HORACE H. HAGAN аnd EUGENE HAGAN, Appellants, v. MARY J. LANTRY and HELEN LANTRY DALY
Division One
December 18, 1935
89 S. W. (2d) 522
Following Hoelzel v. Chicago, R. I. & P. Ry. Co., 337 Mo. 61, 85 S. W. (2d) 126, the judgment as to all defendants should be reversed and the cause remanded with directions to the trial court to hold in abeyance the verdict as to both liability and amount of damages against defendants Reis-Moran Lumber Company, and Reis, until the case is disposed of as to the liability of defendants Smith and Clay, then enter judgment for the amount of the verdict, held in abeyance, against all defendants finally held liable. It is so ordered. Ferguson and Hyde, CC., concur.
PER CURIAM:----The foregoing opinion by BRADLEY, C., is adopted as the opinion of the court. All the judges concur.
Cooper, Neel, Kemp & Sutherland and Horace H. Hagan for appellants.
We are of the opinion that it will facilitate the presentation and discussion of the pleadings and issues involved, and an understanding of the theory of the suit, if we first undertake a statement of facts, attempting something of a chronological arrangement and history of the various transactions. The estate оf the Hagan children, minors, residents of Oklahoma, was administered in the Probate Court of Logan County, Oklahoma. As stated, Hagar, who was their first cousin, was duly appointed, in 1903, by that court, as guardian of their “persons and estates.” Two brothers Charles J. Lantry and Henry E. Lantry composed a partnership doing business under the firm name of B. Lantry Sons. The two Lantrys as a partnership, under the firm name, operated on a large scale in both “railroad contracting and farming.” In their contracting business they engaged in railroad construction work “dirt work, stonework, ballasting and general railroad work.” In that connection they operated “stores” or “commissaries on their works” at which they sold merchandise and supplies to their employees at a profit of “twenty-five to fifty pеr cent.” The number of these stores in operation, at any one time, varied from “two to ten.” They carried on railroad construction work at various points in Arizona, California, Illinois, Iowa, New Mexico, Texas and Kansas and owned a large amount of machinery,
“Guthrie, O. T., June 17, 1903.
“On demand after one year from the date hereof, we promise to pay to the order of W. G. Hagar, Guardian of Eulilia Hagan, Virginia Hagan, Horace H. Hagan and Eugene Hagan, minors, the sum of twenty thousand dollars ($20,000.00), at the City of Guthrie, in the Territory of Oklahoma, with interest at the rate of seven per cent per annum, payable semi-annually.
“This note is given for a full and valuable consideration, and is
secured by 96 shares of stоck of the First National Bank of Topeka, Kansas, which have this day been assigned to the said W. G. Hagar and is delivered with this note as collateral security for the payment of the same. “B. Lantry Sons by
“Chas. J. Lantry.
“Chas. J. Lantry.”
The parties hereto agree that the note is an Oklahoma contract. We digress here to observe that there seems little, if any, room for doubt, that this note created and was a binding partnership obligation. Somewhere in the course of the printed argument respondents (defendants below) suggest, in effect, that it was not distinctly or directly shown that Henry E. Lantry who died some ten months after the execution of this note ever had actual knowledge of or acquiesced in its execution. It does appear, however, that Henry E. Lantry acknowledged and recognized liability on other notes executed by Charles J. Lantry in the partnership name and signed in exactly the same way this note was signed. Further the showing made as to the nature of the partnership business, the manner in which same was conducted, and the borrowing of money in connection therewith was such as to imply authority on the part of Charles J. Lantry to sign the firm name and negotiate its notes and thereby create an obligation on the part of the partnership. However respondents apparently do not seriously stress such contention and we have perhaps given it more attention than it requires. We shall therefore consider and treat the note as being the obligation of the partnership of B. Lantry Sons. In November, 1903, by bills of sale and warranty deeds Chаrles J. Lantry transferred and conveyed his undivided one-half interest in the property and assets “owned and controlled by B. Lantry Sons” to Henry E. Lantry who thereby became the sole owner of said property both personal and real. These instruments were filed for record. No notice of dissolution of the partnership was given and the various business enterprises formerly carried on in the firm name of B. Lantry Sons were continued in that name; Charles J. Lantry continuing “in the active management except” as to “finances.” Henry E. Lantry died, testate, in Chase County, Kansas, April 20, 1904, leaving surviving him his widow, defendant herein Mary J. Lantry, a daughter the defendant herein Helen Lantry Daly, and a minor son Fred J. Lantry who died shortly after his father‘s death. The writer does not recall that the evidence disclоses the date of the son‘s death but both parties refer to that fact and we have stated it as it is set out in the statements. The widow, defendant herein, Mary J. Lantry, was duly appointed executrix of the estate by the Probate Court of Chase County, Kansas. As executrix she gave all the statutory
“Some time ago you sent me some stock you held as collateral to secure the Lantry note. . . . The bank stock is now absolutely worthless and he (Charles J. Lantry) will either have to substitute new security or I will call this money in. As far as the notes are concerned, I will simply say that he himself (Charles J. Lantry) is abundantly liable, and in addition to that the estate of B. Lantry Sons is on it, which invoices several hundred thousand dollars, so
there need be no worry on that account. But nevertheless I want to keep it beyond any question, as it is trust money.”
