In re Graham's Estate
| Decision Date | 20 May 1907 |
| Docket Number | 268 |
| Citation | 218 Pa. 344,67 A. 458 |
| Parties | Graham's Estate (No. 1) |
| Court | Pennsylvania Supreme Court |
Argued January 15, 1907
Reargued April 1, 1907
Appeal, No. 268, Jan. T., 1906, by Frank D. Graham and John D. Ford, executors of the will of David Young, deceased, from decree of O.C. Phila. Co., April T., 1896, No. 239 dismissing exceptions to auditor's report in Estate of David Graham, deceased. Reversed.
Exceptions to report of James C. Stillwell, Esq., auditor.
From the record it appeared that a petition for an account, which was filed by the administrator de bonis non cum testamento annexo of David Graham and by five of his grandchildren, set forth that David Graham died in September, 1871, leaving a last will, of which he appointed Theodore R. Graham, David Graham, Jr., and David Young executors, to whom letters testamentary were duly granted; that David Graham, Jr., died July 4, 1886, leaving a last will, of which he appointed his wife, Maria Elizabeth Graham, executrix; David Young died October 4, 1890, leaving a last will of which he appointed Theodore R. Graham, Frank D. Graham and John D. Ford executors; Theodore R. Graham was dismissed as executor of the will of David Graham on May 13, 1896; that the Commonwealth Title Insurance and Trust Company was appointed administrator de bonis non cum testamento annexo of David Graham on May 14, 1896; that the executors of the will of David Young had not filed an account of their administration of his estate although more than twenty-nine years had elapsed since the grant of letters to them; that by the terms of the will of David Graham his estate was to be held by his executors and trustees for the life of his children, with remainder to their issue, and, in case any child should die without issue, his share was to be held for the remaining children of testator and their issue; that by the terms of the will of testator, the moneys of his estate were to be invested in first mortgage on real estate and bonds of the United States or State of Pennsylvania; that of the seven children of David Graham, only Frank D. Graham and Theodore R. Graham survived, and of those who died only William R Graham and Edwin Graham had left children; that in May, 1896 when Theodore R. Graham was dismissed from his office petitioners had learned that, as alleged, the executors of and trustees under the will of David Graham had been guilty of gross mismanagement of said estate, and that David Graham, Jr., and David Young had been supinely negligent of their duties, so that it was in the power of Theodore R. Graham to embezzle and defraud the said estate; that David Young was a borrower from said estate, and permitted moneys of the estate to be loaned to a firm of which he was a member; that proceedings had been begun in 1896 in the orphans' court for an accounting, and that under proceedings in said court an account was stated for Theodore R. Graham, the surviving and defaulting executor of the will of David Graham, by an auditor appointed by the court, showing that he was indebted to said estate in the sum of $149,675.51, and that an order to pay had not been complied with by the said Theodore R. Graham, and an attachment thereunder was returned not served. The petitioners prayed for a citation on the executrix and executors of the deceased executors to file accounts for their respective decedents.
The answers of respondents set forth that the individual petitioners, who were sui juris, and those who were minors by their guardians, had an opportunity to obtain full information in regard to the estate of David Graham at any time they so desired; that the deceased executors had not been supinely negligent of their duties or were guilty of any mismanagement of said estate, or that by any culpable mismanagement they put it in the power of Theodore R. Graham to embezzle and defraud; that the said David Young did not unlawfully borrow moneys from said estate, or permit the lending of moneys of the decedent's estate to the firm of which he was a member; that petitioners had not exercised due diligence in enforcing their claims against the said Theodore R. Graham, and that any statement of an account for Theodore R. Graham could not affect respondents or be a charge against them; that all the debts of the said David Graham had been fully paid and discharged more than thirty years before the filing of the said petition; that the assets of the estate of said David Graham were in the possession and control of the said Theodore R. Graham, a son of David Graham, and uncle of the individual petitioners, and were in such possession and control with the acquiescence and permission of the individual petitioners; that Theodore R. Graham was a man in active business, having the full respect and confidence of the business community at all times during the lifetime of respondents' decedents; that the said Theodore R. Graham had been dismissed from his office as executor on the application of petitioners without any notice to respondents; that more than thirty years had elapsed since the death of David Graham; that the debts of said David Graham had been paid more than thirty years ago, and that the estate had passed into the hands of said Theodore R. Graham as trustee without any demand upon his coexecutors for an accounting, and with the full knowledge and assent of the parties in interest.
