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Keywords

tortplaintiffliabilitytrustsustainedappellant

tortliabilitymotiontrustappellantappellee

Related Cases

Vance v. Myers’ Estate, 494 P.2d 816, 82 A.L.R.3d 883

Facts

Charles O. Myers died in Fairbanks, Alaska, on May 3, 1969, and Howard E. Holbert was appointed as the administrator of his estate. Holbert was allowed to operate the decedent's bar, Chuck's Corner Bar. After filing for final accounting and discharge, the court approved the accounting and discharged Holbert, despite a pending tort action against him for injuries sustained by a patron in the bar. The plaintiff, who filed the tort action shortly before the discharge, sought to have the decree set aside to allow the tort claim to be resolved before the estate was settled.

Appellant brought a tort action against the administrator of the appellee's estate. The action was filed shortly before the superior court discharged the administrator, thus termination the administration of the estate.

Issue

Whether the court erred in refusing to set aside its decree of discharge of the administrator while a tort action was pending against the estate.

The central question in this case concerns the liability of an estate for the torts of a trustee, executor, or administrator.

Rule

An administrator, executor, or trustee may be sued in his representative capacity for a tort committed in the course of administration if it is determined that the tort was a common incident of the kind of business activity in which the administrator was properly engaged on behalf of the estate.

We hold that an administrator, executor, or trustee may be sued in his representative capacity, and collection may be had from the trust assets, for a tort committed in the course of administration, if it is determined by the court that the tort was a common incident of the kind of business activity in which the administrator, executor, or trustee was properly engaged on behalf of the estate.

Analysis

The court applied the rule by recognizing that the tort claim against the administrator was valid and related to his management of the estate's business. It noted that the traditional rule allowing only personal liability for the administrator did not adequately protect the rights of tort victims. The court emphasized that the estate's assets could be reached for claims arising from the administrator's actions within the scope of his authority, thus allowing the tort claim to proceed.

It should be recognized that in respect to tort liability a trustee acting within the general scope of his authority can subject the estate to liability, in the same manner as could an agent acting on behalf of an ordinary principal.

Conclusion

The court reversed the lower court's decision, allowing the plaintiff to pursue her tort claim against the estate and reinstating the administrator until the tort action could be concluded.

We must reverse the denial of appellant's motion to set aside the decree of discharge and to reinstate the administrator until the tort action can be concluded, and we must remand for proceedings consistent with this opinion.

Who won?

The appellant prevailed in the case because the Supreme Court recognized her right to pursue her tort claim against the estate, ruling that the discharge of the administrator was improper while the claim was pending.

The court ultimately reversed the lower court's decision.

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Keywords

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Girard Trust Corn Exchange Bank v. U.S., 259 F.Supp. 214, 18 A.F.T.R.2d 6147, 67-1 USTC P 9134

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Newman v. Dore, 275 N.Y. 371, 9 N.E.2d 966, 112 A.L.R. 643

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