This letter was dated August 18, 1905, and was after the death of Henry E. Lantry and shortly before the final settlemеnt and discharge of the executrix of the estate. Apparently the reference to an estate of B. Lantry Sons was understood by Hagar merely to mean that the property of the partnership “invoices several hundred thousand dollars” nor does it appear that Attorney Hagan ever informed Hagar of the death of Henry E. Lantry and the resulting situation or that Hagar had actual knowledge thereof until some time in 1913.
This brings us to the filing of this suit in April, 1914. At that time Horace Hagan was twenty-two years of age; the other wards had not attained majority. Mary J. Lantry and Helen Lantry Daly were residents of Kansas City, Missouri, and this suit was therefore filed in the Circuit Court of Jackson County. Without undertaking a resume of the lengthy and very complete final petition of bill upon which the case was tried it will suffice to state the theory upon which plaintiffs rely. Plaintiffs’ position is that the note being a partnership obligation the debt became a proper charge against the partnership property and assets and also the personal obligation of the partners; that upon the death of Henry E. Lantry and the death shortly thereafter of Fred J. Lantry the defendants took the entire estate of Henry E. Lantry, deceased, including all the former property and assets of the partnership: that all of said partnership property and assets were sold and converted into money, defendants ultimately receiving the entire purchase price of $275,000 in money; that a balance of $10,000 of the principal sum of said note remains unpaid; and that defendants should be declared to have received and to hold said money subject to the payment of this indebtedness and impressed with a trust in favor of plaintiffs in the amount thereof and be required to account to plaintiffs therefor. The answer pleads the Statute of Limitations of Oklahoma; also that the claim is barred by the administration of the estate of Henry E. Lantry had in Chase County, Kansas; and laches of the guardian, Hagar, and appellants, such as bars recovery. However defendants wholly abandoned the Statute of Limitations as a defense.
Defendants’ brief tacitly concedes that “under proper circumstances” property of a deceased debtor in the hands of heirs, legatees or devisees can be reаched by a bill in equity and applied to the payment of the indebtedness. When special circumstances exist which give rise to, and invoke, some recognized principle or ground of equity a court of equity will take cognizance of a suit by a creditor to charge heirs, devisees and legatees to the extent of the property or assets of the deceased debtor taken by descent or devise; this on
As we have heretofore stated it is satisfactorily shown that the note which is the basis of this suit was a binding obligation of the partnership composed of Charles J. Lantry and Henry E. Lantry doing business under the firm name of B. Lantry Sons; that all the рartnership property and assets were conveyed to Henry E. Lantry individually; that thereafter the business continued and was carried on as formerly and apparently in the firm name; that no notice of dissolution of the partnership was given; that approximately five months later Henry E. Lantry died at Chase County, Kansas, and his estate was administered upon in the probate court of that county; that the guardian, Hagar, in Oklahoma had no knowledge of the course of events and did not learn thereof until long afterwards; that all the former partnership property was sold to Charles J. Lantry the defendants herein receiving the purchase money in the sum of $275,000; and that defendants became residents of Kansas City, Missouri. Plaintiffs and their guardian were at all times residents of Oklаhoma. With this situation the interposition of a court of equity of this State is invoked to reach the proceeds which defendants received from the sale of the former partnership property, have same impressed with a trust in their favor and applied to the payment of the balance due on the note.
Respondents as defendants directly advance but two defenses: (1) that the action of Hagar, the guardian, in receiving, accepting and applying to the payment of interest due on the note payments by Freeman, trustee, to whom Charles J. Lantry conveyed the former partnership property, in trust, subsequent to his purchase thereof from the devisees under Henry E. Lantry‘s will, is a legal bar to the claim made herein based on this note; and (2) that both the guardian and the former wards “were guilty of such laches and such negligent action as prevents a recovery.”
While the failure to make a claim against the estate of Henry E. Lantry, deceased, within the time specified by the statutes of Kansas relating to the administration of the estate of deceased persons is stressed by defendants in connection with the defense of laches to which we later refer they seem to also indirectly contend that the administration of the estate of Henry E. Lantry, deceased, in Chase County, Kansas, constitutes a legal bar to a recovery. And that we
Appellants’ proposition, that, because Hagar, guardian, received and accepted certain sums from Freeman, trustee, and applied same to the payment of interest due on the note the claim now made is barred, is merely stated but not developed. No authority is cited nor are we advised as to the grounds thereof. It suffices to repeat the observation made in the statemеnt of the case, supra, that the instrument creating the trust, even if it be considered as including this note in the debts mentioned therein, contains no stipulation, provision or restriction as to the payment in full and discharge of the debts therein listed by the acceptance of any partial payments made by the trustee.
As to the contention that there can be no recovery herein on account of laches we have noted that apparently when this suit was filed in April, 1914, in the name of Hagar, guardian, Eulilia, Virginia and Eugene Hagan were yet minors and Horace Hagan had but comparatively recently theretofore attained his majority. At least as to the substituted plaintiffs (and no question is made by respondents as to the substitution) Eugene Hagan was a minor and Hоrace Hagan had but recently prior thereto attained majority. Certainly laches cannot be imputed or charged to these present plaintiffs. It is said at 21 Corpus Juris, page 241, that “the modern rule
It follows that under the special circumstances shown the plaintiffs were entitled to a decree herein as prayed and that the judgment of the trial court for defendants should be reversed. But upon the record before us we cannot direct or formulate the decree. We hold that defendants received the proceeds of the sale of the
PER CURIAM:----The foregoing opinion by FERGUSON, C., is adopted as the opinion of the court. All the judges concur.
