McLaughlin v. Winner

23 N.W. 402, 63 Wis. 120, 1885 Wisc. LEXIS 234
CourtWisconsin Supreme Court
DecidedApril 28, 1885
StatusPublished
Cited by14 cases

This text of 23 N.W. 402 (McLaughlin v. Winner) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McLaughlin v. Winner, 23 N.W. 402, 63 Wis. 120, 1885 Wisc. LEXIS 234 (Wis. 1885).

Opinion

Tayloe, J".

The only material question in tins case is the one raised upon the rejection of all evidence on the part of the defendant tending to prove the allegations of the defense or of the counterclaim. The defensive matter in the answer, if a defense at all, must be held so upon the ground that the facts alleged show a settlement between the plaintiff, as administratrix, as to the money in the defendant’s hands belonging to the estate, and the appropriation of such money in his hands to the payment and satisfaction of his claim against the estate of the intestate.

The allegations in the defensive part of the answer require a most liberal construction in order to make out such a defense; but admitting, for the purposes of this decision, that such defense is set up in the answer, does it state a legal defense to the plaintiff’s cause of action? We think the question must be answered in the negative. In the first place, the rule seems to be well established that in an action brought by an executor or administrator upon a contract made by such executor or administrator himself, after the death of the testator or intestate, or to recover assets belonging to the estate in the hands of a third person, a claim due from the deceased to the defendant cannot be set off or counterclaimed. The reason of the rule is that in all such cases the allowance of such setoff or counterclaim [125]*125■would necessarily destroy tbe equal and just distribution of the assets belonging to the estate among the creditors in every case where the assets were insufficient to pay all the debts of the deceased. Aldrich v. Campbell, 4 Gray, 284; Smith v. Boyer, 2 Watts, 173; Aiken v. Bridgman, 37 Vt. 249; Woodward v. McGaugh, 8 Mo. 161; Newhall v. Turney, 14 Ill. 338; Patterson v. Patterson, 59 N. Y. 574; Lawrence v. Vilas, 20 Wis. 381, 389-391; 3 Williams on Ex’rs (7th Am. ed.), 1816, bottom'paging, note p; Lambarde v. Older, 17 Beav. 542; Wrout v. Dawes, 25 Beav. 369; Root v. Taylor, 20 Johns. 131; Steel v. Steel, 12 Pa. St. 64; Shipman v. Thompson, Willes, 103. Again, to allow the administrator to bind the estate by the appropriation of the debts due to the estate, not due from the defendant to the intestate in his life-time, to be applied to the satisfaction of a debt due the defendant upon a contract made with the intestate, would open the door for avoiding the statute, which requires that all such claims against the estate must be presented to and allowed by commissioners appointed by the county court, or by the judge of the court, as provided by ch. 165, R. S. 1818; and for the allowance of claims against the estate which had been barred by the provisions of sec. 3844 of said chapter, because not presented and allowed as required by law.

If any assets of the intestate in the hands of the administrator, other than a debt due to the estate from the defendant upon a contract made with the intestate in his life-time, can be appropriated to the satisfaction of a debt due from the intestate to such a defendant, it can only be done in a case where it is made to appear affirmatively that the assets in the hands of the administrator are abundantly sufficient to pay all the expenses of the administration, the expenses of the last sickness of the deceased, and his funeral expenses, and that at the time such appropriation by the administrator was made, the claim of the defendant against [126]*126the estate had not been barred, because not presented for allowance within the time prescribed by law. In a case of that kind there would be very cogent reasons for holding that, in an action by the administrator to recover such assets of the estate in the hands of a defendant, such an appropriation of them by the administrator, when clearly established, might be upheld as a defense to the action. See Adams v. Butts, 16 Pick. 343; Patterson v. Patterson, 59 N. Y. 514. But that is not this case, and it is not necessary, therefore, to pass upon the rights of a defendant under such circumstances.

It may be urged that sec. 3841, R. S. 1878, which authorizes the defendant to set off any claim he may have against the deceased, instead of presenting it to the commissioners, in an action commenced against him by the administrator, is applicable to this case; and that, as he might have set off his claim as a defense to the action of the administrator, he should be allowed to show that by agreement between the parties the claim of the plaintiff had been settled and paid by its appropriation to the payment of the demand he was authorized to set off in the action. There would be great force in the argument if the action brought by the adminis-tratrix in this case ivas an action contemplated by said sec. 3847, in which a setoff is allowed. In view of the scope of the chapter in which this section is found, it is clear to us that the actions spoken of in that section, which may be brought by the administrator, and in which such setoff may be made, are actions to recover a “ debt or claim ” due from the defendant to the intestate in his lifetime, and not an action to recover upon a contract made with his administrator after his appointment, or an action to recover the assets belonging to the estate' which have come to the hands of the defendant after the death of the intestate.

When there are mutual claims between the intestate and [127]*127one of Ms creditors, there are two ways of adjusting such claims: First, under sec. 3841, when the creditor presents his claim for allowance to the commissioners, the administrator may exhibit the claim of the intestate against the creditor to the commissioners, and they pass upon both claims, and strike the balance in favor of the largest claim. Or, under sec. 3847, the administrator, instead of waiting for the presentation of the creditor’s claim to the commissioners, may bring an action against such creditor on the claim due to the intestate, and then the creditor may, if he choose so to do, set off his claim against the estate in that action. This construction of this section is confirmed by the provision of sec. 4260, R. S. 1878, in relation to setoff, wMch reads as follows: “ In actions brought by executors and administrators, demands existing against their testators or intestates, and belonging to the defendant at the time of their death, may be set off by the defendant in the same manner as if the action had leen Ir ought ly and in the name of the deceased.”

’ As the action by the administrator in the case at bar was not an action in which the defendant could have set off his claim against the intestate as a counterclaim or setoff under the section above cited, it is very clear to.us that he cannot set up the appropriation by the administrator of the assets of the estate for which the action is brought, to the payment of Ms claim against the estate, unless he shows that such appropriation was made under circumstances which could not prejudice the rights or interests of any other parties interested in the assets of the intestate.

"We think the circuit judge was right in holding that the defensive matter stated in the complaint did not constitute a defense to the action, and evidence tending to prove it was properly rejected.

We are also of the opinion that the matters set up by way of counterclaim are not pleadable as a counterclaim to [128]*128the plaintiff’s action, and state no cause of action against the plaintiff as administratrix.

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Cite This Page — Counsel Stack

Bluebook (online)
23 N.W. 402, 63 Wis. 120, 1885 Wisc. LEXIS 234, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mclaughlin-v-winner-wis-1885.