Hoyt v. Sprague - 103 U.S. 613 (1880)
U.S. Supreme Court
Hoyt v. Sprague, 103 U.S. 613 (1880)
Hoyt v. Sprague
103 U.S. 613
1. If the executor of a deceased partner consents to the surviving partners' continuing the business with the assets of the firm, his lien on property thereafter acquired will be postponed to that of creditors, when a case arises for an equitable marshalling of assets, as where the surviving partners make a general assignment for the benefit of creditors.
2. In such case, the beneficiaries of the deceased partner's estate cannot have priority over the claims of creditors upon the partnership assets.
3. The property of minors, equally with that of adults, is subject to the lex rei sitae, though the minors reside in another state or country. The local law may provide for the guardianship of such property, and for its administration and investment. By comity only will anything be conceded to the claims of the guardian of the domicile, although it is usual, by comity, to appoint, if due application be made for that purpose, the same person guardian who was appointed by the domiciliary court.
4. In the absence of constitutional restraint, the legislature may pass special laws for the sale or investment of the estates of infants or other persons who are not sui juris.
5. Where an executor and guardian in Rhode Island, by virtue of such a special law and by order of the probate court, conveyed the property of infants to a manufacturing corporation, by way of investment in its capital stock, held that the conveyance and investment were protected by the law, and that no account could be demanded except for the stock and its dividends.
6. Where minors were interested in a manufacturing establishment, as beneficiaries under a deceased partner, and the administrator, who was also their guardian, without any fraud, but with entire good faith, allowed the business to be continued by the surviving partners for several years without filing any inventory or account, and the property suffered no deterioration, but increased in value, and was then, by virtue of a special law, transferred to a corporation created for the purpose, and the beneficiaries, after that, for more than seven years subsequently to coming of age, received dividends on their share of the stock and annual stated accounts, held that by reason of such acquiescence, they could not sustain a bill in equity for an account of the estate.
The facts are stated in the opinion of the Court.