Ainsworth v. Bank of California

Citations

• 119 Cal. 470
• 51 P. 952
• 1897 Cal. LEXIS 923

Syllabus

<p>Estates of Deceased Persons—Action by Executor—Deposit in Bank by Decedent—Note of Depositor Accruing after Death—Compensation ■of Cross-demands—Counterclaim.—In an action by an executor to recover from a bank the amount of a deposit made by the decedent, the hank has the right to claim as against the executor a compensation ■of cross-demands by credit of the amount of the deposit upon a note for a larger sum made by the decedent to the bank in his lifetime, .and which accrued subsequently to his death and prior to the commencement of the action, the demands being deemed compensated so far as they equal each other, under section 440 of the Code of Civil Procedure; and has the right also to plead the note as a counterclaim to the action by the executor to recover the amount of the deposit, under sections 437 and 438 of the same code, the note being a matured claim upon contract existing at the commencement of the action.</p> <p>In.—Title of Executor or Administrator—Relation—Subjection to Counterclaim—Balance of Mutual Demands—Purpose of Law—The title of an executor or administrator to the assets of the estate takes effect by relation from the death of the decedent, but it passes subject to any right of setoff or counterclaim existing in favor of a creditor of the estate; and the purpose of the law in adjusting mutual demands in favor of the estate and of a claimant against it, is to ascertain the balance existing, and to give both to the claimant and to the estate the benefit of all just setoffs, whether the estate be solvent or insolvent; and claims not liquidated and debts absolutely due, though payable in future, are to be included in the adjustment, and the balance found upon such adjustment is the only debt remaining.</p> <p>In.—Construction of Code — Effect of Death before Maturity of Demand—Offset against Executor. — The statute of setoff relates to the situation of the parties at the commencement of the action; and the death of one of the parties to the d