Shaw v. Fifth Ward Building Ass'n

6 Ohio C.C. 41
CourtOhio Circuit Courts
DecidedApril 15, 1891
StatusPublished

This text of 6 Ohio C.C. 41 (Shaw v. Fifth Ward Building Ass'n) is published on Counsel Stack Legal Research, covering Ohio Circuit Courts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shaw v. Fifth Ward Building Ass'n, 6 Ohio C.C. 41 (Ohio Super. Ct. 1891).

Opinion

Smith, J.

The facts of this case as agreed upon and found by the court of common pleas, are substantially these: Cary Hartman- and others, partners in business, on October 14th, 1890, made an assignment of all their partnership property, personal and real, to J. R. Shaw, under the assignment laws of Ohio, and afterwards Shaw was duly chosen by the creditors as trustee, and qualified as such. The personal property received by the trustee, was by him sold, and realized the sum of $2,035.00. The whole of such personal property had, before the assignment, been covered by chattel mortgages, on which there was due an amount largely exceeding the sum realized from the sale of such property. There were two tracts of land assigned. The first was covered by a mortgage to The Fifth Ward Building Association, and on the other was a mortgage to the Compromise Building Association. The papers show, and it is conceded to be true, that, the appraisement made of each of these two tracts by the appraisers appointed by the [43]*43-court, before the filing of the petition for the sale of these parcels, showed a valuation of each which, if realized at the -sale, would have much more than paid the several mortgages thereon, and the costs, and would have left a balance for the general creditors.

Thereupon, the trustee commenced a proceeding in the pro-late court of this county, under the provisions of sec. 6351 Rev. Stat., for the sale of such real estate, making the assignors and their respective wives, and said Building Associations, parties defendant, and alleging that said corporations severally claimed liens thereon. Answer’s were filed by such Associations, setting up their respective claims, which were found by the court to be good and valid liens thereon. In •such proceeding, the trustee sold to The Fifth Ward Build-ing Association, at public sale, the land on which it held the mortgage, at two-thirds of its appraised value, and the amount ■bid, therefore, was not sufficient to pay the mortgage claim the purchaser held thereon, in full. The other tract was also •sold by the trustee to the Compromise Building Association at two-thirds of the appraisement, and the amount bid was •not sufficient to pay the mortgage claim of the Association thereon. Both sales were confirmed by the court.

The probate court then proceeded to order the distribution •of the proceeds of the two sales. It directed that each of these two funds should, with the fund arising from the personal estate, pay the general costs of the assignment in proportion to the amount of each fund, and that in addition to this, that so far as the proceeds of the sale of the two tracts of land was 'concerned, each should pay its proportional share, first, of the court costs proper, that is, the probate judge’s fees in the -case, and those of the sheriff and printer in said case; and • second, the percentage of the trustee on the™whole amounts bid for the property, at the rate fixed by the statute, as if the land had been sold to a stranger, and the purchase money actually paid to the trustee; and third, of the|fee£of the attorney of the trustee, who had filed the petition ^for the sale [44]*44of the land, and had attended to the case in that court, which fee was fixed by the court at the sum of $172.75. And that the residue in each case be paid to the Association which had the lien thereon.

On appeal from this order, on the facts thus found, the court of common pleas adjudged, that the trustee was not entitled to receive anything from the proceeds of the sale of the -land, as commissions or poundage, or for any services rendered by him in relation thereto,.or for the services of his counsel in such suit,- and that the said respective associations were entitled to retain the whole amounts bid by them respectively, in part payment of their several claims, except that each of them should pay its proportion of the court costs proper in such case. It was, however, found by the court, that if the trustee was, under the law, entitled to receive anything from the funds for counsel fees, the amount allowed therefor in the probate court was just and reasonable. Was the judgment of ■the court of common pleas right ?

The first question for consideration is, should the funds arising from the sale-of the real estate, be charged with any part of the general costs of the assignment, not made in this particular case. Whatever might be the rule, if the personal property assigned was not subject to any specific lien to an amount greater than its value, while the real estate was, in a case like this, where both the personal and real estate was so-incumbered by liens to different persons, we are of the opinion that it is the law, that each of those separate funds should pay its own cost of converting it into money, and administering it, and that it would not be fair or just to require either to contribute to the payment of expenses incurred about the-other, and particularly in view of the general principle that the personal estate is primarily, liable for the costs of administration, no part of the cost and expense of administering the personal estate in this case should be paid from the proceeds of the sale of the real estate. This we think is warranted by the statute, and by the decisions of the Supreme [45]*45Court. See Ingham v. Lindeman, 37 Ohio St. 218, and Simongton v. McLain, 37 Ohio St. 660, and the action of the court of common pleas, as. to this, was right.

Second — We are further of the opinion that the court of' common pleas did not err in refusing to allow to the trustee,, poundage or commissions on the purchase money of the land so sold to the Associations which was not actually received by him. It was not “ collected and accounted for ” by him,, and it is only’when this is done that sec. 6357, entitles him to such poundage or commissions.

It has always been the policy of our law, as settled by many decisions, to allow to a sheriff or other like officer, poundage only on money collected and handled by him, and in the case of Stone v. Strong, 42 Ohio St. 53, the Supreme Court applied the same rule to an administrator in a case where he had sold at judicial sale, the land of his intestate, to a person who had a valid lien thereon, and to whom the proceeds of the sale were to go, to be applied to the payment of such lien. The language of the statute fixing the compensation of an administrator on the sale by him of the real estate (sec. 6188) is almost identical with that fixing the compensation of assignees (sec. 6357), and the same rule must apply to both. But if such purchaser, under the order of the court, has to pay to the assignee the amount of the proper costs of the court, or counsel fees, or other legal expenses chargeable to the fund, on this sum the trustee would be entitled to his legal compensation,, for then it would have bean collected, and would have to be accounted for by him.

Third — The court of common pleas refused to make any allowance to this trustee for any services in regard to these two tracts of land, or for his counsel fees incurred in bringing the land to sale, on the ground that no such allowance was warranted by the statute, though the court did find that the allowance made by the probate judge for attorneys’ fees was a reasonable and proper one, if the law authorized the payment of anything therefor. We think this refusal of the court, so [46]*46far as counsel fees are concerned, was erroneous.

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Bluebook (online)
6 Ohio C.C. 41, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shaw-v-fifth-ward-building-assn-ohiocirct-1891.