Dooley v. Welch

158 S.W. 454, 172 Mo. App. 528, 1913 Mo. App. LEXIS 499
CourtMissouri Court of Appeals
DecidedJune 30, 1913
StatusPublished
Cited by4 cases

This text of 158 S.W. 454 (Dooley v. Welch) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dooley v. Welch, 158 S.W. 454, 172 Mo. App. 528, 1913 Mo. App. LEXIS 499 (Mo. Ct. App. 1913).

Opinion

JOHNSON, J.

Plaintiff, an attorney at law, sued the defendants administratrices in equity to enforce a demand for fees earned in the service of the estate and for which it is alleged the estate is liable as for expenses of administration. The demand consists of fifty-two items ággregating $2593.52, and credits amounting to $1085 are acknowledged in the petition, reducing the alleged indebtedness to $1508.52, for which plaintiff prays judgment and that the judgment be classified as an expense of administration. The answer interposes a number of defenses, the nature of which will be disclosed in the statement and opinion. The court rendered a decree which included a complete finding of facts and resolved the issues of law and fact in favor of plaintiff but reduced the total net demand from $1508.52 to $825.52. It was further adjudged “that the defendants pay to the plaintiff out of any funds now in their hands, or that may hereafter come into their hands, belonging to the funds of said estate of J. J. Ryan, deceased, the sum of eight hundred eight and 52/100 dollars with interest at six per cent from-1910, and cost of suit, to be charged to the estate, and paid for as a part of the expense of the administration thereof.” Defendants appealed.

In July, 1898, J. J. Ryan died testate in Bates county, leaving as his heirs his widowed daughters, Mrs. Caroline Morrison and-Mrs. Sarah Adaline Stanley and his adult grandchildren, W. R. Morrison, J. R. Morrison, Nellie Welch, John L. Stanley and Daisy Stanley. The estate consisted of stocks in banks and corporations, secured and unsecured notes and other evidences of debt of the estimated value of $80,000. The will was probated in Bates county August 16, 1898, and F. J. Tygard, J. C. Clark and the testator’s grandson, Joseph R. Morrison, were appointed execu[531]*531tors. They gave a bond in the sum of $50,000 and acted as executors until February, 1907, when they were removed and P. H. Holcomb was appointed administrator de bonis non with the will annexed. Two months later Holcomb was removed and defendants Nellie E. Welch and Daisy Stanley were appointed administratrices de bonis non with the will annexed. They qualified and took charge of the estate and are still the administratrices thereof. The evidence supports the finding of the court “that when said estate was turned over to the defendants as administratrices it was in a confused condition and subject to considerable litigation and in need of legal services and advice for the preservation and protection of its rights, property and funds.”

The executors Tygard, Clark and Morrison had been removed for mismanagement and had left the affairs of the estate in a tangled condition. At the death of Ryan they were respectively president, cashier and bookkeeper of the Bates County Bank, a State bank in which Ryan held thirty-four shares of stock of the par value of $100 per share. Sometime after the death of Ryan and during the period of their executorship,-they caused the bank to be reincorporated as a national hank. Shortly before their removal as executors the hank failed and its assets passed into the hands of a receiver. Neither of the administratrices lived in Bates county during the present administration of the Ryan estate. Mrs. Welch has lived in Kansas City and Daisey Stanley has resided in St. Louis a part of the time and in Louisiana the remainder. Plaintiff is a lawyer residing and practicing in Bates county.

We approve the finding of the court “that at or about the time of the appointment and qualification of the defendants as administratrices of said Ryan estate they employed plaintiff to advise and render such legal .-services as might he required in the administering of the affairs of said estate under said will, and for that [532]*532purpose all the papers belonging to said estate were placed in his charge; that plaintiff continued in such service from the-day of April, 19Ó7, to the-day of April, 1910, when he was discharged therefrom by the defendants without any fault or dereliction of duty on his part having been assigned therefor, and all the papers of said estate in.his charge were delivered to the defendants at their request.”

Counsel for defendants contend that plaintiff was employed not by the administratrices to act as the general attorney of the estate but by Daisy Stanley as her attorney but we think the weight of the evidence supports the finding of the court to the contrary and also the further finding “that plaintiff’s employment was general in its nature; that there were no specific instructions from the defendants personally in regard to the items set out in plaintiff’s account . . ■. but the court finds that said services were rendered in the usual course of plaintiff’s employment and defendants, either themselves or through their advisers had knowledge of the same. The court further finds that defendant had knowledge of the trips made by plaintiff in said suits prior to April 5, 1909, as the service was set out in plaintiff’s bill for expenses of each trip, and defendants paid the same without protest or claim that the service mentioned or the expense therefor was not beneficial or not necessary for the protection of the funds of said estate.”

When the Bates County Bank was converted into a national bank the executors of the Ryan estate who, as stated, were managing officers of the bank, caused the thirty-four shares of stock owned by the estate to be converted into a similar number of shares in the national bank and the estate appeared on the books of the bank as the owner of said stock when the receiver took charge of its assets. The stock had been fully paid and had the business been continued as a State bank there would have been no stockholders’ liability [533]*533but if, in fact and law, tbe estate had become a stockholder in tbe national bank, it bad incurred a liability on tbe stock equal to tbe par value thereof.

the receiver of the Hank in March, 1907, while Holcomb was administrator, brought suit in the Federal court at Kansas City against the estate to recover an assessment of $3400, on the stock in the bank standing’ in the name of the estate. the court found “that the circumstances and conditions surrounding the possession of said stock by said estate of said Ryan, when taken in connection with the directions in said will, and the fact that the executors were the managing officers of said bank, as well as other considerations connected therewith, were such that it became the duty of the representatives of said estate to defend said action, and if possible to prevent a judgment being bad herein against the trust funds in their charge. That plaintiff under bis general employment took charge of said suit, and during the progress thereof rendered certain services that were necessary in the defense of the right, property and funds of said estate. That said suit was tried twice and judgment rendered against the estate for the full sum sued for and interest. That the plaintiff filed a motion in arrest and for a new trial and was granted ninety days to-wit in which to file bill of exceptions with a view of appealing the same, but said case was not appealed.”

the fees claimed by plaintiff on account of the services rendered in the defense of this case amounted to $320, but the court found that the reasonable value of the services was $200. the court further found 4 ‘ that under the circumstances the defendants were justified in resisting the claim made in that suit, and the services of plaintiff were necessary in the defense thereof.” the evidence shows and the court so found, that C. A.

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Bluebook (online)
158 S.W. 454, 172 Mo. App. 528, 1913 Mo. App. LEXIS 499, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dooley-v-welch-moctapp-1913.