Squire v. Stephenson

1938 OK 367, 80 P.2d 668, 183 Okla. 132, 1938 Okla. LEXIS 198
CourtSupreme Court of Oklahoma
DecidedMay 24, 1938
DocketNo. 27977.
StatusPublished
Cited by3 cases

This text of 1938 OK 367 (Squire v. Stephenson) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Squire v. Stephenson, 1938 OK 367, 80 P.2d 668, 183 Okla. 132, 1938 Okla. LEXIS 198 (Okla. 1938).

Opinion

GIBSON, J.

In this appeal is involved only that part of a judgment foreclosing a mortgage which attempted to compel the executor of the estate (will) of M. T. Stephenson to pay out of the assets of the estate a balance due after sale of the real estate foreclosed. The action was brought by the administrator of the estate of W. D. Stephenson, who was a brother of M. T. Stephenson.

About 1921, W. D. Stephenson sold some real estate to his brother and took back a mortgage,. which he later released upon receipt of another mortgage from his brother covering the land involved in this suit. This mortgage secured an indebtedness of $8,000 due April 28, 1931. W. D. Stephenson moved to California. M. T. Stephenson died April-22, 1928, and B. H. Squire was appointed executor of his will by the county court of Greer county, Okla. W. D. Stephenson died in California in 1933, and Joe W. Stephenson was appointed administrator of his estate by the proper court of that state.

In the petition filed by the administrator to foreclose the mortgage and in the answer, copies of letters passing between Squire, executor, and W. D., Stephenson regarding this note and mortgage are referred to and the correspondence was offered in evidence at the trial. These were deemed pertinent to the single question presented by the parties, and will be referred to hereafter. We say “single question” because of the following proceedings at the trial:

“The Court: What is your defense to the note? Mr. Jeter: We have no defense to the note in rem, but they filed no claim, your Honor. The Court: Is that all the question in the case, that the claim was not filed? Mr. Jeter: Yes, that’s the only question in the case, that they haven’t filed a claim. Mr. Garrett: That’s the only question in the case, that we haven’t filed a claim in due time.”

It is evident, of course, that the debtor died before the note became due. But this did not relieve the creditor from filing his claim within the four months’ period. Timmons, Ex’x, v. Hanna Const. Co., 176 Okla. 180, 55 P.2d 110. Plaintiff attempts to excuse the *133 failure to file- the claim within the four months’ period by reason of the nonresidence of the creditor and the administrator of the creditor’s estate, under the provisions of section 1233, O. S. 1931 (58 Okla. St. Ann. see. 333), which gives to nonresidents under certain conditions the right .to file claims at any time before distribution of the estate is had. A verified claim was filed with the executor under date of August 6, 1931, more than six years after notice to creditors had been given.

This section states that if it be made to appear • to the satisfaction of the executor or administrator and the judge of the county court that the claimant had no notice as provided'in this article by reason of being out of the state, the claim may be presented at any time before a decree of distribution is entered. In construing this section, this court has said:

“The notice required by section 1233, O. S. 1931, to a creditor out of the state as to presentation of claims against the estate of a deceased person may be either actual or constructive.
“Is constructive notice, that is, notice of facts sufficient to put one on inquiry, sufficient to bind one who has no actual notice of the usual notice to creditors of the estate of a deceased? We hold that constructive notice is so sufficient.” State Bank of Seneca, Mo., v. Miller, Adm’r, 171 Okla. 253, 42 P.2d 834.

• Mr. Squire and W. D..Stephenson had some correspondence just before the death of M. T. Stephenson relative to the approaching death of the latter, and when M. T. Stephenson died a telegram was sent to the brother in California. He replied by letter dated April 28, 1928; acknowledging receipt of the telegram,- saying he was wondering if there was a will and asking advice as to whether his first mortgage was a preferred claim. This letter was answered by Mr. Squire May 24, 1928. In his answer Mr. Squire gave ■ W. D. Stephenson the following information :

“Since Matt’s death we have been attempting to straighten up his business matters and get administrators appointed to handle his estate, he left a will naming H. D. Henry, his attorney, and myself as executors, and the hearing was had this morning and the court appointed us executors as provided in the will. ■
“As to your claim and your note and mortgage referred to in your letter, I understand that it is necessary for you to file your claim within four months from today, as notice to creditors was prepared by us today, unless you want to rely upon your note and mortgage solely for your money which you have 'a'right to do as I am informed without filing any claim.
“As to the value of the land on- which you have a mortgage, you know the land about as well.as I do, but I think it is reasonably worth $75 per acre, and as your mortgage is only $8,000 I would think it would sell for enough to clear your mortgage.
“Dillard, you can write either of the executors in this matter for any further information you desire, as H. D. is acting as attorney and joint executor in the estate and can give you more detailed information than I have.”

Neither in the body of the claim nor in the verification thereof is there any allegation that either W. D. Stephenson or Joe W. Stephenson had no notice. Nor is there any-' thing in the testimony of Joe W. Stephenson relative to notice. On January 10, 1930, Squire advised W. D. Stephenson that the will was being probated, according to a letter proved by Joe W. Stephenson. In the letters admittedly received by W. D. Stephenson from Squire are numerous references to the probate proceedings. From the whole correspondence we think no other conclusion can be reached than that W. D. Stephenson was not only advised of the probating of the will, but was notified of the time within which he should file his claim, if he did not wish to rely solely on his mortgage. It is highly probable that he thought his security entirely sufficient to pay him in full. Of course, if he had notice, so that the statute began to run as against him, the fact that Joe W. Stephenson, administrator of his estate, may have had no notice, would be immaterial. Moreover, we deem the claim filed lacking in the essential allegation, not only of the nonresidence of W. D. Stephenson at the' time of the.giving of notice, but also in any allegation that no notice, actual or constructive, was had.

It is claimed, however, that because Squire was vice president and manager of the bank where the note and mortgage was on deposit, and because he was in a sense acting for W. D. Stephenson, and that by virtue of the letters there was a presentation- and allowance of the claim, the letters were sufficient in substance to constitute a claim. We cannot accept that view. Under our statutes the approval or acceptance of a claim by an executor or administrator is not alone sufficient to establish a claim. Action by the judge is necessary.

“A claim against the estate of a decedent can only be established: (1) By being first presented to' and allowed by the executor or administrator, and then being presented to and approved by the county judge.” Miller v. Bradburn, 106 Okla. 234, 233 P. 736:

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Bluebook (online)
1938 OK 367, 80 P.2d 668, 183 Okla. 132, 1938 Okla. LEXIS 198, Counsel Stack Legal Research, https://law.counselstack.com/opinion/squire-v-stephenson-okla-1938.