203 Mo. 429 | Mo. | 1907
Plaintiffs filed a bill in equity in the Greene Circuit Court to fasten a trust in their favor on certain real estate in the city of Springfield, Missouri (occupied by defendant, Nester, as tenant), devised by the will of John O’Day, Sr., to certain other defendants, viz: Sue I. Baldwin O’Day, his widow, and his minor children, Catherine, John Baldwin and Thomas K. O’Day, alleging that the other defendants claim some interest — the real estate to be impressed with the trust being described as follows: “A part of lot ten, block two, original plat of Springfield, Missouri, commencing at the southeast corner of said lot ten, thence north on west side of Boonville street twenty-two feet, west 1171/2 feet, thence south twenty-two feet to north line of Olive street, east along north line of said Olive street to Boonville street, the place of beginning. Known as the ‘Mint Saloon Building.’ ”
At hearing, nisi, plaintiffs’ evidence being in, defendants demurred. Their demurrer was sustained and plaintiffs appeal.
A student of the law (Mr. Moore) in Law Notes for March, 1907, p. 225, has written with felicity and judgment on Improbabilities — his data gathered by picking and choosing from the dicta of judges. He points out that Cadwaladee, J., in Snyder v. Ins.. Co., 22 Fed. Cas. 741, says: ‘ ‘ The most improbable things are sometimes true, and the most probable things sometimes don’t happen;” and that Savage, J., in Shepard v. Railroad (Me.), 65 Atl. 20, says: “It is true, in human experience, that almost all things are possible.” It is Byron (was it not?) who philosophizes thus: “Truth is always strange, stranger than fiction,” which is but a paraphrase on the chimney-corner adage that —Truth is stranger than fiction. The French have a saw running in this wise: It is always the impossible
The miserable story of this case may bear such foreword, inasmuch as its dark incidents lie well within the borders of an evil wonderland. While the homespun names of some of the actors have a tang of cabin and native soil, other names carry the memory of the scholar back to the guillotine, the Reign of Terror, and to the spell of the traditions of the First Napoleon— the threads of that story stretching from France to the pine woods of northern Arkansas. The ease is this:
Damas Napoleon Bunel, once (as we infer) a resident of the United States, died in France a citizen of that Republic on December 31, 1887, intestate, leaving one child and the descendants of another and an immense estate, partly in France and partly in the hands of the New York Life Insurance and Trust Company, as trustee, in the city of New York. It seems that fourteen years prior to his death, and again in 1876, he executed to said trust company certain instruments placing in its hands a large amount of property in trust (said to be of a value of $500,000). The trustee had power to collect and receive the income and dividends of the trust estate, and, during the life of Damas Napoleon .Bunel, apply the same to his use. On his dying, the trust estate was to be divided into two equal parts and administered as follows: One part to be kept invested and the income and profits thereof paid over to the daughter of Damas Napoleon Bunel, Marie Antoinette Alker. She, dying, her moiety was to be turned over to her children “per stirpes, share and share alike.” The other moiety was to be kept invested and the income and profits thereof applied to the use of the son of Damas Napoleon Bunel, to-wit, Charles Emile Bunel. Upon the death of Charles Emile, said trustee was to pay over and transfer this moiety to the child or children of him, the said
Marie Antoinette Alker and her husband Napoleon A. Alker resided in Prance. What ill wind blew Charles Emile Bnnel far from home and kindred into the hill country of northern Arkansas, we know not; but in 1872 he was there, apparently living in penury and want, and there married.one Nancy J. Petty on the. 20th day of June of that year — the record showing that thereafter “the said Charles Emile Bunel and his wife Nancy lived in obscurity and indigence in different places in Arkansas and Missouri.” In 1878 a son was born to Charles Emile Bunel and Nancy, his wife —the child being-named Henry Napoleon Bunel, and he is one of the plaintiffs in this case. To poverty-and obscurity was soon added the pinching shoe of marital infelicity and Nancy tired of and left the bed and board of Charles Emile. Later this couple drifted into Ozark county, Missouri, and there on April 28, 1884, Charles Emile brought suit against his spouse for divorce, alleging the following grounds: ‘ ‘ That for more than six years last past, defendant has willfully and without just cause abandoned the bed of plaintiff, and refused to cohabit with plaintiff, as his wife; that defendant unmindful of the duties of a faithful wife, and the affection of plaintiff for her, on or about the — day of January, 1884, committed adultery with a man to plaintiff unknown. That the defendant is now pregnant by said person. That plaintiff has not had knowledge of defendant’s person for about six years; that defendant has at divers times and places committed adultery with other men whose names and which times and places of said acts of adultery are unknown to plaintiff.” On personal service, on the 9th day of June, 1884, Nancy appeared and answered, admitting her marriage but averring herself chaste. At a trial on the same day, the court heard the proofs, found the allegations of the petition true and granted a divorce
