Allen v. Van Horn

10 S.W.2d 969, 222 Mo. App. 930, 1928 Mo. App. LEXIS 110
CourtMissouri Court of Appeals
DecidedNovember 26, 1928
StatusPublished
Cited by1 cases

This text of 10 S.W.2d 969 (Allen v. Van Horn) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allen v. Van Horn, 10 S.W.2d 969, 222 Mo. App. 930, 1928 Mo. App. LEXIS 110 (Mo. Ct. App. 1928).

Opinion

ABNOLD, J.

— This is a suit for an accounting brought bjr the executor of an estate against an alleged fiduciary agent of the testator.

The facts developed are that David Allen, a pioneer settler of Andrew County, Missouri, died testate at an advanced age, in June, 1926. He had suffered a cerebral hemorrhage with resulting paralysis in the summer of 1924, and thereafter and prior to October, 1925, as shown by plaintiff’s evidence, his mental vigor was -much impaired and he could not comprehend business transactions. In March, 1926, George B. Allen, son of the testator and plaintiff herein, was appointed guardian for his father and later qualified as executor under the will. As to the mental capacity of David Allen following the stroke defendant’s evidence tends to show his powers of speech, rather than those of comprehension, were affected.

The record discloses that for many years before the death -of David Allen and prior to October, 1925, Benton Van Horn, defendant herein, had acted in the capacity of fiduciary agent for Allen. Van Horn was an officer in certain banks in the county and David Allen had accounts therein. Plaintiff’s evidence shows Van Horn withdrew money from said accounts, from time to time, without the signature of Allen or other authority from .him except his authority as fiduciary agent; that Van Horn placed in the files of the bank’s debit slips, instead of checks signed by Allen, for money so withdrawn; that he invested the money thus obtained.in notes and other securities and at times would use Allen’s money and give his own notes payable to Allen for the sums so used; that he profited one per cent on these transactions. Sometime in October, 1925, Van Horn, then an officer of the Farmers State Bank of Bea, Missouri, was indebted to David Allen in an amount in excess of $3000, as evidenced by two notes which were in an envelope in the bank in Van Horn’s possession. On October 5, 1925, Van Horn took the two notes and paid them by crediting the account of David Allen in the bank with the amount of the notes with interest and on the same day he withdrew from Allen’s account the sum of $3000 and then took two notes signed by one Canby "Wright amounting to $3000, which were long past due and marked upon them “Sold to Allen.” In his testimony defendant stated these Wright notes were his own personal property which he was selling to Allen. The evidence tends to show; that on this date Wright was insolvent. Testifying on behalf of defendant Wright stated that on October 5, 1925, he owned 240 acres of land on which there was a deed of trust for $21,500, and that he had other indebtedness of about $15,000. The evidence discloses that Van Horn at all times knew of the financial status of Wright and testified that Wright made a state *932 mont to him listing the property he owned and his indebtedness. At the time of the trial, the Wright notes were still in defendant’s possession.

After plaintiff ivas appointed guardian for his father lie called on defendant in company with his attorney, in an effort to arrive at the value of the estate, in order that the amount of his bond as such guardian might be fixed. At that time defendant showed them the two Wright notes, along, with other securities, describing them as the property of David Allen and they'were so listed. The notes showed they were not indorsed by Van Horn, but that they bore a notation “Sold to Allen.” Later, as executor under the will, plaintiff again called upon defendant at the bank and again the Wright notes were presented to him as the property of David Allen, and they were listed as worthless in the inventory filed in the probate court- Plaintiff refused to receive the notes and thereafter filed this suit for an accounting.

The petition was filed February 23, 1927, and by leave of court was amended on October 32, 3927. Inasmuch as the petition is attacked for alleged failure to state a cause of action, it is deemed proper to set out in full the petition on which the cause went to trial, as follows:

“Plaintiff for cause of action states that in the month of June, 3926, David Allen died testate, with his mansion house and principal place of abode in Buchanan county, Missouri; that George R. Allen has been duly, regularly and legally appointed executor of the estate of David Allen, deceased, by his will and by the probate court of Buchanan County, Missouri, and is now the qualified and acting executor of the estate off David Allen, deceased; that in the lifetime of David Allen, and prior to October, 1925, the defendant became the fiduciary agent of David Allen for hire, to look after his affairs, take charge of his moneys and invest the same; that prior to said October, 1925, the defendant came into the possession of in excess of three thousand dollars ($3000) of the moneys of David Allen, deceased; that he has failed to account for the same and still fails and refuses to account for said mopey.

“Wherefore, plaintiff prays judgment against the defendant for such sum with interest from the-day of October, 3925, as may be ascertained to be due. ’ ’'

Defendant’s answer was a general denial but thereafter the answer ivas withdrawn and a demurrer filed, wherein it ivas stated: (1) The petition fails to state facts sufficient to constitute a cause of action; (2) the petition is brought to the equity side of the court whereas plaintiff’s remedy, if any, would be at law; that the petition is multifarious and duplicitous for the reason that it joins therein in one count a pretended cause of action inconsistent with its prayer for relief, in that said petition complains that an accounting is due and has not been made; and prays judgment for a definite sum alleged *933 to be.due plaintiff. Tlie demurrer was overruled and defendant, with leave, refiled his original answer. A timely motion to- transfer the cause to the law docket was likewise overruled, and the cause was tried to the court sitting as chancellor.

The decree rendered is as follows:

“. . . the court having.heard the evidence and-the .argument of counsel, finds for the plaintiff and against the defendant, and1 the court finds that the plaintiff George R. Allen, is the qualified and acting executor of the estate of David Allen, deceased, duly appointed by the probate court of Buchanan county, Missouri; that David Allen died testate in Buchanan county, Missouri, in June, 1926; that in his lifetime and on October 5, 1925, and'long prior thereto, the-defendant Benton Van Horn was the fiduciary agent of Da vid. Allen .for hire to look after his financial affairs, take charge of his money and invest the same; that on the 5th day of October, 1925, the defendant came into possession of $3,131.83 of the money of David Allen-; that on said date the said David Allen, now deceased, was mentally incapacitated; that the defendant invested said money in two notes for $1500 each, dated January 19, 1924, due six months after date, signed by C.. A.

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Bluebook (online)
10 S.W.2d 969, 222 Mo. App. 930, 1928 Mo. App. LEXIS 110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allen-v-van-horn-moctapp-1928.