Ralston v. Telfair

22 N.C. 414
Supreme Court of North Carolina·Decided June 5, 1839·Published

Opinions

Ruffin, Chief Justice,

having stated the case as above, proceeded as follows: The jurisdiction of the Court of Equity in this case cannot, we think, be seriously questioned. Admitting that by actions of trover, assumpsit, or account, the administrator might have remedy at law against one who acted as exécutor under a will of which the probate has been recalled, because it was not a will, yet there must also be a jurisdiction here. The remedy in Equity is more complete in matters of account, which is the ground of the equitable cognizance of such cases. The Court of Equity has peculiar facilities of investigating accounts, to which, when long and complicated, a jury is altogether incompetent. But, it is said for the defendants, that here there is no complication and no mutual account, because the plaintiff has no accounts [418] against the defendants. But the argumentis not ingenuous. P^UitifT and defendants may not literally have accounts with each other; but the claim of the plaintiff against the defendants involves the administration, for about eight years, of a considerable estate; and that may be said necessarily to include numerous charges and discharges, and to constitute a case and matter of account fit to be settled in this Court. It stands much on the footing of a suit by tian administrator de bonis non against the executor of a first administrator; in which, although trover or detinue might lie for the specific things, and assumpsit for money collected, it is the constant course to proceed in equity. If, in such a case, the plaintiff were to proceed by actions at law, and injustice were done therein to the other party, for want of just allowances for disbursements or charges, it would seem impossible that a Court of Equity would allow the plaintiff at law to raise the money from the other party, until the accounts had been taken here and all proper credits ascertained. It is for the advantage of the defendants themselves, that this jurisdiction should be exercised in the first instance. We think, therefore, if there were nothing peculiar in this case, the bill would be proper.

But here, a part of the plaintiff’s demand is of a nature of which there is no jurisdiction at law; that is the sums collected by the defendants on the debts of Ralston and Perkins, and the value of the effects released or assigned by them to Perkins. In those effects the legal interest vested in the surviving partner, and the administrator oí the deceased partner can only claim in equity. If it be said, the plaintiff must go against Perkins for that demand, the answer is, that he has a right to follow the fund in the hands that-hold it, and that he may treat the defendants as his agents in the transaction; and for that reason he may call them before this Court, for that equitable demand.

Upon either ground, we think the jurisdiction proper; and especially upon the pleadings as framed in this cause. The bill does not charge the defendants with procuring the will by improper means, or endeavouring to obtain the probate, or uphold it by fraud or falsehood; but alleges only, that in fact it was not the will of the deceased, and that the defendants [419] were induced to resist all the claims of the next of kin sole-]y for their own personal advantage, as supposed legatees-in the paper. That conduct is consistent with honesty of purpose. Hence, the defendants are not treated as wilful wrongdoers, or called on to answer as tort-feasors; but the bill is simply for an account of the transactions in which thesp defendants assumed to act as executors, and therefore as trustees or quasi trustees. We think they are liable to an account in such a case, and that they are to account precisely upon the. principles upon which they would have been liable, if they had in reality possessed the character of executor, with which they thought themselves invested. They are chargeable with what came to their hands of the trust fund; with such part thereof as they may have released or disposed of for purposes of their own; and they must make good what may have been lost by their bad faith or gross neglect. They are entitled to be credited with all sums paid.in discharge of debts, owing by the deceased; for in the hands of the plaintiff, the fund would have been thus far chargeable; and, consequently, such payments are proper deductions in favour of the defendants. But, that is not all; for we think the defendants are likewise entitled to a fair compensation for services done to the estate, in the administration of it, and to be credited with all payments under the supposed will at least, before they had a ground of reasonable belief that the paper was not a will, as it purported to be. The case of Heel v. Stovell, cited at the bar, from Ch. Cas. 126, and 8 Vin. Abr. 169, is founded on this principle. There, the widow was allowed for payments of legacies given by the will, though it turned out to be no will. The Court of competent jurisdiction having pronounced the instrument to be a will, an innocent person may safely act under the sentence, until it be recalled; and when called to account in a Court of Equity_ however it may be at law — such person ought not to be made personally responsible for moneys paid, while the sentence was in full force, and properly paid according to a due course of administration under the instrument. If the executor of such a paper is chargeable as a trustee, then he is entitled to a trustee’s privileges, and ought not to answer out of his own estate but for wilful default or culpable negligence. [420] Honest intentions and reasonable diligence should protect ^rom l°ss> as we^ as ot^er trustees.

These reasons satisfy the Court that the bill ought not to be dismissed; but that the plaintiff is entitled to relief on it. They also enable us to dispose of most of the exceptions upon what seems to us. — proper principles; and we shall now proceed to pass on them.

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Ralston v. Telfair, 22 N.C. 414 (N.C. 1839).

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