The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1894-04-28
JUDICIARY JoTTINas.
Supreme Court Decision in the Ban
ming Estate Matter.


ming Estate Matter.
An all day session Of the Councils
OBTAINING the BULLETINS regular
judiciary reporter, besides crowding
our columns, prevented more than q
bare mention of the decision Of the
Supreme Court in the Banning
estate matter. As the pleadings and
evidence were published in this
paper, our readers will be interested
IN the final outcome Of the case.
Hon. Paul Neumann, who sat on the
bench in place of Justice Frear. who
was disqualified, is author OF the
decision. Justice Bickerton dis
scuted from the decision in one
particular. Below is the syllabus Of
the decision, showing the points OF
law settled:
Where a trust is created by will
wherein the executors were required
to invest the estate and pay the in
come over to benaiiciaries, the
administrator with the will annexed.
appointed IN place Of the executors
on their resignation, has the same
duties, powers and responsibilities
as the executors.
The statute Compiled laws D..
l2l) in force at the time the first ac-
count was presented for approval al
lowed commissions to the admins.
traitor "for receiving and paying out
moneys" The administrator re.
ceived i. q. collected the assets Of
the testator and invested them.
Held. this was such receiving and
paying out Of mou " as entities the
administrator to the commissions &C.
cording to- the said statute.
Annual accounts submitted to
the Probate Court before the final
account upon the termination of the
trust, may he examined for the
purpose OF correcting errors.
"a trustee clothed with discretion
airy powers cannot delegate this dis
erection to an agcut. IL he does so
he becomes responsible for any loss
that may result thrrefrom.
A receipt given by a beneficiary
Tor his share OF the estate does not
eslop him from snasonably reject ing
a security taken by him when the
defect OF title OF the property So.
cured was overlooked and unknown
to him at the time.
"The administrator took n chattel
mort gage upon q leasehold depend
ent upon n life estate. not having
discovered this defect, which could
readily have been ascert ained by
enquiry. Held this was a want Of
diligence on the part of tn. admins.
TRAITOR, aud hs il answcrable for any
loss arisiI.S therefrom.
Held, Bickertnn, j., dissenting.
that an offer by an admiDi,t ratur Ia
pay n distributiye share in money.
which wa not accepted by the benr
hciary, but who elected To receive
tn" invest mcnts does not relieve the
administrator from liability caused
by defcctiv. till. ia the invest men,
selected.
mo statue exists in this country
limiting the class Of securities in
which trust funds may b. invested.
Til" Court cannot undertake. to iii
rect what securities only a trustee
may invest IN 80 ~ H. .xuurratr
h!in in ease Of loss. This would
tr'uch upon legislative functions.
I'll u required 81 u truste. ia max
iug Investments that he .xercis"
that prudence which is used by men
IN 'h" investment II their own funds
having regard not only la tn" inter.
est to be made, but To- the security
Of the principal aud To tn. perma
u"ncy az the Investment. he must
act with honesty, prudence, faithful,
ness aud with u sound discretion"
The decision rev-r>cs the decision
and deer" of Judge Cooper in the
Circuit Court, Mr.. Allen, admins,
TRAITOR, ia a temporary abssnc. dele.
gated his duties to =. VI. Damon
who made some Of til. invest meuts
This the supreme Court finds he
could not legally do. The admins
TRAITOR Is held responsible for I'll,
disastrous investments in Onion
Iron Works, Sea, Il" bonds and Fai
k"e chattel NOR gage. lie has Ia
accept conveyance, al those s.curi,
ties from til" bcnriiciaries.
4, :. Harlwcll aud W. A. Kinney
for the beneiiciaries: +. VI. Hatch
Tor the administrator.