Majority
Headnote
1. Executors and Administrators—Administrator De Bonis Non—PowersWe are all agreed in this case, except as to the question whether it was necessary for the plaintiff to obtain leave to bring the action. It is proper that we should give the reasons which, in the judgment of tire majority, call for a different conclusion upon this point from that reached by Justice BUMSEY. A few words, too, may not be inappropriate as to the other questions. Our agreement with Justice BUMSEY as to the plaintiff’s right to maintain the action does not rest wholly upon the authority of Walton v. Walton, 4 Abb. Dec. 512. The allegation of the complaint there was that the deceased executor had in his hands, at the time of his death, unadministered assets of his testator. It was held that the administrator de bonis "non could recover these assets from the executor of the deceased executor,—in specie, if unconverted; their value, if converted into money. The conversion without an appropriation of the money to the purposes of the estate was deemed but a partial administration. “Administration of assets,” said Judge Hogeboom, “implies such a complete disposition of them as not only to collect them from the debtor of the estate, if they are in that condition, but finally to place them in the hands of the creditor, legatee, or distributee to whom, after undergoing the process of administration, they finally belong. As before stated, they had not undergone this latter process; and we are obliged, in the state of facts in which the parties have presented the case to us, to assume that the assets required further administration.” The question whether the action could have been maintained for a devastavit was not discussed. Nor was it discussed in Clapp v. Meserole, * 40 N. Y. 288 . The court there simply held, following Walton v. Walton, that an administrator de bonis non can maintain an action against the representatives of a deceased executor who died without applying the assets which had come to his hands. In the case at bar the allegation is that the deceased administrator converted the proceeds of his testator’s property to his own use. There would seem to be no substantial distinction in principle between the cases. In legal intendment, the proceeds of the property sold were here in the hands of the deceased administrator. These proceeds were not administered, in the sense of “administration” as defined in Walton v. Walton. Practically, it is immaterial whether incomplete administration, resulting from the failure
We prefer, however, to fortify our conclusion that the plaintiff may maintain this action by a reference to the provisions of the statute. Section 2606 of the Code of Civil Procedure provides that, where an executor or administrator dies, the surrogate’s court has the same jurisdiction, upon the petition of his successor, to compel the executor or administrator of the decedent to account, which it would have against the decedent if his letters had been revoked by a surrogate’s decree. Upon such revocation of letters the surrogate has full jurisdiction to compel the person whose letters have been revoked to account for or deliver over money or other property, and generally to settle his account. Section 2605. Section 2606 further provides that:
“With respect to the liability of the sureties in, and for the purpose of maintaining an action upon the decedent’s official bond, a decree against his executor or administrator, rendered upon such an accounting, has the same effect as if an execution issued upon a surrogate’s decree against the property of decedent had been returned unsatisfied during decedent’s life-time.’’
Section 2608 then provides:
“Where letters have been revoked by a decree of the surrogate’s court,' the successor of the executor, administrator, or guardian, whose letters are so. revoked, may maintain an action upon his predecessor’s official bond, in which he may recover any money, or the full value of any property, received by the principal in the bond, and not duly administered by him; and to the full extent of any injury, sustained by the estate of the decedent or of the infant, as the case may be, by any act or omission of the principal. The money recovered in such action is regarded as part of the estate in the hands of the plaintiff, and must be distributed or otherwise disposed of accordingly.”
It is apparent from these provisions that the purpose of the legislature was to leave no further trace in the law of this state of the common-law rule that assets converted by the executor or administrator were, technically speaking, administered. We agree with the learned author of the notes to Hodge v. Hodge (Me.) 40 Lawy. Rep. Ann. 54 (s. c. 38 Atl. 535 ), that “in 1880 the provisions of the Code authorized a recovery by the administrator de bonis non from his predecessor for a balance, or accounting, or conversion, or maladministration.” It should be observed in this connection that where letters are revoked, and a successor appointed, no provision is made for leave to sue upon the bond. Section 2608. Where, however, letters are revoked, and no successor is appointed, the person aggrieved, who desires to sue upon the bond, must obtain leave. Section 2609. The reason is obvious. The person aggrieved is not exclusively vested with the cause of action. His ac
The suggestion that the case, on this head, is also within the provisions of section 1888 of the Code, will hardly bear analysis. The article in which this section is found relates to actions upon official bonds. The first eight sections (sections 1880 to 1887) relate to sheriffs, surrogates, and county treasurers,—plainly' public officers. Section 1888 then provides for obtaining leave to prosecute the official bonds of public officers in general, where special provision is not otherwise made by law. It is quite clear from the context that executors and administrators (other, of course, than the public administrator) are not public officers, within the meaning of this section. If they were, it would have been quite unnecessary to enumerate, as was done in section 1890, the officials who are embraced within section 1888, namely, “a receiver, an assignee of an insolvent debtor or a trustee or other officer, appointed by a court or a judge.” That an ordinary administrator was not comprehended within the expression, “other officer appointed by a court or a judge,” is apparent from what immediately follows, namely, that:
“Where he was appointed by or pursuant to the order of a court, * * * the application for leave to prosecute his official bond must he made to the court by which or pursuant to whose order he was appointed. * =•• * An action brought as prescribed in this section must be brought in the court to which application is made for leave to bring it.”
