Tolly v. Champion

229 S.W. 90, 191 Ky. 114, 1921 Ky. LEXIS 269
CourtCourt of Appeals of Kentucky
DecidedMarch 25, 1921
StatusPublished
Cited by15 cases

This text of 229 S.W. 90 (Tolly v. Champion) 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
Tolly v. Champion, 229 S.W. 90, 191 Ky. 114, 1921 Ky. LEXIS 269 (Ky. Ct. App. 1921).

Opinion

[115]*115Opinion op the Court by

Judge Thomas

Affirming, in part and reversing in part.

The appellee, Sarah E. Champion, who was about 70 years of age and who was the widow of W. S. Champion, filed this action in the court below, in both her representative and individual capacities, against the collateral kindred of her deceased husband to obtain a settlement of her accounts as executrix of his will, and to settle his estate, and to this end she prayed that a tract of land situated in Livingston county, containing about 200 acres, be sold for the payment of debts. She asserted in her petition a number of claims against her decedent, which were alleged to have been paid by her in her representative capacity, and asked credit for each of them. She also asserted in her individual right a number of claims, aggregating about $6,000.00, which she averred that her deceased husband owed her and which he held as trustee for her use and benefit and that each of them was wholly unpaid at the time of his death. The answer was a denial of all the allegations in the petition. The cause was referred to the master commissioner to take proof and report the assets and liabilities of the estate. He afterwards made a report showing that the executrix had realized from personal property of the decedent sold by her the sum of $400.00, and that the decedent at the time of his death had on deposit in bank $259.58, making a total sum for the payment of debts of $659.58. No account was taken of some bank stock and some stock in the Henry Clay Fire Insurance Company, because, in the opinion of the commissioner, the will of the decedent prevented testatrix from selling any of it for the payment of debts. The commissioner in his report of claims classified them into three divisions, A, B and C. Class A (six in number) included claims against the decedent evidenced by note or judgment; class C (four in number) included claims against decedent due by account, and class B (seven in number) were claims asserted by the widow as being due her individually - from her husband and which were created between their marriage in 1881 and his death in 1917. Exceptions were filed to every claim reported by the commissioner and uipon trial thereof, after the taking of considerable testimony, they were each overruled except as to one-half of claim A-5, the total amount of which was $119.82. A judgment was rendered charg[116]*116ing the executrix with only the amount hereinbefore stated and crediting her with all the claims in classes A and C, and adjudging to her each of the claims in class B, and directed the land to be sold and all of the allowed claims paid; and, since the will devised the land to the widow for her life, the judgment directed that she be given her life interest according to the mortality tables in the remainder of the proceeds of the sale of the farm, after the payment of the allowed claims, including her own, and what was left the judgment directed to be divided between defendants and appellants (collateral kindred of the deceased) as their interest might appear.

Complaining of the judgment in its- entirety defendants prosecute this appeal and urge a multiplicity of objections which are .so numerous that we will be unable to consider them in detail, and will likewise be unable to discuss in detail the testimony bearing upon the various issues of fact, which we are called upon to review. We have therefore concluded in disposing of the appeal to content ourselves with stating only our conclusions, both of law and fact, since to do otherwise could not possibly serve any useful purpose to any one, but could only be of interest to the litigants themselves.

Before going to the merits it may be briefly stated that the executrix kept no account of her transactions as such. There' was no appraisement of the estate nor was there any'account kept of the public sale of the .personal property of the decedent. Claims were paid indiscriminately, without the requisite statutory proof, and in many cases no" entry of any kind was made of the payment of the claim; not even receipts' from the claimants were demanded, except perhaps in a few instances.

At the beginning we are convinced that the- court erred in failing to charge the widow, as executrix, with $700.00 as the proceeds of the sale of personal property, instead of only $400.00. The proof overwhelmingly shows that the total amount of the sale was as much as, if not more than, $1,000.00, $300.00 of which, according to the testimony, was property belonging to her and with which she should not be charged. Furthermore, we are convinced that nothing in the will relieves' the bank stock and the insurance stock from being subjected to debts, if necessary f or that purpose, and the proof in the record shows it to be necessary. However, it has no practical bearing upon the rights of the parties whether that [117]*117stock be sold or not, since it was bequeathed in the same manner as the real estate was devised.

Coming now to the objections to the allowances of claims, and beginning with class A, the record shows that A-l, amounting to $139.53 was a judgment against the deceased and it was properly allowed. A-2, amounting to $300.00, was the amount paid by plaintiff in discharge of an obligation signed by her husband as surety and guarantor for one George Homborg. It was executed to a firm from which the principal was buying supplies for the conducting of his business of digging or boring wells. Claims A-3 ($158.97), A-4 ($222.45) and A-5 ($119.82) were notes to banks upon which the decedent was surety. The receipted notes were filed as claims, but the guaranty obligation for $300.00 was not filed, nor is it shown whether the principals in any of those obligations were solvent or insolvent. However, the holders of them could have sued plaintiff as the personal representative of lief husband and compelled her to pay them, if there were sufficient assets of the estate (which, including the farm, was true in this case) without proceeding against the principals. Under similar facts and circumstances this court has held that the personal representative who paid the claims without the requisite statutory proof from the claimant might receive credit therefor, since such statutory proof “was intended to furnish to the personal representative something to guide him in the settlement of claims against the decedent, and as to which he would, in the great majority of cases, have no knowledge.” Terrell v. Rowland, 86 Ky. 67; Chorn v. Chorn, 98 Ky. 627, and Gilliam v. Gilliam, 146 Ky. 15. If the personal representative possesses knowledge of the validity and justness of the claim against his decedent and pays it without suit in order to save cost, we see no reason why he should not receive credit therefor in the absence of anything to show that the claim was illegal, unjust or wrongfully paid. There is no such showing in this case, and we think the claims now under consideration were properly allowed, although it will yet be the duty of plaintiff, or any successor, to make such efforts as the law requires to realize from the principals the whole, or as much of such debts as may be possible, and when clone the amount realized will belong to and be distributed among the appellees; but she will not be required to incur cost and expense in such efforts, if the fact is that the principals are clear[118]*118ly insolvent. Claim A-6 ($51.00) is shown to be a note of the decedent to the Home Insurance Company and was properly allowed. Claim C-l ($45.00) was for painting the roof on the dwelling after the decedent’s death.

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Cite This Page — Counsel Stack

Bluebook (online)
229 S.W. 90, 191 Ky. 114, 1921 Ky. LEXIS 269, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tolly-v-champion-kyctapp-1921.