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Woods v. Barber

Supreme Court of Arkansas
Jan 28, 1974
504 S.W.2d 355 (Ark. 1974)

Opinion

No. 73-189.

Opinion delivered January 28, 1974

EXECUTORS ADMINISTRATORS — PAYMENT OF DEBTS AGAINST ESTATE — LIABILITY OF ADMINISTRATORS. — Where administrator had been authorized to continue decedent's farming operations and in connection therewith had borrowed from the bank under a security agreement with the approval of the Probate Court, and, in the sale of the crops the bank's security interest became liquidated, the bank could only release the balance to the administrator after satisfaction of its security interest pursuant to Ark. Stat. Ann. 62-2609(b) (Repl. 1967), so that the filing of a claim by the bank, or any other legal proceeding was unnecessary, and the administrator was correctly absolved of any liability.

Appeal from Craighead Probate Court, Western District, Gene Bradley, Judge; affirmed.

Lee Ward, for appellant.

Frierson, Walker, Snellgrove Laser, by: G. D. Walker, for appellee.


Appellant is the widow of S.W. Woods, who died intestate. Appellee is the duly qualified administrator of the estate of the deceased. The administrator filed his petition for final distribution and discharge. Among the listed disbursements was the payment of $7569.57 to the Mercantile Bank of Jonesboro. The widow filed an objection to the payment on the ground that no claim had been filed thereon, nor was any effort to foreclose any lien filed. The widow asked that the administrator be required to reimburse the estate in the amount of the payment to the bank. A hearing was conducted thereon and the probate court approved the payment "as payment of a proper debt against the estate to the bank secured by a lien on crops and equipment". On appeal it is contended that the debt should not have been paid in the absence of the filing of a claim or any effort to foreclose the lien held by the bank. It should be noted that the bank is not a party to this case.

The record shows that the administrator was authorized to continue the decedent's farming operation. In connection therewith he borrowed from the bank under a security agreement, and with the approval of the probate court, an additional sum of $6480 (in addition to what Woods owed at the time of his death) to continue the farming business. Of course in the sale of the crops the bank's security interest became liquidated. The only thing left for the bank to do under those circumstances was to apply the proceeds, so far as necessary, to the satisfaction of its security interest and to release the balance thereof to the personal representative pursuant to Ark. Stat. Ann. 62-2609(b) (Repl. 1967). Under the circumstances the filing of a claim by the bank or any other legal proceeding was unnecessary.

While the witnesses spoke of payment of the debt, the practical effect was the same as if the bank had liquidated the security interest pursuant to 62-2609(b) and turned over the excess of the proceeds to the personal representative. Consequently the trial court correctly absolved the administrator of any liability.

Affirmed

HARRIS, C.J., not participating.


Summaries of

Woods v. Barber

Supreme Court of Arkansas
Jan 28, 1974
504 S.W.2d 355 (Ark. 1974)
Case details for

Woods v. Barber

Case Details

Full title:PAULINE WOODS (PARRISH) v. JAMES E. BARBER AS ADMINISTRATOR OF THE ESTATE…

Court:Supreme Court of Arkansas

Date published: Jan 28, 1974

Citations

504 S.W.2d 355 (Ark. 1974)
504 S.W.2d 355