Walker Bank & Trust Co. v. Steely

34 P.2d 56, 54 Idaho 591, 1934 Ida. LEXIS 50
CourtIdaho Supreme Court
DecidedJune 21, 1934
DocketNo. 6078.
StatusPublished
Cited by8 cases

This text of 34 P.2d 56 (Walker Bank & Trust Co. v. Steely) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walker Bank & Trust Co. v. Steely, 34 P.2d 56, 54 Idaho 591, 1934 Ida. LEXIS 50 (Idaho 1934).

Opinion

*594 WERNETTE, J.

Respondent herein, Walker Bank and Trust Company, instituted this action to foreclose a real estate mortgage.

It appears that Oscar B. Steely, deceased, died testate, June 27, 1920, leaving as heirs four children, ITobart II. Steely, Mary I. Steely Maxon, Bertrice Evelyn Steely, Oscar B. Steely, and his wife, the children’s mother, Bertrice IT. Steely. The will of the deceased, Oscar B. Steely, was admitted to probate, and July 23, 1920, Bertrice H. Steely, wife of deceased, was duly appointed and now is the executrix of the estate. By the terms of the will the children, appellants herein, were bequeathed an undivided one-half interest of all the estate, which included the real property *595 involved in this litigation. About eight years after her appointment as executrix, Bertrice H. Steely filed a petition for the sale of certain of the real property belonging to the estate, alleging, in substance, among other things, that the only practical method for closing the estate within a reasonable time was by the sale of sufficient real estate to satisfy all of the indebtedness of the estate, such indebtedness consisting of $4,453.06, with interest thereon at seven per cent, being an unsecured account, and $20,000, principal and interest thereon, being secured by mortgage, the current expenses that had accrued in administering the estate, and that the debts, expenses and charges of administration accrued on said estate up to and including the 23d day of October, 1926, amounted to the sum of $47,290.41, said sum including all operating expenses of the estate, and the family allowance,- that an estimate by petitioner of the debts, expenses and charges of administration which had and would accrue during the administration of the estate was the sum of $10,000, and that there was then due on the family allowance the sum of'$500, and “that by selling said real estate the residue of the real property in said estate will be free and unencumbered, and from the proceeds of the sale proposed to be made, petitioner can pay all of the debts of said estate, and the same can then be closed and distribution made.” March 3, 1928, Bertrice H. Steely, as executrix, was authorized by the probate court to make a sale of the property described in her petition for the sum of $40,000, which sale was confirmed by the court March 28, 1928. Later, December 28, 1928, Bertrice H. Steely, as executrix, by her petition applied to the probate court for permission to borrow '$8,000, on certain real property belonging to the estate, being the property in controversy here, and to execute a mortgage for the said amount on such real estate. It was recited in the petition that the money was to be borrowed for the following purposes:

“Expenses of administration.

“That the following is a statement of the expenses of administration which are to be paid with the proceeds of said proposed mortgage. Repairing a two story brick build *596 ing on the hereinafter described premises so that the same may be used for commercial purposes and afford some income to the estate; that said real estate hereinafter described, and the building situate thereon is the only real estate now owned by the Steely estate, that it is valued at from $20,000.00 to $30,000.00, and that there are no incumbrances against the same, or no outstanding unpaid obligations against the estate; that the character of the proposed and necessary improvements is to remodel said building by placing a heating plant in the same, remodeling the first floor, placing a new front therein, so that the same may be fit for renting, and remodeling and rearranging the second floor so that the same may be rented to a prospective lessee for the conducting of a rooming house therein; that the estimated cost of said improvements is $8,000.00.

“That the advantages that may accrue to the estate by raising the required money by a note, or notes and mortgage are as follows:

“That said building prior to about the 1st day of May, 1928, had been occupied by the Tribune Company, Limited, for the purpose of publishing a newspaper in said premises for a period of over fifteen years; that the premises were vacated by said tenant about the 1st of May,. 1928, which left the property in such a condition due to the character of the use it had been put to that it was and is impossible to rent it without repairing and rearranging the same for any purpose except for the purpose of operating a newspaper therein. That the building and premises adjoining the building herein referred to was previously owned by the estate, and has been sold, and that that portion of the premises sold contained a heating plant that furnished heat for the building now occupied, that the building at present has no heating plant, and that it is impossible to rent the same for any purpose without altering and repairing it. That your petitioner has tried diligently for over six months to sell said premises, and void the expense of repairing the same; that she has been unable to sell the same, or get any reasonable offer for its purchase; that the building has not brought in any revenue or income to the estate for *597 a period of sis months or more, except a small amount during the fall when it was leased without any heat; that the property is located in the business section of the city of Pocatello, and the taxes accruing yearly against same are a considerable amount and your petitioner has no funds with which to pay taxes and insurance on the building except from said building; that your petitioner has a tenant for the second story of said building at the rate of $125.00 per month as soon as the same is repaired; that it is impossible to sell the property at present and it is absolutely necessary to alter and repair the same.”

The same day the petition was filed an order to show cause on the petition to mortgage was issued by the probate court, which order was published the requisite number of times as required by statute. Thereafter, and on January 25, 1929, upon due proof of service of the order to show cause, and at the hearing on the petition, at which oral testimony was introduced, an order authorizing the mortgage was issued. The order authorizing the borrowing of the money and the execution of the mortgage to secure the payment thereof, among other things, recites:

“And proves to the satisfaction of the court that the order herein made, requiring all persons interested to show cause why said estate should not be mortgaged was duly published four consecutive weeks before the time appointed for this hearing in the Pocatello Tribune, a newspaper of general circulation published in said county, and the matter coming on regularly this day to be heard, the court thereupon proceeds to hear the said petition, and, after hearing the evidence, the court being satisfied that the same is for the advantages of said estate, grants said petition.”

Thereafter the executrix executed and delivered to respondent the note and mortgage in question. Upon failure on the part of the executrix to make payments of interest and taxes, as required by the mortgage, respondent instituted these foreclosure proceedings.

The defendant, Bertrice H. Steely, as executrix, answered the complaint and in her answer pleaded that the four other heirs, the children, be permitted to intervene.

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Bluebook (online)
34 P.2d 56, 54 Idaho 591, 1934 Ida. LEXIS 50, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walker-bank-trust-co-v-steely-idaho-1934.