Estate of Adams

California Court of Appeal Oct 19, 1959 No. Civ. No. 18156Published

Before: Tobriner

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Holding. A creditor is not entitled to statutory interest on a non-interest-bearing claim against an estate until an order for the payment of the claim has been issued by the probate court.

Issues

Whether a claim for goods sold on terms of '2% ten; net 30' entitles the creditor to statutory interest prior to an order for payment.
Whether a creditor may recover interest on a probate claim that did not include a demand for interest and did not show on its face that interest was due.

Disposition. reversed

Quotations verified verbatim against the opinion

“the creditor was entitled to interest only from the date of order of payment.”

“statutory interest became payable only after the executrix had been ordered to pay a creditor's claim.”

“The original presentation of the instant claim, which did not assert the payment of interest on the principal of the indebtedness, cannot serve to initiate the payment of interest.”

174 Cal.App.2d 505 (1959) Estate of HOMER EIRVEN ADAMS, Deceased. CROCKER-ANGLO NATIONAL BANK, as Executor etc., Appellant,

CLAUDE T. LINDSAY, INC. (a Corporation), Respondent.

Civ. No. 18156. California Court of Appeals. First Dist., Div. One.

Oct. 19, 1959. Crozier C. Culp and Cyril Roche for Appellant.

Orlando J. Bowman and Russell J. Mays for Respondent.

TOBRINER, J.

We must determine if a claim involving the purchase of goods for a liquidated sum on the terms of "2% ten; net 30" affords the right to statutory interest from the date of expiration of 30 days, or from any other date, prior to an order for the payment of the claim, within the meaning of the Probate Code. We have concluded that it fails to do so here because (1) the claim, presented to the executrix, made no demand for interest; (2) the claim on its face did not call for interest; and finally (3) the creditor was entitled to interest only from the date of order of payment.

The representative of the estate did not, at any time, approve a claim for the payment of interest. Following decedent's death on October 9, 1951, respondent on February 1, 1952, filed a claim with the original executrix for the principal sum due in the amount of $9,422.04 for sale of lumber by respondent to decedent. The invoices of the sales were not attached to it. The executrix allowed the claim on March 24, 1952, and some three days later received invoices supporting the claim "for filing or such use as you find it necessary to make of them in the presentation of the claim to the court." The probate court on April 17, 1952, approved the claim to which there were invoices attached, itemized by amount and number, each stating "2% ten; net 30."

Upon the removal of the original executrix she filed a final account and report of her administration, together with a petition for settlement of the account and report which included the allowance to respondent of $9,422.04. After the appropriate notices, her account was settled as requested, the order being filed on March 4, 1954.

Despite the solvency of the estate, complications prevented [507]

Estate of Adams

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TOBRINER, J.

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