Yawitz v. Hopkins

1918 OK 357, 174 P. 257, 70 Okla. 158, 1918 Okla. LEXIS 771
Supreme Court of Oklahoma·Decided June 11, 1918·No. 8810·Published·Cited by 16 cases

Opinion

Opinion, by

SPRINGER, 0.

The parties will be referred to in the order in which they appeared in the court below.

The plaintiff, Prank Yawitz, brought suit in the court below to recover a personal judgment against Wallace Hopkins, a minor, and T. W. Hopkins, his guardian, and Sten-son Alemotubbi, on two notes for the sum of $750, and interest, and $75 attorney fees; the two notes being a part of a series of five notes, the other notes not being due, and to foreclose what was termed a vendor’s lien.

On June 30, 1913, John W. Scott and wife conveyed to the defendant Wallace Hopkins, a minor, the land involved in this suit, $1,-000 of the purchase price being paid in cash, and the balance, $1,872 to be paid in the future. as evidenced by five promissory notes for the sum of $375, each.

In the petition the plaintiff alleges that the notes sued on herein contained a vendor’s lien upon the northeast quarter of the northwest quarter of section 13, township 17 south, range 22 east, in McCurtain county, Okla., which the plaintiff requests may be foreclosed. The .petition further alleges that the notes in suit here were executed by T. W. Hopkins, guardian of Wallace Hopkins, in favor of John W. Scott, a,nd by John W. Scott, assigned to Stenson Alemotubbi. and by him assigned to C. W. Parker, and (>.v him assigned to this plaintiff.

The propositions presented here involve the authority of the county court to ■ make an order whereby the guardian may mortgage or incumber the real estate of his ward, and also contract debts and execute notes binding the ward personally and his property for the payment of the same. The record in this ease discloses that on the 30th day of June, 1913, T. W. Hopkins, as guardian of AVallace Hopkins, filed a petition in the county court of McCurtain county, praying the court that he be allowed to purchase the lands in controversy here, paying therefor the sum of $1,000 in cash and the remainder, of the purchase price, the sum of $1,872.17, to be evidenced by five promissory notes of equal sums. On the day the petition was filed the court made an order authorizing the guardian to purchase the land in controversy, and ordering him to make a cash payment in the sum of $1,000, and ordered him to execute the notes sued on in this case as a part of the balance of the purchase price.

There is nothing in the petition filed by the guardian nor in the order of the court that anywhere shows that Scott held an existing indebtedness against the property of AVallace Hopkins constituting a lien against it, or that he was in any way obligated or liable to Scott for the payment of any sum. In fact the petition and order of the court in this case show the contrary.

As disclosed by the record in this ease we are led to the conclusion that T. W. Hopkins, as guardian of AVallace Hopkins, had $1,000 in cash, which he desired to invest in the land in controversy here, and no more, and, after investing all of the funds of his ward that were available, the court ordered him to execute the notes in suit here and to create and establish a vendor’s lien for the remainder of the purchase price upon the property purchased. Section 6569, Rev. Laws 1910, provides:

“The county court, on the application of the guardian or any person iinterested in the estate of any ward, after such notice! to persons interested therein as a judge shall direct, may authorize, and require the guardian to invest the proceeds of sales, and any other of his ward’s money in his hands, in real estate, * * * and the county court may make such other orders and give such directions as are needful for the management, investment, and disposition of the estate and effects, as circumstances require.”

Under this provision of the statute the county court has authority to order the guardian to invest the proceeds of sales and any other of his ward's money in his hands in real esate, or in any other manner most to the interest of - all concerned.

Section 6556, Rev. Laws 1910, makes provision for the investment of funds in the hands of the guardian that are derived from the sale of a minor’s property, which has been made for the purpose "of investment, and reads as follows:

“If the property be sold for the purpose of putting out or investing the proceeds, the guardian must make the investment according to his best judgment or in pursuance of any order that may be made by the county court.”

Under this section of this statute it would not be necessary for the guardian to procure an order of the court directing him to invest the funds of his ward if they were derived from the sale of property belonging to" his *160 ward, made for the purpose of investment, but tile investment of funds belonging- to the ward in the hands of the guardian and the execution of a mortgage or vendor’s lien upon the real estate belonging to the minor are altogether separate and distinct transactions.. ,

By reference to the provisions of the statute, supra, while authorization is given for the investment of the money of the ward in real estate, there is absolutely no authority whatever for the creation of a debt or obligation in excess of the amount invested. The county judge is without authority to make an order authorizing the guardian to execute a mortgage upon the real estate of his ward, and the guardian is without authority’ to do so except in instances specifically provided for by statute. Section 6364, Rev. Laws 1910, provides:

“The county judge may, upon petition supported by competent testimony showing that the best interests of the estate demand it, grant authority by order to administrators of intestate estates, and to guardians of the estates of minors or insane persons to mortgage any real estate belonging to such estate : Provided that in no instance shall authority be granted by such judge to any such administrator or guardian to mortgage such real estate for a greater sum than is necessary to pay the then exising debts and liabilities for which such estate, or any part thereof is then legally liable to be ordered sold.”

And section 6365 provides:

“Upon the filing of the petition mentioned in the preceding section, the county judge shall set a time for the hearing of the same and the administrator or guardian shall cause notice thereof to be made by publication in a newspaper published or of general circulation in the county where such hearing is to be had. Said notice shall contain a description of the real estate sought to be mortgaged, and shall be published two weeks successively prior to such hearing.”

Thus it will be seen that before the county judge has any authority to make an order authorizing the guardian or administrator to mortgage or incumber the real estate of his ward, notice must be given and upon the return thereof a hearing had.

The proceedings in his case show that the application was made on the 30th day of June, 1913, arid without any notice, and, so far as this record discloses, without any hearing being had upon the application except the bare presentation of it, the court made an order authorizing the guardian to invest the money in his hands, amounting to $1,000 in the land in dispute here, and to execute notes with a vendor’s lien upon the land for the balance of the purchase price in the sum of $1,872.17.

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Yawitz v. Hopkins, 1918 OK 357, 174 P. 257, 70 Okla. 158, 1918 Okla. LEXIS 771 (Okla. 1918).

1918 OK 357 (Yawitz v. Hopkins) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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