Matter of Estate of Straut

27 N.E. 259, 126 N.Y. 201, 36 N.Y. St. Rep. 936, 81 Sickels 201, 1891 N.Y. LEXIS 1629
CourtNew York Court of Appeals
DecidedApril 14, 1891
StatusPublished
Cited by38 cases

This text of 27 N.E. 259 (Matter of Estate of Straut) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matter of Estate of Straut, 27 N.E. 259, 126 N.Y. 201, 36 N.Y. St. Rep. 936, 81 Sickels 201, 1891 N.Y. LEXIS 1629 (N.Y. 1891).

Opinion

*210 Earl, J.

Hotliing was presented to the surrogate but the petition and answer, and upon them he was asked to make his decision. The petitioner offered no proof and asked for no time that he might introduce proof: The order of the surro-

gate recites that it was made upon the petition and answer, after hearing counsel for the petitioner and for Snider. Under such circumstances, it is not entirely plain what facts we have before us, or what facts must be assumed to be true. The material allegations of the petition, so far as they show any legal liability of Snider to account as executor of Edward J. Straut, were denied. He put in issue the allegations of the petition that the property of Jacob Straut came into the possession of Edward J. Straut, and denied that after the death of Edward J. Straut any of the property of Jacob Straut, or of his estate, came into his hands. Assuming these denials to be true, what account could Snider render ? Then, there is nothing for him to account for. Before Snider, as executor of Edward J. Straut, could be called upon to render any account as to the estate of Jacob Straut, it may be at least plausibly claimed that the petitioner should have furnished some proof that some portion of that estate came into the hands of Edward J. Straut, and that he had not in his life-time accounted therefor.

But, if we assume, as was probably assumed by the surrogate, that the allegations contained in the petition, and the admissions contained in the answer together would otherwise have been sufficient to authorize an order against the defendant by the surrogate, requiring him to render an account, we think the action brought in the Supreme Court furnished a complete answer to the petition. That was an action brought by the trustees under the will of Jacob Straut, to compel Snider as the executor of Edward J. Straut, among other things, to account for all the property that came to Edward J. Straut, as executor of Jacob Straut. The allegations were full and ample, if sustained by proof, to authorize a judgment against Snider for. an accounting and for any balance that might be found due upon such accounting. The result of that litigation, *211 after a trial and the decision of all the courts, was a judgment dismissing the complaint upon the merits. If the petitioner claimed that that judgment was not based upon the merits, or that for any reason the adjudication proceeded upon some ground that would mot be a bar to the accounting sought in this proceeding, he should have shown it by competent evidence. In the absence of any proof, it must be assumed that that litigation involved everything alleged in the complaint, and that the adjudication covered the whole ground of the complaint, and that thus, as against the plaintiffs in that action, it was a final adjudication that "Snider, as executor of Edward J. Straut, was not bound to account for any of the estate of Jacob Straut, and that- ás such executor, nothing was due from him to such estate or to the trustees thereof.

