Arrants v. Sweetwater Bank and Trust Company

404 S.W.2d 253, 55 Tenn. App. 631, 1965 Tenn. App. LEXIS 268
CourtCourt of Appeals of Tennessee
DecidedNovember 30, 1965
StatusPublished
Cited by8 cases

This text of 404 S.W.2d 253 (Arrants v. Sweetwater Bank and Trust Company) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arrants v. Sweetwater Bank and Trust Company, 404 S.W.2d 253, 55 Tenn. App. 631, 1965 Tenn. App. LEXIS 268 (Tenn. Ct. App. 1965).

Opinion

COOPEB, J.

Hula C. Arrants, through her conservators, brought suit against the Sweetwater Bank and Trust Company, alleging that the Bank’s vice-president had fraudulently misappropriated stocks and bonds belonging to complainant, had charged her checking account with payments of fictitious notes and interest, and had diverted and transferred specified sums of money to himself or to others.

The questioned transactions occurred during the period 1951 through 1957, the primary ones, as set forth in the bill, being: (1) a deposit of $720.00 in cash and $12,000.00 in United States G-overnment Bonds to secure payment of child support owed by "William Arrants, Jr., the son of the complainant; (2) deposit by the complainant of stocks and bonds of avalué in excess of $70,000.00, under a trust agreement dated May 7, 1954, and the liquidation and payment of funds from the trust under authority of instruments dated July 7, 1954, and November 22, 1954; (3) $348.00 for payment of checks drawn by William H. Arrants, Jr. and paid from funds belonging to complainant; (4) $1620.00 paid from complainant’s checking account for use and benefit of her grandchild; (5) $4,000.00 allegedly paid to the bank on the representation that it was required for payment of expenses incurred in the various transactions between the parties; and (6) payment of notes in the amount of $11,000.00 and $6,563.81, which allegedly were not debts of the complainant.

*635 Complainant sought a money judgment against the Bank equal to the market value of the securities from the date of the alleged conversion, plus interest and dividends, as well as for the specific items charged against complainant’s bank account, and demanded a jury to try the issues of fraud and the alleged lack of mental capacity on the part of complainant on the dates of the listed transactions. The complainant also asked for a complete accounting of all financial dealings between complainant and the bank from June 20,1951, to March, 1957.

The Chancellor separated the issue of mental capacity of complainant from that of fraud and undue influence, submitting the first issue to a jury, and referring the latter to a special master for determination. The special master also was instructed to report his findings on whether or not the Bank was indebted in any amount to the complainant.

On trial, the jury found that Hula C. Arrants was of sound mind. No report was made as to her mental condition of the dates when the listed transactions occurred.

The special master, in his report and/or supplemental report, found that no fraud or undue influence had been exerted on Mrs. Hula Arrants except as to the bonds and cash deposited to secure payment of child support. The master pointed out, in his report, that this matter had been litigated in the cause styled “William H. Arrants, Jr., Etc., Et Al v. Sweetwater Bank and Trust Company, Et Al” and that the bank had satisfied the judgment awarded against it. (The record in the suit referred to by the Master has been made a part of the record in this cause.)

The special master further found that Sam Pickel, the bank vice-president, had cashed $2000.00 in bonds belong *636 ing to complainant and liad appropriated the money to his own use; that the bank, however, had paid the loss to complainant.

The master then reported that the Bank was not indebted to the complainant in any amount.

Numerous exceptions were filed to the Master’s Report and supplemental report. The Chancellor overruled the exceptions and confirmed the Master’s Report, awarding the Master a $2500.00 fee to be taxed as costs. All costs were then adjudged against the Bank. Both parties appealed.

On appeal, the complainant insists that the Chancellor’s action in separating the issue of complainant’s mental capacity from the issue of fraud and undue influence was error in that it destroyed her statutory right to a jury trial.

T.C.A. 21-1011, on which complainant relies, provides that:

“Either party to a suit in chancery is entitled, upon application, to a jury to try and determine any material fact in dispute, save in cases involving complicated accounting * * * and those elsewhere excepted by law or by provisions of this Code, and all the issues of fact in any proper case shall be submitted to one jury. ’ ’

It is recognized that, under the above statute, “the Chancellor may refuse to submit issues that are of a complicated and intricate nature, that is, such as the Chancellor himself, because of peculiar equitable rules or other requirements, may determine. He may submit some issues and reserve others. But this action is subject to review. He must not thereby deprive a litigant of the right *637 to have the substantial disputes as to matters of fact passed upon by the jury.” Sec. 578 of Gibson’s Suits in Chancery, 5th Edition, p. 637; See also Sec. 582.

In the present case, the pleadings and the subsequent proof introduced before the special master show that the issues of fraud and undue influence could not be determined without testimony of, and a detailed inspection of, the myriad and complicated day-by-day transactions between complainant and the bank over a 7 year period, and without the full accounting expressly prayed for by the complainant. On the other hand, the issue of mental capacity of the complainant was one that could be presented in a simplified form to the jury.

Under these circumstances, we see no error in the Chancellor separating the issues and submitting the complicated and intricate one to a special master.

Complainant also insists that the Chancellor erred in denying her motion for a continuance of the jury trial. The grounds for the motion were that two material witnesses failed to appear for the taking of a discovery deposition, though subpoenaed, and that a third had refused to answer material questions during the taking of his discovery deposition.

We find no merit in this assignment. First, the complainant has not complied with the rules of this court by setting forth the pages in the bill of exceptions or record where evidence of such motion and ruling can be found. See Buie 11(3), T.C.A. Yol. 1, Supplement p. 87. Second, the granting or denial of a motion for continuance rests in the sound discretion of the Chancellor, and his action will not be disturbed by this Court unless there is a showing of an abuse of discretion. Estep v. State, 183 *638 Tenn. 325, 192 S.W.(2d) 706; Greyhound Lines v. Patterson, 14 Tenn.App. 652. There was no such showing in the present case, nor is it even suggested in appellant’s brief.

Complainant has assigned as error a second ruling which rests in the sound discretion of the Chancellor, i. e., the Chancellor’s denial of a motion to amend the original bill. The motion in question was made 35 months after the original bill was filed, after the jury trial, and after the cause had been submitted to the master and he had heard proof. We see no abuse of discretion in denying llie amendment under the circumstances. Phoenix Insurance Co. v. Jordan, 28 Tenn.App.

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Bluebook (online)
404 S.W.2d 253, 55 Tenn. App. 631, 1965 Tenn. App. LEXIS 268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arrants-v-sweetwater-bank-and-trust-company-tennctapp-1965.