It may he said that John O’Day, Sr., died testate on the 31st day of July, 1901; and that the scene now shifts to the United States Circuit Court for the Southern Division of the Western District of Missouri, sitting at Springfield. In that court, prior to the death of John O’Day, Sr., to-wit, in 1901, Henry Napoleon Bunel, as a citizen of France, lodged a hill in equity against John O’Day, Jr., and John O’Day, Sr., as curators of the estate of Mary Earles Kee, and Mary Earles Kee and Henry Kee, her husband, for the purpose of vesting the apparent title of Mary Earles Kee in and to the trust estate in the hands of said curators out of her and into Henry Napoleon Bunel. John 0 ’Day, Sr., was not served in that case. Subsequently, and after the death of John O’Day, Sr., an amended bill was filed against John O’Day, Jr., as sole curator, and Mary Earles Kee and her husband. It seems that Marie Bunel (or Mary Earles) had married a man named Henry Kee (or McKee), and by said amended bill the facts hereinbefore set down were pleaded; and it was further alleged that Mary Earles Kee was not the child of Charles Emile Búnel, but of said Alfred Earles, i. e., was no grandchild of Damas Napoleon Bunel; that when the father and grandfather of Henry Napoleon Bunel died, and he,' a lad, was taken to France, it became noised abroad in Ozark county that, as the son of Charles Emile Bunel, he was heir to a great estate in France and New York City; that (using metaphor by way of illumination) as certain carnivora scent their prey up the wind, the possibilities of the case invited a simulated claim, even as where the car
To the foregoing bill of complaint Alfred Earles made oath that he had heard the complaint read and knew that Mary, the wife of Henry Kee, is not a child of Charles Emile Bunel, but is the child of affiant. To the same effect was the affidavit of Nancy J. Earles. She deposed that she was the mother of plaintiff, Henry Napoleon Bunel, and the mother of Mary Earles Kee, the defendant; that the allegation that Alfred Earles is the father of Mary is true; that witnesses whose testimony was material to establish the fact that Henry Napoleon was the only child begotten of her marriage with Charles Emile Bunel were paid or in some way induced not to give their testimony to- that effect, while other witnesses were induced to falsely swear to a set of given matters falsely showing that Charles Emile Bunel was the father of Mary.
On October 16, 1902, Mary Kee, signing herself, Mary Bunel Earles Kee, made answer to said bill of complaint. By that answer she admitted -she was the child of Nancy and Alfred Earles, who were lawfully married after her birth. She remembers that as a child she was called “Mollie Earles,” and avers that she always knew that Alfred Earles was her father. She admitted in detail the allegations of the complaint charging the wicked practices set-forth therein leading up to the concoction of a fraudulent judgment establishing her legitimacy, though she qualified this by saying that she was but nine years old at the time and had no knowledge of the wrong being done her half-brother. She says: “On yesterday I attained my ma
It was asserted ore terms by counsel, and may be seen by inference in the case, that the foregoing concessions by way of admission were a part of a compromise of the litigation in the Federal court, in which at least a $10,000 deposit (to become Mary’s) figured. It seems that subsequently Mary Earles Kee made ap
It is asserted that the foregoing decree was appealed from by Mary Earles Kee and by John O’Day, Jr., and a settlement made pending such appeal, but such facts do not appear in this record.
On the same day of Mary’s answer to the amended bill in the Federal court, and of her making affidavit to the same, to-wit, October 16, 1902, she executed a quitclaim deed to Henry Napoleon Bunel in consider
“I hereby assign, transfer all ray rights, title, interest and estate in and to all the money, property, or effects due me from the estate of John D’Day deceased, my former guardian and curator; being money and property that the said John 0 ’Day, now deceased, received as my guardian and curator, or as my curator, and all the interest and profits arising therefrom, to the said Henry Napoleon Bunel, giving the said Henry Napoleon Bunel the same right to sue for the same that I have. Also all the money, notes, bonds and evidence of the debt due and held in trust for me by the New York Life Insurance and Trust Company of New York City, in the State of New York.”
