Willinger v. German Bk. of Balto.

Constable, J., delivered the opinion of the Court. It appears from the papers filed in this cause that Louis J. Willinger, prior to- his death in July, 1912, was engaged in the coal and wood business; that at the time of his death he was indebted to the German Bank of Baltimore City in the amount of $19,500; that by the terms of the last will and testament of the said Willinger he devised and bequeathed all of his estate to his widow, who- had predeceased him after the making of his said will; that he left surviving him nine children, to two of whom, Thomas S. Willinger and Teresa M. Willinger, letters of administration c. t. a. were granted on his estate; that said administrators were unable to- pay the said indebtedness to the German Bank of Baltimore City out of the personal estate in their hands, and applied to- the said bank for renewals of the notes evidencing the indebtedness. ■ The request was refused by the said bank. That, thereupon, with the exception of Giles C. Willinger, an infant, all of the children, including the administrators, entered into an agreement in November, 1912, whereby Thomas S. Willinger and Teresa M. Willinger were authorized, whether acting as individuals or administrators as aforesaid, to continue the said co-al and wood business as theretofore conducted by the said decedent, for the joint benefit and account of all the children; that the request for the extension of said loans for the account of all of the said parties to- the agreement was repeated, and upon the strength of said agreement and application said renewals were made. On the 22nd day of December, 1916, the administrators aforesaid filed a petition in Circuit Court No. 2 of Baltimore City, by which it appears that the estate which they were administering and conducting under the agreement we have ²³⁹ above mentioned was in financial distress, and asked, because of that distress, that the Court assume jurisdiction of the further administration of the estate, and further praying1 that they might he authorized to continue the business for a limited time.

The Court passed an order assuming jurisdiction, and authorized the petitioners to continue the business of the said decedent for a period of thirty days. After the expiration of the thirty days limited by tbe Court for a continuation of the business of Louis J. Willinger, the German Bank of Baltimore City filed its bill of complaint, setting out therein most of the facts we have set out above, including in its allegations that the administrators were unable to pay the indebtedness due them out of the personal estate in their hands, and the application for renewal of notes and its refusal and its subsequent granting of the request for renewal; and further alleged: “That from time to time after said renewal had been made other loans were made to the said respondents herein * * * until the indebtedness to your orator aggregated the sum of $16,750.00, which said amount is now due to it by tbe said respondents herein, and by the estate of tbe said decedent as to $14,500.00 thereof. And your Orator is advised and avers that, under and by virtue of said agreement, the parties thereto, together with said administrators, are indebted to them as co-partners in the aforesaid sum of $16,750.00.” That judgments wore about to be entered in suits to which no defenses were offered, and that the plaintiff's therein were only prevented from securing such judgments by 'the intervention of a court of equity restraining them from so securing. That other creditors were about to institute proceedings against them unless indebtedness due to them is promptly liquidated.

That the respondents are indebted in an amount approximating $46,000.00, of which amount the respondents have, in cash, less than $1,000.00; and that the personal estate of the decedent is wholly inadequate to meet the debts ²⁴⁰ against the administrators; and that it is necessary that the real estate of the decedent should be sold in order to- pay said debts. That unless receivers be appointed to take charge of the assets left by the said decedent a great loss will be made in the course of the next few months in an attempt to fulfill contracts which have been taken at a loss, and that the assets of the estate will be considerably diminished, and to a very large extent lost; and that creditors who have already instituted suits on their claims, and those who may subsequently institute suits, will obtain judgments and execute upon the property of the respondents and sell the same and cause needless sacrifice of the assets of the estate. That the injunctions granted upon the petition of the administrators only protected the personal, and not real, property left by