Odell v. Field
Before: Cooper
Synopsis
Estates of Deceased Persons—Administrator’s Account—Sale of Personal Property—Redemption from Lien—Loss Without Negligence.—An administrator is not liable to be charged in the settlement of his account for a loss on the sale of personal property, by reason of having paid a lien thereon in good faith, believing that the property was worth more than the amount of the lien, but which was sold without negligence on his part for less than that amount. It is only in circumstances where the court can say, as matter of law, that a reasonably prudent man might not make the honest mistake of paying out more to free the property from a lien than the property would sell for, after the lien was extiguished, that the administrator can be charged with the loss.
Id—Foreclosure of Mortgage of Decedent—Collateral Attack for Errors—Liability of Administrator—Proof of Negligence Required.—The amount of the judgment rendered upon the foreclosure of a mortgage executed by the decedent, cannot he collaterally attacked for the purpose of charging the administrator with errors therein, without proof of negligence upon his part.
I d.—Inclusion of Taxes—Waiver of Objection—Pleading—Presumption.—The technical objection that an amount of taxes included in the decree as having been paid by the mortgagee upon the mortgaged property was not supported by the pleadings, is waived if not urged prior to the decree, and the administrator cannot be charged therewith in his account, where it appears that the amount allowed was correct in fact, and accorded with a stipulation in the mortgage. Negligence cannot he imputed to the administrator by presumption for failure to object to proof of the taxes actually paid by the mortgagee; but it must be presumed, in support of the decree, that the question as to the amount of taxes was heard and determined by the court upon the theory that the complaint was sufficient, and the issue properly before the court.
Id.—Amount op Interest in Decree—Insolvency op Estate— Objection by Devisees.—Devisees, who, if the estate is insolvent, can have no interest in the question, cannot object that the administrator should be charged with an excess of interest allowed in the decree of foreclosure, according to the terms of the note, above the legal rate, after notice to creditors, on account of the insolvency of the estate, where no creditors appear to object thereto. The devisees can raise no objection to the amount of the decree, where it appears that, if the amount of error therein claimed to be charged to the administrator were allowed, there would not be sufficient on hand to pay the creditors.
Id.—Failure to Appraise Mortgaged Property — Useless Expense.—Where there is no evidence that the real estate of the decedent subject to mortgage could, at any time during the administration of the estate, have been sold for enough to pay off the mortgage upon it, and there is evidence to indicate that in the condition of the real estate market it could not have brought the amount of the mortgage, and that it would have been a useless expense for the administrator to have it appraised, he cannot be charged with negligence in failing to do so.
COOPER, C. Appeal from order allowing final account of administrator. Deceased died October 20, 1889, leaving personal property which sold at public sale for $681.79, and ten acres of land upon which there was a mortgage for $5,500. Claims were presented and allowed against said estate amounting to over $1,000. The administrator filed his final account in 1897, to which many objections and exceptions were made by the appellants, but two of which are urged upon this appeal.
1. It is first claimed that the court erred in not charging the [605]administrator with $32.75 loss on sale of two horses belonging to the estate. It appears that at the time of the death of deceased the two horses had been for several months out on pasture with one McMaster. That the administrator was informed by one of the creditors that the horses were assets of the estate. That thereupon the said administrator found the horses in the possession of McMaster, who claimed a lien upon them for pasturage to the amount of $93.66. After some negotiations McMaster agreed to accept $89.50 in full, which the administrator paid and the horses were delivered to him. The administrator testified that at the time he believed the torses would sell for considerable more than the amount of the lien, but that he sold them at public auction and they only brought $56.75. This testimony was not contradicted, and there was no evidence of want of good faith on the part of the administrator. The sale was approved without objection after due notice given. It appears that the transaction resulted in a loss to the estate of $32.75, but the loss cannot, from the testimony, be attributable to the negligence of the administrator. He appears to have acted in good faith and for what he deemed to be the best interest of the estate, and he could not legally be charged with the loss of the sum unless it had been made to appear that he was guilty of negligence in not using ordinary care and diligence in connection with the matter. (In re Moore, 96 Cal. 525.)
It is not claimed that the administrator did not have the authority to redeem the horses, neither is it claimed that there was not a valid lien upon them. The specification is for gross mismanagement of the estate in selling the horses for less than the amount paid out for redemption, but no proof is before us of any want of good faith in the transaction. The act might have been for the benefit of the estate, and as there is no proof of negligence or want of ordinary care, and the proof shows that the administrator acted in good faith, we must hold that if his acts could under any state of facts be sustained as valid they must be presumed to be valid under such state of facts rather than to be held invalid from the mere fact that the property did not sell for enough to repay the amount paid out by the administrator. (Burnett v. Lyford, 93 Cal. 119.)
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