31 S.E.2d 483 | Ga. | 1944
1. A judge of the superior court, in the exercise of his discretion, may vacate an order previously passed during the same term consolidating two separate cases pending therein.
(a) No abuse of discretion in so doing appears in the instant case.
(b) The order of consolidation, which was entered on motion of the plaintiff, affecting two cases, one numbered on the trial court calendar as 136,606, and the other as 136,607, and containing a recital that "said consolidated cases shall proceed under No. 136,606," did not amount to a voluntary dismissal by the plaintiff of case No. 136, 607, said motion to consolidate not asking that the two cases proceed under the one or the other.
2. The instant suit being one by a wife against her husband to compel him as trustee to account to her for certain sums of money belonging to her as a part of her separate estate, among them being a sum received by her from an insurance policy on the life of her father, she being the beneficiary named therein, the court's refusal to submit to the jury the question whether the defendant had paid certain insurance premiums on said policy was not error, where the record shows neither an averment nor evidence that the husband paid the same under any contractual agreement with the wife.
3. Whenever a husband, with or without the wife's consent, acquires from her money which is her separate property, he must be deemed to hold it in trust for her benefit, in the absence of any evidence that she intended to make a gift of it to him.
(a) The transaction does not make the husband a naked depositary, although when the wife delivered such money to him there was no agreement or understanding that it would be invested and reinvested by him for her benefit.
(b) Nor did the absence of any such agreement or understanding make the husband liable to the wife merely as for money had and received, so as to cause no interest to accrue until a demand by her for payment and a refusal by him.
4. Where a husband acquires from his wife money belonging to her separate estate under circumstances such as the law would imply that he received the money in trust for her, and, when called on to account, fails to do so, and it appears that, immediately upon receiving the money, he converted it to his own use, and mingled it with his own funds, he also is liable to her for interest from the date of such conversion. *270
5. In an equity case, where the jury is instructed to render a special verdict consisting of answers to certain questions submitted to them, the judge should submit only such issues as will enable him to render a decree from the verdict, the pleadings, the admissions of the parties, and the undisputed facts.
(a) The general rule, that a decree must follow the verdict on which it is founded, does not require that no decree be rendered unless the verdict contains all the facts upon which it is founded.
(b) If, in an equity suit, the jury's special finding includes one to the effect that the plaintiff is entitled to recover from the defendant a named sum, and their finding is silent as to interest, it is the duty of the judge in framing a decree to award interest from such date as the law would fix, in view of what is contained in the pleadings, the admissions made by the parties, and the undisputed evidence.
6. Objections to the submission by the judge of questions to the jury for the rendition of a special verdict under the Code, § 37-1104, can not be made for the first time in a motion for new trial.
7. The gravamen of the complainant's case being that her husband received from her funds belonging to her separate estate under circumstances such as the law would imply that he held them in trust for her, and the evidence being sufficient to support such a contention, the verdict and decree in her favor will not be set aside by reason of the fact that she alleged but did not prove that her husband received the funds under an agreement and understanding that he was to invest and reinvest them for her benefit.
8. In a case of this character, the statute of limitations does not begin to run until there has been an account rendered, accompanied by an offer to settle, a refusal upon demand to settle, a notice of adverse claim, an express repudiation of the fiduciary relation, such a change of circumstances of the parties as would be reasonably calculated to put the wife on notice that the relation is no longer recognized, or something to indicate to a reasonably prudent person that the relation has ceased, in which case the law would presume a demand after the lapse of a reasonable time.
9. Where the testimony of a party to the suit is conflicting, the conflicts therein will be resolved against him.
10. The verdict was supported by the evidence, and the trial judge did not err in refusing to grant a new trial to the plaintiff in error. Nor was the decree erroneous for any of the reasons assigned.
1. Did cash money in the sum of $3917.78, referred to in the amendment to paragraphs 6 and 9 of the plaintiff's petition, belong to the plaintiff, Mrs. E. W. Allen, as a part of her separate estate at the time the defendant, E. W. Allen, received the same? Answer: Yes.
