In re Cuffe's Estate

• Decision Date: 18 May 1922
• Docket Number: 4785.
• Citation: 207 P. 640,63 Mont. 399
• Parties: IN RE CUFFE'S ESTATE.
• Court: Montana Supreme Court

207 P. 640

63 Mont. 399

IN RE CUFFE'S ESTATE.

No. 4785.

Supreme Court of Montana

May 18, 1922

Appeal from District Court, Flathead County; T. A. Thompson, Judge.

In the matter of the estate of John J. Cuffe, a minor. On hearing of the guardian's final account. From an order disallowing credits and refusing to allow guardian or attorney fees, the guardian appeals. Affirmed in part, reversed and remanded with directions, in part.

Logan & Child, of Kalispell, for appellant.

Brennen & Kendall, of Kalispell, and A. L. Hughes, of Whitefish, for respondent.

AYERS District Judge (sitting in place of REYNOLDS, J disqualified).

Matt Cuffe died intestate in February, 1917, leaving surviving him four children, all minors except Katherine Cuffe Gallegher who was appointed administratrix of his estate, which was appraised at $36,000. John J. Cuffe, one of the minor children, had 80 acres of land in his own name, and under the law inherited one-fourth of his father's estate, all in Flathead county. Soon after his father's death and while yet a minor (he was born January 1, 1898), he went into business for himself--live stock and farming--bought cattle and farm machinery in excess of $5,500, all of which was done on credit. In fact, he became considerably involved financially, and on August 30, 1917, Katherine Cuffe Gallegher made her note as administratrix to the First National Bank of Whitefish for $3,500 to enable him to pay an account of $3,000 which he owed for cattle, the balance to be used for putting up hay and operating expenses. At the time his sister signed this note, it was agreed between them that he would have a guardian appointed who should take up the note and release her from that obligation. Henry Good, the appellant, after several requests, finally consented to make application for letters of guardianship of the estate of John J. Cuffe, a minor, and finally, by nomination of the minor himself and at the request of his adult sister, Good was appointed such guardian, and duly qualified on December 3, 1917. Good never actually took possession of the estate over which he was made guardian. The boy had been married for some time and had been considered emancipated--had been dealing and contracting as freely, fully, and completely as if he had attained majority. The guardian permitted him to continue the management and operation of his estate the same as before, and it is not certain that his live stock enterprise would not have been successful had it not been for the "hard winter" conditions encountered.

Immediately upon qualifying as guardian, Good sought from the minor a statement of his indebtedness, receiving a report that it amounted to $929.35 on open accounts and $6,000 which had been reduced to promissory notes. This included the $3,500 note at the Whitefish Bank signed by the sister. However, it was soon learned that the open accounts amounted to $2,532.10 instead of $929.35, all of which was for necessaries of life and necessary operating expenses of the business of the minor, none of which were disputed; in fact, all had been contracted by him and was admitted by him. Good gave his note as guardian to the First National Bank of Whitefish for $3,662.75, taking up the sister's note with accrued interest, and gave his notes in like manner to the Conrad National Bank of Kalispell for $4,850 to take up other outstanding notes of the minor and to pay his open accounts.

During the guardianship, the minor bought a team of horses for $325 and attempts to repudiate the purchase for the reason that he bought them from the guardian. The evidence is in conflict on this point, but it is all to the effect that the minor needed the team; that the team was reasonably worth the amount paid therefor; that the guardian did not profit by the transaction; and that no prejudice resulted to the minor regardless of who sold him the team.

After the filing of the guardian's final account, Cuffe filed his objections against the allowance of the same upon the general theory that guardians cannot, by their contracts, bind the person or estate of their wards, and consequently the notes made and the obligations contracted by the guardian were recoverable only against the guardian personally, and that he should discharge the same and turn back and account to the ward for all the property owned by the ward at the time of his appointment. Good's defense to this contention, on the facts, was that no injury had resulted from his actions, and that a complete ratification of all his acts, deeds, and contracts as guardian had been made by Cuffe after his attaining the age of majority.

On the hearing of the guardian's final account, the court by its decree of October 23, 1919, found that the purported ratification did not meet the requirements of the law, and disregarded the same; disallowed him credit for the note at the Whitefish Bank, amounting at that time, together with interest, to the sum of $3,925.95; disallowed him credit for interest at the Conrad Bank in the sum of $145.59; disallowed him credit for the team in the sum of $325; and refused to allow him any guardian or attorney's fees. The guardian is appealing from the decree in so far as it disallowed these items.

John J. Cuffe became of age on the 1st day of January, 1919. Negotiations then commenced between him and the guardian for the settlement of his estate and the release of the guardian. On January 6th they met, together with the wife of Cuffe and E. L. Geddes, and the details of all the accounts were explained to Cuffe. However, they did not need explanation, for indeed he knew all about them. Good contends a settlement was made on that day between him and Cuffe, whereby Cuffe ratified all his acts as guardian. In fact, Cuffe and his wife executed a deed and bill of sale of all their real estate and personal property to him on that occasion, which he asserts were given as security until he be released from his trust as guardian and his bondsmen discharged, and which he holds only to that end. That a settlement was reached on that occasion concerning everything except guardian and attorney fees, and that the settlement included all the items disallowed by the court except guardian and attorney fees, is manifest from the testimony.

Mrs. Cuffe testified:

"I don't remember of John questioning any of these accounts or bills. I understood, of course, that these deeds that were signed were for the purpose of enabling Mr. Good to pay off the debts that John had contracted, or that he had contracted for him. I don't believe that John ever questioned these bills, or claimed that he didn't owe them, or anything of that kind. * * * There was no question raised at any time, as to these claims, by John."

Geddes testified:

"Mr. Good had taken the matter up with Mr. Cuffe, and asked him about these accounts, and Mr. Cuffe said that he wanted to secure him in transferring property, that the debts that he had paid for and were contracted for were just and correct at that time; and they talked along a while, and deeds were suggested, given as security. * * * I never had any other conversation with him [Cuffe] other than the one about 10 or 12 days later, when he came back and said things were all right--not a word; the thing seemed to have been closed at the time the deeds were given. He went over--and so did his wife--that the debt was one that had been contracted and were just, and he wanted to secure Mr. Good at this time, and he was over age and wanted to enter into the transaction. Mr. Cuffe and also his wife said they wanted to secure Mr. Good. They were talking back and forth. * * * John did not at that time or at any other time make any objection to any items. It seems like it simply settled it at that time, and that is all there was to it."

Good testified:

"Shortly after John became of age, I went to Whitefish, and talked the matter over with him, and explained to him the status of his affairs as nearly as possible, and also talked to John's wife. We went over to the house and explained things as near as I could, and I asked him--John was of age--if he knew of any way we could take care of this account, that is, any way to take care of those claims, etc., and talked over the matter carefully and very extensively with Mrs. Cuffe and John, and they said no, that if I could take care of it until such time that they could sell some of the real estate or take care of it; that was the only solution they knew of; and I told them it was a large amount, and to secure myself and bondsmen, if everything was satisfactory and they thought I had done the best I could with it, I would like to have a ratification of the transaction, and they give me a deed to the property. I gave them a contract back, and then in Mr. Geddes' office I explained the matter to Mr. Geddes, Mr. Cuffe, and Mrs. Cuffe, and told Mr. Geddes to impress upon his mind in which way we took those deeds, and as soon as the court would release me as guardian and release me from those bills and responsibilities that the property would be deeded back to them at once. I don't claim the property except in that way. * * *

Q. Did you strike a balance of indebtedness, agree on the approximate...