Wolf v. Beaird

15 N.E. 161, 123 Ill. 585
CourtIllinois Supreme Court
DecidedJanuary 20, 1888
StatusPublished
Cited by36 cases

This text of 15 N.E. 161 (Wolf v. Beaird) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wolf v. Beaird, 15 N.E. 161, 123 Ill. 585 (Ill. 1888).

Opinion

Mr. Justice Magruder

delivered the opinion of the Court:

Edward J. French died testate on March 3, 1880. His will was admitted to probate in the county court of Bichland county, and letters testamentary were issued to the appellant, John Wolf, as the executor thereof, on March 8, 1880. The county court allowed two claims against French’s estate, one on May 18, 1880, and another on August 17, 1880, in favor of John B. Gharst. During the first year of the administration Wolf had money enough on hand to pay in full all the claims filed against the estate before the end of that year. He paidGharst thirty per cent of his two claims on August 17, 1880, and he paid him the balance of such two claims on October 15, 1880. On the latter date Gharst’s total claim against the estate was paid in full.

At the time Wolf paid Gharst’s claim in full, he and Gharst both believed that French’s estate was solvent and would not only be able to pay all the debts, but would have a surplus for the heirs. Both parties acted in good faith, the executor in paying, and the creditor in receiving the full amount of the claim. If the claims hereafter mentioned, which were not known to exist at that time, had not been filed, the surplus would have amounted to $1800.

Two large claims were allowed against the estate, one, on June 20, 1881, in favor of Robert Allyn, trustee, and another, on June 21, 1881, in favor of Lucy French, which made the estate insolvent as to the payment of claims of the seventh class. By the allowance of these latter claims, the assets were so reduced, that the estate was only able to pay 61.72 per cent of the claims of the seventh class, to which the Gharst claim and the Allyn and Lucy French claims all belonged. It thus turned out that Gharst had been overpaid by the amount of the difference between 100 per cent and 61.72 per cent.

Gharst died testate on September 4,1881, and the appellees are the executors under his will. Wolf, as executor of the estate of E. J. French, deceased, filed a claim against Gharst’s estate, in the county court of Richland county, for the excess of the amount so paid- to Gharst over the 'pro rata share to which he was properly entitled. On June 20,1882, this claim of Wolf against Gharst’s estate was allowed by the county court, and an appeal was taken to the circuit court, where the case was tried before the circuit judge without a jury by agreement. The circuit court ordered that the claim be allowed as a seventh class claim to be paid in due course of administration, and directed that its order be certified down to the county court for payment. The case was then taken by writ of error to the Appellate Court, which, at its February term, 1886, reversed the judgment of the circuit court and remanded the cause.'

A second trial was had before the circuit judge without a jury at the November term, 1886, which resulted in a judgment in favor of appellant against appellees. This judgment has been brought before the Appellate Court a second time and has been again reversed. It now comes before us by appeal from the Appellate Court, and upon certificate that the case involves a question of law of such importance, on account of collateral interests, that it should be passed upon by the Supreme Court.

Both Wolf and Gharst knew or were bound to know, that, under the law, Gharst could not lawfully receive his claim in full out of the assets of the French estate, unless those assets were sufficient to pay all claims of the same class with his own. There was a mutual mistake of facts in respect to which both parties were equally bound to inquire. They both believed that the assets were sufficient to pay the claims in full and acted upon such belief, but both were mistaken in regard to the fact. “Money paid by one party to another through a mutual mistake of facts, in respect to which both were equally bound to inquire, may be recovered back.” Canal Bank v. Bank of Albany, 1 Hill, 287; Wheadon v. Olds, 20 Wend. 174.

“The count for money had and received is also maintainable for the recovery of money paid under a mistake, on^ the part of the payer, of a material fact.” (2 Chitty on Contracts, (11th ed.) 928; 1 Chitty’s Pl. 355; Bank v. Mitchell, 88 Ill. 52; Stempfel v. Thomas, 89 id. 147.) Wolf was mistaken in a material fact. If he had not been mistaken in the fact, which he supposed to exist, that the assets were sufficient to pay the claims in full, in other words, if the assets had been sufficient to pay the claims in full, he would have been liable to pay Gharst the 38.28 per cent, so paid to him by mistake.

The filing of the claim by Wolf against Gharst’s estate was in the nature of an equitable action for money had and received, or money paid under a mistake of fact. If Wolf could have brought an action of assumpsit against Gharst in the latter’s lifetime for the excess of the payment over the proper pro rata share, then a claim for such excess was a proper claim to be filed against Gharst’s estate, so far as the nature of the demand is concerned.

It was held in Rogers v. Weaver, 5 Ohio, 536, that an administrator, who, under the supposition that the estate was solvent, had paid a creditor beyond his distributive share, might, upon final settlement, recover back the difference in an action for money had and received. See also Walker v. Hill, 17 Mass. 380.

When this case was tried a second time before the circuit judge, at the November term, 1886, it was proven, that appellant had filed his final report, as executor, on July 15, 1886, and had been discharged by the county court. The order of the county court entered at that date found, that the assets were only adequate to pay 61.72 per cent of the claims of the seventh class; that the estate was insolvent as to those claims; that Wolf had paid 61.72 per cent upon all the claims of the seventh class, and the final report was, by such order, confirmed and the estate declared to be settled. Hence, it appeared affirmatively, that appellant had advanced out of his own pocket the 38.28 per cent overpaid to Gharst. Otherwise he could not have settled all the seventh class claims at 61.72 per cent of their amounts.

It is claimed that appellant could only sue in his individual capacity, and not as executor, for the over-payment to Gharst, and that he could not bring suit until he had advanced money enough out of his own means to make up to the French estate the amount of such over-payment, the amount, which was paid to Gharst by mistake, having been the money of the estate and not his own money. Upon these grounds it is urged that when the claim was first filed in the county court in 1882, the cause of action was not ripe for suit.

When the claim was presented to the county court in June, 1882, Gharst’s estate owed the amount which had been overpaid to him in his lifetime. Whether Gharst’s estate then owed that amount to appellant, as executor, or to appellant, as an individual, or to the other creditors of the French estate, matters not, so far as the existence of the indebtedness was concerned. The debt existed to somebody, and the same debt existed all the way through up to the last trial in November, 1886. It could make no practical difference to the Gharst • estate, who owned the claim against it. As Gharst had received more money than he ought to have had, his estate was liable to refund the amount.

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15 N.E. 161, 123 Ill. 585, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wolf-v-beaird-ill-1888.