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GLENCOE DITCHING COMPANY v. CHARLES MARTIN

Minnesota Supreme Court1921-01-28No. No. 22,105
148 Minn. 176

Summary

Holding. The court affirmed the trial court's grant of a new trial, holding that the administrator was personally liable on the contract for the permanent improvement but that the trial court erred in excluding evidence under the general denial that would have shown the contract terms were different from those alleged and that plaintiff's performance was incomplete.

In 1919, a ditching company contracted with Charles Martin, who was serving as administrator of his deceased father's estate, to dig a ditch through farmland in Redwood County. The contract allegedly specified that the company would construct 220 rods of ditch at $2 per rod. The company sued for payment after completing work on the Martin farm property. The administrator defended by claiming the actual agreement required the ditch to extend much further—three-quarters of a mile through additional land beyond the farm—and that the company had failed to complete this broader project. At trial, the court initially prevented the administrator from presenting evidence of his version of the contract terms, instead directing a verdict for the ditching company. The trial judge then granted a new trial due to legal errors that occurred.

On appeal, the court addressed two issues. First, it confirmed that an administrator can be held personally liable for contracts he enters into, particularly when those contracts involve permanent improvements to estate property. An administrator possesses only limited custodial rights over real estate during the period of administration and lacks the authority to bind the estate itself through agreements for permanent works. Second, the court found that the trial judge erred in excluding the administrator's evidence about the alleged contract terms. Under a general denial, a defendant may present testimony showing that the contract differed from what the plaintiff claimed and that performance was incomplete.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Personal liability of estate administrator for contracts involving permanent improvements
  • Scope of evidence admissible under a general denial regarding contract terms
  • Administrator's authority to bind the estate through improvement contracts

Procedural posture

The trial court directed a verdict for the plaintiff ditching company, then granted a new trial on the grounds of legal errors, and the administrator appealed.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Hallam, J.

In 1919, defendant was administrator of the estate of Henry O. Martin, deceased. Part of the property of the estate was a farm in Redwood county. In 1919, plaintiff constructed a ditch through this land pursuant to contract with defendant. Defendant told plaintiff the land belonged to the estate,, and that he was acting as administrator for the estate.

The complaint alleged an express contract by which plaintiff was to construct a ditch through the land in question to the length of 220 rods, and that defendant agreed to pay therefor at the rate of $2per rod. The answer was a general denial. • On the trial defendant offered to prove that the agreement was that plaintiff should construct the ditch, not only through the Martin farm, but that he should continue it through other land below, for a distance of three quarters of a mile, and that in fact plaintiff constructed the ditch only through the Martin farm. Some testimony to this effect was received and later stricken out as not admissible under a general denial. The court then directed a verdict in favor of plaintiff. Later the court granted a new trial on the ground of errors in law occurring at the trial.

Question is raised on this appeal as to the personal liability of defendant on this contract. We have no doubt that defendant is personally liable for whatever obligation he incurred. An administrator is entitled to the possession of the real estate of the deceased, has the right to receive the rents and profits, and is obliged to “keep in * * * repair all houses, buildings and fixtures thereon which are under his control.” G. S. 1913, § 7296. The title vests in the heirs immediately on the death of the intestate. The administrator has no title to or interest in it, save only the right to possession during administration, and to sell it if necessary for the payment of debts of the intestate, Noon v. Finnegan, 29 Minn. 418, 13 N. W. 197; Jenkins v. Jenkins, 92 Minn. 310, 100 N. W. 7. He may lease it, but only for the term of administration. Smith v. Park, 31 Minn. 70, 16 N. W. 490. He is for most purposes only a custodian during the period of administration of the estate and for purposes of administration only. He has no power to bind the estate by contracts for permanent improvements and if he incurs obligation for such improvements he binds himself alone. Ness v. Wood, 42 Minn. 427, 44 N. W. 313; 18 Cyc. 881. The improvement contracted for in this ease was of a permanent character. The trial court held defendant liable on the contract and in this there was no error.

The only other question necessary to consider is whether it was error to reject defendant’s testimony as to the contract between the parties. We are of the opinion that it was. Under a general denial, defendant may offer any evidence tending to disprove the allegations of the complaint. When the plaintiff in his complaint alleges a contract with defendant and performance by himself, proof that the contract was different from that alleged by plaintiff and that the contract entered into was not performed by plaintiff, is admissible under a general denial. Hellmuth v. Benoist, 144 Mo. App. 695, 129 S. W. 257. See Ortt v. Minneapolis & St. L. Ry. Co. 36 Minn. 396, 31 N. W. 519; Scone v. Amos, 38 Minn. 79, 35 N. W. 575; Bucy v. Pitts Agric. Works, 89 Iowa, 464, 56 N. W. 541. For this error the court properly granted a new trial.

Order affirmed.