Oles v. Wilson

141 P. 489, 57 Colo. 246, 1914 Colo. LEXIS 229
CourtSupreme Court of Colorado
DecidedApril 6, 1914
DocketNo. 7333
StatusPublished
Cited by37 cases

This text of 141 P. 489 (Oles v. Wilson) 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
Oles v. Wilson, 141 P. 489, 57 Colo. 246, 1914 Colo. LEXIS 229 (Colo. 1914).

Opinion

Mr. Justice White

delivered tbe opinion of tbe court:

1. Tbe trial court held that plaintiff’s cause of action was barred by tbe statute of non-claim. Tbe bolding was based upon an erroneous conception of what constitutes a “demand” against tbe estate of a deceased person within tbe meaning of tbe statute. While tbe import of tbe word “demand” is very comprehensive when used in certain connections and in reference to certain matters, it is essential, in applying the statute here' involved, to first ascertain the sense in which the word is therein used. Tbe statute is found in tbe fourth paragraph of § 7206 R. S. 1908, tbe same being § 121 of an act entitled: “An act in relation to probate matters, including estates of minors, deceased persons and persons mentally incompetent, and tbe administration thereof, and to repeal certain acts in relation thereto.” Chap. 181, S. L. 1903. Tbe statute requires that “all demands” against tbe estate of deceased persons shall be divided into four specific classes, and paid in tbe order [254]*254of their classification; that money received by the deceased as executor, administrator, guardian, conservator or trustee shall constitute the first class; that funeral expenses, physician’s bill and other expenses of last illness of the deceased, and expenses of the administration and settlement of the estate shall constitute the second class; that allowances to the widow or orphans made as provided by law shall compose the third class; that “all debts and demands of whatsoever kind, without regard to quality or dignity” not within the first, second and third classes, filed in the County Court within one year from the granting of letters, and allowed by the court, constitute the fourth class, and that all demands not filed within such year shall be forever barred “unless such creditor shall find other estate of the deceased not inventoried or accounted for by the executor or administrator, in which case his claim shall be paid pro rata out of such subsequently discovered estate,” providing “that any claims secured by valid mortgage, * * * may be filed and allowed after the expiration of one year. ’ ’

The act is arranged in subdivisions and the non-claim statute is found in a subdivision entitled: “Allowance of claims of widows, orphans and creditors.” The first section of the subdivision, being section 7205 of the act, relates to insolvent estates, while the next section thereof, being section 7206, includes the non-claim statute, and classifies “demands” against estates. Now, in the classification of the “demands” the claims of widows or orphans constitute the third class,- while all other demands, that is, the first, second and fourth classes, must be demands of “creditors,” the only other claimants named in the title of the subdivision. It would, therefore, seem that the “demands” referred to in the first line of section 7206, supra, are solely the “claims” referred to in the title of the subdivision, namely, the “claims” of widows, orphans and creditors. Other sections of the act strengthen this view. Section 7208 makes it the duty of the executor to fix a date within six months [255]*255from the granting of letters for the “settling and adjusting of all claims.” He is required to give notice thereof by publication, etc., “requesting all persons having claims and demands against the estate to present the same to the court on the day or days named in such notice for adjustment.” Section 7209 authorizes persons having claims against the estate to file the same, and the court to proceed to a hearing thereon, but provides that if no objection be made to such claim “the claimant shall be required to swear that such claim is just and unpaid after allowing all just credits.” Section 7216 provides that the court shall class “all demands allowed against any estate at the time of allowance thereof, and such demands shall be paid in their order, commencing with the first class, and when the estate is insufficient to pay the whole of the demands, such demands in any one class shall be paid fro rata, * * *” Section 7218 provides that “any creditor whose debt or claim against the estate is not due may, nevertheless, present the same for allowance and settlement,” and section 7234 provides that, “Whenever it shall appear that there are sufficient assets to satisfy all legacies and all demands against the estate, the court shall order the payment of all legacies mentioned in the will of the testator, the specific legacies being first satisfied. ’ ’

It seems clear from the different sections of the act, taken and construed together, as well as from the nature and reason of the ease, that the words, “all demands against the estate,” as used in the statute, do not include a claim of the nature of the one forming the basis of this suit. The contract before us contemplates that the “demands” of the statute, of all classes, should be satisfied in full out of the estate before the plaintiff herein should receive anything whatever. This is true, because that which she should receive by its terms was to be vested by the will of Macky. Such means of conveyance necessarily limits the estate, and the final investment of title, to that which is left after ‘ ‘ all demands against the estate,” as defined in the statute, have been [256]*256satisfied. Moreover, if the rights of the plaintiff under the contract fall within “demands” of the fourth class, as prescribed by the statute, and are subject to its disabilities, such rights would likewise be subject to the benefits of the statute, and would, therefore, pro rate with other claims of the same class if the estate were insufficient to pay the whole of the demands. Section 7216, supra. To include the rights arising by virtue of the contract in question within the purview of the words “demands against the estate” would destroy all distinction between creditors of the estate, on the one hand, and those entitled as distributees thereof, after the payment of its debts, on the other. In construing a statute, courts, if possible, consistent with the reasonable meaning of the words employed in their association with the language of the whole act, ascribe to it a meaning that will avoid absurd results and far reaching evil effects in its application. The difference between a “demand against the estate,” within the meaning of the statute, and the rights of the claimant under a contract like the one at bar, is radically and sharply defined. The former is a demand against the estate which must be paid or satisfied in advance of distribution, while the latter is a right or interest in the estate, an equitable ownership therein, after the claims against the estate have been allowed and paid.

When considered in connection with the statutes and the facts there involved, Furman v. Craine, 18 Calif. App. 41, 121 Pac. 1007, and Burns v. Smith, 21 Mont. 251, 261, 53 Pac. 742, 69 Am. St. 653, support our views here expressed upon this branch of the controversy. Moreover, the cause of action here set forth must be prosecuted, if at all, in a court of original and general equitable jurisdiction and powers. Its purpose is to impress a trust upon the real and personal property of the.deceased after his debts are paid and the costs of administration discharged. The necessity for the interposition of equity is quite obvious. As said in Owens v. McNally, 113 Calif. 444, 450, 45 Pac. 710, 712, 33 L. R. A. [257]

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Bluebook (online)
141 P. 489, 57 Colo. 246, 1914 Colo. LEXIS 229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oles-v-wilson-colo-1914.