Thus, administrators could not well have been intended, for no such action can be brought in the surrogate’s court, and yet no application for leave to sue can be made in any other court. The provisions of the article relating generally to letters, already referred to, were undoubtedly deemed “special provision made by law” for administrators.
We have thus gone over these Code provisions, quite as though this were an action at law upon the bond. The contention that leave to prosecute the bond was required proceeds solely upon this inaccurate view of the nature of the action. It is essentially an action in equity. It alleges the special circumstances which make it impossible for the plaintiff to obtain against the deceased administrator or his representatives a decree or order of the surrogate’s court of the county of New York. It shows that, owing to these special circumstances and this consequent inability, the plaintiff can never point to a literal breach of the condition of the bond. It shows, however, what equity will treat as a breach, in every essential and substantial particular,—that the administrator did not faithfully execute the trust reposed in him as administrator, and that he so conducted himself that no decree can be made or obedience enforced against him or his representatives. The learned counsel for the surety frankly asserted upon the argument that there was here a wrong without a remedy; that the surety could not be made liable in any manner, or under any circumstances, unless there were a literal breach of the precise condition of the bond, namely, “to obey all lawful decrees and orders of the surrogate’s court.” If he is right in this assertion,—if, indeed, Bischoff v. Engel, 10 App. Div.
Dissent
Our conclusion is that the action is well brought by the administrator de bonis non, and that leave to prosecute the bond was not essential to its maintenance. This conclusion is supported by the following authorities, as well as those already cited: Haines v. Meyer, 25 Hun, 414 ; Deposit Co. v. Pratt, Id. 23; Williams v. Kiernan, Id. 358. See, also, Harrington v. Keteltas, 92 N. Y. 40 ; Wiggin v. Sweet, 6 Metc. (Mass.) 194; and 2 Woerner, Adm’n, p. 749.
We may add that, though the bond runs to the people, it so runs in form only, for the benefit of those to whom the right of action thereon is given by the statute. Here, as we have seen, the right ■of action at law upon this bond is, by the Code provisions, expressly given to the successor of the deceased administrator, upon his obtaining a decree against the latter’s personal representatives, as provided in section 2606, supra. It is because this latter prerequisite to the action at law has, by the misconduct of the deceased administrator, been rendered impossible of procurement, that equity lends the plaintiff its aid. In doing so, it but affords him the indemnity which was the essential feature of the contract, and was necessarily in the contemplation of the sureties when they signed it in assumed good faith. In other words, equity enforces the substantial obligation, and relieves the plaintiff from a technical preliminary requirement, which, upon the facts averred, is but purely formal and nonessential. As representative of the estate and of all parties in interest therein, his is the legal right to indemnity, and the maintenance of this action to procure that indemnity in the only possible way is but the equitable sequence to that legal right.
The interlocutory judgment overruling the demurrer was right, and should be affirmed, with costs. All concur, except RUMSEY, J., dissenting.
(dissenting). The complaint alleges that on the 17th of April, 1894, one Terence A. Macaulay, who was also known as Thomas A. Macaulay, died in the city of New York, possessed of certain personal property, among which .were two patents issued
The question as to the liability of the sureties upon an administrator’s bond for alleged defaults of their principal has been several times presented in this court in recent cases, and the question, not only of the extent of that liability, but as to the parties necessary in an action brought to enforce it, has been thoroughly examined and decided. It has been determined in this court, in circumstances very like this, that an action might be brought by one of the next of kin of the intestate (Bischoff v. Engel, 10 App. Div. 240 , 41 N. Y. Supp. 815 ), or by a creditor (Scharmann v. Schoell, 23 App. Div. 398 , 48 N. Y. Supp. 306 ). These cases determine most of the questions that are presented upon this appeal. But it is said that the administrator de bonis non has no standing in court to maintain this action. This question,. also, has been substantially decided by the
The point that the next of kin of Terence A. Macaulay should have been made parties to this action is sufficiently answered by the case of Walton v. Walton, supra. The representative of the estate of Terence A. Macaulay, until it shall have been fully administered, is the administrator de bonis non; and all the rights of recovery which exist for the benefit of that estate are vested in him for the benefit of creditors, if there shall.turn out to be any creditors, and if there are no creditors, as is alleged in the complaint, then for the benefit of the next of kin, who will receive the estate in due course of administration from the plaintiff.
