Citation Numbers: 30 Del. Ch. 623
Judges: Carey
Filed Date: 5/11/1948
Status: Precedential
Modified Date: 9/8/2022
The sole argument for the administrator is based upon
In the Boyer case, the furniture and household goods of the estate were sold at private sale to a daughter of the deceased at the appraised value. The court held: (1) the appraisement is prima facie evidence of the true value; (2) the administrator had legal title to the personalty and could pass title to a purchaser at private sale; (3) the administrator was bound to use reasonable care and diligence to obtain the best possible price and would be liable for any loss to the estate occurring by reason of a private sale for less than its fair value, even though it was so appraised; (4) prudence dictates that such property be sold at public sale after due notice. The exception was denied, however, because the court was not satisfied that the goods were actually worth more than the appraisal and sale price.
It will be noticed that the court was there speaking of furniture and household goods and indicated that the prudent way to sell such property was by public auction. Its words should not be construed to mean that this method is prudent under all conditions and as to all kinds of personalty. There is no case in this State wherein a court has laid down any hard and fast rule to govern the method of sale of all kinds of personal property nor does any case go so far as to say that an administrator will be absolutely
There is a suggestion in the brief of the exceptants that a sale of stock through a recognized broker on the market may in effect be a public sale. Present needs require no examination of that point. Certainly a stock listed on a recognized exchange and traded almost daily (as appears to be the case with this particular stock) has a ready market, and even though its price fluctuates to some extent, it is usually possible to learn how much it can be sold for on any given day, at least within the limited range of a dollar or two. The expense of selling it in that manner is negligible. An administrator who disposes of stock in that manner within a reasonable time after his appointment would hardly be subject to criticism; that is the customary way by which prudent persons sell listed stocks.
In the present petition, there is no specific charge of fraud or bad faith and the facts alleged do not necessarily present such a case. The real question here is whether the administrator’s course was that of a prudent man. In my opinion, it was not. The appraisement made and filed before the sale was obviously based upon market quotations.
There was no undue delay in making this sale, and if it had been made, properly, a price of $4624.25 or more would have been obtained, depending upon the date of sale.
It happens that the lowest market price of the stock during the period in question existed on the very day the actual sale took place. The appraised value was only $.25 per share more than that lowest market quotation. I can conceive of no theory by which the administrator could be justly criticized if he had sold on the market that same day at the price of $87.25. Our courts have often relied upon appraised value in cases of surcharge, but here we have a better yardstick than the appraisement. It seems equitable in this instance that the amount of the surcharge should be the difference between the figure actually received and the aforesaid sum of $4624.25, that difference being the amount of $4044.25.
An order should be submitted requiring the administrator to include this sum in his next account and requiring him personally to pay the costs of these exceptions.