Following Mary’s deed to Henry (and on the same day) he executed a warranty deed for an expressed consideration of one dollar to the plaintiff, F. S. Hefferaan, his attorney in the litigation in the Federal court, specifically conveying the property in dispute, with other property, and further assigning and transferring to Mr. Heffernan all his right, title and interest in and to all the money or property “due from the estate of John O’Day, deceased,” the former guardian and curator of Mary Bunel Earles, giving said Heffernan the same right the grantor had to sue for said property or trust fund in any court of law or equity.
Some time thereafter, at a date not fixed by the record, Mr. Heffernan made an examination of the record and it was shown by his oral testimony, over the objection of defendants, that he had made a reconveyance to Henry Napoleon of a half interest in the prop
The trial of the case at bar was in November, 1903,. and Mr. Heffernan testified that Henry Napoleon left the State of Missouri in “February last,” with the understanding that he would be back before the first day of April. There was no record of the conveyance from Heffernan to Henry Napoleon; and on the above state of proof, over the objection of defendants and exception saved, Mr. Heffernan was permitted to give secondary evidence of the contents of this unrecorded deed, presumably in the possession of his co-plaintiff.
Based on the theory that plaintiffs were entitled to an undivided half each in the property in suit, plaintiffs (as said) lodged a bill in equity in the circuit court of Greene county against the defendants. This bill was subsequently amended, and as amended, in substance, pleads that John O’Day was the guardian and curator of the estate of Mary Earles, alias Mary Bunel; that there came into his hands as such guardian and curator $90,000 of money belonging to Mary, then a minor; that on the 7th day of September, 1896, said guardian and curator loaned $10,000 of such funds to Pattie D.
To this amended bill, defendants demurred, generally and specially, and, their demurrer being overruled, they answered, admitting that John O’Day was the guardian and curator of Mary and that defendants are the devisees of said 0 ’Day, but they deny all other allegations, and specifically deny that the Mint Saloon was purchased with the money of Mary Earles. Defendants then, by way of further defense, allege that the conveyance of Mary Earles to plaintiffs was procured by fraud and misrepresentation; that the suit in the Federal court, referred to by plaintiff, is still pending in the Supreme Court of the United States; and that Mary Earles is now claiming that said alleged settlement was procured by fraud. Defendants say that Mary Earles should be made á party hereto.
The last paragraph of the answer, charging fraud in the assignment and settlement, and the pendency of the suit in the Supreme Court of the United States, was struck out on motion, leaving the answer stand on the general issue modified by the specific admissions aforesaid.
In the Probate Court of Greene County, Missouri.
John 0 ’Day, guardian and curator of the estate of Mary Bunel, submits the following account current for final settlement in said estate:
First settlement to inventory from former curator.....$14,508 83
Interest collected on Dorsey note.................. 20 93
By cash disbursed...... $ 2,902 78
Second settlement, to cash from France........... 54,545 00
To interest received .. .. 1,975 00
By cash disbursed...... 7,700 75
Third settlement, to interest collected............... 3,796 15
By cash disbursed...... 2,472 11
Fourth settlement to interest received............... 2,669 40
, By cash disbursed...... 4,054 03
*455 Fifth settlement, to interest collected............... 2,803 31
By cash disbursed....... 22,044 40
Final Settlement.
