Swartz v. Dennis

1952 OK 444, 255 P.2d 923, 208 Okla. 334, 1952 Okla. LEXIS 906
CourtSupreme Court of Oklahoma
DecidedDecember 9, 1952
Docket34450
StatusPublished
Cited by5 cases

This text of 1952 OK 444 (Swartz v. Dennis) 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
Swartz v. Dennis, 1952 OK 444, 255 P.2d 923, 208 Okla. 334, 1952 Okla. LEXIS 906 (Okla. 1952).

Opinion

PER CURIAM.

Action brought by widow of J. M. Dennis to quiet title to real estate in Garvin county, alleged to have been taken in name of Joe Lath-rop, now deceased, for the benefit of partnership composed of Joe Lathrop, J. M. Dennis and R. A. Lathrop. R. A. Lathrop is still living. Defendants, including R. A. Lathrop, were heirs of Joe Lathrop. R. A. Lathrop filed cross-petition, also alleging the partnership and claiming an undivided 1/3 interest in partnership lands in addition to his 1/5 interest as heir of Joe Lathrop. Parties agreed to fully determine and distribute alleged partnership assets, except for one tract in litigation elsewhere.

The court made findings of fact as follows:

Partnership was formed in February, 1922, to deal in mineral interests and the oil and gas business. Joe Lathrop was single, and, for convenience, much property was taken in his name but was purchased with partnership funds and held in trust for remaining partners. Joe Lathrop died in 1934 and had, in his name, varying interests in 18 tracts in various counties. R. A. Lathrop was appointed administrator of the estate of Joe Lathrop, and listed some of these tracts in the inventory of the estate, without reference to the claimed partnership. The partnership had financial reverses about 1928 and J. M. Dennis and R. A. Lathrop ceased to devote *336 their time to its operations. The firm’s office was closed in 1929.

In 1940, J. M. Dennis filed an affidavit in Kay county asserting ownership of certain property, which resulted in R. A. Lathrop filing criminal charges against Dennis as well as a suit to determine ownership of the Kay county property. These disputes were the objects of conversations between attorneys for the various parties at different times. The court found that the estate of J. M. Dennis owes the estate of Joe Lathrop $940.31 after taking into account the various claims and counterclaims between the parties. Neither R. A. Lath-rop nor J. M. Dennis filed any claim in administration proceedings of the estate of Joe Lathrop, deceased. Joe Lath-rop’s sole heir was his mother, Jennie Lathrop, who died in 1945, leaving as her sole heirs the defendants. Jennie Lathrop took possession of the estate and it has remained since her death in the possession of her heirs. R. A. Lath-rop, in 1940, quitclaimed the property listed in the inventory as part of the Joe Lathrop’s estate to his mother, Mrs. Jennie Lathrop, the consideration being a deed to R. A. Lathrop conveying the Joe Lathrop home in Ardmore. R. A. Lathrop contends that the quitclaim deed was executed on his part by mistake and fraud.

This action was tried more than 18 years after the partnership closed its office and more than 14 years after the death of Joe Lathrop. The court found that the interests of Joe Lathrop in 8 numbered tracts belonged to the partnership and should be divided 1/3 to R. A. Lathrop, 1/3 to the heirs of J. M. Dennis and 1/3 to the heirs of Joe Lath-rop.

The parties will be referred to in this opinion by their respective designations in the original action. When defendant R. A. Lathrop is referred to, such reference will be by name. Remaining defendants will be referred to as “defendants.”

Defendants’ first proposition is that plaintiff, as an heir and assignee of other heirs, could not maintain the action.

The estate of J. M. Dennis was not administered and defendants claim that only a personal representative can bring an action against a decedent’s partners for an accounting.

“A thing in action, arising out of the violation of a right of property, or out of an obligation, may be transferred by the owner. Upon the death of the owner, it passes to his personal representatives, * * 60 Okla. St. Ann. 313.

“Every action must be prosecuted in the name of the real party in interest * * 12 Okla. St. Ann. 221.

“Ordinarily, the widow and legatees of a deceased partner cannot act directly against the surviving partners, but must compel the executor or administrator to act for them.” 40 Am. Jr. 342.

In Somerville v. Somerville, 118 Okla. 259, 247 P. 389, defendant partner settled- a claim of a deceased partner by giving a note to the latter’s widow. When sued upon the note the surviving partner defended on ground that only the deceased partner’s personal representative could enter into settlement of the decedent’s partnership affairs. This view was sustained by this court.

In Lyons v. Lyons, 182 Okla. 113, 76 P. 2d 892, the court considered an identical question, and after citing the pertinent statutes and the case of Somerville v. Somerville, supra, this court stated:

“We are of the opinion that this action for an accounting and to establish a trust in the business and the personal properties described in the petition must be prosecuted by the administrator of Sadie Lyons’ estate.”

Plaintiffs cite the case of Stallings v. White, 194 Okla. 649, 153 P. 2d 813, but the question of the capacity of plaintiffs to sue does not appear to have been raised therein.

This being an action for accounting, the proof might have sustained a find *337 ing against J. M. Dennis that he was indebted to the partnership, but judgment could not be rendered against his heirs. Judgment could only have been rendered against his personal representative.

We must conclude that plaintiff was not the proper party to bring the action.

Defendants’ propositions 2 and 3 should be stated and considered together.

“The death of Joe Lathrop dissolved and terminated the alleged partnership and it was the duty of the survivors to promptly inventory, liquidate and settle the firm’s affairs. The surviving partners by failing, refusing and neglecting to settle the partnership affairs waived and abandoned the right.”

Under these propositions, defendants argue that R. A. Lathrop’s inclusion of items of property, here in controversy, in his inventory as administrator of Joe Lathrop’s estate constitutes an es-toppel by R. A. Lathrop so as to preclude his present claim that they were partnership property. Defendants also argue that R. A. Lathrop and plaintiff’s decedent were estopped by sitting idly by while these properties were administered and distributed, J. M. Dennis being then alive and along with R. A. Lathrop residing in Carter county where the estate was administered.

Defendants and R. A. Lathrop contended that the partnership was a trust and that the probate court had no jurisdiction over this property, and that its decree had no effect on their rights. They cite Harrison v. Eaves, 191 Okla. 453, 130 P. 2d 841, to show that the probate court’s decree was not conclusive of their rights. The court there held that a probate decree of distribution did not preclude beneficiaries from later establishing a trust in their favor by action in equity. The court’s holding was well summarized in syllabus 3:

“Where decedent held real property in trust, probate court had no jurisdiction over trust or trust property which were within equity jurisdiction of district court.”

However, we cannot agree that the case last above-cited is determinative herein. Joe Lathrop held title in his own name without qualifications.

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Cite This Page — Counsel Stack

Bluebook (online)
1952 OK 444, 255 P.2d 923, 208 Okla. 334, 1952 Okla. LEXIS 906, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swartz-v-dennis-okla-1952.