2. If you answered question 1 to the effect that said money was the property of the plaintiff, Mrs. E. W. Allen, did Mrs. E. W. Allen deliver said money to the defendant, E. W. Allen, upon the understanding between them that said money was to be invested and reinvested by E. W. Allen for the benefit of the said Mrs. E. W. Allen? Answer: No.
3. Upon what date was said sum of $3917.78 received by the defendant, E. W. Allen? Answer: November 24, 1917.
4. If you answered question 2 in the affirmative, that is, that said money was delivered with the understanding recited, was there any understanding between said parties that said money, or investments therefrom, would be returned to the plaintiff, Mrs. E. W. Allen, at any specified time? Answer: No.
5. State whether or not the plaintiff made a demand upon the defendant for said sum of $3917.78, as alleged in the plaintiff's petition. Answer: Yes.
6-A. If you answered that such a demand was made, was such demand refused by the defendant, E. W. Allen? Answer: Yes, November 28, 1941.
6. Did the two parcels of real estate on Indiana Avenue, described in paragraph 6 of the plaintiff's petition, belong to the plaintiff, Mrs. E. W. Allen, as part of her separate estate on June 11, 1920? Answer: No.
7. For what amount of money were said properties sold on June 11, 1920 — that is to say, what was the gross purchase-price of both lots? Answer: $5000.
8. State the amount of real-estate commissions, if any, paid out of the gross purchase-price on the sale of the above-mentioned lots. Answer: $500.
9. Were the proceeds of the sale of said two lots (that is, the *272 total purchase-price less commissions) received by the defendant, E. W. Allen, upon the understanding between him and the plaintiff, Mrs. E. W. Allen, that said money was to be invested and reinvested by E. W. Allen for the benefit of the said Mrs. E. W. Allen? Answer: No.
10. If you answer question 9 in the affirmative (that is, that said money was delivered with the understanding above recited), was there any understanding between said parties that said money, or investments therefrom, would be returned to the plaintiff, Mrs. E. W. Allen, at any specified time? Answer: No.
11. Was a demand made in behalf of the plaintiff, Mrs. E. W. Allen, upon the defendant, E. W. Allen, as alleged in paragraph 13 of the plaintiff's petition as amended? Answer: Yes, November 18, 1941.
12. If you answer that such a demand was made, was such demand refused by the defendant, E. W. Allen? Answer: Yes.
13. Can said original monies of $3917.78, and the proceeds of the sale of the aforesaid two lots of land be traced into present monies or properties in the possession of, or standing in the name of, the defendant, E. W. Allen? Answer: No.
14. Were said sums of $3917.78 and said proceeds of sale, or either of them, used to purchase capital stock in Verday Mills and Corley Mills Inc.? Answer: No.
15. Do you find in favor of the defendant on the pleas of the bar of statute of limitations, filed in this case by the defendant, E. W. Allen? Answer: No.
After the jury had answered these questions and their answers had been read in open court, the judge stated: "I am unable to tell whether the jury understood or did not understand the purport of their answers to questions 1 and 2, and I am going to frame one additional question and ask the jury to retire and answer that question, in order that I may determine what the jury has in mind, and will do so without any statement or request from either counsel or without making any statement to the jury as to what interpretation the court might give on the verdict which it has already rendered. If you gentlemen will wait just a minute, I will write this question out and ask you to retire and answer it. I am adding it on this paper as question 4 (a). Gentlemen, the question I have is: `Do you find that plaintiff Mrs. E. W. Allen is entitled *273 to recover from defendant Allen said sum of $3917.78 in this case?' I think that, if the jury will retire and answer that question, I can better interpret this answer." The jury retired, and returned the following answer to the last question, "Yes." Thereupon the judge entered the following decree: "The jury having rendered a verdict finding in favor of the plaintiff and against the defendant in the sum of $3917.78, it is ordered, considered, and adjudged, that the plaintiff have and recover of the defendant said sum of $3917.78 principal, together with interest thereon from November 24, 1917, to this day in the sum of $7184.86, with future interest on said principal sum at the rate of seven per cent. (7%) per annum. This 4th day of February, 1944."