March, 1900. By cash allowance Nancy Earles..... 40 00
March 8. By cash, H. M. Heckart, for work....... 20 00
March 12. By cash, ward .. 5 00
March 12. By cash, court cost 13 75
March 14. By cash, Mat. Sims, abstract supreme court................. 675 60
March 20. By cash F. S. Heffernan, attorney, making settlement of case in supreme court........... $ 2,000 00
April 1. By cash, Nancy Earles, allowance........ 40 00
April 4. By cash, Reps Dry Goods Co............... 13 75
April 10. By cash, back tax . 128 35
April 10. By cash, back tax ... 71 95
April 10. By cash, back tax .. 62 74
April 10. By cash, back tax .. 37 05
April 10. By cash, back tax .. 3515
April 16. By cash, Jas. Y. Milner, rent............. 250 00
May 3. By cash, Nancy Earles, allowance............ 40 00
May 16. By cash, Mary Bunel Kee, ward............. 200 00
June 2. By cash, Towns & Dean, painting for ward .. 8 35
June 6. By cash, John O’Day, Jr., mdse, for ward .... 15 52
*456 June 6. By cash, Nancy Earles, allowance ......'....... ' 40 00
June 23. By cash, Mary Bunel 150 00
June 27. By cash, Mary Bunel 100 00
July 1. By cash, Nancy Earles, allowance............. 40 00
July 19. By cash, to John O’Day, mdse, for ward..... 81 60
Aug. 1. By cash, Nancy Earles, allowance...... 40 00
Aug. 25. By cash, Davis Planing Mill Co., for repairs .. 40 00
Aug. 27. By cash, Mary Bunel Kee, ward............ 25 00
Aug. 31. By cash, Perry Buchanan, repairs.......... 3 50
Sept. 1. By cash, Nancy Earles, allowance ............. 40 00
Sept. 13. By cash, Mary Bunel Kee, ward.......... 25 00
Sept. 15. By cash, attorney fee for this settlement......• 100 00
Sept. 15. By cash, court costs to date............... 10 65
Sept. 15. By cash, real estate taken under deeds of trust, ete.................. 15,932 00
To interest collected from New York..................$ 815 49
To interest from P. S. Heffernan................. 250 00
To rents collected.......... 176 00
$81,560 11
*457 Disbursements ............ $59,458 85
By allowance defending all suits against the estate and case of management for five and one-half years......... 1,500.00
By spending money for ward . 5 00
April 3, 1900. By cash, J. L. Stewart, in full account .. 42 40
By cash, Error, Mat. Sims account ........,......... 1 80
By cash, notice of final settlement ................, 2 50
By cash, tax 1899 .......... 352 51
By cash, A. C. Cowden, attorney for ward in examining all settlements ...... 200 00
By cash, to ward this date .... 100 00
By cash, O. H. Travers, attorney for.............. 400 00
By cash, Additional costs ... 1 80
$81,560 11 $62,077 36
Balance due estate, bonds, notes and cash.............. $19,482 75
It is agreed on all sides that the item in the foregoing settlement, to wit, “By cash, real estate taken under deeds of trust, etc., $15,932, ’ ’ did not include the Mint Saloon, but did cover real estate purchased in the name of his ward at foreclosure. Plaintiffs’ equities, if any, arise, out of a McElhaney loan, the facts pertaining to which will presently appear with particularity. It is further agreed on all hands that $10,000 of the ward’s estate were loaned tó the McElhaneys. It is contended by defendants’ learned counsel that O’Day charged himself in the foregoing final settlement with the body of the McElhaney loan. Plaintiffs’ learned counsel say contra. Their position is
Attending to the McElhaney loan, it appears that on the 7th day of September, 1896, John O’Day, Sr., as curator of Mary Bunel, loaned Pattie D. McElhaney $8,500 and took her notes to himself as the guardian and curator of Mary for said sum, due in three years, with interest payable semi-annually. At that very time Mrs. McElhaney was indebted to one Mills in the sum of $765, evidenced by a note. As we understand it, it was necessary to protect the Mills note in order to perfect the title to the property, securing the loan; accordingly, the Mills > paper was secured by the same deed of trust securing the loan. This deed of trust was to E. C. O’Day, trustee, was in ordinary form, with power of sale, and conveyed two pieces of property in Springfield — one, known as the First National Bank building, and lot, is the subject-matter of another suit; the other, known as the Mint Saloon, is the subject-matter of this suit. Subsequently, on the 27th day of
Because of the default made “in the payment of taxes, insurance, and interest,” the deed of trust bearing the date of September 8, 1896, was foreclosed by advertisement by E. C. O ’Day as trustee on the 8th day of February, 1898 — eighteen months after its execution. .At that sale John O’Day, Sr., purchased both the properties conveyed by the deed of trust at a gross sum of $14,600, and received a trustee’s deed therefor to himself individually, in which it is narrated that said sum was paid to the trustee by the purchaser. It will be seen that the deed of trust foreclosed secured $8,500 of Mary’s funds and also the Mills note; and it will be seen, further, that here was a surplus (over both the debts) created by this sale, subject to be applied on' indebtedness secured by the second deed of trust and sufficient to wipe out the $1,500 of the ward’s money secured thereby, and leaving a further surplus to be applied on the individual indebtedness of John O’Day, also so secured.
By oral testimony from R. L. McElhaney, the husband of Pattie D., and a son, Homer L., who attended the sale, it was shown that the First National Bank building brought $6,600 and the Mint Saloon $8,000.
