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HAMRICK et al. v. PREWETT, executrix

Supreme Court of Georgia1932-06-16No. No. 8708
174 Ga. 895

Summary

Holding. The court affirmed the lower court's decision, holding that an equity court has jurisdiction to entertain a petition to marshal estate assets where the will authorizes contribution of debts among devisees and the devisees refuse payment, and that a petition alleging such facts states a valid cause of action.

The executrix of W. F. Prewett's estate petitioned an equity court to marshal the estate's assets to satisfy debts owed by the deceased. The will devised land to three individuals, each of whom was obligated to pay one-third of the estate's debts as a condition of receiving their devised share. When the devisees refused to pay their respective portions, the executrix sought court intervention. The defendants challenged the petition on multiple grounds, arguing the court lacked jurisdiction and that the suit was improperly joined.

The court held that equity courts have concurrent jurisdiction with courts of ordinary over the settlement of estate accounts and may intervene to protect interested parties when regular administration proves insufficient. The court found the petition adequately alleged a cause of action by showing that the devisees had refused to pay their pro rata shares, that their land was insufficient to cover those shares, and that marshaling was necessary. The common interest among all defendants—each being obligated to contribute to debt payment—rendered the joinder proper and avoided multiplicity of suits.

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

Key issues

  • Whether equity courts have jurisdiction over estate asset marshaling
  • Whether the petition adequately stated a cause of action for marshaling
  • Whether multiple devisees could be properly joined in a single suit
  • Whether demand and refusal to pay the devisees' pro rata shares of debts was properly alleged

Procedural posture

The defendants filed both special and general demurrers to the executrix's petition in equity, which the lower court overruled, and the defendants appealed.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Hill, J.

(After stating the facts.)

1. The grounds of special demurrer were that the petition fails to allege what personal property W. F. Prewett had and owned at the time of his death, or its value; and that the petition fails to allege what debts he owed at the time of his death, or what debts the petitioner has incurred as executrix of the estate, when they were made, what they were for, and to whom they are owing, etc. To meet these objections the plaintiff filed an amendment, which was allowed, setting out the personal -property, giving description and value thereof, and the nature and amount of the debts, when made, to whom owing, and the amount thereof, etc. In view of this amendment, we are of the opinion that the court did not err in overruling the special demurrer.

2. But it is insisted that the general demurrer should not have been overruled; that the petition fails to set out a cause of action, and that a court of equity has no jurisdiction in a case like the present. We can not agree to this contention. The Civil Code (1910), § 4596, provides: “Equity will not interfere with the regular administration of estates, except upon the application of the representative, either, first for construction and direction, second for marshaling the assets; or upon application of any person interested in the estate, where there is danger of loss or other injury to his interests.” And see §§ 4597, 4598; Morrison v. McFarland, 147 Ga. 465, 466 (94 S. E. 569); McKinney v. Powell, 149 Ga. 422 (100 S. E. 375). “A court of equity shall have concurrent jurisdiction over the settlement of accounts of administrators.” § 4075. .Courts of equity are loath to interfere in the administration of estates; but having concurrent jurisdiction with the court of ordinary in the settlement of accounts, they will not hesitate to interfere for the full protection of the rights of parties in interest. Morrison v. McFarland, supra; Spooner v. Bank, 159 Ga. 295, 748. It will be observed that there are no allegations in the petition as to the failure of the devisees under the will of W. E. Prewett to contribute to the support and maintenance of the widow of the deceased, and there is no allegation that the rents and profits of the farm are not sufficient for that purpose; the suit being based upon the allegations that the devisees, each of them, refused to pay one third of the debts on demand, that the two parcels of land mentioned were not of sufficient value to pay the pro rata one third of the debts that were due by the estate, that these debts were proper charges against the estate, that demand for such payment was made and refused, and that there was no personal property with which to pay the same. The demurrer admits the truth of the allegations made in the petition. It is true that the will gave the executrix the authority, to sell the share of any particular devisee upon the refusal of such devisee to pay his or her pro rata share of the debts of the estate, but it will be observed that it is alleged in the petition that the shares of Carrie Dunford and Jessie May Spears are not of sufficient value to pay two thirds of the debts, and therefore that the estate is insolvent to that extent, and that it is necessary that the assets be marshaled for the purpose of paying the debts. It will also be observed that under the will the executrix had no authority to sell the land devised to Hamrick for the purpose of paying more than one third of the debts; and each of these devisees refusing to pay, it was proper for the representative of the estate to ask a court of equity to marshal the assets of the estate for the purpose stated in the petition. See Daniel v. Columbus Fertilizer Co., 96 Ga. 775 (22 S. E. 904). Therefore, in order to bring in the remainder of the estate to pay the balance of the debts due, a petition in equity to marshal the assets of the estate for that purpose is proper.

3. But it is insisted that there is no such common interest in the parties defendant as to render a petition in equity maintainable against them jointly. This contention is without merit. All the parties defendant in the present suit were interested in the payment of the debts of W. F. Prewett, deceased, each of them being required to contribute one-third of the amount in order to obtain the particular tract of land devised under the will; and there being a joint interest in the debts due by the estate, and in order to avoid a multiplicity of suits, and to have the rights of all the parties at interest in the disposition of the assets of the estate determined in one cause of action, the present suit can not be held to be multifarious. Blaisdell v. Bohr, 68 Ga. 56 (2); Conley v. Buck, 100 Ga. 187, 200 (28 S. E. 97); East Atlanta Land Co. v. Mower, 138 Ga. 380 (3) 384 (75 S. E. 418).

4. It is also contended that certain children of the deceased, heirs at law, shown to be non-residents of Georgia, are not necessary parties to the suit; but whether they are necessary parties or not, they are proper parties and no harm could come to the defendants by their being made such.

We are therefore of the opinion that the petition in the present case sets forth a cause of action, and that the facts alleged are sufficient for a court of equity to assume jurisdiction for the purpose of marshaling the assets of the estate.

Judgment affirmed.

Russell, C. J., Beck, P. J., and Atkinson and Gilbert, JJ., concur.