Federal Farm Mortgage Corp. v. Sandberg

Harold Sandberg died testate in 1939, and his widow Marion G. Sandberg was appointed executrix of his estate. Thereafter plaintiff presented two claims against the estate, which were allowed and approved. One was secured by a deed of trust on the real property owned by decedent; the other was unsecured. The sole beneficiary of decedents will was Marion Sandberg. In 1940, before the distribution of the estate, she assigned all her interest therein to defendants Mr. and Mrs. Von Piontkowski. In July, 1944, she filed a document entitled "Waiver of First and Final Account; Report of Executrix; Petition for Distribution; Petition for Attorney Fees." She erroneously stated therein that both of plaintiffs claims were secured by the only assets of the estate, the real property involved in this action, and that "there are no claims presented or allowed in the within entitled Estate that remain unpaid or unsecured at the present time." Neither of the claims had in fact been paid. The probate court entered its order approving the final report and distributing to the Von Piontkowskis "All of the right, title, and interest of said decedent and his estate in and to" the real property. The Von Piontkowskis sold the property to defendant Vedder.