Legal Definitions - de bonis propriis

De bonis propriis is a legal term referring to a judgment that holds an individual personally responsible for financial losses or damages that occurred due to their mismanagement or misconduct while acting in a fiduciary capacity, such as an administrator or executor of an estate.

When a court issues a judgment de bonis propriis, it means that the individual, rather than the assets of the estate or trust they were managing, must pay for the damages or losses out of their own personal funds. This typically happens when the individual has breached their legal duties, acted negligently, or misused assets entrusted to their care.

Here are some examples illustrating when a judgment de bonis propriis might be applied:

• Misuse of Estate Funds: An executor, responsible for managing a deceased person's estate, uses a significant portion of the estate's cash to pay off their personal credit card debt. When the beneficiaries discover this misuse, they sue the executor. A court could issue a judgment de bonis propriis, ordering the executor to repay the misappropriated funds from their personal savings or assets, rather than allowing the estate to bear the loss.

  This illustrates de bonis propriis because the executor is held personally accountable for their breach of duty and must use their own money to rectify the financial harm caused to the estate.

• Negligent Management Leading to Loss: An administrator of an estate is tasked with selling a valuable piece of real estate. Despite receiving multiple higher offers, the administrator negligently accepts a significantly lower offer from a friend without proper due diligence or appraisal, causing the estate to lose a substantial amount of potential revenue. The beneficiaries challenge this sale.

  In this scenario, a court might issue a judgment de bonis propriis, compelling the administrator to compensate the estate for the difference between the fair market value (or higher offers) and the accepted sale price, using their personal assets.

• Failure to Pay Estate Debts Resulting in Penalties: An executor repeatedly neglects to pay the estate's outstanding tax liabilities by the due dates, leading to significant penalties and interest charges that diminish the overall value of the inheritance for the beneficiaries. The beneficiaries bring a claim against the executor for this mismanagement.

  A court could rule de bonis propriis, requiring the executor to personally pay for the penalties and interest incurred due to their negligence, thereby protecting the estate's assets from their mismanagement.