In re Springer's Estate
| Decision Date | 04 May 1927 |
| Docket Number | 6073. |
| Citation | 255 P. 1058,79 Mont. 256 |
| Parties | In re SPRINGER'S ESTATE. v. ALEXANDER et al. O'SULLIVAN |
| Court | Montana Supreme Court |
Appeal from District Court, Wheatland County; H. J. Miller, Judge.
In the matter of the estate of John Springer, deceased. The final account of James G. Alexander, as former administrator (the American Surety Company, his surety), was contested by Emmet O'Sullivan, as administrator.
From an order approving the account of the first-named defendant, and overruling and denying exceptions to findings of fact and conclusions of law, the contestant appeals. Modified.
Emmet O'Sullivan and L. R. Daems, both of Harlowton, for appellant.
W. C Husband, of Harlowton, N. R. Barncord, of Judith Gap, and Henry C. Smith, of Helena, for respondents.
John Springer died intestate at Judith Gap, Wheatland county Montana, on November 18, 1918, leaving surviving his widow and a minor son. The widow intended to and did take her husband's remains to his former home in Minnesota for burial. Before setting out upon this journey she consulted James G. Alexander, then cashier of the Security State Bank of Judith Gap, and N. R. Barncord, a lawyer practicing at that place, with respect to the condition of her husband's estate. She told them that Louis B. Springer her husband's father, had offered to give her money enough to enable her to get back to her people, but claimed all the property upon the ranch which her husband had been operating. The ranch belonged to Louis B. Springer. She said that unless she took some action to prevent him from doing so he would take all of the property and leave her nothing. After considering the situation, it was arranged that she would ask the court to appoint Mr. Alexander administrator of her husband's estate, and that Mr. Barncord should act as the attorney for the administrator.
Mr. Alexander was appointed administrator upon December 20, 1918. Pursuant to the court's order, he gave bond in the penal sum of $12,000.
It was found that Louis B. Springer was in possession of the ranch and was taking active steps to dispose of the personal property there. About January 1, 1919, in Mr. Barncord's office, Springer told Barncord and Alexander, in effect, that he was virtually the owner of the property, as he had advanced the money to pay for it, and he proposed to retain it. He said also that he represented L. B. Springer, Jr., a brother of the deceased, whom he claimed was a copartner of the deceased in the ranching operations, L. B. Springer, Jr., then being with the United States army overseas. While the administrator and attorney did not believe these assertions, they did not then have any means of disproving them. Springer insisted upon an immediate sale of the property. After some controversy a sale was agreed upon, with the understanding that the proceeds thereof should be paid to the administrator to be held until the question of ownership might be determined. Terms of sale were discussed. Springer insisted that if the property were sold for cash the sale would be a failure, and said it would be advisable to take notes from persons who were considered solvent. It was agreed that notes should be taken leaving the name of the payee blank until it would be determined who was entitled to the property. The terms of the sale, as insisted upon by Springer, were a discount of 5 per cent. for cash, or notes due in one year, with interest at 10 per cent. per annum.
On December 20, 1918, appraisers of the estate were appointed. On January 27, 1919, they returned an inventory and appraisement, in which the property of the estate was valued at $2,056.90. The property was sold at public auction on January 31, 1919, as upon an administrator's sale. The notes and cash received were turned over to the administrator. Shortly thereafter Springer went to Minnesota, and it would seem that he and Mrs. Springer, the widow, remained there two or three years. The administrator testified that no attempt to close the estate was made for the reason that "it was not determined what portion of the estate belonged to L. B. Springer or his son, L. B. Springer, Jr." In the meantime, Springer presented three claims against the estate, aggregating $1,964.85. These were approved by the administrator and by the court in December, 1921.
