McCullough's Estate

140 A. 865, 292 Pa. 177, 1928 Pa. LEXIS 588
CourtSupreme Court of Pennsylvania
DecidedJanuary 9, 1928
DocketAppeal, 19
StatusPublished
Cited by26 cases

This text of 140 A. 865 (McCullough's Estate) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCullough's Estate, 140 A. 865, 292 Pa. 177, 1928 Pa. LEXIS 588 (Pa. 1928).

Opinion

Opinion by

Mr. Justice Walling,

On November 27, 1922, Allen McCullough, of Marple Township, Delaware County, died testate, survived by *180 eleven children and a minor grandson, the son of a deceased daughter. Testator’s last will provides, inter alia, “I order and direct my executor hereinafter named to sell all of my property real, personal and mixed either at private or public sale, as he in his discretion deems best.” And after payment of certain specific legacies, the will directs a division of the balance among all of testator’s children, naming them. The will designates testator’s son, Allen McCullough, executor and also trustee for the shares of the married daughters, of whom there are six.

The testator died seized, inter alia, of a farm in said township containing approximately one hundred and fifty acres, which, on April 9, 1925, the executor contracted in writing to sell to Helen S. Hendrickson for six hundred and fifty dollars per acre. Five thousand dollars hand money was paid and the agreement called for five thousand dollars more to be paid in six months and the balance at time of settlement on or before April 1, 1926. The second five thousand dollars was duly tendered but refused. Meantime, on October 6, 1925, a son and legatee of testator filed a petition in the orphans’ court, on behalf of himself and other legatees, setting forth, inter alia, that the consideration named in said agreement was wholly inadequate and praying for a citation directed to both the purchaser and the executor to show cause why it should not be set aside. The executor filed an answer admitting the averments of the petition and joining in the prayer thereof. The other legatees, except the minor grandson, became parties to the petition and asked that the contract be set aside. Helen Hendrickson, and Charles L. Roach, assignee of the contract, filed a responsive answer, and much testimony was taken. While the witnesses differed greatly as to value, it was shown that in the fall of 1925, a responsible party submitted a written offer of one thousand dollars an acre for the farm and that in the spring of 1926 an attorney, acting for an undisclosed principal, submitted *181 a written offer of fourteen hundred dollars an acre. It also appeared that in the summer and fail of 1925 farm land in the neighborhood sold at from eight hundred to twenty-five hundred dollars an acre. The orphans’ court, after full hearing, found the price of six hundred and fifty dollars an acre grossly inadequate and set the sale aside. Whereupon the purchaser and her assignee brought this appeal.

The matter was one resting in the sound discretion of the orphans’ court and the record discloses nothing to warrant our interference. The farm is so near the City of Philadelphia as to be suburban and its value has greatly advanced during the last three or four years. It has the advantage of city water, electricity and gas, the latter having been extended along the street by this farm in the spring of 1925. The executor acted in good faith. The contract price would have been adequate in 1924 and possibly in the early spring of 1925, but became wholly inadequate as that year advanced. By midsummer of 1925 neighboring property was selling for more than twice the agreed price. The good faith of the executor must be judged as. of the date of the contract, but it was the duty of the orphans’ court to protect the estate at the time it had the matter in hand. The greater offer which the court considers, is almost of necessity a later offer. It is not what was or what could have been obtained for the property, but what can be obtained for it that is the determining factor. The instant case presents not a completed transaction but merely an agreement to purchase, with about five per cent of the consideration paid and a year for settlement. The legal title had not passed. Had the consideration been paid or secured and deed delivered, a different question would be presented. As the orphans’ court ordered a return of the hand money the vendee will lose nothing except the value of the bargain. This the court was not required to give at the expense of the legatees. Helen Hendrickson was merely the ostensible purchaser, the real parties *182 in interest being a syndicate of six, of whom Roach was one.

Although the will was such as to authorize the executor to sell the land without application to the orphans’ court, yet the latter had supervisory power over the estate and, for its protection, could set aside the agreement of sale. Section 9 of the Orphans’ Court Act of June 7, 1917, P. L. 363, 371 (a reenactment of the Act of 1836), provides, inter alia: “The jurisdiction of the several orphans’ courts, whether separate or otherwise, shall extend to and embrace: ......All cases within their respective counties, wherein executors, administrators, guardians, or trustees may be possessed of, or are in any way accountable for, any real or personal estate of the decedent.” In the recent opinion of this court by Mr. Justice Sadler, in Orr’s Est., 283 Pa. 476, the subject is fully considered and the relevant authorities cited and we there hold: “The exercise of due discretion for the preservation of the assets of a decedent is not only permissible, but mandatory, and its [the orphans’ court’s] supervision over the disposition of realty should be exercised whether the sale be by virtue of an order for the payment of debts, or be made by an executor under a power conferred by will, so that a fund may be secured for like purpose, or that distribution be rendered possible to those designated by the testator---When......we deal with the estate of a decedent, over which the court exercises a supervisory control for the benefit of all interested, it is well recognized that not only the power, but also the duty, exists to see that a fair value is received: Fricke’s Est., 16 Pa. Superior Ct. 38; Schnebly’s Est., 249 Pa. 208. This is true, though the attempted transfer by the executor, under the power granted him, was exercised in entire good faith.” It is a matter for the orphans’ court with which an appellate court will not interfere except in a plain case of an abuse of discretion: Bowers’s App., 84 Pa. 311; and see Dundas’s App., 64 Pa. 325; Haslage’s *183 App., 37 Pa. 440. That the supervisory power of the orphans’ court extends as well to a sale under a power in a will as to one made under an order of court is undoubted. See Brittain’s Est., 28 Pa. Superior Ct. 144; Fricke’s Est., supra; and the opinion by Judge Hawkins, in Estate of Susanna Bichsel, 55Pitts.L. J. (O. S.) 357. The question of inadequacy of price is one peculiarly within the discretion of the court below: Acklin’s Est., 237 Pa. 528, 532; Williams’s Est., 140 Pa. 187. The right of the orphans’ court to set aside a sale for inadequacy alone is indisputable: Myers’s Est., 192 Pa. 458, 461; and see opinion of Judge Rhone, in Breese’s Est., 2 Kulp 62.

None of the other legatees joined in executing the sale agreement, but as the attorney for the estate expressed satisfaction with it, as did two or three of the legatees to third parties, it is strenuously urged by the able counsel for appellants that petitioners were thereby es-topped from asking to have the sale set aside. This alleged talk by a few of the legatees was shortly after the date of the agreement, was not with appellants, nor acted upon by them, and had none of the elements of an estoppel.

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Bluebook (online)
140 A. 865, 292 Pa. 177, 1928 Pa. LEXIS 588, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcculloughs-estate-pa-1928.