Northern Trust Co. v. Brandenberg

266 N.W. 800, 221 Wis. 385, 1936 Wisc. LEXIS 364
Wisconsin Supreme Court·Decided April 28, 1936·Published

Opinion

Rosenberry, C. J.

The Northern Trust Company, hereinafter referred to as claimant, contends that the trial court was in error: (1) Because the power of attorney executed by Caroline L. Kohl was not revoked by her subsequent incompetency. The judgment against her was properly entered in the county court of Walworth county; (2) that the order of the county court of Waukesha county limiting the time in which claims might be presented against the estate of Caroline L. Kohl, incompetent, did not affect a claim based upon a warrant of attorney; (3) that execution upon the judgment entered might properly be enforced against the estate of the incompetent. On behalf of the guardian it is alleged, (1) that the claim is barred because not filed as required by sec. 313.08, Stats. 1931; (2) that an execution [389] cannot be levied upon property in the hands of a guardian, it being in the custody of the law and not subject to< attachment or execution; (3) that a judgment note is not excepted from the rule that claims must be filed within the time limited or be forever barred; (4) that the county court of Waukesha county had jurisdiction to prevent a sale of the property in the custody of the guardian; that having acquired jurisdiction prior to the entry of the judgment in the county court of Walworth county, Walworth county could acquire no jurisdiction over the ward, the guardian, or the property of the ward being administered by the Waukesha county court and the judgment entered in the county court of Walworth county is a nullity.

Sec. 319.21, Stats. 1931, provides that a guardian may be appointed for the estate of a nonresident ward and that the guardianship which shall be first lawfully granted of any person residing out of this state shall extend to all the estate of the ward within the same and shall exclude the jurisdiction of the county court in every other county.

Sec. 319.25, Stats. 1931, provides that a guardian SO' appointed shall pay the just debts of the ward and that:

“Unless special provisions be made all proceedings for the presentation, allowance and adjustment of claims and demands against persons under guardianship shall be had and made as provided in these statutes relating to the estates of decedents.”

Sec. 313.03, Stats. 1931, relating to claims against decedents provides that such claims shall be filed in the manner therein provided. Sec. 313.08, Stats. 1931, provides:

“Every person having a claim against a deceased person, proper to be allowed by the court, who shall not after notice given as required by sections 313.03 and 313.04, exhibit his claim to the court within the time limited for that purpose, shall forever be barred from recovering such demand or from setting off the same in any action.”

[390] Was the power given by Caroline L. Kohl revoked by her subsequent incompetency ?

Restatement, Agency, §139: “Termination of powers given as security. (1) Unless otherwise agreed, a power given as security is not terminated by: . . . (c) the loss of capacity during the lifetime of either the creator of the power or the holder of the power.”
“Comment: (c) Loss of capacity. Supervening insanity, coverture, or bankruptcy of either the creator of the power or the holder of the power does not affect its validity. If the holder of the power becomes incompetent- to exercise it, a court of equity will direct it to be exercised for the benefit of the beneficiary.”

The power given in this case in connection with the note as recited in the statement of facts was given for security and was not terminated by the subsequent incompetency of Caroline L. Kohl.

The power or warrant of attorney being in full force and effect, the judgment by confession entered in the county court of Walworth county was regular and within the authority conferred by the power. The entry of a judgment by confession is not the commencement of an action. An action must be commenced by the service of a summons or the original writ. Sec. 262.01, Stats. Under the statute, the claimant had a right to file a transcript of the judgment in the circuit court for Waukesha county.

The real question in the case arises when we come to consider the effect of the judgment and of the filing of the transcript upon the property of Caroline L. Kohl who at the time was under guardianship. It is a well-established principle of law that while property or money is in custodia legis, the officer holding it is the mere hand of the court and his possession is the possession of the court and it is not subject to levy either in attachment or by way of execution. 17 R. C. L, p. 139, § 37, and cases cited.

[391] In Shumaker v. Bohrofen (1933), 217 Iowa, 34, 250 N. W. 683, it is held that the property of a ward in the hands of his guardian under the facts in that case is in custodia legis and remains in such custody subject to- the order of the court charged with the responsibility therefor, that property thus situated is not subject to attachment, and that upon the recovery of a judgment against á person under guardianship it becomes the duty of the court having jurisdiction of the guardianship to direct the guardian to pay the claim. The cases sustaining the conclusion of the Iowa court represent the majority view and are. collected in the note, “Property of incompetent or infant under guardianship as subject of execution, attachment, or garnishment,” 92 A. L. R. 919. The cases sustaining the minority view are also collected commencing on page 923.

While the question is a new one in this state, it is considered that the general policy of our law requires us to adopt the majority view at least in part. It is held in this state that a county court having jurisdiction of a matter for one purpose has jurisdiction for all purposes unless it cannot afford an efficient remedy. Cawker v. Dreutzer (1928), 197 Wis. 98, 221 N. W. 401. Sec. 319.41, Stats. 1931, provides in certain classes of guardianship cases that after' the court has by its order fixed a time and place and limited the time within which claims may be presented, no suit shall be commenced or maintained in any court against the ward upon any claim over which the county court has exclusive jurisdiction in the settlement of estates of deceased persons. Where such a proceeding has been instituted the property of the ward is in custodia legis.

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Northern Trust Co. v. Brandenberg, 266 N.W. 800, 221 Wis. 385, 1936 Wisc. LEXIS 364 (Wis. 1936).

266 N.W. 800 (Northern Trust Co. v. Brandenberg) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Shumaker v. Bohrofen
250 N.W. 683 (Supreme Court of Iowa, 1933)
Gardner v. Young's Estate
157 N.W. 787 (Wisconsin Supreme Court, 1916)
Cawker v. Dreutzer
221 N.W. 401 (Wisconsin Supreme Court, 1928)