JOHN LOLORDO, Administrator of the Estate of VINCENZO LOLORDO, v. VERNE R. C. LACY, Appellant
Division One
November 12, 1935
November 12, 1935
88 S. W. (2d) 353
*NOTE: Opinion filed at May Term, 1935, July 9, 1935; motion for rehearing overruled July 30, 1935; motion to transfer to Court en Banc filed; motion overruled at September Term, November 12, 1935.
To the extent of this latter holding, our original opinion should be and is modified.
For the reasons stated, the motion for rehearing should be overruled. It is so ordered. All concur, except Coles, J., not sitting.
Defendant makes three assignments of error as follows: (1) The court erred in overruling defendant‘s demurrer to the evidence at the close of the case; (2) that the court erred in permitting plaintiff to impeach the testimony given by defendant when called as a witness by plaintiff; (3) that the court erred in not referring the case to a referee and in not passing upon the question of reference. These assignments will be considered in inverse order.
Assignment No. 3 cannot be considered because not properly preserved for review. There is no ground stated in defendant‘s motion for new trial concerning failure to refer the case to a referee, but only complaints that the court erred in refusing to transfer the case to the equity division and that the court did not dispose of defendant‘s application for such transfer. The record does not show that such an application for transfer was overruled or otherwise acted upon. The record does show that on the same day that the motion was filed the case was assigned to Division Nine; that the trial commenced on that day; and that before any witnesses were heard defendant‘s counsel called the attention of the trial court to the motion to transfer. The record further shows that defendant‘s counsel explained the nature of the case to the court and that the
Defendant‘s second assignment must be overruled. The rule as to impeaching a party‘s own witnesses does not apply to such testimony of his adversary as was given in this case under the circumstances here. Our statute,
There remains the question of the demurrer to the evidence. Plaintiff John (or Giovanni) Lolordo was, in 1925, appointed administrator, by the Probate Court of the City of St. Louis, of the estate of his deceased brother Vincenzo Lolordo. Defendant was the attorney for plaintiff as administrator and had also acted as Vincenzo‘s attorney during his lifetime. The assets of the estate included properties at 3103 and 3220 Washington Avenue. A petition was filed to sell this real estate under an order of the probate court but, because of Vincenzo‘s widow being in Italy, so that her dower right could not be readily obtained, this was abandoned and the properties were sold under foreclosure of first deeds of trust thereon. While these properties were sold at a foreclosure sale, the amount for which they were to be sold was agreed upon as though they were to be sold at private sale and this price was in excess of their appraised values. Defendant, on applications to the circuit court, was appointed successor trustee of both deeds of trust. The property at 3220 Washington was sold to Nellie D. Scott at the foreclosure sale October 27, 1925. The property at 3103 Washington was sold at foreclosure sale on January 14, 1926, to Morris Lipschitz. The first mortgages and delinquent taxes were each time paid out of the agreed sale price, the balance was turned over to defendant, and deposited by him in his own name (or in the name of himself and his stenographer who at least had authority to draw checks on it) in an account in which it was commingled with defendant‘s own personal funds. Just how much defendant received after the mortgages and taxes were paid and how much thereof he had accounted for was the issue tried in this case.
