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Fourth National Bank of Boston vs. Lura F. Mead, executrix

Massachusetts Supreme Judicial Court1913-05-23
214 Mass. 549

Summary

Holding. The appeal is dismissed because the trial court lacked jurisdiction over a matter committed by statute to the exclusive jurisdiction of the Probate Court, and equity cannot be used to circumvent insolvency procedures or usurp the executrix's duties in administering the estate.

A bank sought to establish that a deceased debtor owed money on three promissory notes and to reach real property that the debtor's widow (serving as executrix) had received, claiming the transfers were made to defraud creditors. The defendant's husband's estate was declared insolvent, triggering statutory procedures for handling claims through the Probate Court. The bank brought suit in equity despite these insolvency provisions.

The court held that once an estate is declared insolvent, creditors cannot bypass the Probate Court system through equity proceedings to enforce claims or recover fraudulently conveyed property. The executrix, as the estate's representative, holds the duty to recover all assets for the benefit of creditors. If she fails to do so, the proper remedy is to petition the Probate Court for her removal, not to litigate these matters in equity. The trial court lacked jurisdiction to hear the case because the subject matter—administration of an insolvent estate—falls exclusively within the Probate Court's statutory authority.

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

Key issues

  • Jurisdiction of equity courts versus probate courts in insolvent estate administration
  • Enforceability of creditor claims against an insolvent estate
  • Recovery of fraudulently conveyed property by the estate representative
  • Proper remedies available to creditors when an executrix fails to fulfill duties

Procedural posture

The plaintiff bank appealed from a trial court judgment entered on the merits after a bench trial, during which it prevailed only as to one parcel of real property.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Braley, J.

The bill is brought against the defendant as •executrix of her husband’s will to have the indebtedness due from him to the plaintiff at the time of his death on three promissory notes for money lent established, and against her individually to reach and apply three parcels of real property alleged to have been deeded to her with the intention of hindering, delaying and defrauding the testator’s creditors. It is averred and the answer admits that the estate has been represented insolvent under the R. L. c. 142, § 2, and commissioners have been appointed by the Probate Court to receive proof of claims.

The statute not only makes full provision for the presentation and allowance of claims, but by § 30 after the estate has been represented insolvent no action shall be maintained either at law or in equity to charge an executor or administrator with the payment of debts due from the deceased except in cases of preference not affected by the insolvency of the estate, or where the assets prove more than sufficient to pay debts allowed by the commissioners. Herthel v. McKim, 190 Mass. 522, 524. Ryan v. Lyon, 212 Mass. 416, 420.

The defendant as executrix moreover upon insolvency of the estate represented creditors, and being bound to recover and hold for their benefit all the assets, which includes lands fraudulently conveyed, and hence liable to attachment and execution by a creditor of the testator in his lifetime, the plaintiff cannot under the guise of a bill to reach and apply usurp these powers, or transfer to a court of equity the settlement of the insolvent estate over which the court of probate is given by statute exclusive jurisdiction. R. L. c. 142; c. 146, § 2. St. 1907, c. 549. Cummings v. Cummings, 143 Mass. 340. Putney v. Fletcher, 148 Mass. 247, 248. Flynn v. Flynn, 183 Mass. 365, 366. Dunbar v. Kelly, 189 Mass. 390, 392. Tracy v. Strassel, 191 Mass. 187. Coram v. Davis, 209 Mass. 229, 247. Norton v. Lilley, 210 Mass. 214, 217. Horton v. Robinson, 212 Mass. 248. The properly appointed representative of the estate is the only person to institute proceedings for the recovery of the property, which if recovered is held in trust for creditors. French v. Peters, 177 Mass. 568, 572. Sargent v. Wood, 196 Mass. 1. York v. Flaherty, 210 Mass. 35, 43, and cases cited. Stockwell v. Shalit, 204 Mass. 270. Tyndale v. Stanwood, 186 Mass. 59. R. L. c. 148, § 17.

If by reason of the conveyances the executrix is rendered incapable of properly executing the trust, the remedy of the creditors, and of the plaintiff, is to apply to the Probate Court for her removal if upon request she refuses to account for the property, and asserts her title. Glines v. Weeks, 137 Mass. 547. Putney v. Fletcher, 148 Mass. 247, 248. Dunbar v. Kelly, 189 Mass. 390, 391, 392. Norton v. Idlley, 210 Mass. 214, 217.

But neither by demurrer nor answer have these defenses been raised, and the case is here on the plaintiff’s appeal after a trial on the merits at which it prevailed only as to one parcel.

The consent or waiver of the defendant if sufficient to give jurisdiction of herself could not create jurisdiction over the cause and subject matter, which has not been vested by law in the trial court. Elder v. Dwight Manuf. Co. 4 Gray, 201, 204. San-tom v. Ballard, 133 Mass. 464. National Fertilizer Co. v. Fall River Five Cents Savings Bank, 196 Mass. 458, 462.

The decree being void this court cannot decide the case on appeal, and the order must be, appeal dismissed. Jochumsen v. Suffolk Savings Bank, 3 Allen, 87. Bearce v. Bowker, 115 Mass. 129. Peabody v. School Committee of Boston, 115 Mass. 383.

Ordered accordingly.