Shields v. Odell

27 Ohio St. (N.S.) 398
CourtOhio Supreme Court
DecidedDecember 15, 1875
StatusPublished

This text of 27 Ohio St. (N.S.) 398 (Shields v. Odell) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shields v. Odell, 27 Ohio St. (N.S.) 398 (Ohio 1875).

Opinion

Weight, J.

. The above statement gives the special findings of the court below; but eliminating all save that which is absolutely essential, the case is this:

Abraham J. Moore was the executor of Armstrong. One of the sureties on his executor’s bond was Jacob II. Moore. Abraham died owing the Armstrong estate the-sum in dispute, $2,221.73. Jacob H. Moore was then appointed administrator de bonis non, with will annexed. Jacob H. Moore charged himself with this $2,221.73 in the-inventory, as though it were money, or assets which had come into his hands, although he had not, in fact, received that sum of money, and it is therefore claimed that it should be credited back to him, or his estate, he being dead. This claim is resisted by the present administrator de bonis non of Armstrong, on the ground that Jacob was surety of Abrakam, the original executor, and this surety-ship made the debt which Abraham owed the Armstrong estate assets in Jacob’s hands, as administrator de bonis non,. [401]*401and he should therefore be charged with the amount, just as though he had received so much money.

In support of the claim thus made, counsel for plaintiff in error, Armstrong’s present administrator, urge that the principle is well settled, in Ohio, that an executor or administrator being indebted to the estate which he represents, the debt becomes extinguished, and the amount is-assets in his hands to be accounted for in the settlement of his account.

To maintain this proposition, reference is made to the statute [1 S. & 0. 578, sec. (65) LXVI] which provides “ The naming of any person executor in a will shall not operate as a discharge or bequest of any just claim which the testator had against such executor; but such claim shall be included among the credits and effects of the deceased, in the inventory, and the executor shall be liable for the same, as for so much money in his hands at the time such debt or demand becomes due; and he shall apply and distribute the same in the payment of debts and legacies,, and among the next of kin, as part of the personal estate of the deceased.”

Also the following authorities: Bigelow v. Bigelow, 4 Ohio, 138; Hall v. Pratt, 5 Ohio, 72; Collard’s Adm’r v. Donaldson; 17 Ohio, 264; Tracy v. Card, 2 Ohio St. 432.

As to the statute it will be observed it refers to a claim which the “ testator ” had against his executor, not to a claim which his estate might hereafter have at some time in the future. This claim is also to be included in the inventory, showing that it must have been a claim at the time the inventory was made, or at the death of the testator.

An examination of the Ohio cases cited shows that the claims therein in question were existing during the lifetime of the testator or intestate. Indeed, the very origin of the idea that the debt was assets in the hands of the administrator or executor shows that it must have been a claim of this kind.

The first sentence of the opinion in Bigelow v. Bigelow, [402]*4024 Ohio, 147, is : “ The first question made is whether the appointment of a debtor administrator extinguishes the ■debt, and, eo instanti, turns it into assets.” This shows that It must have been a debt existing during the lifetime of the intestate, for it is a debtor who is appointed administrator. ■Such was, in fact, the case.

The principle arose, in eai’ly cases, from the fact of a testator appointing his debtor his executor, and it was much mooted whether this was a discharge of the debt. Of ■course,' then, that debt must have existed during the lifetime of the testator. 2 Williams’ Executors, 1128.

In the case at bar, the debt of Abraham Moore was a ■debt to the estate of Armstrong. There was no debt during the lifetime of Armstrong. It arose after his death. It might, therefore, be sufficient to say that this is not that kind of a debt which becomes assets by the appointment •of the debtor administrator; for if the mere fact of the .appointment affects the conversion, there was no debt to •convert when the appointment was made.

Rut we do not put the case upon this ground.

If it be true that the appointment of debtor as administrator extinguishes the debt, and makes the amount assets in his hands, to be accounted for, it is for the reason that he absolutely owes the estate which he represents so much money, and he must account, accordingly, as though he had received money or specific goods and chattels of a certain value. He puts these items down in his inventory, and practically he makes himself debtor to the estate in that amount. The debt he himself owes, or did owe, to his intestate is precisely in the same category. The amount is precisely ascertained. It is admitted by him, and no dispute is raised or desired to be raised. His absolute and unconditional liability, therefore, is the foundation of the principle ássei'ted that the original debt is gone, and the Amount is in his hands to be accounted for,

Now, the counsel for Armstrong’s present administrator .asks : “ Roes the fact that the debt was not originally the ■debt of Jacob II. Moore, for which he was only collaterally [403]*403liable as surety, vary the principle?” We answer that it does. As before said, Abraham Moore owed the Armstrong estate, of which he was executor, this money. Jacob has never owed that estate. It is true he was Abraham’s •surety on his executor’s bond; but this is not an absolute liability. It is not an unconditional one. It is one that has never been established as a fixed fact by legal proceedings or in any other way. It is a liability contingent only. Eor all we know, if suit was brought against him on this “bond, he may have some good and valid defense to it. He may have paid it. It may be barred by the statute of limitations. It may be so defective in matter of form that no action can be maintained upon it. All these things a surety has a right to contest before his liability is fixed. He is entitled to his day in court, and without this it can not be assumed that he is a debtor, absolute and unconditional, or even a debtor at all. It can not be assumed that a conditional liability is always a debt.

An indorser of a promissory note is contingently liable, but, without demand and notice, he does not become a debtor. As, therefore, Jacob is not a debtor to Armstrong’s •estate until his liability on the bond is ascertained and fixed, the principle applicable to one who is a debtor is not applicable to him. If it were so applicable to him on account of his suretyship, it might be profitable to inquire what precise thing it is that becomes assets in his hands. Is it the particular debt of $2,221.73 ? That was a debt due the estate of Armstrong by Abraham Moore, by reason of the exercise of his executorship.

If it is not the particular debt, is it the bond ? There is nothing else but one of these two to become assets. The bond is $25,000. Does that whole amount become assets, thus extinguishing the bond and■ discharging its sureties? If so, such an application of legal principles is quite severe, both upon Jacob on the one hand in the matter of amount; upon the estate on the other, for that sureties possibly of value are released.

It is said in Collard v. Donaldson, 17 Ohio, 364, that the [404]*404reason of this rule or principle we are discussing is a fiction.

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Bluebook (online)
27 Ohio St. (N.S.) 398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shields-v-odell-ohio-1875.