Murray v. Stuart

247 P. 187, 79 Colo. 454, 1926 Colo. LEXIS 376
CourtSupreme Court of Colorado
DecidedApril 26, 1926
DocketNo. 11,109.
StatusPublished
Cited by1 cases

This text of 247 P. 187 (Murray v. Stuart) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Murray v. Stuart, 247 P. 187, 79 Colo. 454, 1926 Colo. LEXIS 376 (Colo. 1926).

Opinion

Mr. Justice Adams

delivered the opinion of the court.

Bill in equity by Stuart against Murray, Loomer, the Twin Lakes Mining and Milling Company, and others to quiet title to mining property and for an accounting against Murray. The defendants are numerous, with varied and conflicting interests. Title was quieted in various parties and an accounting ordered. Three personal judgments were awarded against Murray, one in favor of Loomer individually, another in favor of Loomer as administrator of the estate of Belinda Brown, deceased, and another in favor of Loomer as administrator of the estate of Constance H. Brown, deceased. Murray brings error and Stuart alleges cross errors. None of the other parties assign error. The only parties before us are Stuart, Murray, and Loomer in the above three capacities.

The real estate in question is the Gordon and Bengal Tiger lode mining claims in Lake county, and other property, but that part of the decree which quiets title to the real estate has not been certified to this court for *456 review. Without passing on the title, it is sufficient for the purpose of considering the money judgments, to say that it is admitted in the briefs that according to the decree, the undivided interests in the real estate stand as follows: Stuart, one-fourth; Murray, one-fourth; heirs of Belinda Brown, deceased, one-fourth, and heirs of Constance H. Brown, deceased, one-fourth. Stuart and Murray acquired their interest by legal services rendered, in and out of court.

Belinda Brown died in Colorado in 1892. An administrator of her estate was appointed, but was subsequently removed, and on August 12,1898, Loomer was appointed administrator de bonis non. Gordon-Tiger Mining & Reduction Co. v. Loomer, 50 Colo. 409, 115 Pac. 717. Loomer is and has been acting as such administrator for over 27 years. Claims have been .filed and allowed against the estate and it has no personal property. Deceased left no real estate of any value except her interest in the above mentioned realty.

Constance H. Brown died in New York; one Charles H. Dean was appointed executor under her will and qualified in that state; in the year 1918 Loomer was appointed administrator in Colorado of the Constance H. Brown estate and he is still so acting.

October 1, 1914, an agreement was made to sell the entire interests of all of the owners of the Gordon and Bengal Tiger lode mining claims and other real estate to G. W. Boyce and J. W. Henney, for $100,000.00 on installments that the latter agreed to pay. For the vendors, Murray signed for himself and also for Stuart under a power of attorney from the latter; the agreement was also signed by the then representatives or purported representatives of the other owners. October 9, 1914, Boyce and Henney assigned their part of the contract to the Twin Lakes Mining and Milling Company, who took possession and operated the property, but afterwards defaulted and the company did not obtain *457 deeds to the property. Murray collected about $5,470.42 from the company for himself and his co-owners, being part payments on the purchase price of the whole property and some royalties and interest. Murray paid $1,000.00 to Stuart, but did not account for the balance to the other owners, alleging as a reason that there were conflicting claims on the fund; also that he had made payments for taxes and other expenses, and also that $1,000.00 was due to himself for services, besides his personal interest in the fund. Upon being ordered to •account, Murray paid $1,725.80 into the registry of the court. Most of this has since been paid out for taxes-under court orders. The court decreed what credits Murray should be allowed on the full amount received by him from’the Twin Lakes Mining and Milling Company and gave judgment against him for the balance. Loomer’s personal claim against Murray was for an alleged real estate commission in the sum of $1,000.00 and interest thereon, and for this Loomer recovered judgment.

Loomer had three sources to look to, according to his viewpoint, from which he was entitled to remuneration for helping put through the Boyd and Henney deal. First, under R. S. 1908, section 7243, then in force, he would have been entitled as administrator of the Belinda Brown estate, not to exceed three per cent on the sale of the one-fourth interest of the decedent in the land; second, $12,000.00 from the heirs under an agreement that he claimed to have with them; third, Murray’s alleged promise to pay him $1,000.00. It is the third one on which he got judgment. We are not here concerned with the legality of the second, nor with either of the first two, except to determine whether Loomer can maintain an action against Murray for $1,000.00, for a brokerage commission involving real estate of a decedent of whose estate he was administrator. This involved the Belinda Brown estate. He was not then administrator of the Constance H. Brown estate.

*458 1. Loomer testified, “I was working in the interest of the estate and myself at the same time.” Can he do this? Briefly, the point is whether we shall attempt to reverse the ancient principle that “no man can serve two masters,” and whether it shall be disregarded because the interest of one is so small, that is, only one-fourth.

Loomer as administrator was charged with a trust concerning the Brown interest in the real estate. Woerner on Administration (3rd Ed.) § 487, p. 1690. He had a very definite duty in respect to it under C. L. 1921,' section 5262, which reads in part as follows:

“Executors, unless otherwise provided by will, and administrators, guardians and conservators, _ shall, by virtue of their office, have power, and it shall be their duty to receive, take possession of, sue for, recover and preserve the estate, both real and personal, of their testators, intestates or wards, and the rents, issues and profits arising from the real estate and all of such personal property and the moneys arising therefrom, or from the rents, issues and profits of the real estate, or from the sale, leasing or mortgaging of the real estate, during the terms of their office, shall be assets in the hands of the executor, administrator, guardian or conservator, for the payment of debts, legacies, widow’s, wife’s, minor’s or orphan’s allowance and expenses of administration, guardianship or conservatorship, and shall be administered under the direction of the county court, in the same manner as moneys, arising from the sale of personal property * *

As administrator, Loomer was forbidden by law to make a profit out of dealing on behalf of the estate. In re Macky Estate, Regents v. Wilson, 73 Colo. 1, 213 Pac. 131. It is true that the payment of $1,000.00 by Murray to Loomer would not have come out of the Brown estate, but such an agreement was illegal, whether Loomer’s profits depleted the estate or not. In re Macky Estate, *459 supra. Being illegal, Loomer cannot maintain an action thereon.

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Bluebook (online)
247 P. 187, 79 Colo. 454, 1926 Colo. LEXIS 376, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murray-v-stuart-colo-1926.