Feick v. Hill Bread Co.

• Decision Date: 30 January 1917
• Docket Number: No. 41/371.,41/371.
• Citation: 99 A. 851
• Parties: FEICK v. HILL BREAD CO. et al.
• Court: New Jersey Court of Chancery

99 A. 851

FEICK

v. HILL BREAD CO. et al.

No. 41/371.

Court of Chancery of New Jersey.

Jan. 30, 1917.

Bill by Bertha E. Feick, executrix, against the Hill Bread Company and others. Decree for plaintiff.

Pitney, Hardin & Skinner, of Newark (Waldron M. Ward, of Newark, on the brief), for complainant. Frank E. Bradner, of Newark, for defendant. Hill Bread Co. McCarter & English, of Newark, for defendant Union Nat. Bank.

FOSTER, V. C. The bill is filed to restrain the prosecution of an action pending in the Supreme Court, in so far as it relates to an indebtedness claimed to be due the defendant Hill Bread Company from the estate of Charles A. Feick, on a note for $10,000 and on a current book account for $89.91, and for the determination of the liability of these parties on certain other promissory notes held by the defendant Union National Bank.

Complainant is the executrix of the last will and testament of Charles A. Feick, who died September 30, 1911. At the time of Mr. Feick's death, the Union National Bank held three unmatured notes made by him, amounting to $65,000, and at this time the bank also held four other unmatured notes for $5,000, $2,000, $3,500, and $3,000, respectively, made by the Hill Bread Company to the order of Mr. Feick, and indorsed and discounted by him with the bank. These notes carried interest, and were renewals of other notes for like amounts, which had been given by the Hill Bread Company to Mr. Feick for money borrowed "from him from time to time. At the time of Mr. Feick's death there was on deposit to his credit with the Union National Bank $23,500.01, which amount the bank applied in part payment of his personal note for $25,000, being one of the three, making the abovementioned total of $65,000 indebtedness, the other two being for $20,000 each. The bank also held at this time, as collateral for the payment of any indebtedness owing to it by Mr. Feick, 30 shares of the stock of the Fidelity Trust Company of Newark, and this stock was sold by complainant, as executrix, and the bank for $26,730. This amount was applied in part payment of the balance of Mr. Feick's personal indebtedness to the bank, leaving due the bank, after the rebate and adjustment of interest, a balance on the three notes of Mr. Feick's of $19,073.33.

By a decree of the Essex county orphans' court made on March 26, 1915, the Feick estate was adjudged insolvent, and the claim of the bank duly filed against the estate was allowed to the amount of $29,573.33, this amount being made up of the balance above mentioned and of the total of three of the notes made by the Hill Bread Company, indorsed and discounted by Mr. Feick, and amounting to $10,500; the fourth note for $3,000 having been charged to the company's account at its maturity.

Under an order of the orphans' court made on April 23, 1915, complainant, as executrix, was directed to pay a dividend of 45 per cent. on all claims filed with her, and in conformity with this order she paid the bank $13,307.99, being a dividend of 45 per cent. on the above amount for which its claim had been allowed. Of the amount so paid, $4,725 represents the 45 per cent. dividend due on the three notes of the Hill Bread Company. In addition to the notes mentioned, the Hill Bread Company admits being indebted to the estate for a note of $2,500 and interest, made by the company to Mr. Feick for rent due to him, and complainant admits the estate is indebted to the company on a note for $10,000, with interest, for money complainant claims was loaned by the company to Mr. Feick, and also for the sum of $89.91 due on a current book account.

It was under section 69, 3 Comp. St. p. 3834, and section 101, 3 Comp. St. p. 3850, which permits claims to be filed against an estate for debts due and payable in the future, upon a rebate of interest being made, that the bank and company filed their respective claims against the estate; and it seems clear, under the terms of the agreement respecting the collateral held by the bank, that it properly applied the proceeds of the sale thereof to the reduction of the indebtedness owing by Mr. Feick to the bank; and I think, under the doctrine of the case of Camden National Bank v. Green, 45 N. J. Eq. 546, 17 Atl. 689, affirming the opinion of the court below, reported in Green v. Camden National Bank, 46 N. J. Eq. 607, 22 Atl. 56, it is equally clear that the bank had the right to apply the money on deposit with it to the credit of Mr. Feick, at the time of his death, to the...