Donaghe v. Tams

81 Va. 132, 1885 Va. LEXIS 18
CourtSupreme Court of Virginia
DecidedDecember 3, 1885
StatusPublished
Cited by6 cases

This text of 81 Va. 132 (Donaghe v. Tams) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Donaghe v. Tams, 81 Va. 132, 1885 Va. LEXIS 18 (Va. 1885).

Opinion

Fauntleroy, J.,

delivered the opinion of the court.

The record of the cause presents the following case: William H. Tams, late of the city of Staunton, Va., was the cashier of • the “ Central Bank of Virginia,” from the time of its institution, about the year 1853, up to the time of its suspension in 1865.

[134]*134On the 16th of August, 1865, the said Bank combed all of its assets—real and personal—to said Wm. IT. Tams, as trustee, to be sold and realized upon and applied to the j>ayment of its debts. The only piece of real estate owned by said Bank, and which was conveyed by said deed of trust to said William H. Tams, was the house and lot, in controversy in this cause, situated on Beverly street, in Staunton, Va., known and used as the “ Old Central ,Bank property,” and which was built so that the street-floor was adapted and used, in part, for banking purposes, with a residence for the use of the cashier in the residue of the said building.

By authority vested in the said William H. Tams, as trustee, under the deed of trust aforesaid, he sold the said banking-house property, on the 18th day of November, 1865, to Dr. Briscoe B. Donaghe, for the sum of $5,500, as set forth in a contract in writing, signed by the said parties, and now filed as part of the record in this cause. Under the terms of the said contract of sale, said Tams reserved', as a part of the consideration, the use of the dwelling-house portion of the said building for two years, and also a portion of the banking-house part, for his purposes as trustee in Avinding up the business of the old bank under the deed of trust aforesaid.

On the 20th day of November, 1865, the said Donaghe paid on the said purchase $3,000, as appears from the receipt of William H. Tams, trustee, to him, written on the said contract of sale. On the 4th December, 1865, the said Donaghe paid, on the said purchase, a further payment of $500, Avhich was receipted for by the said William H. Tams, trustee, written upon the said contract. On the 12th day of January, 1867, said Donaghe paid the residue of the said purchase money, amounting, principal and interest, to the sum of $2,139.77; and thereupon, the said William H. Tams, trustee, delivered, to said Donaghe a deed of conveyance for the said property, [135]*135■which, had been prepared and executed by him on the 16th day of August, 1866, and which acknowledged the receipt of the entire purchase money from said Donaghe, and covenanted for special warranty of title (“but subject to-the provision of a written article of agreement between the parties hereto as to the possession of the property herein conveyed, and dated November 18th, 1865”). The said Donaghe received the said deed, and placed the same on record in the clerk’s office of the county court of Augusta county, and paid for recording the same.

Very soon after this sale to Dr. Donaghe by William EL Tams, trustee, the said Tams commenced the business of a broker, in connection with others, under the firm name and style of William H. Tams & Co., and occupied this old Central Building for the purpose, as the tenant of the said Donaghe. This business was soon succeeded by the “Virginia Insurance Company ”—a banking concern of which said Tams was cashier—which continued to occupy the said property, as the tenant of said Donaghe. This last named business was succeeded by the “Virginia Banking and Trust Company,” of which said Tams continued as cashier, and which remained in said building, as the tenant of said Donaghe, up to the time of its suspension in 1875.

At the time of the sale of this Central Bank property by Tams, trustee, to B. B. Donaghe, as aforesaid, November 18th, 1865, the said Donaghe was (as shown by the evidence in the record) a wealthy man, with ample ready means, and was one of the few, if not the only person in Staunton, at that time, who was able to buy the said property and pay for it in the time said Donaghe did.

William EL Tams and Dr. B. B. Donaghe were very intimate personal friends; and, from the date of the purchase of this property by said Donaghe to the date of William H. [136]*136Tams’ death, in August, 1873, and for a time thereafter, said Donaghe kept his bank account with said Tams, and transacted all of his business through said Tams and the several institutions aforesaid, of which said Tams was the head, doing business in the said old Central Bank building. Tams was the business adviser and financial agent of said Donaghe, and to his hands was committed the management of the entire business of said Donaghe.

The bank account of said Donaghe, kept with said Tams, running from early in 1866 to October, 1874, shows that said Tams charged said .Donaghe regularly, to the day of Tams’ death, in August, 1873, with the taxes and costs of insurance upon the said property, and credited the said Donaghe regularly thereon, with rent for the said building, at the rate of $500 per year, up to the date of his (Tams’) death, in August, 1873. And it further appears from the record filed as evidence in this suit, of the common law suit of Hendren & Echols, Trustees of the Virginia Banking and Trust Company v. B. B. Donaghe, brought in the circuit court of Augusta county, at the March term, 1876, to recover from said Donaghe the amount of a draft due said company, that said Donaghe filed, as ah offset to the said claim, an account for rent due him for the said building which was occupied by the said company after said Tams’ death; and upon that plea and offset, the said circuit court gave judgment for said Donaghe.

At the November term, 1866, of the circuit court of Augusta county, one Robert G. Bielde, of Staunton, filed a bill in the said court against William H. Tams, trustee of the Central Bank, charging, among other things, that said Tams was himself the real purchaser of the property, and for an inadequate price; that said Tams was removing from the said premises a valuable stable, and praying for an injunction to restrain said Tams from removing the said stable from the premises, and [137]*137converting it to Iris own nse. Upon this an injunction was awarded, as prayed for; and said Tams not heeding the said injunction, a rule was awarded against him to show cause why he should not be attached, &c. To this rule said Tams filed his sworn answer, saying that the removal of the stable was “made with the consent and by the authority of Dr. B. B. Donaghe, who was the purchaser, and is the present owner of the property.”

On the 26th of November, 1866, an amended bill was filed in the said cause; and at the January rules, 1867, the said Tams, trustee, filed an elaborate and well-considered answer, under oath, to both the original and amended bills aforesaid, in which he says that he and the other officers of the bank, who were preferred creditors under the deed of trust, were in such pressing need of the means of subsistence, having been turned loose without such means after the war, that he sold this property, as the only available asset of the bank, to satisfy his own and their most exigent needs; that he made the sale of the property on the 18th day of November, 1865, to Dr. B. B. Donaghe, who had since expended thereon between $900 and $1,000 in repairs; that the Virginia Insurance Company, in connection with himself as trustee, is occupying the said building as tenants of Dr. Donaghe; that the sale was a bona fide one, made in good faith; and he filed a copy of the contract of sale and the evidence of Dr.

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Bluebook (online)
81 Va. 132, 1885 Va. LEXIS 18, Counsel Stack Legal Research, https://law.counselstack.com/opinion/donaghe-v-tams-va-1885.