The defendant filed written motions to amend the decree, to modify the decree, and for a new trial (later amended), all of which were denied; and he excepted. The nature and grounds of these several motions are stated in the accompanying opinion, which also refers to so much of the evidence as is pertinent to the issues here presented. The defendant also excepted to an order vacating one theretofore entered consolidating the present case with a pending divorce suit filed by Mrs. Allen against him, and to the refusal of the court to dismiss the present action after its consolidation with the other case.
1. This case presents a number of questions. The first assignment of error is based on an order of the trial court, dated December 9, 1943, vacating one granted on November 23, 1943, during the same term, consolidating the instant case with a libel for divorce which was also pending in the same court between the same parties, Mrs. Allen being the plaintiff. The second assignment is founded on the refusal of the court thereafter to dismiss the case. Both may be considered together, since they involve the same contention, which is that the first order, granted on the motion of Mrs. Allen, consolidating the cases, was in effect a dismissal of the present suit, the order of consolidation directing that said cases proceed under "No. 136, 607," which was the divorce action. Simpson v. Brock,
2. Before the case proceeded to trial and before the introduction of any evidence, counsel for Allen submitted to the court in writing a number of questions, asking that the jury be directed to answer them specifically. Among the questions so submitted by his counsel were the following: "1. Did E. W. Allen pay the insurance premiums on the life-insurance policy of Basil M. Woolley from 1905 to the date of the death of Basil M. Woolley in 1917? 2. If your answer to the preceding question is `Yes,' what was the amount of these premiums?" The court refused to submit these two questions to the jury, and error is assigned on this refusal. The plaintiff in error raises the same issue in a motion to modify the decree, and in one of the special grounds of his motion for new trial. In each of the several methods of attack, the fundamental question is, whether or not under this record Allen is entitled to receive credit from Mrs. Allen for the insurance premiums paid by him on a policy of insurance issued on the life of Dr. Basil M. Woolley, Allen's wife, the daughter of Dr. Woolley, being named as the beneficiary therein. The evidence shows without dispute that Allen paid $2355.36 from the year 1905 until the death of the insured in 1917. Allen testified as to a quarrel between his wife and her father, at which time the $5000 insurance policy was mentioned, and an agreement was entered into between Allen and her father with reference thereto, Allen's testimony being as follows: "I will endeavor to state what the conversation was. The best that I can say was that I was to take over the policy and pay the premiums and carry it as an investment for my own benefit. I remember Mrs. Allen was not present. At the time that that was said about the premiums on the $5000 policy, that I was to keep up the premiums on the policy, I told Mrs. Allen that I was paying the premiums on the policy. I told her I was carrying it for my own investment. I can't recollect the exact words that Dr. Woolley said about my carrying it. I *276
had the policy at that time; it was delivered to me in Woods White's office. Mrs. Allen never had the policy in her possession. I do not recollect how much the premiums were that I paid on the policy. I paid every one of them down to 1917. I owned at that time the property on St. Paul Avenue. The policy I was to take over was the $5000 policy. No one else paid a dime on the premiums on that $5000 policy, that I remember, from 1905 until Dr. Woolley died." His contention, as developed by his testimony (the pleadings as to this being silent), was not that the policy belonged to Mrs. Allen and that he, Allen, claimed a lien on it because of having paid the premiums, but that the policy became his and that he was carrying the same as an investment for his own benefit. As further contradicting his present position, that, in an accounting with her, she should be charged with the premiums paid by him, there was in evidence a suit filed by Allen against the executrix of Dr. Woolley to recover these premiums from his estate, said suit containing an allegation that the sum so paid out by him was expended for and in behalf of Dr. Woolley. Allen's testimony shows that he knew that his wife was the beneficiary named in the policy, and that she executed no assignment of it to him. There can not be gathered from this record any evidence that there had been an agreement between Mrs. Allen and her husband that there should be an immediate change of ownership, and therefore nothing to treat it as an equitable assignment. Jones v. Glover,
