Gray v. Farmers' Exchange Bank

Citations

• 105 Cal. 60
• 38 P. 519
• 1894 Cal. LEXIS 1110

Syllabus

<p>Estate of Deceased Persons—Action by Administratrix—Recovery of Life Insurance Collected — Defense — Consistency of Answer— • Purchase of Draft.—In an action by an administratrix to recover the amount of a draft for insurance upon the life of the decedent, alleged to have been deposited in the bank defendant merely to be collected for the use of the estate, there is no inconsistency between a denial, for want of information and belief, that the draft was executed for the use and benefit of the estate, and an affirmative allegation in the ’answer that the defendant purchased and paid for the draft, and such affirmative allegation is a defense to the action.</p> <p>Id.—Credit for Private Debt of Administratrix.—Where the evidence shows that the administratrix in her private capacity borrowed money from the defendant bank, and had given her note with surety to the bank, and that the bank in purchasing the draft for the insurance money due to the estate for insurance upon the life of the decedent paid part thereof in cash, and by arrangement with the administratrix credited her upon her own private note to the bank for the remainder of the purchase money, the bank is not liable to an action for the recovery of the money collected from the insurance company in the absence of an allegation that the administratrix was in default to the estate, to the detriment of the heirs or creditors.</p> <p>Id.—Involuntary Trust—Ability of Administratrix to Account— Presumption.—The bank does not become an involuntary trustee of the estate to the extent of the application upon the purchase money of the draft of the private debt of the administratrix to the bank if the administratrix fully accounted, or was able, ready, and willing to account, for the sum for which she was accountable, and it must be presumed, in the absence of allegation or proof to the contrary, that she was thus able, ready, and willing, and that there was no breach of trust upon her part to the injury of the estat