Stroud's Heirs v. Barnett

33 Ky. 391, 3 Dana 391, 1835 Ky. LEXIS 110
CourtCourt of Appeals of Kentucky
DecidedOctober 16, 1835
StatusPublished
Cited by2 cases

This text of 33 Ky. 391 (Stroud's Heirs v. Barnett) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stroud's Heirs v. Barnett, 33 Ky. 391, 3 Dana 391, 1835 Ky. LEXIS 110 (Ky. Ct. App. 1835).

Opinion

Judge Ewing

delivered the Opinion of the Court.

On the 25th of December, 1824, the decedent, William Stroud, and the complainant Barnett entered into an article of agreement, by which it was agreed, that said Barnett had advanced to said Stroud one hundred and fifty dollars, in Kentucky and Commonwealth’s bank paper; and said Stroud had placed in the possession of said Barnett, a negro woman by the name of Amy, to remain with him, and work for the use of said money, until the 25th of December thereafter, or so long thereafter as said Stroud should delay to repay said money; and it was further stipulated that if said girl should die before the said money was refunded, the loss should be Stroud’s. Said girl became pregnant before the- year was out, and was taken home by Stroud, to be after-wards returned, and was never after returned.

Said Stroud died, and administration was granted, on his estate to Thomas Barnett and Archibald Lindsay; [392]*392who sold, all the personal estate that came to their hands, also, the negro woman Amy and her child, and applied the whole to the payment of the debts of the decedent.

Where an adm’r ■or executor, has paid over the estate to distributees, without having satisfied all -of the decedent’s debts — chancery-may take jurisdiction, upon the bill of a creditor «of the estate, against the adm’r (for ex’or) — who is> ia fact= ® with the dis-^“^hf has funds of the es^adeére^may be rendered for ^ ^ei-XXfendants, accor^active * habilishau be done, a succession of voided.

[392]*392There were other slaves left, and a small tract of barren land of little or no value.

A bill was then filed by some of the heirs, against the administrators and other heirs, and a decree obtained, directing the sale of the slaves remaining, for the purpose of a division. James Bradley was appointed a ■commissioner to sell the slaves, and divide the proceeds among the heirs, some of whom were non-residents; and having sold the same, and made partial distribution, held a portion of the funds, the proceeds of said sale, in his hands for distribution among other of the heirs.

At this stage of the proceedings, the complainant, William Barnett, who had intermarried with one of the heirs of Stroud, filed his bill against said administrators and heirs, and said Bradley, charging the administrators with having sold said Amy and child, as well as all the personal estate, and applying the proceeds to the payment of debts, and praying a decree for the money due upon said article, and that the money in the hands of Bradley might be applied to its payment, and enjoining and restraining Bradley from making distribution of it as directed by the said decree.

A decree was rendered against said heirs, de bonis propriis, and, in their default against said Bradley, for one hundred and twenty five dollars, and costs, in notes on the Bank of the Commonwealth, and execution awarded.

The first question that will be considered, is, had the chancellor jurisdiction of the case? We think he had.

The slaves decreed to be sold, were assets in the hands of the administrators, and should rightfully have been applied to the payment of the complainant’s debt. Executors and administrators are, by implication of law, trustees of the estate of their testator or intestate, and the funds in their hands are trust funds, first for the payment of debts, and afterwards for distribution. 2 Maddock's Chy. 126: 1, 578-9, &c. And frauds, accidents trusts are peculiarly the subjects ef equity jurisdiction. [393]*393When administrators of executors have abused their trust, by making distribution of the assets among the heirs or legatees, without first paying the debts, we see no principle of equity which would preclude the chancellor from taking cognizance of the ease, in analogy to the jurisdiction ordinarily exercised by him, over trustees and trust funds, in other cases, and following the trust fund into the hands of the legatees or heirs, and •directing its application to the first objects of the trust, —the payment of debts, or Tendering the executor or administrator liable for a breach of his trust. By such ■a proceeding the administrators and heirs all being brought before the court, and compelled to make discovery of assets, more full and complete justice can be done, and the great delay, vexation and circuity of action, of first suing the administrator at law, and then suing for a devastavit, and driving him to a suit against the heirs for a return ox the funds paid over to them, be avoided. We are therefore inclined to think, that in all cases where the administrator has made distribution of the estate among the heirs, that a creditor whose debt has not been paid, may proceed in chancery, jointly ■against him and the heirs, for a recovery of his debt. And this mode of proceeding is sanctioned by authority, •as well in England, as the Virginia courts.

But in a state of case like the present, where a part of the distributees are non-residents, and the funds which are sought to be applied to the payment of the complainant’s debt, are the proceeds of the sale of property which was assets in the hands of the administrator,

■and sold under the decree of the Chancellor, and are in the hands of a resident commissioner, appointed by the Chancelloi-, and under his control, there can be no doubt that equity may take jurisdiction of the case, and direet the application of the funds to the first purposes of the trust — the payment of the debts of the decedent. And having taken jurisdiction for this purpose, and having all parties, the administrators and distributees, before the court, may retain jurisdiction, to do full and compíete justice to the complainants, in ease the funds in [394]*394the commissioners hands, shall not be sufficient to pay his debt.

The act of 1824, to prevent the scaling of debts payable in Commonwealth’s or Ky. bank notes, does not apply where there is any other stipulation connected with the contract — as,in this case, where the receipt given for the notes (to be repaid) contains the terms on which a slave is pledged for the use and security of the loan.— The value of the notes when the obligation is due, is all that can ibe recovered in such cases. 'Bill by a credit-tor of a decedent, against the .adm’r — who had distributed without paying the debt, and the Sieirs,-and a commissioner who lad funds of ¡the estate m ins hands — a decree against the heirs jointly is erro•neous; so if it ■gainst°the adm’r" it should be afendants!1 to be ■paid — 'first, by out ofthe'assets, and, by the com-the funds * in his hands; 2nd, by the heirs — each his due proporfn°“’the* amount oí his share re-the'adm^'out'S’ his ma estate, “aty ofsa ede_ vastavit..

[394]*394But there are manifest errors in the details of the decree.

First. The court should not have rendered a decree for Commonwealth’s paper. The statute of 5th January, 1824, authorizing the recovery of Bank notes specifically, does not apply to a case of this kind. That act only applies to contracts, for the payment of Bank notes, of a particular description, and does not embrace 'contracts stipulating the performance of other things, as has been repeatedly settled by this Court. 6 J. J. Marshall 11; 1 Ib. 6; 7 Monroe, 224; 3 Ib. 156; 6 Ib. 545—6—7, 5 Ib. 317.

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Cite This Page — Counsel Stack

Bluebook (online)
33 Ky. 391, 3 Dana 391, 1835 Ky. LEXIS 110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/strouds-heirs-v-barnett-kyctapp-1835.