It was shown that John O’Day was not a party to the decree in the Federal court. Alive when the suit was brought, he was not served, and when he died pending the suit, it was not revived against his heirs or representatives. There is not ah allegation or a particle of proof connecting him in any way with the frauds leading up to the New York judgment; nor was he a party to that proceeding. There was no evidence tending to show that the Mint Saloon building and the First National Bank building were bought in by O’Day at a speculative value — contra, the indications are that full value was paid for both. There is no evidence there was any surplus at that sale over and above the McElhaney obligations, the Mills note and the secured individual indebtedness of John O’Day. The two Mc-Elhaney notes were put in evidence — one for $8,500, the other for $1,500; and indorsed across the face of
Such was plaintiffs’ case; and on the foregoing record it is insisted there was either a resulting or a constructive trust arising from the facts in proof in favor of Mary Earles; that the devisees in John 0’Day’s will held subject to that trust and were seized of the property to the use of Mary Earles.; that when the circuit court of the United States decreed the funds in the hands of O’Day to belong to Henry Napoleon, and when Mary admitted that to be so- and executed her deed to Henry, the beneficial interest in the property passed to Henry and then passed to his co-plaintiff, Heffernan, under his deed, that an undivided half interest passed back to Henry by Heffernan’s unrecorded deed, and that the chancellor erred in sustaining the demurrer to the evidence and dismissing the bill.
Did the chancellor err? We think not. Because-:
Implied trusts, whether they be such as are designated in the books as resulting trusts or those called constructive trusts, were early taken out of the provisions of the Statute of Frauds and Perjuries, to-wit, the statute “For the Prevention of Frauds and Perjuries” (Vol. 1 Laws of Mo. 1825, p. 403). And such is now the written law. [R. S. 1899, sec. 3417.] That is,
An analysis of plaintiffs’ amended bill shows it to be somewhat framed on the theory of a resulting trust, as distinguished from that class of implied trusts known as constructive trusts. The bill charges in so many words: “ That the funds and the money used for the purchase of said property was the money of said Mary, held by the said O’Day, as such guardian and curator of said Mary.” Plaintiffs’ learned counsel argue there was a trust raised by the facts in proof, that technically it was either a resulting or constructive trust, it was immaterial which, and that under the averments of their bill they should recover on either theory. In the view we take of the matter it will not be necessary to let the case ride off on a mere refined application of the rules of pleading. Both plaintiffs and defendants are in equity, the facts are here, and the thing to do is to get at the equity of the case.
' Present the proof that 0 ’Day accounted for the body of the McElhaney loan by charging himself in gross with the whole estate coming into his hands originally, as here, and absent the proof that there was any increment of gain by way of speculation in the purchase of the Mint Saloon property, as here, then we have nothing to do with collateral matters on other property transactions lugged into the ease and claimed to show a uniform and general scheme of exploiting the trust estate. This controversy is between plaintiffs, on one side, and-the widow and minor children of John 0'’Day who set up title to the Mint Saloon building under a devise in his will, on the other; and they may not be deprived of their estate by either innuendo or argument based on transactions of testator pertaining to other properties. If they lose their property, it must be solely because of some proved vice inherent in their title to the property, and because of some settled principle of equity causing them to be seized of the title to the use of plaintiffs. Courts watch the transactions of trustees in handling trust funds- with vigilance and solicitude. They may not speculate off the funds held in a fiduciary capacity, nor otherwise employ them to their individual gain. But in this case we find no proof suffi
Giving force to that rule and attending to the fact that the trustee is dead and that Mr. O’Day is dead, that he was solvent and possessed of large means and handling large sums, that this transaction was never questioned in his life, that he treated the Mint Saloon property as his own and disposed of it specifically by will, that the transaction was not questioned in the proceedings in the Federal court and that the property in question is not specifically described in Mary’s deed to Henry, while other parcels of real estate were so described, we think the demurrer was properly sustained.
In coming to this conclusion we have not overlooked the fact that the McElhaney foreclosure was based on a default in the payment of interest, as well as default in the payment of taxes and insurance. It is sufficient to say that if some of the interest accruing on the McElhaney loan was not accounted for by 0 ’Day in his final settlement, or if he is to be charged with interest for not keeping the funds loaned out at a legal rate, no such questions are involved in the issues of this case, and, therefore, such questions are reserved as open and not precluded by this litigation. Under some circumstances interest should be charged to a trustee; under other circumstances, not; and neither the pleadings nor the proof here require us to go into that question — there being no offer here by plaintiffs to do equity, to repay to 0’Day’s estate the amount invested by John O’Day in the property, and no claim that accrued interest was used toward paying a part of the purchase price.