But this petitioner claims that he is not bound by that adjudication for the reason that he was not a party to that action. It is the general rule, undoubtedly, that one is not bound by an adjudication in an action to which he is not a party. But to this rule there are many well-recognized exceptions. Executors, administrators, assignees and receivers all act representatively as trustees of other persons, and yet in actions brought t>y them to recover trust property or to reduce trust property to possession, the beneficiaries and parties ultimately entitled to the benefit of the property are not necessary parties. Here these trustees, appointed to take the place of the trustees under the will of Jacob Straut,' had the legal title to, and were the legal owners of the personal property belonging to the trust estate (T. G. T. Co. v. C., B. & Q. R. R. Co., 123 N. Y. 37); and it has never been held that in an action by the trustees to reduce such property to possession, or to subject it to their -control, it is necessary to make the beneficiaries parties. In such an action they represent the whole title and interest, and their action, in the absence of fraud of collusion, is binding upon the beneficiaries. In the action brought by these trustees there was no question between them and the beneficiaries, and no question between the beneficiaries themselves. The only -question at issue was between the trustees and a stranger to *212 the trust, who was alleged to have in his possession, or to be liable to account for, certain property belonging to the trust, and in such an action it is well settled now that the beneficiaries. are not necessary parties. (Horsley v. Fawcett, 11 Beav. 565 ; Goldsmid v. Stonehewer, 9 Hare App. 38; Doody v. Higgins, Id. 32; Fowler v. Bayldon, Id. 78; Adams v. Bradley, 12 Mich. 346 ; Ashton v. Atlantic Bank, 3 Allen, 217; Boyden v. Partridge, 2 Gray, 190; Cary v. Brown, 92 U. S. 171; Kerrison v. Stewart, 93 id. 155 ; Western R. R. Co. v. Nolan, 48 N. Y. 513.) If the purpose of the action had been, among other things, to determine rights as between the beneficiaries-themselves, or as between the trustees and the beneficiaries, then it would have been necessary to bring them in as parties. The rule is thus laid down in Perry on Trusts, section 328; “ It is the duty of a trustee to defend and protect the title to the trust estate, and as the legal title is in him, he alone can sue and be sued in a court of law. The cestui gue trust, the absolute owner of the estate in equity, is regarded in law as a-stranger.” In Story’s Eq. Pleadings (9th ed.), p. 192, note a, it is said: “ Where a suit, brought by a trustee to recover the trust property, does not give rise to any conflict of interests-between the cestui gue trusts, and does not involve an investí-' gation into their relations with each other, the cestui gxt,e trusts are not necessary parties.” In Western R. R. Co. v. Nolan, (supra), it was. held that trustees who have the title to the trust fund are the proper parties plaintiff in an action to maintain and defend the fund against wrongful attack or injury tending-to impair its safety or amount, and that neither the cestui gue trust nor other beneficiaries can maintain such an action against a third person, except in case the trastees refuse to perform their duty, and then the trustees should be made parties defendant. In Cary v. Brown (supra), it was held that a suit brought by a trustee to recover trust property, or to reduce it to possession, in no wise affects his relations with his cestui gue trusts, and it is unnecessary to make them parties. In Horsley v. Fawcett (supra), the master of the rolls says: “ If the object of the bill were to recover the- fund with a view to its *213

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

Related

J. Carey Smith 2019 Irrevocable Trust v. 11 W. 12 Realty LLC
2025 NY Slip Op 04045 (Appellate Division of the Supreme Court of New York, 2025)
Ronald Henry Land Trust v. Sasmor
44 Misc. 3d 51 (Appellate Terms of the Supreme Court of New York, 2014)
In re the Estate of Blumenkrantz
14 Misc. 3d 462 (New York Surrogate's Court, 2006)
In re the Estate of Brandt
81 A.D.2d 268 (Appellate Division of the Supreme Court of New York, 1981)
Strain v. Seven Hills Associates
75 A.D.2d 360 (Appellate Division of the Supreme Court of New York, 1980)
Stetson v. Investors Oil, Inc.
176 N.W.2d 643 (North Dakota Supreme Court, 1970)
Riviera Congress Associates ex rel. Lewy v. Yassky
223 N.E.2d 876 (New York Court of Appeals, 1966)
Straube v. Security First National Bank
205 Cal. App. 2d 352 (California Court of Appeal, 1962)
In re Hanover Bank
31 Misc. 2d 1086 (New York Supreme Court, 1961)
Anderson v. Elliott
117 N.E.2d 876 (Appellate Court of Illinois, 1954)
In re the Accounting of Kohlmann
198 Misc. 1049 (New York Surrogate's Court, 1950)
Bacorn v. State
195 Misc. 917 (New York State Court of Claims, 1949)
Security Trust Co. v. John Hancock Mutual Life Insurance
189 Misc. 259 (New York Supreme Court, 1947)
La Vaud v. Reilly
268 A.D. 390 (Appellate Division of the Supreme Court of New York, 1944)
Dechert v. Pratt
182 Misc. 515 (New York Supreme Court, 1943)
In re the Liquidation of Lawyers Title & Guaranty Co.
266 A.D. 322 (Appellate Division of the Supreme Court of New York, 1943)
Liberty Storage & Warehouse Co. v. Van Wyck
165 Misc. 890 (City of New York Municipal Court, 1937)
In re James Butler Grocery Co.
21 F. Supp. 149 (E.D. New York, 1937)

Cite This Page — Counsel Stack

Bluebook (online)
27 N.E. 259, 126 N.Y. 201, 36 N.Y. St. Rep. 936, 81 Sickels 201, 1891 N.Y. LEXIS 1629, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-estate-of-straut-ny-1891.