The case was referred to James C. Stillwell, Esq., auditor, who reported in favor of the petitioners.
Exceptions to the auditor's report were dismissed in an opinion by ASHMAN, J., and the following decree was entered:
And now, July 17, 1906, the supplemental report of the auditor, to whom was recommitted the report of the auditor to state an account of David Young and David Graham, Jr., executors and trustees under the will of David Graham, deceased, and to make distribution of the amount found to be due by the said executors and trustees, having been duly filed with exceptions thereto; and the said exceptions having been dismissed on July 14, instant, and the said auditor's report confirmed, it is hereby ordered, adjudged and decreed that the said auditor's reports and the awards therein made to the Commonwealth Title Insurance and Trust Company, administrator d.b.n.c.t.a. of the estate of David Graham, deceased, of the sum of $175,637.49 from the estate of David Graham, Jr., deceased, and the sum of $216,107.66 from the estate of David Young, deceased, be and are hereby approved and confirmed.
Error assigned was the decree of the court, quoting it.
The exceptions, so far as they question the sufficiency of the findings of the auditor for the accounts stated by him against these several estates, and the decree of the court confirming the same are sustained. The decree is reversed.
John G. Johnson, with him H. S. P. Nichols, for appellants. -- More than twenty-one years having elapsed since the account in this matter was demandable, the legal representatives of the deceased executors cannot be compelled to file an account: Norris's App., 71 Pa. 106; Henry's Est., 198 Pa. 382; Nixon's Est., 14 Phila. 297; Seibert's App., 2 W.N.C. 53; Hanbest's Est., 3 W.N.C. 520; Wilson's App., 115 Pa. 95; Neel v. Beach, 92 Pa. 221.
The testimony shows that the deceased executors never received any assets of their decedent's estate, and, not having received assets, they are not chargeable with them, nor liable to account for them: Brown's App., 1 Dallas, 311; Weldy's App., 102 Pa. 454; Hall v. Boyd, 6 Pa. 267; Stell's App., 10 Pa. 149; Irwin's App., 35 Pa. 294.
There is no proof that the deceased executors were guilty of negligence or mismanagement of the estate. They showed no undue confidence in their coexecutor, they trusted him no farther than the parties in interest did. The coexecutor was a respected citizen, and considered a man of integrity, trustworthy, and of financial responsibility. The deceased executors were certainly not chargeable with greater insight than other persons: Sterrett's App., 2 Penrose & Watts, 419; Jones's App., 8 W. & S. 143; McNair's App., 4 Rawle, 148; Fesmire's Est., 134 Pa. 67; Myer v. Myer, 42 W.N.C. 445; Neff's App., 57 Pa. 91; Semple's Est., 189 Pa. 385; Young's App., 99 Pa. 74; Beatty's Est., 214 Pa. 449.
It was the duty of those interested in the estate of David Graham to establish, within six years of the decease of each executor and trustee, a claim against his estate, for payment of money, because of negligent management of his trust during his lifetime.
A failure to establish a claim against the estate of the deceased executor during the period of six years, was a bar to any claim thereafter.
In no event should the court have ordered a payment by the executors of the deceased executor until an ascertainment, under a citation to file an account of their executorship of the estate of the decedent, that there were funds in hand which had not been theretofore distributed.
Henry Budd, with him Robert H. McGrath, for appellee. -- Where a coexecutor dies, his estate becomes liable for everything he was liable for at the time of his death, and this liability for the maladministration of his coexecutor or of himself can only be determined after an account and evidence: Montgomery's Estate, 3 Brewster, 306; Hanbest's Estate, 3 W.N.C. 520.
The claim is not barred by lapse of time: Nixon's Est., 14 Phila. 297; Hoffman's Est., 2 Pearson, 491; Blackman's Est., 2 Kulp, 162; Brown's Est., 8 Phila. 197; Hall v. Cushing, 26 Mass. 395; Conkey v. Dickinson, 54 Mass. 51; Hansell v. Downing, 17 Pa.Super. 235; Dragoo v. Dragoo, 50 Mich. 573 (15 N.W. 910).
If a man appoint several executors, they are esteemed, in law, but as one person representing the testator, and, therefore, the acts done by any one of...
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