St. Joseph's Society v. Virginia Trust Co.

9 S.E.2d 304, 175 Va. 503, 1940 Va. LEXIS 195
CourtSupreme Court of Virginia
DecidedJune 10, 1940
DocketRecord No. 2234
StatusPublished
Cited by7 cases

This text of 9 S.E.2d 304 (St. Joseph's Society v. Virginia Trust Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. Joseph's Society v. Virginia Trust Co., 9 S.E.2d 304, 175 Va. 503, 1940 Va. LEXIS 195 (Va. 1940).

Opinion

Campbell, C. J.,

delivered the opinion of the court.

The Virginia Trust Company and J. D. Carneal, Jr., executors of the estate of J. D. Carneal, deceased, instituted a suit in chancery in the Circuit Court of- the city of Richmond on behalf of themselves and all other creditors of the estate of Joseph Hoifman, deceased, for the primary purpose of ascertaining the debts and liabilities of the estate of Joseph Hoifman, deceased, and their priorities, and to subject the assets of the estate (both real and personal) to the payment of the debts due by the said estate.

By decree entered on the 17th day of June, 1938, appellant was, on its petition duly filed, made a party to the suit and filed its answer, alleging that the estate of Joseph Hoif-man was indebted to the St. Joseph’s Society in the sum of $1,230, with interest upon said sum from May 2, 1935 (as evidenced by a certain negotiable note executed by Joseph W. Hoffman, executor of the estate of Joseph Hoffman, deceased, and signed “Joseph Hoffman Estate, Joseph W. Hoffman, Exec.”), said note bearing the notation: This note [506]*506is given in renewal of note due Nov. 2, 1934, Sign by Jos. W. Hoffman, Exec, of Jos. Hoffman Estate.”

The note in issue was a renewal of the note executed by Joseph Hoffman in favor of appellant, dated November' 2, 1928, and payable one year after date. The record fails to disclose the consideration for this note.

Joseph Hoffman departed this life December 4, 1928, and Joseph H. Hoffman qualified as executor of his estate on December 12, 1928.

On the due date of the Joseph Hoffman note, to-wit: November 2, 1929, the executor executed a renewal note payable to appellant six months after date, and signed same “Joseph Hoffman Estate, Joseph W. Hoffman, Executor.” At consecutive periods of six months thereafter, Hoffman, executor, executed renewal notes, the last note being the one sued upon.

The cause was referred by proper decree, to a commissioner in chancery with the direction to ascertain and report, among other things, all debts against the estate of Joseph Hoffman. At a hearing by the commissioner, appellant presented its note as a valid debt against the estate of the decedent. A plea of the statute of limitations as to this debt was thereupon interposed by one of the creditors and the commissioner, in his report to the court, held as follows.

“I report that this debt is barred by the Statute of Limitations. Section 4149 (71) a of the Code of Virginia 1936, permits the personal representatives to renew debts, provided the time for final payment shall not extend beyond a period of two years from the qualification of the original personal representative. Said Joseph W. Hoffman qualified December 12th, 1928. Adding two years brings us to December 12th, 1930, the time limit for payment. Five years added to that brings us to December 12th, 1935, after which date the Statute of Limitations under the most liberal construction would be applicable.

“If the view is taken that independently of said Section 4149 (71) a the will of the testator, Joseph Hoffman, which [507]*507is quoted in the Bill in this cause, authorized and empowered his Executor to make renewals of debts, we are confronted with Section 5813 of the Code of Virginia 1936, which has been construed to mean that ‘no acknowledgment of or promise to pay or part payment on a debt of a decedent made by his personal representative, either before or after the debt is barred, shall operate to take it out of the Statute of Limitations.’ See Gwinn v. Farrier, 159 Va. 183, 165 S. E. 647. * * * ”

To the report of the commissioner, appellant filed the following exceptions:

“The Saint Joseph’s Society, a creditor of the said Joseph Hoffman, deceased, to the amount of $1,230.00, as set forth on pages 3 to 5 of the Beport of Commissioner John H. Guy filed in the Clerk’s Office of this Honorable Court on the 17th day of October, 1938, excepts to the said report in so far as the same sustains the plea of the Statute of Limitations to the claim of the said Saint Joseph’s Society for the reasons that, first, the will of the said Joseph Hoffman, deceased, expressly empowered the executor to renew the said notes; second, the executor had the power under the common law to renew the said notes, no one of the said series having ever been barred by the Statute of Limitations; third, section 4149 (71) a of the Code of Virginia is not applicable, and if applicable it is unconstitutional and void for the reason that it is contained in the Banking Code and therefore violates section 52 of the Constitution of Virginia; and fourth, for the reason that section 5813 of the Code of Virginia is not applicable inasmuch as the renewal notes relied upon were, of course, in writing.”

Upon the hearing of the cause, the court entered a decree overruling the exceptions of appellant, hence this appeal.

The exceptions relied upon will be discussed in the order above set forth.

Under the provisions of the will of Joseph Hoffman, deceased, Joseph W. Hoffman acted in the dual capacity of executor and trustee. The provision of the will relied upon by appellant to support the first exception reads thus:

[508]*508“Eighth: I give full power and discretion to the said Executors and to the said Trustees to rent and care for my real estate, to retain any investment which may be received or to sell the same, and from time to time to sell and convey my property, real and personal, and invest the proceeds therefrom in other property, real or personal, or both, and from time to time to resell and convey the property so purchased, and to change investments; and to do all things necessary or proper to make the division and distribution of the principal of said property as herein directed, whether by sale and conveyance and division of the proceeds of sale, or by division in kind, or otherwise as to them may appear judicious; and the said Executors or Trustees alone and not the purchaser, shall be required to see to the proper application of the purchase money.”

In the petition of appellant this language is employed: “The testator directed his debts to be paid as soon as the same could be ‘conveniently done’. It thus appears that Joseph W. Hoffman throughout the entire tenure of his office was acting as trustee rather than as executor, the trust provisions of the will being directed to remain in force until after the widow’s death.”

The fallacy of the argument is found in the apparent fact that the note evidencing the alleged debt of appellant was not executed by Joseph W. Hoffman as trustee, but as executor.

There is not a syllable in provision eight which confers upon the executor any authority to renew the initial note. The only powers conferred upon the trustee are those specifically set forth in the eighth provision of the will. Appellant will not be permitted to approbate and simultaneously to reprobate. The basis of the claim of appellant, as shown by its answer, is a note executed by the executor, not by the trustee. On that basis alone can appellant rest its right of recovery.

There is no merit in the first exception.

As the second exception is not adverted to either in [509]*509the petition or brief of appellant, it is assumed that this exception has been abandoned.

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Bluebook (online)
9 S.E.2d 304, 175 Va. 503, 1940 Va. LEXIS 195, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-josephs-society-v-virginia-trust-co-va-1940.