Owsley v. Central Trust Co.

196 F. 412, 1912 U.S. Dist. LEXIS 1564
CourtDistrict Court, S.D. New York
DecidedMay 22, 1912
StatusPublished
Cited by3 cases

This text of 196 F. 412 (Owsley v. Central Trust Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Owsley v. Central Trust Co., 196 F. 412, 1912 U.S. Dist. LEXIS 1564 (S.D.N.Y. 1912).

Opinion

HOUGH, District Judge

(after stating the facts as above). The parties agree that the sole question raised in this case is whether the proceedings in the probate court of Cook county amount to a judgment merging the notes held by Central Trust Company, and fixing thereafter the rights of the parties, in accordance with the law under which the probate court acted.

If the allowance of the trust company’s claim constituted a judgment, rendered by a court of competent jurisdiction, if such judgment was not merely in rem, and against a res consisting of Yerkes’ personal property in Illinois, but ran in personam against the present plaintiff as executor, it cannot be denied that, after the rendition of such a judgment, the rights of parties and privies thereto must depend upon it.

[1] It would follow that whereas the trust company had before judgment a right to enforce certain notes against certain collateral, after judgment such right became one to enforce the judgment against the same collateral; and if the lawmaking power, that authorized the judgment, affixed thereto an interest rate lower than had been stipulated for between the parties, nevertheless after judgment the legal and not the contractual rate must be enforced. Taylor v. Wing, 84 N. Y. 472. The jurisdiction of the probate court is not questioned, and it is agreed that the trust company was entitled to file and submit its claim, and the court had power to allow it. The effect of allowance only is in question.

Nevertheless it is instructive to observe not only what was done under the law of Illinois, but what that law authorized to he done, in the probate court.

If instead of appearing and allowing the claim, Mr. Owsley had wished to contest it, the parties might have gone on to a regular jury trial, differing in no respect from an ordinary action at law against an executor. Ill. Rev. Stat. c. 3, .§ 60. The result of such a trial would have been the allowance or disallowance of claimant’s demand, in tlie same form as here recorded by consent — from which decision an appeal would have lain to higher courts. Chapter 3, § 68.

The judicial expression of decision, after such proceedings in a duly constituted court, would, on principle, seem to he a judgment, and plaintiffs first reliance is on decisions of Illinois holding as much. Mitchell v. Mayo, 16 Ill. 83, holds fully that the presentation of a note to a probate court and its allowance against an administrator extinguishes the note, including the rate of interest agreed on. The court said:

“It is true no execution could be issued upon the judgment, but in this respect it is like a judgment of the circuit court against an administrator, •s * a The effect of the order, adjudication, or judgment is precisely the same in the one case as in the other.”

[416]*416This means that it has been law in Illinois from an early day that a claim allowed in a probate court stands on the same footing and is entitled to the same respect as a judgment against the personal representative (for a debt of decedent) obtained in a court of general or superior jurisdiction after usual proceedings. Both are judgments, neither is capable of enforcement except to be paid in due course of administration, unless the executor or administrator is guilty of a devastavit.

[2] Such judgment, is final against the representative so far as personalty is concerned, but is merely prima facie evidence of' debt as against realty. The reasons for which distinction are laid down in Noe v. Montray, 170 Ill. 174, 48 N. E. 709. The doctrine has been recently redeclared in Ford v. First National Bank, 201 Ill. 128, 66 N. E. 316.

The trial of what are really suits against personal representatives, in court of probate, whether known by that name, or as orphans', or surrogates’ courts, is foreign to the practice in many states, including New York; but there is nothing strange about it if a wider view be taken.

In Vermont, the probate court appoints commissioners to hear and determine claims against estates, and the action of such commissioners in allowing a note is “equivalent to a judgment and merges the original claim.” Warner v. Bronson, 81 Vt. 134, 69 Atl. 660, citing Lowry v. Stevens, 6 Vt. 113.

Claims so allowed are “treated as judgments, except that they cannot be enforced by the final process of execution.” Rix v. Nevins, 26 Vt. 388.

Minnesota has substantially the same practice, and the disallowance of a claim duly presented to a probate court in that state has been given the full force of a judgment not only in that state, but in Wisconsin. Sanborn v. Perry, 86 Wis. 364, 56 N. W. 337, citing the Minnesota cases.

Missouri holds that the allowance of a claim in a probate court is a “judgment having all the force and conclusiveness of a judgment of a court of general jurisdiction.” Clark v. Bettelheim, 144 Mo. 270, 46 S. W. 135.

The law of Michigan is substantially similar. See the cases cited in Hess v. Reynolds, 113 U. S. 75, 5 Sup. Ct. 377, 28 L. Ed. 927.

Doubtless the list might be extended, but enough has been said to show that what was done by the probate court of Cook county resulted in a judgment of some sort, which in Illinois at all events Mr. Owsley could have paid at any time with interest at 5 per cent, only, and it further appears that in Sanborn v. Perry, supra, such a judgment was given extraterritorial effect, and treated) as a judgment entitled to full faith and credit under the Constitution.

Even, however, if the allowance be a judgment, it is urged that being a probate proceeding it is in rem only, and affected nothing more than the Illinois estate of which the collateral held by the trust company in other states is not a part.

It has often been said and held that probate proceedings are in rem; [417]*417but there is no necessary relation between probate proceedings and proceedings in probate courts. It is competent for the Legislature to call a court by any name, or to assign to a court duties inappropriate to the name it bears. The Legislature oí Illinois has imposed on its probate courts the duty of trying causes in which executors and administrators are defendants, and alleged creditors of their decedents are plaintiffs; names make no difference, and a consent judgment un-impeachcd is as good as another, so that this matter is to be viewed as though the trust company had obtained against Mr. Owsley as executor a judgment in a court, either state or national, of plenary jurisdiction, and sitting in Illinois.

That such a judgment is in rem is not held by any decision brought to my attention. But it is said not to he in personam because no personal liability is created thereby unless a devastavit occurs.

On principle there seems to me to be in this a confusion of ideas. Mr. Owsley, as executor, is one person; individually he is another, and no reason is seen why a judgment against the executor-entity is not a personal judgment; it is personal against the executor-person.

As has been pointed out in the cases cited above, the absence of power to issue execution is not destructive; it is no more than a detail of remedy. Some states prefer to leave satisfaction of judgments against executors to direct order of the court. New York grants execution by leave of court. Code Civ. Proc. §§ 1825, 1826.

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Bluebook (online)
196 F. 412, 1912 U.S. Dist. LEXIS 1564, Counsel Stack Legal Research, https://law.counselstack.com/opinion/owsley-v-central-trust-co-nysd-1912.