Attaway v. Third National Bank

93 Mo. 485
CourtSupreme Court of Missouri
DecidedOctober 15, 1887
StatusPublished
Cited by6 cases

This text of 93 Mo. 485 (Attaway v. Third National Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Attaway v. Third National Bank, 93 Mo. 485 (Mo. 1887).

Opinion

Black, J.

The doíondriit bank had in its possession, at the commencement of this suit, a bond, executed by the Laclode & Fort Scott Railroad Company, toe ton-thousand dollars, dated December 2, 1879, due in three years, and paynHé to the order of the defendant, Kinealy. The plaintiff states that she is the ownor of the half interest in the bond; that Kinealy is insolvent; that the bank threatens to deliver the bond to him, and she prays for an inji!action. The nunver of Kinealy, in substance, [486]*486is, that lie acquired tile bond from the Laclede & Fort Scott Railroad Company, for services as a lawyer, before' that time rendered ; that he madp a written promise to-transfer one-half of it to Julia F. Attaway, but that the writing was procured without any consideration therefor, and by what defendant characterizes as a blackmailing scheme on the part of Harrison Attaway, the husband of Julia F. Attaway. The trial court found the issues for plaintiff, awarded an injunction, and appointed a receiver to collect the money due upon the bond and divide the proceeds between the parties. This decree was affirmed in the court of appeals.

On the fifteenth of December, 1879, the defendant, Kinealy, gave to Harrison Attaway the following agceement: “I hereby promise and agree to transfer and deliver unto Mrs. Julia F. Attaway, one-half the proceeds of the ten thousand-dollar bond of the Laclede & Fort Scott Railroad Company, issued to me December 3,1879, when the same are collected, less any amount paid to J. /. Wigfall, and expenses. M. Kinealy.”

The important question in.the case is, whether this agreement is valid, or whether it was a corrupt contract and without consideration. To understand the evidence, having a direct hearing upon this issue, it is essential to give a succinct history of the affairs which gave rise to the issuance of the bond, and they are as follows: The Laclede & Fort Scott Railroad Company was organized in 1860. From 1872 to the date of the judgment of ouster hereafter mentioned, there- were two sets of directors, both claiming to have been legally elected. The one known as the Golehouse board had possession of the books and records. The company became wholly insolvent. Edward Burgess held a judgment against it for work done and materials furnished, ainounting.to nearly one hundred thousand dollars. In 1877, Burgess, Kinealy, and a few other persons, organized, under the general laws of this state, the St. Louis, Lebanon & Western [487]*487Railroad Company, with two hundred shares of stock.. This company made a contract with the legal board of directors of the old company by which the new company was to acquire the property of the old, to assume the payment of the indebtedness to Burgess, .and to go on and complete the road. Kin-nly became the attorney of the new company. He also made a contract with it and Burgess by which he undertook to oust the Colehouse board, and get the rightful directors of the Laclede & Fort Scott Railroad Company in full control of the affairs of that corporation. For these services Burgess agreed to give him one-fifth .of the stock of the new company. Harrison Attaway was secretary and one of the legal directors of the Laclede & Fort Scott Railroad Company at this date; he also became a. director in the St. Louis, Lebanon & Western Railroad Company.

In February, 1878, Kinealy commenced a suit, at the relation of the circuit attorney and of Attaway, to . oust the Colehouse board. The proofs were all taken, and in May, 1878, Colehouse came to a settlement,' by which the new company agreed to pay him a stipulated sum. Thus the matters stood until, in 1879,- when this new company, the St. Louis, Lebanon & Western Railroad Company, failed to pay the stipulated sum to Cole-house, forfeited its agreement with the other compan;/, the stock, of which Kinealy was to get a fifth, became, worthless, and that company dropped out of existence! from its own inherent weakness. The directors of the Laclede & Fort Scott Railroad Company then desired Kinealy to prosecute the suit against Colehouse and others for them, but he declined to do it, unless they secured him a fee of ten thousand dollars for its successful prosecution. This they at first refused to do, believing the amount to be exorbitant. Finally, a contract for that amount was made, to be secured by bond and mortgage, and deposited for Kinealy on the successful determination of the suit. Kinealy prosecuted the suit to [488]*488ouster of Colehouse"and others, the judgment being entered a few days after the date of the bond, the eighth of December, 1879.

Mrs. Attaway testified that she carried on a hotel; that her husband was her agent in this bond matter ; that she first knew, of the bond in 1882; that she did not know of the agreement to transfer the half to her until two or three months before this trial. Harrison Attaway, in substance, testified: “Kinealy gave me the agreement for moneys I had expended for my wife in bringing the quo-warranto suit to a successful termination. He agreed, if I would assist in' getting up the evidence, to pay me one-half the money he realized by the suit — one-half his fees. This agreement was made about the time the suit was brought. I spent five or six hundred dollars of my wife’s money in defraying expenses. The first intimation I had that my wife’s, interest in the bond was a gift, was Kinealy’s letter of May 3,1882.”

A number of witnesses, for the plaintiff, testified that Kinealy had, time and again, stated that Attaway owned half of the bond, and it is shown that, in 1882, he aided Attaway in an endeavor to sell the half interest. A. number of Kinealy’s letters to Attaway, written in 1882, were read in evidence; they speak of some unexplained transaction, but concede that Attaway owned half of the bond. In the letter of May 3, 1882, he says: “You speak of the money as being due to you. This is an incorrect way of putting it, as the matter was merely a gift, nothing having passed to me for it that I know of.” A payment of .two thousand dollars was made on the bond in March, 1882. Kinealy gave one thousand dollars of this to Attaway. A further payment was made in the following April, but this Kinealy refused to divide.

Kinealy flatly denies that he ever agreed to give Mrs. Attaway a one-half interest in the bond for the assistance of Attaway in the quo-warranto suit. Prom his and other evidence, it appears that Attaway was a [489]*489director of the Laclede & Fort Scott Company and secretary thereof, when the proposition of Kinealy to proceed-with the suit came before it. That the board, .as such, opposed the proposition. Mr. O’Bannon, one of the directors, says that Kinealy appeared before the hoard and wanted ten thousand dollars to proceed with the suit. The board were surprised, and appealed to Attaway, who was present, and said to him that he was the plaintiff and could go on with the suit. Attaway said Kinealy was playing the rascal, but they had better' comply with his demand. He then denied being interested with Kinealy in the fee. It appears the board •ordered the bond to be issued on the twenty-seventh of November, 1879, and it was then signed by the president, and the board adjourned. Kinealy testifies that Attaway came to Ms office before the records. had been .signed, and demanded a half interest,. because of his.

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Bluebook (online)
93 Mo. 485, Counsel Stack Legal Research, https://law.counselstack.com/opinion/attaway-v-third-national-bank-mo-1887.