Thomas v. Morristown State Bank

221 N.W. 257, 53 S.D. 499, 1928 S.D. LEXIS 165
CourtSouth Dakota Supreme Court
DecidedSeptember 29, 1928
DocketFile No. 6279
StatusPublished
Cited by10 cases

This text of 221 N.W. 257 (Thomas v. Morristown State Bank) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas v. Morristown State Bank, 221 N.W. 257, 53 S.D. 499, 1928 S.D. LEXIS 165 (S.D. 1928).

Opinion

BURCH, P. J.

This action is brought by Edward Thomas, in his official capacity as administrator of the estate of Eliza Ann Wartnaby, 'deceased, against the Morristown State Bank and PI. W. Batzer, its cashier, for conversion of a certificate of deposit for $1,2.90.80 and interest claimed to be the property of the estate and for expense in pursuit of the property and punitive damages. The defense will hereafter appear. The trial was to a jury, and a verdict was returned for plaintiff for the sum of $1,526.64. Defendants appeal from the judgment rendered thereon and from an order denying a new trial.

On August 30, 1922, the Morristown State Bank of Morris-town, 'S. D., issued a certificate of deposit to- Eliza Ann Wartnaby for a deposit of money then made. Eliza Ann Wartnaby died in [503]*503Jo Daviess county, Ill., December 27, 1923, and on the 28th day of January, 1924, Edward Thomas was appointed administrator of her estate by the county court of said Jo Daviess county. After her death this certificate came into the hands of her administrator as a part of her estate, whereupon hé sent the certificate to the Morristown State Bank for payment and remittance to him. The bank received the certificate and retained it, but, instead of remitting the money due thereon, sought to apply it on an indebtedness due the bank from Edward Thomas, in his individual capacity, but not on a debt for which deceased was in any way liable. The action of the bank in thus attempting to apply the certificate on the personal indebtedness of Edward Thomas, constitutes the act of conversion by the bank, and the cashier, Batzer, is sought to be held because he was the agent who performed the act.

As one defense, appellants allege the money deposited was in fact the property of Thomas; that the certificate was issued to Mrs. 'Wartnaby, his mother, for convenience; that Thomas made the deposit himself and represented he was the owner and obtained credit by reason of such claim; that he was at all times the owner of the deposit, and the deposit was at no time and is not now a part of the estate of deceased. We db not think this has been established and this defense need not be further considered.

The principal defense, and the one upon which appellants must prevail, if at all, is that Thomas is the sole heir and distributee of all the estate of deceased; that there are no debts or unpaid claims against the estate; and that all of the money due upon the certificate is the property of Thomas as such heir and due to him from the adlministrator as his distributive share, and therefore subject to be applied upon his debt. It is alleged that Thomas is insolvent, and if he be permitted as administrator to collect and return the money to Illinois as administrator, and there distribute it to 'himself, that the debt due the bank cannot be collected.

'Respondent takes the position that since he sues as administrator, having title and right of possession subject to the control and orders of the county court of Jo Daviess county, the circuit court of this state cannot inquire into the claims against the estate of deceased or dtetermine the heirs of deceased for any purpose; that no set-off can be allowed in a suit by the administrator for a debt not owing from deceased; that determining the heirs of de[504]*504ceased and the claims against her estate are matters in the exclusive jurisdiction of the county court of Jo Dlaviess county, and therefore appellants cannot inquire into such matters to establish a defense against his suit brought in his official capacity as administrator. The trial court took respondent’s view and excluded all evidence offered to prove that Thomas was the sole heir and that there were no debts to be paid from the money sought to be recovered.

It may be conceded that the circuit court cannot, under the circumstances of this case, determine the debts against the estate for the purpose of administration, or determine the heirs of deceased for the purpose of distribution, as those matters are directly involved in the administration of the estate in the county court appointing the administrator. But in an action in the circuit court to subject the interest of an heir in inherited property to the payment of his debts, if, to determine superior rights of other heirs or creditors of the estate, it becopies necessary to know who are the heirs and creditors of the estate in order that the circuit court may function in the matter within its jurisdiction, it can certainly ascertain those facts. Neither court has a monopoly of the facts. Each court may have independent and exclusive jurisdiction over subject-matters where the judgment of each may depend upon some facts common to- both. Respondent here sues to recover money belonging to an estate; if under any and all circumstances he is entitled to recover estate money, then the important facts are that the property belongs to the estate and that he is the administrator. Ota the other hand, if he is not entitled! to recover (although he is the administrator and the money belongs to the estate), unless there are claims to- be paid or distributees other than himself, then the court, to decide his right to recover, may inquire into those facts, not to adjudicate the claims, or detennine the distributees, which is the function of the county court, but to determine 'his right to recover the judgment he is seeking in the circuit court. As a matter of comity-, if it is made to appear to the circuit court of this state that the county court of Illinois has determined the claims against and the distributees of the estate of deceased, the circuit court of this state ought to- accept the determination of the county court of Illinois. But unless and until the circuit court is shown that the Illinois court has determined such [505]*505questions and how it has determined them, it should admit any competent evidence offered relating to the proof of such questions, and proceed to determine them' for itself so far as material to the controversy before it.

Before discussing appellant’s position in this case, it will be well to consider the principles -governing an attempt by a creditor to seize the interest of an heir and subject it to the payment of his debt to such creditor. Inherited property, after administration and distribution to the heirs, is, of course, subject to seizure as any other property. But before and pending an administration of the estate, the seizure of an unascertained interest of an heir by his creditors, if it can be done, must of necessity be affected by intervening and superior rights of the administrator, creditors of the deceased, claims against the estate and other heirs.

'At common law the title to real estate passed directly to the heirs at law or devisees upon, death of the ancestor, and consequently an heir’s interest in real estate might be attached immediately upon the death of the testator, subject, however, to the rights of the administrator in case such land is needed for the payment of. debts, 11 R. C. L. 283, § 325; Hyde v. Barney, 17 Vt. 280, 44 Am. Dec. 335 and note.

On the other hand-, the title to personal property passed directly to the personal representative (executor or administrator), who had the right of possession not to be interfered with by attachment. In South Ddkota, California, and perhaps some other states, personal property now descends, as in case of real estate, direct to the heir or legatee subject to a qualified right in the personal representative for purposes of administration, Murphy v. Crouse, 135 'Cal. 14, 66 P. 971, 87 Am. St. Rep.

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Cite This Page — Counsel Stack

Bluebook (online)
221 N.W. 257, 53 S.D. 499, 1928 S.D. LEXIS 165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-v-morristown-state-bank-sd-1928.