There was no dispute about the fact that the agreed sale price for the property at 3220 Washington was $20,500; and that the trustee‘s deed stated that it was sold for $19,270. The difference was the taxes due estimated at $1230. Actually it took $1237.87 to pay these taxes and there was another tax item of $14.83. The amount which defendant received as trustee from the sale was $14,770, which figure was reached, as follows:
| Total sale price | $20,500.00 |
| Retained to pay taxes | 1,230.00 |
| Consideration stated in trustee‘s deed | $19,270.00 |
| Check to holder of first trust deed | 4,500.00 |
| Amount deposited in defendant‘s bank account | $14,770.00 |
There is much more dispute about the agreed sale price for the property at 3103 Washington and the disbursements therefrom. The trustee‘s deed stated that it was sold for $8100. Defendant testified that the taxes were paid out of this amount. Plaintiff had the testimony of the purchaser that he paid $8100, and all taxes, which he said made the total about $10,000. The real estate man who arranged the sale said the total sale price was $9800, and that this included all taxes. The jury had the right to find that it was at least that much and we must consider on ruling the demurrer that they did so find. Starting with this figure the evidence shows payments made from it, as follows:
| Total sale price | $9,800.00 |
| Real estate broker‘s commission | 300.00 |
| $9,500.00 | |
| Retained to pay taxes (actually $1403.23) | 1,400.00 |
| Consideration stated in trustee‘s deed | $8,100.00 |
| Paid to holder of first trust deed | 3,892.40 |
| $4,207.60 | |
| Paid to holder of second trust deed | 600.00 |
| $3,607.60 |
There is evidence to show that $8.50 was paid for revenue stamps; that $4 was paid for court costs in obtaining appointment as trustee; that $71.06 was paid for notice of foreclosure sale; and defendant was entitled under
There was considerable controversy about the total amount of taxes on this property and who paid them, which the evidence does not make entirely clear. Lipschitz, the purchaser, testified:
“What I can get off the books, it was $8,100.00, if I am not mistaken and that was the purchase price, and then we had to pay all taxes, back taxes, street taxes, which went up to nearly $10,000.00. . . . The way I recollect it, I bought it for $8,100.00, and supposed to pay all these specials that accumulated on it in addition to the $8,100.00. I paid the trustee at auction $8,100.00. . . . I know I paid all taxes and $8,100.00. That is what we paid for it but I am not sure whether I paid it direct to Mr. Shelp. . . . It is clear in my mind that I put up $9,800.00 for that property; that included the commission. . . . (Referring to memorandum.) The taxes is marked $1,403.23, and that is with the street bill, and $8,100 principal; and $300 commission.”
In this he was corroborated by the real estate broker Mr. Shelp, who testified from memoranda, made at the time, as follows:
“The memorandum I have on the back, is that there was $1,400.00 taxes and street bills, and $8,100.00 purchase price, and $300.00 commission he gave me, making a total of $9,800.00. This totals $9,803.22, and that is what he deducted, $3.22. I was to get $300.00, and he gave me $296.00. I get a little less than he agreed to give. . . . It is a sort of memorandum of the approximate debts that were against this property that was to be foreclosed, that we had looked up at the City Hall and other places, tax bills and street bills. The total we have is $5,370.99. That includes interest in the first deed of trust on the property, and street bill. The selling price was $9,800.00. That memorandum shows the amount to the deed of trust as $3,700.00.”
It does not seem to be possible to make the various figures as to taxes, in these memoranda or in the evidence, come out to one certain amount. In the memorandum showing the total sale price of $9800 the taxes and tax bills were $1403.22. In the memorandum showing total indebtedness against the property of $5370.99, it would appear from deducting the amount of the first mortgage and interest
While defendant claimed an allowance for the payment of the old special tax bill on this property of $1478.88, this tax bill shows on the front thereof an assignment to the West St. Louis Trust Company from the street contractor to whom it was issued, and also the following statement: “St. Louis, Feb. 9, 1922. Received payment in full of the above amount. West St. Louis Trust Co. Earle Meeks, Sec.” On the back is also this statement: “Bill entered satisfied in Vol. 62, page 163. St. Louis, Feb. 27, 1922. Louis Nolte, Comptroller.” Since Vincenzo Lolordo did not die until 1925, the jury had the right to believe, as plaintiff claimed, that he paid this tax bill during his lifetime.
