Boyd's Sureties v. Oglesby

Citations

• 23 Va. 674

Syllabus

<p>1. An administrator is invested bv law with full dominion over the assets, and with full discretion for the liquidation and settlement of all claims due to or from the estate. He may make settlements and compromises with creditors, and give them confessions of judgments.</p> <p>2. An administrator of a deceased partner may settle and compromise with the surviving partner, with a view to the interest of the estate he represents. And if he acts fairly, in good faith, and with a due regard to the interests of the estate, the distributees will be bound by his acts, and he will be protected.</p> <p>3. The fairness.of a contract, like all its other qualities, must be judged of as at the time it was entered into.</p> <p>4. The administrator of O, a deceased partner, who had the sole management of the business of the concern, is employed by G-the surviving partner, to wind up the partnership affairs]; and after the input capital is returned, he enters into a contract with G to allow the latter a certain sum for his share of the net profits; and G. relinquishes to the administrator all the remaining assets of the partnership. At the time this contract is made there is a large claim in suit against one of the debtors of the firm, who sets up a payment of $1,000 as having been made to O; but which he had not entered on the books of the concern; and this contest delays the trial of the case, until the debtor who was solvent when the contract was made, becomes insolvent; and then the credit is allowed by the jury, and a verdict and judgment for the balance. Held :</p> <p>1. The verdict and judgment is conclusive that the debtor was entitled to the credit.</p> <p>2. It being owing to the conduct of O, the deceased partner, that the administrator and surviving partner were, not informed of the true state of the account when the contract between them was made, and also that the delay in the suit occurred; in estimating that contract the estate of O is to be charged with the §1,0