Stewart v. Baldwin

149 P. 662, 86 Wash. 63, 1915 Wash. LEXIS 1181
CourtWashington Supreme Court
DecidedJune 12, 1915
DocketNo. 12277
StatusPublished
Cited by17 cases

This text of 149 P. 662 (Stewart v. Baldwin) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stewart v. Baldwin, 149 P. 662, 86 Wash. 63, 1915 Wash. LEXIS 1181 (Wash. 1915).

Opinions

Chadwick, J.

This case comes to us along with No. 12278, Stewart v. Fitzsimmons, ante p. 55, 149 Pac. 659. Jane H. Peterson, the wife of Peter A. Peterson, died in the year 1903, leaving as a part of her estate 120 acres of land which was part of a preemption entered by her husband, Peter A. Peterson. The 120 acres was community property. The estate was indebted to various persons and firms. In November, 1903, Peter A. Peterson, the administrator of his wife’s estate, filed a petition praying for the sale of the land, in order to pay the debts of the estate and the expenses of administration. At that time, the bulk of the debts had been paid by the administrator, either out of the property of the estate or on account of advances which, it is now claimed, he made out of his own funds. The bulk of the remaining indebtedness was represented by a mortgage upon the 320 acres to which we have referred in Stewart v. Fitzsimmons, supra, for the sum of $1,750, in favor of one D. P. Thomp[65]*65son. The mortgage had been executed by Peter A. Peterson and Jane H. Peterson. Peterson was advised by his attorney that it would be necessary for him to find a purchaser for the land. After a short time, he told the attorney that his son Albert would buy the property. When told that he (Albert) did not have sufficient funds to buy for cash, the attorney advised Peterson to go to a Mr. Campbell and see if an arrangement could not be made to get the money. An arrangement satisfactory to the parties was made, the sale was had, and Albert Peterson was returned as the purchaser.

Mr. Campbell was the local agent of D. P. Thompson, and, also, the local agent of A. W. Ocobock. When the sale had been made and confirmed, a release of the D. P. Thompson mortgage, which then with interest amounted to $1,906, was made. Peter A. Peterson filed a declaration of homestead upon the 200-acre tract and, at the same time, executed a deed to Albert Peterson for the 120 acres. A new mortgage was then drawn in favor of Ocobock to secure a note signed by Albert Peterson and Peter A. Peterson. A mortgage was taken upon the whole 320 acres, the 200 acres which Peter A. Peterson had claimed as a homestead and the 120 acres said to have been purchased by Albert Peterson. Albert Peterson testified that he had no money; and that he bought the land because his father requested him to do so. The 120 acres and the 200 acres, being the original farm of 320 acres, was farmed and used as one tract of land by the family, consisting of Peter A. Peterson and Albert Peterson and three minor children. Albert Peterson testifies that he received no part of the rents, issues and profits of the place. In September, 1905, he reconvey'ed the property to his father, no consideration passing between them except the assumption of the mortgage debt.

Plaintiffs contend that the sale of the land to Albert Peterson operated as a constructive fraud upon their right to share in the estate of Jane H. Peterson; that, in truth [66]*66and in fact, Peter A. Peterson became, through the instrumentality of his son Albert, a purchaser at his own sale, and thereafter held the property in trust for the heirs. Upon this state of facts, the court below held that the administration sale to Albert Peterson was:

“Legally made and fairly conducted, and that the sum bidden and paid was the full value of the property sold and that said sale was bona fide and without fraud or collusion between the said Albert Peterson and Peter A. Peterson. That the said sale of Albert Peterson to Peter A. Peterson was a bona fide sale, for value, and was without fraud or collusion between the said parties, or at all.”

It is true that the land was struck off at the administrator’s sale for a sum approximating its value — it had been appraised at $2,000 — and we have no doubt that Peter A. Peterson was acting in good faith and with no desire other than to lodge the title in himself freed of the embarrassment of having his property subjected to further administration. It is perhaps unfortunate that our community property laws do not preserve at least a life estate in the survivor instead of forcing the dissolution of a relation to property which has too often resulted in financial sacrifice. We are impressed with the observations of Mr. Woerner in his “The American Law of Administration:” Vol. 2 (2d ed.), footnote, § 334:

“But neither the array of English authorities nor the emphatic indorsement of the doctrine by the Supreme Court of the United States and the authorities there cited, showing the same to be in consonance with the civil law and codes of European countries, quite vindicate it [the rule against trustees purchasing at their own sales] against all misgivings as to its applicability to executors and administrators. The very depth to which the remedy goes, as emphasized by Chancellor Kent, suggests the doubt in its practical wisdom. In uprooting the evil, valuable safeguards to the substantial interests of the parties sought to be protected are destroyed with it. By removing the possibility of a fraudulent acquisition on the part of the executor or administrator the power to protect the interests of beneficial [67]*67owners by securing to them the value of their property is likewise swept away. Frequent instances are within the experience of judges of probate and practitioners in probate courts, that the only possibility of rescuing from the otherwise total sacrifice and wreck of the estate a remnant for the widow and orphans is to let the widow (if she be, as she generally is, the administratrix) buy in and keep the property, accounting for the price it brought at the public or private sale. So embarrassing does this deeply cutting doctrine operate in some instances, that where, upon the death of a husband and father, the widow desires to keep the family together, and preserve as much of the home and property belonging to them as is consistent with full justice to the creditors (and which often amounts to a sufficiency for the decent support of the family), the widow is reduced to the necessity of either renouncing her right to administer, or risking the sacrifice of the property, because the law will not permit her as administratrix to compete at the sale with strangers or creditors.”

If the sale was a bona fide sale to Albert, and the repurchase by Peter A. Peterson was made without reference to the former proceedings, these observations of course are not apt. But we are of the opinion that the sale was, in legal effect, a sale to Peter A. Peterson, and that whatever inconvenience may result to a surviving member of a community, the general rule that an administrator cannot buy, either directly or indirectly, at his own sale must be followed in the absence of a statute authorizing him to purchase, or unless some controlling equity intervenes to bar the cestui que trust. Woerner, American Law of Administration, §§ 334, 487; Davoue v. Farming, 2 Johns. Ch. 251; Michoud v. Girod, 4 How. 503; 18 Cyc. 326.

The courts did not make the law vesting title in the heirs upon the death of an ancestor, nor did they decree that a child shall take equally with and during the lifetime of a surviving member of a community. Those rights depend upon legislative enactment, and our statutes give to a surviving [68]*68child an immediate interest of which the courts must take notice.

An administrator stands in a fiduciary relation to those beneficially interested.

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Cite This Page — Counsel Stack

Bluebook (online)
149 P. 662, 86 Wash. 63, 1915 Wash. LEXIS 1181, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stewart-v-baldwin-wash-1915.