Derrick v. Lumpkins

95 S.W.2d 939, 20 Tenn. App. 77, 1936 Tenn. App. LEXIS 5
CourtCourt of Appeals of Tennessee
DecidedFebruary 8, 1936
StatusPublished
Cited by2 cases

This text of 95 S.W.2d 939 (Derrick v. Lumpkins) 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
Derrick v. Lumpkins, 95 S.W.2d 939, 20 Tenn. App. 77, 1936 Tenn. App. LEXIS 5 (Tenn. Ct. App. 1936).

Opinion

CROWNOVER, J.

The original bill in this cause was filed by H. D. Derrick and Morrison & Morrison, all attorneys, to have a trust declared and decreed in their favor in a deposit of $651.75 in the savings department of the First National Bank, of Lawrenceburg, *78 Tennessee, to the credit of L. N. Lumpkins, it being alleged in the bill that L. N. Lumpkins had employed them to represent him in a lawsuit and deposited this money in the bank as a trust fund for the purpose of paying their attorneys’ fees.

Defendant, Mrs. Bessie M. Lumpkins, moved to dismiss the bill and dissolve the injunction for want of equity, which motion was overruled, to which defendant excepted.

Mrs. Bessie M. Lumpkins, widow of L. N. Lumpkins, deceased, thereupon filed her answer insisting that this money was not deposited as a trust fund for this purpose, but was merely a savings account.

The chancellor found that said deposit was a trust fund made for the purpose of paying said attorneys’ fees, and he decreed that said bank pay out of said fund to H. D. Derrick $250 and interest, making a total of $259.50, and to Morrison & Morrison $60 plus interest, or $62.28.

The chancellor found that it would be inequitable to allow the additional $100 to each firm, provided for in the contract, in view of the fact that an appeal was prayed and granted from the decree of the chancery court, and the final disposition of the matter must be attributed to the death of Lumpkins rather than to a final adjudication of the issues involved by the court of last resort.

Mrs. Lumpkins excepted to said decree and appealed to this court and has assigned errors, which, when summarized, are as follows:

(1) The chancellor erred in holding that said savings account is a trust fund for the purpose of paying said attorneys’ fees.

(2) The chancellor erred in overruling defendant’s motion to dismiss the bill and dissolve the injunction for want of equity on the face of the bill:

L. N. Lumpkins, of Lawrenceburg, died in September, 1934. He had been for a number of years county superintendent of education for Lawrence county, under chapter 543 of the Private Acts of 1927. About January 6, 1934, certain citizens of Lawrence county filed a bill in the chancery court attacking the eligibility of said Lumpkins and the constitutionality of said act.

Lumpkins employed the firm of Morrison & Morrison and IT. D. Derrick to represent him in this suit, and they entered into a written contract, dated January 25, 1934, by which said lawyers agreed to represent Lumpkins and he agreed to pay each firm $250 to defend said suit, and each an additional fee of $100 when it should be determined that the suit was successful.

On February 5, 1934, Lumpkins opened a savings account in the First National Bank, of Lawrenceburg, in his own name, and deposited $100. On May 2 he deposited $200; on June 30, $100; on July 30, $50; and on July 31, $300, making a total, including interest, of *79 $651.75'. Nothing was ever withdrawn from the account, and Lumpkins kept the passbook in his possession until his death.

Lumpkins made several payments, at different times, over a period of several months, to Morrison &■ Morrison on their fees, amounting to $190. These payments were made by checks on his cheeking account.

On September 5, 1934, the chancery court decided said suit in favor of Lumpkins. The complainants prayed an appeal and were allowed thirty days within which to perfect same. On September 14, 1934, Lumpkins died. The appeal was, therefore, never perfected, and the suit terminated.

Lumpkins died intestate. His widow, Mrs. Bessie Lumpkins, was appointed administratrix of his estate. His estate consisted of real estate held by him and his wife as tenants by the entirety, life insurance, and a small amount of personal property. The personal property consisted of an automobile, a small cheeking account, the balance of his salary, and said savings account of $651.75.

On October 4, 1934, commissioners were appointed to allot a year’s support to the widow, and it was suggested that all of said personal property be given to her for her year’s support. „

John F. Morrison, Jr., of the firm of Morrison & Morrison, had been employed by Mrs. Lumpkins to wind up her husband’s estate. After the first meeting of the commissioners to set apart a year’s support, at which meeting the amount of said Lumpkins’ estate was ascertained, Morrison, Jr., excused himself as her attorney.

On October 16, 1934, the bill in this cause was filed and injunction was issued impounding said savings account.

On November 1, 1934, the commissioners appointed to set apart Mrs. Lumpkins’ years’s support filed their report, which was confirmed by the court on November 4, 1934. In this report it was attempted to allow this savings account of $651.75 as a part of her year’s support, which, if done, would leave no property for the payment of Lumpkins’ debts.

1. Complainants contend that L. N. Lumpkins created a trust in this fund of $651.75 for their benefit, for the payment of their attorneys’ fees in said cause.

The evidence by which complainants undertake to establish a trust is as follows:

When they were first employed, they entered into a written contract with Lumpkins as to the amount of the fees and nothing was said about the trust at that time, and the facts about the trust arose latex-on.

H. D. Derrick, one of the complainants’ attorneys, testified that at the time the contract was made he asked Lumpkins to pay half of his fee, and he said he was not in position to do so at that time, but “he *80 would make ample provision for the payment of the fee”; that a short time before Mr. Lumpkins ’ illness they had a conversation about the lawsuit and Lumpkins told him that “he was providing a special fund for the purpose” of paying their fees and “placing it on deposit in the bank.” Mr. Derrick further testified that after Mr. Lumpkins’ death he asked Mrs. Lumpkins to make a note for his fee and execute a deed of trust to secure it, which she declined to do; and later he “drafted this bill and filed it on information that I had received that the fund was in the First National Bank for the payment of the attorney fee.” Derrick did not know in what bank it was deposited or the amount deposited, but learned these facts after the death of Lumpkins.

Miss Ada Beavis, teller in the First National Bank, testified that Mr. Lumpkins, when making a deposit in this savings account, had said, “This is lawsuit money.” Miss Beavis knew about the lawsuit and understood that he referred to the suit filed against him as superintendent of education. Miss Beavis also testified that Mrs. Lumpkins, while making one of the deposits to said account, told her that it was “lawsuit money.”

F. F. Locke testified that he was employed as teller at the First National Bank, of Lawreneeburg, in the early part of 1934 and the summer of 1934, and while he was employed there Mrs. Lumpkins made a deposit of $100 to Mr.

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7 T.C. 153 (U.S. Tax Court, 1946)

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Bluebook (online)
95 S.W.2d 939, 20 Tenn. App. 77, 1936 Tenn. App. LEXIS 5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/derrick-v-lumpkins-tennctapp-1936.