According to the computation above made, which gives defendant the benefit of some items in dispute, he held $13,864.29 from the first sale and $3448.54 from the second which belonged to the Lolordo estate, a total of $17,312.83. Whether he had this amount, or only about $14,000 as he claims, it was his duty to immediately turn it over to the plaintiff as administrator of the estate to which it belonged. Defendant seems to take the view that this controversy is a personal one between himself and John Lolordo; and that, even if he has not shown that he has expended all of the money for the benefit of the estate, his demurrer to the evidence should have been sustained if he showed that an amount equal to the rest of it was expended for the benefit of John Lolordo personally. This overlooks the true nature of this proceeding. Plaintiff‘s right to a judgment herein is not based upon what he is personally entitled to as his own, but upon what belongs to the estate of Vincenzo Lolordo, for which he is acting in a representative capacity as administrator. Defendant‘s own testimony shows that the court should have overruled the demurrer to the evidence, because he admitted that he received the proceeds of these two properties and did not turn these proceeds over to the administrator but put them in his own bank account with his own personal funds and that they were not all used for the benefit of the estate. In this situation, he was not entitled to have the court rule a demurrer to the evidence in his favor because, if there was evidence reasonably tending to show any amount of these pro-
Defendant makes no assignment of error that the evidence was insufficient to show that there was as much due from him as the amount of the jury‘s verdict, but seems to erroneously assume that this is the question on his assignment that the court erred in overruling his demurrer to the evidence. If he had properly raised such a question it would have to be decided against him, as the computation we have made demonstrates.
The statements in defendant‘s own brief would force us to the same conclusion. It is there admitted that no testimony but his own supports the following items:
| Probate Court work (attorney‘s fee) | $ 600.00 |
| Special tax bill, 3220 Washington | 1,478.88 |
| Judgment against V. Lolordo—3220 | 781.00 |
| Judgment against V. Lolordo—3220 | 700.00 |
| Father Spigardi—note of V. Lolordo | 700.00 |
| Father Spigardi—Mass | 80.00 |
| Domenic Dimaggio—note of V. Lolordo | 600.00 |
| Total | $4,963.88 |
The jury, of course, did not have to accept his testimony about any of them and it cannot be a matter of great surprise that they did not accept it in view of defendant‘s testimony that he “had no canceled
We have arranged all the figures appearing in the evidence, to make a complete statement of the claims of the parties, to-wit:
| Items for which credit is claimed by defendant | Amounts defendant claims he paid | Amounts admitted as proper credits by plaintiff | Amounts in dispute |
|---|---|---|---|
| Foreclosure sale—3220 Washington | |||
| First trust deed and interest | $ 4522.00 | $ 4500.00 | $ 22.00 |
| Court costs—appointment | 4.00 | 4.00 | |
| Foreclosure notice | 74.42 | 74.42 | |
| Revenue stamps | 20.50 | 20.50 | |
| General taxes | 1237.87 | 1230.00 | 7.87 |
| Sprinkling taxes | 14.83 | 14.83 | |
| Broker‘s commission for sale | 617.50 | 617.50 | |
| Insurance adjustment | 13.24 | 13.24 | |
| First trust deed and interest | 3892.40 | 3892.40 | |
| Court costs—appointment | 4.00 | 4.00 | |
| Foreclosure notice | 71.06 | 71.06 | |
| Revenue stamps | 8.50 | 8.50 | |
| Special tax bill | 1478.88 | 1478.88 | |
| Other taxes | 1744.69 | 1400.00 | 344.69 |
| Broker‘s commission; Lauenstein | 215.00 | 215.00 | |
| Attorney‘s fee as trustee‘s attorney both sales | 500.00 | 500.00 | |
| Trustee‘s fee for both sales | 212.00 | 212.00 | |
| Second trust deed covering both properties | 600.00 | 600.00 | |
| Claims and costs—Lolordo Estate | |||
| Probate Court costs | 89.60 | 89.60 | |
| Probate Court notices abandoned sales | 105.20 | 105.20 | |