As to the further objection that the plaintiff hap not legal capacity to' sue, because no order of the surrogate has been made granting him permission to bring an action; I am of the opinion that that objection is well taken, and that, therefore, the judgment cannot be sustained. The action is brought to recover the penalty of a bond under seal, running, in terms, to the people of the state of New York. The ordinary rule in such cases is that no persons can sue to enforce covenants contained in an instrument, except such as are parties to the instrument. Henricus v. Englert, 137 N. Y. 488 , 33 N. E. 550 . The bond in this case is one required by law, and is given for the benefit of all persons interested in the estate of Terence A. Macaulay, of which Daniel Macaulay was appointed administrator. The Code has prescribed the circumstances in which an action may be brought upon such a bond in nearly all cases that are likely to arise. Code Civ. Proc. §§ 2607-2600. While this.
The case at bar is not within the express provisions of section 2609, for the reason that the letters of administration were not revoked, and the successor was appointed. But it is clearly within the reason there laid down, because the facts stated in the complaint in this action are such as would entitle the next of kin (Bischoff v. Engel, supra) or a creditor (Scharmann v. Sehoell, supra) to sue. Either of these persons, upon bringing his action, would be entitled to recover the .full amount of the penalty of the bond. If either
These reasons seem to me to be conclusive, as showing that it is necessary, in a case of this kind, that the leave should be given by the surrogate to bring the action. In the cases cited above where the action was allowed to be maintained, this question was not presented. It was presented, however, in the case of Deposit Co. v. Pratt, 25 Hun, 23 , wherein it was held that the surrogate could not order the bond to .be prosecuted because the executor had not refused or omitted to perform any decree made against him by the surrogate. But that case is of no force as an authority now, for the reason, that it is clearly to be inferred from section .2000 of the Code of Civil Procedure that the surrogate has power to give an order to prosecute the bond in cases where he has made no decree. The case is within the provisions of section 1888 of the Code, which declares that where a public officer is required to give an official bond to the people, and special provision is not made for the prosecution of it by a person who has sustained injury by' his default, such a person may apply for leave to prosecute the delinquent’s official bond. This section of the Code clearly applies to this case, and requires that the party seeking to prosecute this bond under the circumstances set out in the complaint should obtain leave to that end before he brings his action. Such a requirement is not new in the law. At common law, in England, the bond of the administrator was given to the Archbishop of Canterbury, and at common law, of course, the action could only be brought in the name of the obligee. Where it became necessary to sue upon the administrator’s bond, the usual course was for the action to be brought by the aggrieved person in the name of the obligee, after having obtained permission from the ecclesiastical court so to do. 1 Williams, Ex’rs, 538. But, in a case where .an action at law could not be maintained, it was held by the English court of chancery that it was in the discretion of the ecclesiastical court to determine whether the
“In the absence of all authority on the subject, it does not appear to me that any one can be a specialty creditor under a bond which he does not produce, which is not under his control, which was not executed by him or to his intestate, but -was executed to a public officer, and remains subject to the judicial control of the ecclesiastical court, which has jurisdiction to determine whether the bond should be put in suit or not, and upon what terms.”
In that case the administrator de bonis non, claiming to be a specialty creditor against the sureties upon the official bond because of the breach of its condition, brought a suit in the court of chancery against the sureties. He moved in that court that the ecclesiastical court where the bond was filed should produce it before the court of chancery, in order that the action might be maintained, and that the ordinary to whom the bond was given should be considered a trustee for the plaintiff in the suit. The question was directly presented, therefore, whether or not it was proper to bring an action of that kind, under just such circumstances as this, against the surety upon the official bond, without the consent of the court where that bond was filed. The case is authority for the conclusion which I have reached here. The same rule was substantially held in the case of Archbishop of Canterbury v. Tubb, 3 Bing. (N. C.) 789.
Upon the whole case, it clearly seems to me that such an action should not be maintained, unless the court has given leave for that purpose beforehand, and, that being so, I am quite clear that the complaint is defective, in not containing an allegation that leave was granted; and therefore the judgment should be reversed, and the demurrer sustained, upon the usual terms.
Cases cited
- Harrington v. Keteltas 92 N. Y. 40 p. 434
- Henricus v. Englert 137 N. Y. 488 p. 436