During the spring of 1922 Mrs. Springer returned to Judith Gap. Shortly thereafter a settlement of the controversy over the property was agreed upon by Mrs. Springer, Louis B. Springer, and the administrator, subject to the approval of the court. This agreement, as the court found, was "that the said L. B. Springer, Sr., was to be paid the sum of $500 cash, and to be delivered the promissory notes that have been filed as evidence in this estate, and that the widow was to be paid, as a family allowance, the sum of $2,500." Pursuant thereto, the administrator then paid over to Mrs. Springer $2,500, and about March 15, 1923, tendered the sum of $500 and the notes to Emmet O'Sullivan, who then was attorney in fact for Springer, under a power of attorney which Springer had executed on February 24, 1923. Mr. O'Sullivan demanded the payment of $1,000 in addition to the notes. When the administrator refused to accede to this, O'Sullivan, on March 15, 1923, at the request of Springer, filed in the court a petition for the revocation of the letters theretofore granted to Mr. Alexander, and asked that letters be issued to himself. Some time later Alexander filed an answer to the petition. On September 27, 1923, O'Sullivan asked leave to file a supplemental petition, which was granted, and on October 9th he filed the same in which he represented that Alexander had permanently removed from the state of Montana. On October 8, 1925, Alexander filed an account of his administration, in which he incorporated the substance of two former accounts, one filed on December 12, 1921, and the other on April 9, 1923. The last account, filed October 8, 1925, commences:
"Account of James G. Alexander, formerly administrator of the estate of John Springer, deceased."
It sets forth the fact that on March 20, 1923, Alexander was served with a citation, together with a petition for the revocation of his letters; that on March 27, 1923, he filed his answer to the petition for removal; that on the 22d day of December, 1923, a reply to the answer was filed; that on the 13th day of December, 1923, O'Sullivan filed a supplementary petition, and that "by an order duly given and made on the 5th day of January, 1924, James G. Alexander, as administrator of the estate of John Springer, deceased, was removed on the ground and for the sole reason that he had permanently removed from the state of Montana," and that on the 19th of January, 1924, letters of administration were issued to Emmet O'Sullivan; that on February 16, 1924, O'Sullivan, as administrator, filed an action in the district court of Wheatland county against James G. Alexander and American Surety Company, of New York, to recover the sum of $5,696.88; and that the action resulted in favor of the defendants in the district court, and later in the Supreme Court. Alexander then claimed credit for the sum of $420.37 paid out as attorney's fees and expenses on account of litigation, $75 to W. C. Husband for the purpose of preparing and presenting the final account, and $61.32 on account of premiums paid the surety company on the bond, making $556.89 in all. A copy of the answer to the original petition for revocation of his letters was annexed to the account as Exhibit A.
Objections to the three accounts were filed by O'Sullivan, as administrator. The accounts and objections thereto were set down for hearing on December 22, 1925. The court heard the testimony offered and upon June 14, 1926, handed down its findings of fact and conclusion of law. It found, in substance, that L. B. Springer, Sr., the father of the deceased, claimed to be the rightful owner of all the personal property included in the inventory, and that the property was sold without an order of court by Springer; that the administrator never received actual possession of the property, but received the proceeds from the sale thereof in the sum of $1,718.11 in cash and $1,814.11 in notes, and that the total amount received by the administrator from all sources is the sum of $6,185.25; that he made disbursements amounting to $3,831.50, the principal item of which was "Paid Mrs. John Springer, widow's allowance, $2,500;" and that, in addition, Alexander incurred as expenses of administration the "sum of $556.89, which expense was incurred subsequent to January 19, 1924;" that the promissory notes amounting to $1,814.11 were surrendered and introduced in evidence at the hearing; that Alexander, as administrator, had "acted in entire good faith, and that he was not guilty of any inattention, neglect, mismanagement, or dishonest conduct in the administration of the estate;" that there had not been any loss or depreciation in the property or assets of the estate coming into his possession due to any misconduct on part of himself or his attorney; that there had been delay in the administration of the estate but not through Alexander's fault, and the delay had not caused any loss to the estate; that Alexander, as administrator, "made a valid, fair, and satisfactory compromise settlement with the widow of the deceased, and with L. B. Springer, Sr., the father of the deceased, which settlement determined the conflicting claims in and to the property and their interest in said estate;" and that the "settlement is binding upon the estate and is hereby approved." As a consequence, the court concluded, as a matter of law, that the final account of Alexander "should be approved, allowed, and...
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