Petroleum Conversion Corp. v. Vaughan

140 F. Supp. 369, 1955 U.S. Dist. LEXIS 2183
CourtDistrict Court, D. Connecticut
DecidedAugust 17, 1955
DocketCiv. A. No. 5545
StatusPublished
Cited by2 cases

This text of 140 F. Supp. 369 (Petroleum Conversion Corp. v. Vaughan) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Petroleum Conversion Corp. v. Vaughan, 140 F. Supp. 369, 1955 U.S. Dist. LEXIS 2183 (D. Conn. 1955).

Opinion

ANDERSON, District Judge.

The plaintiff is seeking permission under Section 6847 of the General Statutes of the State of Connecticut, Revision of 1949, to sue on a probate bond for $41,000 given by Vaughan, as administrator, and Rogers, as surety, in connection with an order to sell real estate entered by the Probate Court for the District of Greenwich on October 6, 1954,- in the estate of Elizabeth Boyd Vaughan, deceased. The Probate Court refused the plaintiff permission to sue on the bond; and now, as provided by the statute, application has been made to me as a judge of the court before which the proposed action will be returnable for that same permission. There is [370]*370diversity of citizenship between the plaintiff and the defendants and the amount in controversy exceeds $3,000.

This application arises out of the following set of facts:

1. On September 7, 1950, the United States District Court for the District of Delaware entered a judgment in favor of the plaintiff, Petroleum Conversion Corporation, against James Vaughan for $30,841.59.

2. On April 8, 1953, this judgment, under the provisions of Title 28 U.S.C. § 1963, was registered in the United States Court for the District of Connecticut as Civil Action No. 4376. The judgment remains unpaid.

3. On July 11, 1946, James A. Vaughan's wife, Elizabeth Boyd Vaughan, died intestate and he was appointed and duly qualified as administrator by the Probate Court for the District of Greenwich, Connecticut.

4. As surviving spouse, James A. Vaughan had an undivided one-third interest in his wife’s estate which included certain real estate located in the Town of Greenwich.

5. The Greenwich Probate Court on October 6, 1954, ordered the sale of this Greenwich realty for the purpose of paying the debts of the estate.

6. On or about said date, October 6, 1954, Vaughan filed a bond in connection with the order of sale, as required by law, in the penal sum of $41,000 on which the surety is Edward A. Rogers, of Greenwich.

7. On August 18, 1953, at 9:01 A.M., Petroleum Conversion Corporation filed a certificate of judgment lien on the land records of the Town of Greenwich, pursuant to and in accordance with the provisions of Section 7225 of the Connecticut General Statutes, Revision of 1949, placing the lien of said judgment as registered in the United States District Court for the District of Connecticut upon the undivided interest of the said James A. Vaughan in the real property formerly owned by his wife, Elizabeth Boyd Vaughan.

8. On or about October 8, 1954, the property was sold pursuant to the Probate Court order of October 6, 1954, to third-party purchasers.

9. At the time of the sale the defendant Vaughan had actual notice of the judgment lien filed in the Town Clerk’s Office of Greenwich.

10. Vaughan, after paying certain debts of the estate, distributed the balance of the $58,000, the sale price of the property, to himself and the two other heirs of the decedent in compliance with the order of distribution of the Probate Court.

11. Thereafter the plaintiff, Petroleum Conversion Corporation, sought permission from the Probate Court to bring an action on the bond pursuant to Connecticut General Statutes, Revision of 1949, Section 6847 which was denied.

Discussion

The plaintiff, Petroleum Conversion Corporation, claims that the judgment lien filed in the Town Clerk’s Office attached to and followed Vaughan’s interest in the proceeds from the sale which became “a special fund” standing in place of the real property; and that, therefore, Vaughan as administrator in “accounting for the avails of said sale according to law” had a duty to pay over his distributive share of the avails as an heir, to the plaintiff on account of the judgment debt and that his act of distributing to himself, instead, was a breach of the condition of the bond which makes the surety, Rogers, liable. The plaintiff relies upon the case of Phelan v. Elbin, 1911, 84 Conn. 208, 79 A. 187 as supporting its contention. The Phelan case must be considered in connection with Moriarty v. Donahue, 1909, 82 Conn. 308, 73 A. 763 which concerned the same estate. The cases arose out of these circumstances: One Bridget Donahue died intestate in 1906 and on February 21, 1906, Mary A. Donahue, her daughter, was appointed administratrix. The estate consisted of interests in land in Waterbury. Her heirs were her five children. One of them, Thomas, [371]*371after his mother’s death mortgaged his entire undivided one-fifth interest to one Downey. Thomas died and Downey foreclosed against Thomas’ administratrix and heirs. The redemption date was the first Monday of July 1908 but no one redeemed. Meanwhile February 1, 1907, Mary A. Donahue, administratrix, pursuant to an order of the Probate Court sold all the real estate of Bridget’s estate and one Grelle was surety on the bond given in connection with that sale. Because Thomas had mortgaged his interests and had lost them through foreclosure by Downey, Donahue, administratrix, refused to pay to the estate of Thomas his one-fifth share in Bridget’s estate. The court, however, held that the administratrix had no right to refuse to distribute the one-fifth to Thomas’ estate as ordered by the Probate Court even though Thomas had mortgaged his interest and it had been foreclosed. At page 311 of 82 Conn., at page 764 of 73 A., Moriarty v. Donahue, supra, the court said:

“ * * * the court of probate had no power to inquire into the equities existing between Thomas and Downey. * * * That court cannot inquire as to what conveyances have been made, or attempted to be made, by distributees during the settlement of the estate. Had this real estate not been sold by the administratrix, one-fifth part of it must have been set to Thomas, regardless of the mortgage and foreclosure. The court of probate could not go into an inquiry as to what rights Downey or any third party had acquired in it since the death of Bridget. * * * Such inquiries are for another court. Much less can the administratrix assume to decide between them. Her duty is to obey the order of the court of probate for a distribution passed upon her application.”

Judgment was entered in favor of Moriarty, administratrix of the estate of Thomas Donahue, against Mary A. Donahue, administratrix of the estate of Bridget Donahue and Grelle, the surety on the bond of Donahue administratrix.

When the real property in the estate of Bridget Donahue was sold, the purchaser, Elbin, mortgaged the property to the Thomaston Savings Bank. Mary Donahue, administratrix of Bridget’s estate, agreed that Elbin could hold out $4,000 of the purchase price until Downey’s encumbrance resulting from Thomas’ mortgage which Downey foreclosed could be cleared from the record. The savings bank in turn withheld the $4,-000 from the proceeds of the mortgage loan to Elbin.

After Moriarty, administratrix, secured her judgment in Moriarty v. Donahue, supra, it remained unsatisfied, for the defendant administratrix and her surety, Grelle, were hopelessly insolvent. Out of these circumstances the case of Phelan v. Elbin arose. Phelan had succeeded Mary A. Donahue as administrator of the estate of Bridget Donahue. Moriarty, administratrix, claimed the $4,000 held by the savings bank and Downey also claimed it.

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Related

Petroleum Conversion Corporation v. James A. Vaughan
232 F.2d 895 (Second Circuit, 1956)
Petroleum Conversion Corp. v. Vaughan
232 F.2d 895 (Second Circuit, 1956)

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Bluebook (online)
140 F. Supp. 369, 1955 U.S. Dist. LEXIS 2183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/petroleum-conversion-corp-v-vaughan-ctd-1955.