hot at all surprised at his being removed. . Appellant also testified that his personal safety deposit box contained many valuables which were part of the estate of the ward.

On this appeal, appellant assigns the following as, error: Appellant’s removal as guardian of the estate; the appointment of appellee bank as general guardian of the estate-; the freezing of the estate checking ac- . count and ordering that outstanding checks be not honored; and the freezing of appellant’s personal safety deposit box.

Regarding appellant’s removal as guardian of the estate, appellant’s reasoning in this Case is essentially as follows: Numerous other states and California, from which state we have taken our probate and guardian- statutes, hold that where the code sets out grounds for the removal of a guardian, the court can remove a guardian upon only those grounds set out in the code. The grounds for removal which the court used as a basis for discharge were clearly statutory, making it unnecessary for us to consider whether only statutory grounds may' be the basis for removal of a guardian. Without restating the facts of this case, it is obvious that in the lower court’s opinion, although appellant was not considered mentally incompetent or fraudulently mismanaging or misappropriating funds, appellant was considered from a business standpoint, mismanaging the affairs of the estate. Such grounds are clearly set forth in the statute, Section 42-140, A.C.A. 1939.

Since his third account had been-refused, and the reasons were given to him by the probate judge for such refusal, it became the duty of appellant to render an amended accounting for the reasonable and proper expenditures incurred out of this estate and his management thereof under the circumstances. Testimony as to the propriety of his expenses make up almost the entire transcript of testimony; in short, appellant was granted ample opportunity to justify his account. The removal of a guardian without written notice is proper where he has been in court and defended himself, In re Kenney’s Appeal, 138 Kan. 29, 23 P.2d 597.

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Related

In Re Farson's Estate
269 P.2d 600 (Arizona Supreme Court, 1954)

Cite This Page — Counsel Stack

Bluebook (online)
269 P.2d 600, 77 Ariz. 196, 1954 Ariz. LEXIS 198, Counsel Stack Legal Research, https://law.counselstack.com/opinion/macpherson-v-valley-nat-bank-ariz-1954.