| Other Probate Court notices | 24.60 | 24.60 | |
| J. C. Bensiek funeral expenses | 685.30 | 685.30 | |
| J. C. Bensiek Cemetery lot | 143.00 | 143.00 | |
| Moceri Monument Co.—monument | 625.00 | 625.00 | |
| Dr. John M. Dean | 249.00 | 249.00 | |
| Ely-Walker Dry Goods Co. | 1123.50 | 1123.50 | |
| Mercantile Trust Co. | 2300.49 | 2300.49 | |
| Funeral Mass | 80.00 | 80.00 | |
| Attorney‘s fee for Probate Court work | 600.00 | 600.00 | |
| Judgment against V. Lolordo | 781.00 | 781.00 | |
| Judgment against V. Lolordo | 724.00 | 724.00 | |
| Note of Father Spigardi signed by Giovanni Lolordo (the administrator) | 700.00 | 700.00 | |
| Note of V. Lolordo to Domenic Dimaggio | 600.00 | 600.00 | |
| Defendant‘s claim against the estate | 3900.00 | 3900.00 | |
| Defendant‘s claim against Giovanni Lolordo | 3900.90 | 3900.00 | |
| $31,862.48 | $17,752.31 | $14,110.17 | |
| Disputed claims | 14,110.17 | ||
| Totals | $31,862.48 | $31,862.48 | |
The conclusions to be drawn from these figures are: First, if defendant had only to account for $28,600 and all of his claims were established he would have paid out all of the sale money and $3262.48 besides.
Second, if defendant is charged to account for $30,000, by reason of taking $9500 ($9800—$300 commission) as the sale price of 3103 Washington, and if he is only credited with the amounts admitted by plaintiff to be proper ($17,752.31), then the difference between this amount and $30,000 is $12,247.69.
Third, the jury, if it took the latter amount, allowed defendant credit for over $1200 of the items in dispute.
Fourth, there was substantial evidence to warrant a submission of the case to the jury.
The judgment is affirmed. Ferguson and Bradley, CC., concur.
PER CURIAM:—The foregoing opinion by HYDE, C., is adopted as the opinion of the court. All the judges concur.
ON MOTION TO TRANSFER TO COURT EN BANC.
HYDE, C.—Defendant asks that this case be transferred to the Court en Banc on the ground that the opinion sanctions imprisonment for debt in violation of
The opinion does rule, and we reaffirm it upon the authority there cited, that when a trustee is shown to have received trust money, which belonged to an estate to which it was then immediately due, but instead of paying it to that estate, commingled it with his own money, a prima facie case is made against him, even though he shows that he paid personal debts of the administrator out of the commingled fund, because all money paid out of the commingled fund for purposes other than to or for the benefit of the estate “will be, in the absence of a satisfactory showing to the contrary, considered paid out of the trustee‘s own money and not out of the trust money.” Therefore, in the absence of such a showing to the contrary, a jury would be justified, under such circumstances, in finding that such trustee still had the trust money “in his possession or under his control” and was wrongfully withholding it from the estate.
We agree with a recent opinion of the Supreme Court of Illinois that a proceeding to discover assets is not an available remedy to collect a debt due an estate; that “where the relation of debtor and creditor arises for money lent, the debtor owns the money and is indebted to the creditor for it;” and that “consequently the debtor has no money belonging to the creditor, or to the latter‘s estate, in his possession.” [Johnson v. Nelson, 341 Ill. 119, 173 N. E. 77, 88 A. L. R. 849.] However, the Illinois courts have held under their statute, no broader in its scope than ours, that where a fiduciary relation, rather than the relation of debtor and creditor, exists, the summary proceeding does lie. [Blair v. Sennott, 134 Ill. 78, 24 N. E. 969; Mulvihill v. White, 89 Ill. App. 88; Adams v. Adams, 81 Ill. App. 637, affirmed 181 Ill. 210, 54 N. E. 958.] The relation of defendant to this estate was fiduciary. He obtained the fund in ques-
The motion to transfer this case to the Court en Banc is overruled.
PER CURIAM:—The foregoing opinion by HYDE, C., is adopted as the opinion of the court. All the judges concur, except Collet, J., not sitting.
