Theisen v. Hoey

51 A.2d 61, 29 Del. Ch. 365, 1947 Del. Ch. LEXIS 53
CourtCourt of Chancery of Delaware
DecidedJanuary 15, 1947
StatusPublished
Cited by18 cases

This text of 51 A.2d 61 (Theisen v. Hoey) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Theisen v. Hoey, 51 A.2d 61, 29 Del. Ch. 365, 1947 Del. Ch. LEXIS 53 (Del. Ct. App. 1947).

Opinion

Harrington, Chancellor:

The bill alleges and the demurrer admits: (1) that Alice Boyle Hoey died intestate, [368]*368a resident of the City of Wilmington, in 1939; (2) that at the time of her death, she was seized of a certain parcel of real property on Vandever Avenue and LaMotte Street, in the City of Wilmington, with buildings thereon erected, in which she had operated a laundry for some years prior thereto; (3) that on July 26, 1939 letters of administration were granted to the individual defendants, Edwin EHoey and Anne M. Hoey Leary, by the Register of Wills, for New Castle County, and they gave bond in the amount of $45,000, with Massachusetts Bonding and Insurance Company as surety thereon; (4) that on the death of the intestate “machinery, automobile trucks, equipment and other personal property, used by the deceased in the laundry business, formed an important part of the assets of the deceased’s estate. Such personal property came into the hands of Hoey and Leary as administrators, as aforesaid”; (5) that “from about July 26, 1939 until about August 17, 1943, said Hoey and Leary, purporting to act as administrators, as aforesaid, without any order from the Register of Wills aforesaid, or from any other court having jurisdiction authorizing them to do so, operated said laundry, using said buildings and personal property which came into their hands as such administrators for that purpose”; (6) that on August 17, 1943, the defendants “Hoey and Leary were removed as administrators, and the complainant was appointed administrator of the estate of the deceased. Thereafter, complainant qualified and is now acting as such administrator” ; (7) that “said Hoey and Leary have not filed an account of their administration on the estate of the deceased, but have neglected and refused to do so, notwithstanding orders of said Register to file such account”; (8) that “complainant is advised, believes and avers that there are debts of the deceased remaining unpaid and that said estate is insolvent in that there are not sufficient assets to pay the debts of the deceased.”

The relief sought appears in the facts.

[369]*369The questions raised by the demurrer of the individual defendants are (1) whether this court can entertain a bill for an accounting against the former and removed administrators of Alice Boyle Hoey, deceased, and (2) whether, in any event, an administrator de bonis non can file the bill, particularly when the estate is insolvent.

The demurrer of the Massachusetts Bonding and Insurance Company raises the same questions. It also questions whether it can be joined as a defendant in the bill for an accounting with the prior administrators, the principals in the administration bond, or whether the complainant’s only remedy is by an action at law.

Executors or administrators are required to collect the assets, pay the debts of the deceased, and distribute any balance in hand to the persons entitled. It is neither a part of their duties, nor within their usual powers, to operate a business which has been conducted by the decedent during her lifetime. If this is done, the interested parties may, ordinarily, elect either to demand an account of the profits ' realized, if any, or a complete return of the assets used with interest; if there are losses, the administrators may be held accountable therefor. 24 C.J. 55; see also 33 C.J.S., Executors and Administrators, § 189; Gilligan v. Daly, 79 N.J.Eq. 36, 80 A. 994; In re McGovern, Sur., 118 N.Y.S. 378. But the question is whether the rights of the parties can be determined in this court by a bill for an accounting. Independent of any other reasons for jurisdiction of this court in complicated mutual accounting cases (see Davis v. Davis, 1 Del.Ch. 256; Illinois Finance v. Interstate Royal Credit Ass’n., 11 Del.Ch. 349, 101 A. 870), it is not denied that the English Court of Chancery had at least concurrent jurisdiction over the administration and settlement of decedents’ estates at the time of our separation from that country, as the powers of the Ecclesiastical Court were quite limited. Glanding v. Industrial Trust Co., 28 Del. Ch. 125, 45 A. 2d 553; 1 Pomeroy. Eq.Jur., (5th Ed.) § 346; 4 Pomeroy Eq.Jur., (5th Ed.) §§ 1127-1129, 1153. The jurisdiction exist[370]*370ed whether the decedent died testate or intestate (4 Pomeroy, supra, § 1155), and was usually based on the fiduciary relation existing between his personal representatives and creditors, legatees or other persons entitled to share in the estate. 1 Pomeroy, supra, § 346; 4 Pomeroy, supra, §§ 1127, 1155; In re Ortiz’ Est., 26 Del.Ch. 240, 27 A.2d 368, 373. The right of discovery may be an important incident in accounting cases in equity, but it is not the real basis of the jurisdiction. Adams Equity, 74 Law Libr. *p. 220; 1 Pomeroy, Eq.Jur., supra, § 191. It is not denied that, in most respects, this court has substantially the same powers the old English Court of Chancery had in 1776. § 10, Art. IV, Const. of 1897; § 4637, Rev. Code 1935; Glanding v. Industrial Trust Co., supra. The proviso in Section 4637 of the Code is merely declaratory of the ancient equity rule with respect to jurisdiction. Glanding v. Industrial Trust Co., supra. When a court of equity once has jurisdiction, the mere fact that a statute gives somewhat similar powers to another tribunal seldom affects its original jurisdiction. Glanding v. Industrial Trust Co., supra; State v. Wilmington Bridge Co., 2 Del.Ch. 58; Fox v. Wharton, 5 Del.Ch. 200 ; Walker v. Caldwell, 8 Del.Ch. 91, 67 A. 1085; 1 Pom.Eq.Jur., supra, §§ 176, 182; 4 Pom.Eq.Jur., supra, § 1153. Whether under such circumstances equity jurisdiction is abrogated is a question of intent, but statutory provisions of that nature are construed strictly and to have that effect must usually contain what amounts to express prohibitory and negative language, or affirmative language conferring exclusive jurisdiction on some other court, Id.; 1 Pomeroy, supra, § 281. The defendants claim that this court has never had the power to compel executors and administrators to account as the state constitutions have always given exclusive jurisdiction elsewhere. But other courts of this State had broad equity powers before the Court of Chancery was created as a separate tribunal in 1792. Glanding v. Industrial Trust Co., supra.

The Register of Wills has been a constitutional officer [371]*371since the Constitution of 1792, § 17, Art. VI, and that office is provided for by Section 33, Article IV of the Constitution of 1897. See Wilmington Trust Co. v. Baldwin, 8 W. W. Harr. (38 Del.) 595, 195 A. 287.

Section 34 of Article IV of the Constitution of 1897 also provides:

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Bluebook (online)
51 A.2d 61, 29 Del. Ch. 365, 1947 Del. Ch. LEXIS 53, Counsel Stack Legal Research, https://law.counselstack.com/opinion/theisen-v-hoey-delch-1947.