In Re Geagen's Estate.

• Citation: 41 A.2d 213
• Parties: In re GEAGEN'S ESTATE.
• Decision Date: 16 February 1945
• Court: New Jersey Prerogative Court

41 A.2d 213

In re GEAGEN'S ESTATE.

Prerogative Court of New Jersey.

Feb. 16, 1945.

Appeal from Orphans' Court, Bergen County.

Proceeding in the matter of the estate of Mary A. Geagen, deceased, wherein objections were filed to an accounting by the administrator. From a decree of the orphans' court sustaining the objections, holding the administrator liable to the estate for the depletion thereof and referring the matter to a master, the administrator appeals.

Decree affirmed.

Syllabus by the Court.

Where an administrator fails to act with ordinary care and prudence and reasonable diligence, and fails to administer the estate according to the regular and ordinary practice, he is chargeable with the depletion of the estate by reason of his acts.

George I. Marcus, of West Englewood (John E. Selser, of Hackensack, of counsel), for appellant.

Huckin & Huckin, of Englewood (Le Roy B. Huckin, of Englewood, of counsel), for exceptant.

Irving Dincin, of Englewood, for substituted administrator c.t.a.

LEWIS, Vice Ordinary.

This is an appeal from a decree of the Bergen County Orphans' Court sustaining objections to an accounting filed by appellant as administrator c.t.a., holding him liable to the estate for depletion thereof, and referring the matter to a master to determine the amount of the depletion. There was insufficient personal property in the estate to pay the debts. The only substantial asset of decedent was a piece of real estate, which was subject to a mortgage of $500. Appellant, as administrator, arranged for an assignment of the mortgage to a friend, who brought a foreclosure suit. Appellant controlled the foreclosure suit and represented his friend at the sale, which was held by the sheriff, pursuant to the decree of foreclosure. In order to secure a good price for the property, appellant made bids until an outsider made a bid of $5,950, whereupon appellant, acting on behalf of the mortgagee, made a bid of $6,000 in the expectation that an outsider would bid still more. No further bid was made, and the property was sold by the sheriff for the sum of $6,000. The amount of the mortgage and expenses of the foreclosure amounted to something under $1,000, and appellant secured an order from the Bergen County Circuit Court authorizing and directing the sheriff to rurn over to appellant the surplus, amounting to approximately $5,000. The sheriff never received anything except his costs and fees for conducting the sale. Appellant released the sheriff from any obligation to pay the surplus and, in fact, no money was paid into the estate by reason of the transaction.

Appellant was subsequently relieved of his duties as administrator, subject, however, to an accounting, and a new administrator was appointed.

The exceptions to his account were sustained on the ground that he was derelict in his duties, as a result of which the estate had sustained a loss for which he is responsible.

The real estate in question was subsequently sold by the substituted administrator for a net sum to the estate of approximately $1,000.

The gravamen of the charge against the appellant is that when he had a bona fide bid in the amount of $5,950 from an outsider he had no right to...