Sheley v. Shafer

298 P. 942, 35 N.M. 358
CourtNew Mexico Supreme Court
DecidedMarch 30, 1931
DocketNo. 3502.
StatusPublished
Cited by17 cases

This text of 298 P. 942 (Sheley v. Shafer) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sheley v. Shafer, 298 P. 942, 35 N.M. 358 (N.M. 1931).

Opinion

OPINION OF THE COURT

HUDSPETH, J.

Appellant and appellee are brother and sister and the only heirs of Alonzo Sheley,. who died intestate on the 19th day of December, 1922, a resident of Curry county, N. M. Decedent left an estate in Curry county, N. M., consisting of real and personal property.

Less than six months after the appointment of the administrator, Belle Shafer, the appellee, filed in the probate court of Curry county, where the administration of the estate of Alonzo Sheley was pending, a petition alleging that appellant, a resident of the state of Iowa, was indebted to the estate of decedent on “one note in the principal sum of $1,500.00; profits on real estate deals, $2,425.00.”

The appellant was ordered to show cause why the administrator “should not be ordered to collect the amount against the said M. M. Sheley, as prayed for in the petition.” Appellant answered and denied that he was indebted to the estate, alleged the payment of the $1,500, note, and also pleaded the statute of limitation to the note, and, further answering the petition, said:

“That he admits that the estate of the said Alonzo Sheley, deceased, owns an interest in a certain note for $12,765.00, and the real estate mortgage securing the same covering certain real estate in the State of Iowa to the extent of $2425.00 being an undivided 19/100 interest therein but that said mortgage is a second mortgage on said real estate and is subject to a prior mortgage for $10,000.00, and that the said mortgage has little or no value at this time. * * *
“The undersigned respondent hereby brings and tenders into court the said undivided 19/100 interest of the estate in the said note and mortgage and submits the same to the jurisdiction of this court.”

The probate court, on the 8th of December, 1923, made an order, of which the following is a part:

“It is therefore ordered by the court that the administrator in this cause do collect for the benefit of the above estate of M. M. Sheley as follows: the said note in the principal sum of $1500.00, and also the sum of $1775.00 for the investment of one-half of the. Moore land in the Iowa land, making a total collection of $3255.00, which the said administrator is hereby ordered to collect from the said M. M. Sheley as aforesaid, and the said M. M. Sheley is hereby ordered to pay into the hands of the administrator of said estate the said sum of $3255.00, and the said administrator, who is R. N. Downie, is further ordered to collect said sum out of any funds that may be in his hands as such administrator and that may belong to the said M. M. Sheley, and the said administrator, R. N. Downie, is further ordered to take any legal steps to bring suit or to defend suit or to do whatever may be necessary to make said collection and his costs in the premises are hereby allowed.”

On the 5th of December, 1927, appellant filed a petition for removal of the administration to the district court of Curry county under the provisions of chapter 40, Laws of 1919, section 34 — 422 of the 1929 Compilation, and said administration was removed to the district court.

On the 27th day of January, 1928, C. F. Doughton, the administrator, filed his final account and report in the district court, showing cash received from former administrator, $2,102.79, and cash received from sale of property, $2,757.57, and alleged that the administration was in condition to be closed, and that he believed the appellant and appellee were the only heirs at law of decedent.

To this report the appellee filed exceptions on the ground that the administrator had not deducted from the share of the appellant the sum which the administrator was ordered to collect from appellant by the probate court on the 8th of December, 1923. To this the appellant filed an answer to which he attached copies of said order of the probate court and the petition of appellee on which it was made. He alleged that the order was directory merely and not an adjudication of the indebtedness of appellant to decedent’s estate, that it was beyond the power of the probate court to adjudicate the question of said indebtedness; alleged payment of the $1,500 note; demanded a trial by jury thereon; and alleged that the other claim was based upon partnership transactions between appellant and decedent; and demanded that the questions of the existence of the partnership and whether or not an accounting of the partnership transactions should be ordered be submitted to a court of equity.

The appellant further answered that letters of administration were granted on the estate of decedent by the district court of Powesheik county, state of Iowa, sitting in probate on the 26th day of February, 1924, that appellant had acquired the interest of the estate in the note and mortgage on the Iowa land at a public sale for the sum of $60, and that he compromised the claim on the $1,500 note made by appellant in favor of decedent for $10, all with the approval of the Iowa court, and that, by reason of such judgment and proceedings in the Iowa court, the appellee was barred and estopped from claiming or asserting any claim against appellant by reason’ of the debts claimed to be due the estate of decedent. An exemplified copy of the judgment roll of the Iowa court was attached and made a part of the answer, by which it appears that the administrator was appointed by the Iowa court on the petition of appellant.

By trial amendment the appellant alleged that $2,757.57 in the hands of the administrator was the proceeds of the sale of real estate of which the decedent died seized situated in Curry county, N. M., which sale was had in a partition proceeding in the district court of Curry county, and claimed that one-half thereof was his individual property and exempt from any order or judgment of retainer. It appears that the proceeds of the real estate was turned over to the administrator by agreement of the appellant and appellee.

On motion the court struck the part of the answer referring to the Iowa court proceedings, and sustained a demurrer to the remainder of the answer on the ground that the question of the indebtedness of appellant to the estate was determined by the probate court in its order of December 8, 1923, and was res adjudicata, and later entered a decree of distribution directing the administrator to deduct one-half of $3,255 from that part of the residue of the estate belonging to M. M. Sheley, the appellant, and to pay it to appellee.

Appellant contends that the administrator has no right to retain from his distributive share the amount of any indebtedness which it may be found to be due the decedent’s estate by him, on the ground that there is no statute conferring such right.

The courts very generally agree that it is the right and duty of the administrator to deduct from the distributive share of an heir in the personal estate of an intestate any indebtedness due from the heir to the deceased at the time of his death. 24 C. J. 487; 9 R. C. L. 107; Lambright v. Lambright, 74 Ohio St. 198, 78 N. E. 265, 6 Ann. Cas. 807.

The Supreme Court of Maine in Webb v. Fuller, 85 Me. 443, 27 A. 346, 347, 22 L. R. A. 177, said:

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Bluebook (online)
298 P. 942, 35 N.M. 358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sheley-v-shafer-nm-1931.