Phelps & Jones v. Jackson

27 Ark. 585
CourtSupreme Court of Arkansas
DecidedDecember 15, 1872
StatusPublished
Cited by1 cases

This text of 27 Ark. 585 (Phelps & Jones v. Jackson) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phelps & Jones v. Jackson, 27 Ark. 585 (Ark. 1872).

Opinion

Bennett, J.

The appellants, Phelps & Jones, filed in the Drew Circuit Court their complaint in equity against the administrator and heirs of W. E. Conly, Sr., deceased. Afterward, on the 4th day of October, 1870, the appellants filed an amended complaint. On the 4th day of April, 1870, Jackson, as administrator, filed his answer to the original complaint, with a demurrer clause added, and, on the 11th of April, 1871, filed answer and demurrer to amended complaint.

The heirs, though served 'with notice, did not appear. April 11th, 1871, an interlocutory decree was taken against some of the defendants. On the 15th of April, 1872, the cause was heard on the original and amended complaints, exhibits, answers of the administrator and guardian ad litem for minor defendants, demurrer and proofs, and a decree was rendered dismissing the complaint. From which decree an appeal was granted.

Was the complaint properly dismissed? The complaint .stated that plaintiff's were partners, on the 20th day of January, 1862, and doing business as commission merchants, in New Orleans, and that W. E. Conly, Sr., on that day was indebted to them in the sum of $4270 28, of which sum $1082 98 was evidenced by a note; the balance was on account.

W. E. Conly, Sr., died on the 1st day of September, 1865. At the time of his death, he held a vendor’s lien on certain lands, as described in the complaint. On the 11th day of October, 1866, one of the defendants, W. E. Conly, Jr., as foreign administrator, obtained a decree in chancery to foreclose this equitable lien. The land was sold, in pursuance of this decree, to W. E. Conly, Jr., for the benefit of the heirs of W. E. Conly, Sr. No part of .the purchase money was paid, except the amount sufficient to pay costs of foreclosure. The complaint alleges that W. E. Conly, Jr., and the heirs'of ~W. E. Conly,-Sr., were in collusion to defraud the plaintiffs, by the purchase of said lands, and not accounting for the same. The heirs of ~W. E. Conly, Sr., are in possession of the land.

On the 11th of July, 1869, the defendant, James A, Jackson, was duly appointed administrator. On the 18th day of August, 1869, the note and account, duly authenticated, were presented to the administrator, but he refused to allow them as claims against the estate of W. E. Conly,' Sr. It is further alleged, that the accounts of the plaintiffs with the estate of Conly, deceased, are so complicated that they cannot have proper relief -in a court of law, and that the personal assets of the estate are not worth $25. The complaint then prays that the defendant, Jackson, as administrator, be required to state what amount of personal assets belong to said estate, and that their claim be allowed and classed as a demand against the estate, and that the administrator pay the amount out of the assets, and, in default of which, that the lands mentioned he subjected to the payment. The note and accounts are made exhibits.

In the amended complaint, certain judgments obtained in Texas are set out, and the complaint states that these judgments were obtained against W. E. Conly, Jr., as administrator of IN. E. Conly, Sr., and that they are unsatisfied, and that there is no other property out. of which they can satisfy them except the lands as described in the original complaint. It as also alleged that JN. E. Conly, Sr.’s estate is insolvent.

The answers of the defendants, Jackson, administrator, and of the guardian ad litem, deny none of the allegations of the bill; nor does the proof introduced-. The records do not disclose the fact whether the court below dismissed the bill upon its merits, or whether it ivas dismissed for want of equity. The answers and proof not helping the defendants, we must presume the judgment of the court was based upon th e demurrer. Therefore, we shall consider the case as though no answer or proofs were introduced, and decide the issues of law as on demurrer.

The answer of Jackson sets out three causes of demurrer: .First, as to the sufficiency of the complaint; Second, as to the jurisdiction; and, Third, a special cause, which is more properly included in the first.

Taking these parts, of the demurrer in their more appropriate order, we will discuss the question of jurisdiction first.

In the collection of claims against the estates of deceased persons, litigants may proceed, by actions as laid down in the-statutes. By chap. 4, secs. 101, 102, Gould’s Digest, the manner of exhibiting claims against the estates of deceased persons is prescribed. One of the modes thus prescribed is laid down in sec. 101 , 'chap. 11, which says: “All actions commenced against any executor or administrator, after the death of the testator or intestate, shall be considered demands legally exhibited against such estate, from the time of serving the original process on the executor or °administrator, and' shall be classed accordingly.”

In claims of the kind, as presented in the complaint, the Circuit Court has concurrent jurisdiction with the Probate Court. Pullam et al. vs. Yell, Governor, 5 Ark., 472; Ryan vs. Demon, 7 Ark., 84; Saunders vs. Rudd, adm’r., 21 Ark., 519; Hornor, as Trustee, vs. Hanks, 22 Ark., 587.

■ This leads us to consider that part of the demurrer which states that the complaint does not allege facts sufficient to constitute a cause of action.

The complaint sets out that ~W. E. Conly, Sr., was indebted to the plaintiffs in, an amount named; that it was never paid, and the defendant, Jackson, is his administrator, and that the claim was properly authenticated and duly presented. The suit is founded, in part, on bills of exchange, and the dates show that they are not haJ'i’d- by the statute of limitations. These facts, if true, would entitle the plaintiffs to judgment in a suit at law; but do these facts constitute a cause of action in chancery ?

The plaintiffs’ claim to the equitable interposition of the equity side of the court rests, 1st: Upon-the ground that they are creditors of tlie estate of "W. E. Oonly, Sr., deceased, and that W. E. Conly, Jr., the foreign administrator, confederated with the heirs of W. E. Conly, Sr., and fraudulently secured the title and possession of certain lands, in violation of the i-ights of plaintiffs, and that, aside from these lands, there are no known assets out of which their claim can be paid. They also seek to make the administrator discover what personal assets may be in his hands, and .desire judgment for the amount of their claim, and, in default of payment by the administrator, that the lands mentioned he subjected to the payment of it.

"Whatever may be the effect of fraud upon a contract, as between parties themselves, in consideration of their infamy, or public policy, there can he no question but that creditors and others, whose rights are affected thereby, may cause such fraudulent contract to be set aside, and their rights, so affected, may be protected and preserved: justice Walker, in the case of Meux vs. Anthony, et al., 11 Ark., 418, says: “ The right to this equitable interposition is based -upon three grounds: First, that the party complaining has such rights. Second, that they are affected by such fraudulent contract. Third, that the contract is,, in fact, fraudulent. And first, in regard to the rights to be affected. They must be definite, ascertained rights, by the ordinary tribunals appointed for that purpose.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Stolz v. Franklin
531 S.W.2d 1 (Supreme Court of Arkansas, 1975)

Cite This Page — Counsel Stack

Bluebook (online)
27 Ark. 585, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phelps-jones-v-jackson-ark-1872.