3. The plaintiff in error excepted to the decree in so far as it provided that Mrs. Allen should have a judgment, not only for $3917.78, but also for interest thereon at 7 per cent. per annum from November 24, 1917. The jury had found that said sum was a part of the separate estate of Mrs. Allen at the time he received the same, to wit, on November 24, 1917. The undisputed testimony showed that it was not turned over to him as a loan or as a gift. It also showed without dispute that as soon as he received it he appropriated it to his own use, claiming it as his own, and mingling it with his own funds so that it could not be traced. There is nothing in the evidence to indicate that Mrs. Allen knew that he had converted the money, nor that she made any demand upon him to account until the day the present suit was filed. Allen testified that she never laid any claim to the money until her attorney presented her demand to him immediately before the institution of this action. The jury made no finding as to interest. Counsel for Allen take the position that, since she alleged that she turned this money over to him to be invested and reinvested by him for her benefit, and since the jury found that it was not delivered to him upon any such understanding, the effect of the jury's finding, that this money belonged to her as a part of her separate estate at the time Allen received it, was not to make him an implied trustee for her, but that the transaction simply created him a naked depositary, and therefore he was not liable for interest thereon until after a demand on him and his refusal to repay. "Whenever a husband acquires the separate property of his wife, with or without her consent, he must be deemed to hold it in trust for her benefit, in the absence of any direct evidence that she intended to make a gift of it to him." *278 Barber v. Barber,
Every statement in an opinion is not to be condemned as unsound merely because it may be classed as obiter. There is many a dictum in the books which can not be successfully assailed. Furthermore, it must be remembered that the opinion, though presented by a single judge, nevertheless is the opinion of the court, and those who concur therein stand sponsor for its contents. Although not compelling as a precedent, yet if it emanates from an able and careful judge, the chances are that the expression is a sound one. If one were seeking light as to what the law is, he would be bold indeed not to give weight to an expression from a legal luminary, although it may be on a point not necessary to a decision of the case in which such expression occurred. The meteors that form in mere space, and, proceeding out of order, so to speak, dash athwart the skies, are sometimes more illuminating than the fixed stars. It is difficult for a judge in expanding a legal proposition to prevent some dicta from occasionally slipping into the discussion. This is frequently but the overflow of a mind surcharged with knowledge on the general subject before the court. The quotation above given from Barber
v. Barber is found in the headnote. It is not developed in the opinion. To "acquire" sometimes means to become the owner of property; to make property one's own. 1 Words and Phrases (Perm. ed. 640). When given this rendering, we apprehend that no well-founded criticism could be lodged against the soundness of the pronouncement, even though it be obiter. See the following cases, which accord with the statement in the Barber case:Maddox v. Oxford,
In Garner v. Lankford,
4. Having received his wife's money under circumstances such that the law will imply that he took it in trust for her, when called on to account for it, from what date does interest commence to run? The money was placed in his hands on November 24, 1917. He at once mingled it with his own funds. He denied that it ever was her money. The jury found otherwise. He converted it to his own use on the day he received it. From that moment there was a breach of the trust. The Code, § 57-107, is as follows: "In the absence of an agreement to the contrary, interest shall not run until default; hence where money can be recovered because of mistake or other like reasons, no interest shall run until after demand and refusal to refund." This section first appeared in the Code of 1895. It was codified from a decision of this court, to wit, Georgia Railroad Banking Co.
v. Smith,
In Anderson v. State,
Certain legatees of Story brought suit against the executor of Davidson, he being Story's executor, for an accounting. After holding that the plaintiffs could recover an item representing attorney's fees, which Davidson had paid to himself, the question arose as to the date from which interest should be charged. The court, in Davidson v. Story,
Newman v. Thompson,
Bank of Waynesboro v. Walters,
In each of the three cases last referred to, the defendants were in reality trustees. It was a breach of their trust when they appropriated the money to their own use, just as here Allen commenced to treat his wife's money as his own as soon as he received it, and so mingled it with his own funds that it could not be traced. The foregoing decisions are in line with what has been ruled by the courts of other states, to wit, that the trustee is chargeable with the legal rate of interest from the date of the breach of the trust. State ex rel. Raskin v.
