Newberry v. Wilkinson

199 F. 673, 118 C.C.A. 111, 1912 U.S. App. LEXIS 1749
CourtCourt of Appeals for the Ninth Circuit
DecidedOctober 7, 1912
DocketNo. 2,102
StatusPublished
Cited by18 cases

This text of 199 F. 673 (Newberry v. Wilkinson) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newberry v. Wilkinson, 199 F. 673, 118 C.C.A. 111, 1912 U.S. App. LEXIS 1749 (9th Cir. 1912).

Opinion

WOtvVERTON, District Judge

(after stating the facts as above). This country adopted the equitable jurisdiction of the High Court of Chancery of England when the Constitution was framed, and it is the jurisdiction exercised by the federal courts to the present time, saving such modifications as it has undergone through usage and by action of Congress, and, in practice, through the rules adopted by the Supreme Court. It has been said that the jurisdiction “is subject to neither limitation nor restraint” by state legislation, and is uniform throughout the different states of the Union.” Payne v. Hook, 7 Wall. 425, 430, 19 L. Ed. 260. See, also, Robinson v. Campbell, 3 Wheat. 212, 4 L. Ed. 372; McConihay v. Wright, 121 U. S. 201, 7 Sup. Ct. 940, 30 L. Ed. 932; Arrowsmith v. Gleason, 129 U. S. 86, 9 Sup. Ct. 237, 32 L. Ed. 630. This jurisdiction in its parent country undoubtedly extended to the administration of estates of deceased persons. Says Mr. Pomeroy:

“The relation subsisting between executors and administrators on the one band, and legatees, distributees, and creditors on the other, has so many of the features and incidents of an express active trust that it has been com[679]*679pletely embraced witbin the equitable jurisdiction in England, and also in the United States, where statutes have not interfered to take away or to abridge the jurisdiction.” 1 Pom. Eq. Jur. § 156.

The states, however, through their statutes and procedure, have vitally encroached upon this special subject of equitable jurisdiction. In a great majority of the states, the original jurisdiction over administrations in all ordinary cases, unless attended with special circumstances, such as fraud, or with some equitable feature/ such as a trust, is either expressly or practically abrogated. Courts of equity, in the absence of such special circumstances or distinctly equitable feature, either do not possess or will not exercise the jurisdiction, but leave the whole matter of administration to the special probate tribunals. In a few of the states only does the full equitable jurisdiction over administrations remain-unimpaired, and in these it is not exclusive, but concurrent with systems of administration conferred upon probate courts. Sections 348, 349, 350, Pom. Eq. Jur.; 16 Cyc. 92-95.

So it is the doctrine of the English chancery that, whenever an infant succeeds to property, that court takes the management of its person and estate. “In this matter, however,” says Mr. Pomeroy, “as in the administration of decedents’ estates, the Legislature has intervened, and the probate courts practically appoint all guardians, and control their official actions. Under their general power in cases of trust and of accounting, the American courts of equity may give all proper relief to wards against their guardians; Dut the peculiar jurisdiction over the persons and estates of infants, possessed by the English chancery, does not, to any extent, exist in the American equity jurisprudence.” Pom. Eq. Jur. § 78. At another place (section 1097) the author further says:

•‘Equity has, therefore, a general jurisdiction, at the suit of the wards or other beneficiaries, to compel a performance of the trust duties, to relieve against violations of these trust obligations, to direct an accounting and final settlements of the quasi trust, and to grant other special relief made requisite by the circumstances.”

[1] Equity jurisdiction in the federal courts, however, may yet be said to extend to the administration of the estates of deceased persons sub modo — that is, where it concerns citizens and residents of different states; but it is an inexorable rule that, in the exercise of such jurisdiction, such courts will be governed and controlled by the statutory rules and regulations of the states pertaining to the administration and the settlement of such estates. Security Trust Co. v. Black River National Bank, 187 U. S. 211, 23 Sup. Ct. 52, 47 L. Ed. 147. In short, the federal equity courts, when occasion requires, for the protection of proper parties concerned, will administer the local probate procedure, but in obedience to tlie local law governing the same. While it is said that “the several states of the Union necessarily have full control over the estates of deceased persons within their respective limits” (Yonley v. Lavender, 21 Wall. 276, 279, 22 L. Ed. 536), and that the federal court “has no original jurisdiction in respect to the ad[680]*680ministration of a deceased person” (Byers v. McAuley, 149 U. S. 608, 619, 13 Sup. Ct. 906, 37 L. Ed. 867), it is further declared that “the general equity jurisdiction of the Circuit Courts of the United States to administer, as between citizens of different states, the assets of a deceased person within its jurisdiction cannot be defeated or impaired by laws of a state undertaking to give exclusive jurisdiction to its own courts.” Lawrence v. Nelson, 143 U. S. 215, 223, 12 Sup. Ct. 440, 36 L. Ed. 130. See, also, Green’s Administratrix v. Creighton et al., 23 How. 90, 16 L. Ed. 419; Payne v. Hook, 7 Wall. 425, 19 L. Ed. 260.

It is upon the ground of a trust impressed by law that the equitable jurisdiction over estates primarily rests, and its remedial powers may be exercised as in administration suits, and in creditors’ bills instituted against executors or administrators, or after distribution against legatees, for the purpose of charging them with a liability to apply the assets of the decedent to pay his debts and the like. Borer v. Chapman, 119 U. S. 587, 600, 7 Sup. Ct. 342, 30 L. Ed. 532.

[2] The federal courts being governed and controlled by the local laws respecting the administration of estates, their jurisdiction, in so far as it is exercised, is necessarily concurrent with the probate jurisdiction of the several states; and, being concurrent, it follows that the orders and judgments of such probate courts in the due and orderly administration of such estates are conclusive and binding upon the federal courts. This latter deduction has been observed to be the case in the matter of the succession of estates. Johnson v. Waters, 111 U. S. 640, 667, 4 Sup. Ct. 619, 28 L. Ed. 547.

[3] This court has chancery jurisdiction of the present controversy because of fraud alleged in the bill and shown by the testimony, and for an accounting. Sections 78 and 1097, Pom. Eq. Jur.; Johnson v. Waters and Arrowsmith v. Gleason, supra.

.[4] Whatever good intentions may have prompted Newberry in disposing of his children’s inheritance, the disposition made was a manifest constructive fraud upon their rights, and it is bootless to speculate as to the probability or possibility of the property being lost to the estate in any event by reason of prior incumbrance or financial entanglement.

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Bluebook (online)
199 F. 673, 118 C.C.A. 111, 1912 U.S. App. LEXIS 1749, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newberry-v-wilkinson-ca9-1912.