Mead Co. v. Doerfler

18 N.W.2d 524, 146 Neb. 21, 158 A.L.R. 724, 1945 Neb. LEXIS 58
CourtNebraska Supreme Court
DecidedApril 27, 1945
DocketNo. 31858
StatusPublished
Cited by6 cases

This text of 18 N.W.2d 524 (Mead Co. v. Doerfler) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mead Co. v. Doerfler, 18 N.W.2d 524, 146 Neb. 21, 158 A.L.R. 724, 1945 Neb. LEXIS 58 (Neb. 1945).

Opinion

EAGER, J.

This is an action in two causes of action by The Mead Company, a copartnership, and others, against Zdenka A. Doerfler and Douglas Callahan, administrator of the estate of Otto H. Doerfler, deceased. Demurrers were sustained to the separate causes of action. Plaintiffs elected to stand on their petition whereupon judgment of dismissal was entered. From this judgment plaintiffs have appealed.

For their first cause of action plaintiffs pleaded that Otto H. Doerfler died intestate on December 15, 1939; that they filed claims against the estate in the amount of $2,835.75; that the total of the claims filed against the estate amounted to $10,449.85; that in this total was a claim of L. W. Cox & Co., a corporation, for $5,066.37; that L. W. Cox & Co. withdrew" a part of its claim amounting to $896.05 thus retaining its claim for $4,170.32; that the entire claim of L. W. Cox & Co. thus retained was evidenced by promissory notes executed by Otto H. Doerfler and the defendant Zdenka A. [23]*23Doerfler, except $150.52, although neither the notes nor copies thereof were attached or otherwise made a part of the claim; that the indebtedness represented by the claim, except $150.52, and- evidenced by the promissory notes, was the sole obligation of Zdenka A. Doerfler and that Otto H. Doerfler was only an accommodation endorser of the notes; that all claims were allowed in full; that claims in the amount of $364.65 were paid in full; that the estate being insolvent the other claimants including the plaintiffs and L. W. Cox & Co. received in payment 29' per cent of the amounts for which their claims had been allowed; that L. W. Cox & Co. received as its apportionment $1,293.92.

They pleaded further that since Otto H. Doerfler was only an accommodation endorser his administrator was entitled to and there was a duty on his part to institute action and that he had the right to recover back from Zdenka A. Doerfler, the obligor of the promissory notes, the amount which had been paid out of the estate thereon or $1,293.92.

They pleaded that the administrator has failed, refused and neglected to bring action to recover this amount, therefore they are entitled in their own name, for the benefit of all creditors situated as they are, to bring this action.

For their second cause of action plaintiffs pleaded that on July 13, 1940, the county court of Scotts Bluff county, Nebraska, with the consent and acquiescence of the defendant, Douglas Callahan, administrator, notwithstanding the fact that the administration of the estate of Otto H. Doerfler, deceased, had been closed except for the prosecution of an action to recover damages for the wrongful death of the said deceased, authorized the said Callahan to withhold $900 for the purpose of paying an additional six months widow’s allowance to the defendant Zdenka A. Doerfler at the rate of $150 per month, which amount was paid.

They pleaded that the county court was without jurisdiction to authorize payment of a widow’s allowance after July 13, 1940. The prayer as to the second cause of action is for recovery of this amount for distribution to the general creditors of the estate.

[24]*24The grounds of demurrer to the two causes of action were: (1) That the court was without jurisdiction of the subject matter, (2) that the plaintiffs had no legal capacity to sue, and (3) that the petition did not state sufficient facts to constitute a cause of action. The ground or grounds on which the demurrers were sustained are not disclosed by the record.

We direct our attention first to the first cause of action. As to this one, by an admission or concession of appellees in their brief, we may properly limit our consideration to the sole question of whether or not the plaintiffs have the right to maintain the action, that is, may a creditor of an estate maintain action for the recovery of assets due the estate when the administrator has failed, refused and neglected to institute action for that purpose. The admission or concession is contained in the following from appellees’ brief: “ * * * but it was conceded in the lower court and will be conceded in this court that if the facts stated in the first alleged cause of action could be established to the satisfaction of a court or jury, the administrator could recover the item therein specified. The court sustained the demurrers to both causes of action. It is therefore a legitimate assumption that the demurrers were sustained on the ground that the plaintiffs did not have any right to maintain said action.”

There is no case directly in point in this state. However the appellants contend that there is an analogy in the decisions the reasoning back of which sustains their right to maintain the action. This analogy came into being as an exception to a general rule that title to the personal estate of an intestate decedent is in the administrator until the charges against the estate have been paid or until sufficient of the estate has been set aside to meet the charges, and until the estate has been closed the administrator is the only proper party plaintiff in an action for recovery of assets for and on behalf of the estate. This general rule was announced in Cox v. Yeazel, 49 Neb. 343, 68 N. W. 483. It has been approved as a general rule in Tecumseh Nat. Bank v. [25]*25McGee, 61 Neb. 709, 85 N. W. 949; Prusa v. Everett, 78 Neb. 251, 113 N. W. 571; Hughes v. Langdon, 111 Neb. 515, 199 N. W. 832; Dutch v. Welpton, 121 Neb. 480, 237 N. W. 579; Blochowitz v. Blochowitz, 130 Neb. 789, 266 N. W. 644. However, while these cases recognize the general rule yet they recognize exceptions.

The case of Cox v. Yeazel, supra, was one wherein the court was called upon to decide the question of whether or not heirs could maintain action. In the opinion it was stated : “If, then, the title to the personal assets of James Yeazel vested in his administrator, for the purpose of collecting and disposing of the same for the benefit of the creditors and heirs or distributees, it necessarily follows that the administrator, and not the heirs, is the proper party to bring this action to recover the debt in question.” Further in the opinion in exclusion of the right of an heir to bring action it was stated: “The following authorities, in addition to those already cited, sustain the doctrine that the heirs cannot maintain this action: * * * .”

The case of Tecumseh Nat. Bank v. McGee, supra, was one where an heir was permitted to bring action in her own name for what she claimed was due her as a part of an estate. This court indulged a presumption that the estate had been settled and arrangements had been made for satisfaction of claims and payment of costs of administration but pointed out in the following words that it was of no consequence whether or not this had been done: “But even if this is not the case, the proceedings must be regarded as an exception to the general rule. * * * Thereupon she was given the right to prosecute in her own behalf. This, we think, was proper to be done under the circumstances of the case, and no error was committed in so doing.” It will be observed from an examination of the entire opinion that the declared exception to the general rule did not involve an unqualified right of an heir to bring action. It involved only the right after permission so to do was obtained from the county court.

In Prusa v. Everett, supra, this court approved action by [26]*26an heir instead of an administrator

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Cite This Page — Counsel Stack

Bluebook (online)
18 N.W.2d 524, 146 Neb. 21, 158 A.L.R. 724, 1945 Neb. LEXIS 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mead-co-v-doerfler-neb-1945.