Shachat,
5. It is urged upon us that, regardless of what the law generally may be as to the recovery of interest from the date of the breach of the trust, it was error here to include it in the decree because the jury did not so find. Here is the jury's finding: "4(a) Do you find that plaintiff, Mrs. E. W. Allen, is entitled to recover from defendant Allen said sum of $3917.78 in this case? Answer, Yes." The other questions and answers, which became a part of the jury's verdict, make it clear that "said" sum of $3917.78 was the proceeds of certain insurance policies on her father's estate payable to her, which Allen received on November 24, 1917, and for which she made a demand on him, as alleged in her petition, and the demand was refused on November 28, 1941. Counsel for *283
the plaintiff in error cite Miller v. Georgia Railroad Bank,
The Code, after making a provision for special verdicts in equity cases, declares that, "Upon the special verdict of facts, so rendered, the presiding judge shall make a written judgment and decree in said cause under the law applicable to the same." § 37-1104. This section was codified from the act approved February 23, 1876 (Ga. L. 1876, p. 105), and follows the exact language of the statute. Section 37-1201, which declares that, "A decree is the judgment of the judge in equitable proceedings upon the facts ascertained," is of earlier origin. Its parentage may be traced to section 4122 of the Code of 1863, which states that, "A decree in chancery is the judgment of the chancellor upon the facts ascertained." The section last noticed does not read, "upon the facts ascertained by the jury." Nor does the one first referred to mean that the decree can go no further than to deal with nothing in the case except such facts as are contained in the special verdict. In Peppers v. Peppers,
It was further argued that the decree as to interest is erroneous, in that for a part of the time, under a suit filed by Mrs. Allen against him, Allen was enjoined from changing the status or from disposing of any of his property belonging to him, except a reasonable amount necessary for his living expenses. Counsel's argument as to this is, that Mrs. Allen, having secured a court order of the above nature, ought not to have him penalized by paying interest to her, since by her own action she has tied his hands. The order and the petition on which it is based would not, we apprehend, *286 be construed by any court to prevent him from paying Mrs. Allen, since the very object of her suit was to compel payment to her out of his assets. There is no merit in this contention.
An additional insistence of counsel for the plaintiff in error is, that to allow interest would be to decree contrary to the finding of the jury, and this can not be done. Law v.Coleman, supra. The finding in answer to question 4(a) that the plaintiff was entitled to recover from the defendant $3917.78, with the other specific finding that he received this sum from the plaintiff on a day named, was not a finding against interest. In Mayor c. of Savannah v. Champion,
In the motion to modify the decree, several other distinct reasons were urged why it was erroneous to include interest thereon. All of these have been considered, and the points so made must be ruled adversely to the contentions of the plaintiff in error, on application of the principles of law already referred to. This is true also as to the assignment of error on the decree itself. It was not erroneous to include in the decree the provision as to interest.
6. The final assignment of error is to the overruling of the motion for new trial as amended. Complaint is made therein that the judge erred in submitting to the jury question 4(a); that the answers to the original questions demanded a decree in favor of the defendant; and that the last question contained an intimation by the court and tended to influence the jury. Objections to the *287
submission by the judge of questions to the jury for the rendition of a special verdict under the Code, § 37-1104, can not be made for the first time in a motion for new trial. City ofAtlanta v. Carroll,
7. It is urged in the motion for new trial that the plaintiff did not prove her case as laid, in that she alleged that her money was delivered to Allen with the understanding that he was to invest and reinvest it for her, whereas the jury found that she did not deliver it to him with such an understanding. The gravamen of Mrs. Allen's case is that her husband received from her funds belonging to her separate estate under circumstances such as the law would imply that he held the funds in trust for her, and that he converted them to his use. While understanding as to investment and reinvestment of the funds for her benefit would perhaps be an appropriate allegation, if true, still under the authorities heretofore cited he is liable to her with or without such understanding. In the recent case of Sewell v.Anderson,
8. It is urged in the motion for new trial that the evidence demanded a finding in favor of the plea of the statute of limitations. When the case was here on demurrer (Allen v.Allen,
9. It also was urged that the verdict can not stand because the uncontradicted evidence showed that Allen purchased stock in certain mills. This contention is not borne out by the record. The defendant's own testimony as to this was contradictory, and he was the only witness who testified on the subject. CompareStepp v. Stepp,
10. The verdict was supported by the evidence, and the judge did not err in refusing a new trial. Nor was the decree erroneous for any of the reasons assigned.
Judgment affirmed. All the Justices concur.