Deering Harvester Co. v. Keifer

11 Ohio Cir. Dec. 270
CourtOhio Circuit Courts
DecidedMay 15, 1900
StatusPublished

This text of 11 Ohio Cir. Dec. 270 (Deering Harvester Co. v. Keifer) is published on Counsel Stack Legal Research, covering Ohio Circuit Courts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deering Harvester Co. v. Keifer, 11 Ohio Cir. Dec. 270 (Ohio Super. Ct. 1900).

Opinion

Price, C. J.

The now deceased Samuel Hartrauft, for the year 1898, entered into a written contract of agency with the plaintiff, the Deering Harves- ■ ter Company, whereby he was employed and authorized to sell for the company in the vicinity of Findlay, binders, reapers, mowers, hay rakes and other agricultural implements, for which sales he was to receive a stipulated commission. The contract strictly provides that the tille to all such articles should remain in the company until sold and settled for by cash or notes of the purchasers, and that the proceeds of sales, whether notes or cash, should be the property of the company.

To further restrict the agent, Hartrauft, the following stipulation is found in the contract; “To hold all goods shipped or received, until sold and delivered, and the entire proceeds of ail sales as tbe sole property of said Deering Harvester Company, and as a special deposit for it, until it shall be fully settled for.”

The deceased operated under this contract, which contained many other provisions not important here, during the year 1898, until late in the fall season of that year. In addition to his business as agent for this company, he was the owner of a hardware store and other supplies suitable *for a trade with the farmers in the neighborhood, and was engaged in operating said store while making sales for the company on commission.

[271]*271On November 10, 1898, Hartrauft and the company, through its traveling agent, Robinson, came to a settlement of his dealings on commission sales, and a settlement sheet was prepared stating all sales, to whom and the amount for which they were made, and the amount received by the amount in cash and in notes, which sheet also showed his credits, and when the account was balanced, there was the sum of $4,153.85 due from Hartrauft to the company. He then signed the settlement sheet wherein he acknowledged that sum in his hands as ^representing the unaccounted for net proceeds of sales of personal property belonging to the company,” and above his signature are these words: “I agree tp deliver said sum to said company without discount, off-set or counterclaim.”

After signing the above settlement sheet, Hartrauft turned over to the company, for credit, notes arising from commission sales to the amount of $2,171.50, and after other proper credits had been made, there was due a balance of $899.94 which has never been paid or accounted for. This agent was not prepared to deliver or pay to the company the ascertained balance, and being asked by Robinson, agent for the plaintiff, why he could not do so, Hartrauft stated that he had used the money in his store business, buying goods, paying its bills and expenses of its operation. This is uncontradicted, and is the only account or explanation made as to his use and disposition of the money.

Hartrauft died intestate and insolvent on January 2, 1899, without having paid any further amount on this claim, and defendant became the administrator of his estate, which consists of about $40 in money and a stock of merchandise referred to, which brought at administrator’s sale $6,576.56. The administrator also realized from sale of real estate $2,337.90, and from notes and' accounts due for merchandise sold $1,015.98.

The plaintiff presented its claim for $899.94, duly verified, to the administrator of Hartrauft’s estate for allowance as a preferred claim against the proceeds of sale of stock in the store, on the ground that the trust fund in hands of deceased to that amount had been used in the store business and that the stock, and afterwards its proceeds became impressed with a trust relation. The administrator denied the right to preference, and this .action was brought in the lower court to have the-trust declared and for an order that defendant allow and pay said claim as preferred out of .proceeds of sale of the stock of goods; and the petition states the facts substantially as we have found them, and the case is before us on appeal from the decree of that court.

Two points are relied upon by the defendant to defeat the right of plaintiff to relief prayed for.

First — That the probate court had exclusive jurisdiction to hear and determine the question as to preference, and that the court of common pleas was without jurisdiction to entertain plaintiff’s suit, and if so, this court has no jurisdiction on the appeal.

We are aware that our .statutes confer very great authority on probate courts in the settlement of estates of deceased persons, and that such, authority has been broadened by legislative enactment at almost every session of our general assembly. But those courts have no equity jurisdiction except where it is clearly conferred by statute, and we are not bale to find on our examination ot the statutes, that probate courts have been given exclusive jurisdiction over such questions as are raised in [272]*272this case. The least that can be said for the powers of those courts in this respect, is, that they are concurrent with ihe powers of the court of common pleas, and the remedy in one, cumulative with a right to the remedy in the other. If the legislature has so enlarged the jurisdiction of the probate court, that it may entertain and determine such questions, it has not taken it away from the court of common pleas which has general equity jurisdiction. Só we decide the question of jurisdiction in favor of the plaintiff. See Jones v. Kilbreth, 49 Ohio St., 401.

Second — The de¡endant claims that the facts do not establish a trust relation between the amount due plaintiff and the stock of merchandise, so as to justify the court in charging the proceeds of the sale of goods with said sum as a preferred or equitable lien; and further, that plaintiff in its pursuit of its money, is confined to the amount of cash in possession of the agent at his decease.

The purpose of the parties to the contract of agency referred to, is quite apparent; especially that clause which has been quoted, to-wit: “ To hold all goods shipped or received, until sold and delivered, and the entire proceeds of all sales as the sold property of said Deering Harvester Company, and as a special deposit for it, until it shall i e fully settled.” The principle, sought b\- this clear stipulation, to restrict the agent from using its money in promotion of his other business, and from mingling his with his principal funds. To the contrary, he was required to keep the proceeds of sales on commission as the sole property of the principal and as a special deposit for it until fully settled for, so that whenever called upon by the company, the money so belonging to it could at once be realized. That both parties so understood the contract further appears in the language used in the settlement sheet of Novembor 10, 1898, wherein, Hartrauft acknowledged the amount then due and agreed “ to deliver the same to the company without discount, off-set or counterclaim.”

But in violation of duty assumed- under his contract, he used the money of his principal to the extent of $899.94 in his store to pay its running expenses, bills of goods purchased and put in his stock, and which remained so used and applied until his death, so that the use of plaintiff’s money which he was to hold as- a special deposit, went into his -other busiuess, and to that extent increased his other estate. If he bought good and paid for them out of this fund, he increased his stock -of goods that passed to his estate. If he paid other bills due against the store, he increased his funds to that extent, which, otherwise, he would have paid out of his business.

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Bluebook (online)
11 Ohio Cir. Dec. 270, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deering-harvester-co-v-keifer-ohiocirct-1900.