Mid-Continent Casualty Co. v. Holland

1974 OK CIV APP 17, 522 P.2d 1340
CourtCourt of Civil Appeals of Oklahoma
DecidedMarch 26, 1974
DocketNo. 45758
StatusPublished

This text of 1974 OK CIV APP 17 (Mid-Continent Casualty Co. v. Holland) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mid-Continent Casualty Co. v. Holland, 1974 OK CIV APP 17, 522 P.2d 1340 (Okla. Ct. App. 1974).

Opinion

BOX, Presiding Judge:

An appeal by Mid-Continent Casualty Company from an order striking appellant’s objections to successor administrator’s final accounting and petition for order allowing final account, determination of heirship, distribution and discharger in the Matter of the Estate of Francis Merle Hunter, deceased.

The pertinent proceedings had leading to the appeal herein, in brief are as follows: On December 6, 1966, Donald Wayne Hunter was appointed administrator of the estate of Francis Merle Hunter, deceased. He filed a $20,000.00 penal bond with Mid-Continent Casualty Company. On January 4, 1967, the administrator published notice to the creditors of the estate of Francis Merle Hunter. Nothing further was done in the estate by the administrator. No inventory was filed and a proper claim which had been perfected against the estate was not processed.

On June 1, 1970, pursuant to application and notice, Donald Wayne Hunter was removed as administrator of the estate of Francis Merle Hunter for his failure to perform his statutory duties. Jerry H. Holland was appointed successor administrator. Paragraph 7 of the order appointing the successor administrator provides that:

“Donald Wayne Hunter, administrator of the Estate of Francis Merle Hunter, deceased, has failed to perform his statutory duties and should be removed as administrator of said estate and a substitute administrator named to act for and on behalf of the estate, to marshal its assets and disburse said funds to those entitled thereto and perform the other statutory duties performed of said administrator.” (Emphasis supplied.)

The successor administrator determined that Donald Wayne Hunter had misappropriated and converted funds belonging to the estate to his own use and in compliance with the order of the District Court to “marshall its (the estate’s) assets” caused to be filed an application for an order surcharging Donald Wayne Hunter the sum of $19,223.60 plus interest, the same being the amount of money allegedly appropriated and converted by the said Donald Wayne Hunter for his own use. Hearings were had on October 5, 1970, wherein Donald Wayne Hunter appeared in person and by and through his attorney and testified concerning the absence of the funds and further hearing was had on January 14, 1971. At both hearings Mid-Continent was present and participated in resisting the surcharge. On January 14, 1971, the court entered its order surcharging Donald Wayne Hunter $17,234.99, finding that he had converted this amount to his own use to the detriment of the estate and further surcharged the amount of interest at 10% per annum from June 1, 1967, the established time of conversion. This order became final and was not appealed from. Thereafter, demand was made upon Mid-Continent to pay the amount to the estate that its principal had been surcharged. The demand to pay was refused. On March 5, 1971, application was made to the court for an order allowing the successor administrator to obtain the services of an attorney to pursue the claim of the estate against the bonding company and to enter into an agreement to pay the attorneys one-third of any amount collected on a contingency fee basis. This application was sustained by the court. On April 5, 1971, the successor administrator filed suit against Mid-Continent Casualty Company in the District Court of Tulsa County, Oklahoma. The case was assigned to Judge M. M. McDougal, the same judge before whom the probate was pending. On September 9, 1971, defendant Mid-Continent Casualty Company filed with the court its motion and tender wherein it stated:

“1. It tendered to the Court the full amount of the judgment rendered against the former administrator on behalf of the Travelers Insurance Compa[1342]*1342ny and, further, a reasonable successor administrator’s fee and attorney for successor administrator’s fee to be determined by the Court. It invited the Court’s attention to the fact that the same firm represented the Travelers Insurance Company and the successor administrator was an associate of the firm so that double fees should not be allowed in the matter.
“2. The successor administrator had alleged that the only lawful claim against the estate was the claim of Travelers Insurance Company, plus a reasonable administrator’s and attorney’s fee to be set by the Court. That the Probate Court had on January 14, 1971, held that the former administrator should be surcharged in order to pay the estate the sum of $17,234.99, that the defendant never had its opportunity to be heard upon the issue as to whether or not the items sought in the successor administrator’s motion of July 16, 1970, should be considered assets of the estate and further showed the Court that the alleged deposits were not assets of the estate.
“3. That the original administrator was the sole and only heir of Francis Merle Hunter and that it would be a futile and vain thing to require the surety company to reimburse the estate for anything in excess of claims filed and expenses of administration.
“4. That summons had been issued on the defendant’s third-party claim against third-party defendant, Donald Wayne Hunter, praying that he be required to indemnify the surety for any loss which it may encounter as a result of the lawsuit.
“5. That because Mid-Continent Casualty Company was a surety of the only heir and therefore entitled to be subro-gated to his rights that the Court should set off against the amounts claimed by the plaintiff any amount over and above the judgment in favor of the Travelers Insurance Company.”

On November 22, 1971, the court heard plaintiff’s motion for summary judgment and defendant’s oral motion for default judgment against third-party defendant and entered its order, which was subsequently filed of record on January 6, 1972, wherein the court found: The third-party defendant, although properly served, was in default; that there was no substantial controversy as to any material fact or issue between the parties; on January 14, 1971, Donald Wayne Hunter, the principal of defendant, Mid-Continent Casualty Company was surcharged the sum of $17,234.99, plus interest at the rate of 10% per annum from June 1, 1967, as a result of conversion of said amount of money to his personal use to the exclusion and detriment of the estate; that he was the administrator of the estate at the time the conversion was made and that the defendant, Mid-Continent, had furnished his administrator’s bond in the amount of $20,000.00; that the total amount due from Donald Wayne Hunter to the plaintiff as of the date of the judgment was $24,847.09 including interest to date but that the limit of defendant surety’s bond was $20,000.00; and that plaintiff was entitled to judgment of and from defendant in the sum of $20,000.00 plus interest at the rate of 10% per annum from and after date of judgment.

Further the motion for default judgment on behalf of the defendant was sustained and judgment was entered in favor of the defendant Mid-Continent Casualty Company against third-party defendant in the sum of $20,000.00 plus interest at the rate of 10% per annum from and after date of judgment until paid, and in the event that Donald Wayne Hunter was otherwise entitled to any of the assets of the estate of Francis Merle Hunter, Mid-Continent Casualty Company should be entitled to receive same for the full extent of its judgment against third-party defendant but no greater. This judgment was not appealed from.

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Cite This Page — Counsel Stack

Bluebook (online)
1974 OK CIV APP 17, 522 P.2d 1340, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mid-continent-casualty-co-v-holland-oklacivapp-1974.