Farmers State Bank ex rel. Johnson v. Mitchell

55 P.2d 423, 143 Kan. 286, 1936 Kan. LEXIS 317
CourtSupreme Court of Kansas
DecidedMarch 7, 1936
DocketNo. 32,240
StatusPublished
Cited by13 cases

This text of 55 P.2d 423 (Farmers State Bank ex rel. Johnson v. Mitchell) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers State Bank ex rel. Johnson v. Mitchell, 55 P.2d 423, 143 Kan. 286, 1936 Kan. LEXIS 317 (kan 1936).

Opinion

[287]*287The opinion of the court was delivered by

Wedell, J.:

This was an action in the nature of a creditor’s bill to set aside certain alleged fraudulent conveyances and to subject the property to the satisfaction of plaintiff’s claims allowed in the probate court.

The trial court set aside the conveyances and directed the real estate be subjected to the payment of claims of creditors against the estate. From that judgment defendants appeal. The parties made defendant were: Sarah P. Mitchell, an individual (widow of deceased) ; Sarah F. Mitchell, executrix of the estate of R. F. Mitchell, deceased; and the five Mitchell children, all of whom were adults.

The trial court made findings of fact as follows:

1. “That on December 11, 1931, R. F. Mitchell and Sarah Mitchell, his wife, made, executed and delivered their certain warranty deed to Sarah Mitchell, the wife, one of the defendants herein, to the real estate involved herein and set out in plaintiff’s petition, situated in Jefferson county, Kansas, which deed was recorded in the office of the register of deeds of Jefferson count3', Kansas, on December 12, 1931.
2. “That R. F. Mitchell died about three weeks after the execution and delivery of said deed.
3. “That at the time of the execution of said deeds to Sarah Mitchell, the said R. F. Mitchell owed the Potter State Bank, the plaintiff herein, the sum of 82,900 and interest on a promissory note which was not due at that time. The evidence fails to disclose the date of maturity of said note.
4. “That said sum of $2,900 was all that the said R. F. Mitchell owed said bank at the time of the transfer of title to said real estate.
5. “That on the 1st day of July, 1930, R. F. Mitchell signed a financial statement for the Farmers State Bank in which he listed his assets as follows:
Personal property;
Cash on hand in bank.;....................................... $400.00
Bills receivable ............................................... 3,500.00
Bank Stock and Bldg, and Loan................................ 3,000.00
Real estate:
393 a. in Jeff, and Leaven. Co.................................. 39,300.00
House in Potter............................................... 3,000.00
Equity sin 361 a............................................... 5,000.00
$54,200,00
Liabilities:
Farmers State Bank............................................ 83,000.00
Notes payable (unsecured) .................................... 2,000.00
$5,000.00
Net worth .................................................$49,200.00
[288]*2886.“After the death of the said R. F. Mitchell, administration was taken out of his estate in Atchison county, Kansas, and. the following assets listed:
Personal property consisting of corn, wheat, oats, hay, wood, Ford car and desk .................................................. $624.25
Other property consisting of 20 shares of bank stock, estimated value .......................................................... 2,000.00
Amount due the estate, notes and open accounts.................. 602.50
Cash, Farmers State Bank ...................................... 142.00
7. “That on the 6th day of February, 1933, Sarah Mitchell filed her final account as executrix of the estate of Robert F. Mitchell, deceased, showing payment of preferred claims in the sum of $997 and claiming due her as executrix, a balance of $170 advanced by her to pay said preferred claims.
8. “The evidence fails to disclose whether or not any consideration was paid by the said Sarah F. Mitchell to R. F. Mitchell for the land in controversy, other than the fact that the deed states as a consideration, love and affection.
9. “That on the 25th day of August, 1932, the said Sarah F. Mitchell conveyed to the other defendants herein the above-described real property for the consideration of $1 and other valuable consideration, the grantees in said deed being the children of Sarah F. and R. F. Mitchell, and being devisees and legatees under the last will and testament of the said R. F. Mitchell.
10. “That the Farmers State Bank, plaintiff herein, failed January 18, 1933, more than twelve months after the death of R. F. Mitchell.
11. “That so far as the evidence discloses there is no property, either real or personal, belonging to the estate of R. F. Mitchell out of which the claims of plaintiff could be paid, except the homestead occupied by the widow and some equities of very doubtful value.
12. “That on the 19th day of November, 1932, the Farmers State Bank of Potter had its claim allowed on the note mentioned heretofore in the sum of $3,306.82, with interest at ten percent from that date, which claim has never been paid.
13. “That on the 25th day of March, 1933, the plaintiff has its claim for double liability on its twenty shares of bank stock allowed in the probate court in the sum of $2,000, which claim has never been paid.”

The trial court made one conclusion of law, which was—

“That the demurrer of the defendants to the plaintiff's evidence should be and the same is hereby overruled.”

Appellants’ first complaint is the trial court erred in overruling their objection to the introduction of evidence. The basis of this contention is the petition did not allege sufficient facts to entitle plaintiff to a judgment for stockholder’s double liability. This was not an action to establish a claim for double liability. The petition alleged in substance, that at the death of R. F. Mitchell, he was the owner of twenty shares of capital stock in plaintiff bank; that thereafter the bank became insolvent, and Mitchell’s estate became liable [289]*289for the double assessment in the sum of $2,000; the bank duly and regularly recovered a judgment thereon in the probate court against the estate of R. F. Mitchell, deceased, in the sum of $2,000, and that no appeal has been taken from the order and judgment of the probate court.

No appeal was taken from that order and, of course, it became final. It was not subject to direct or collateral attack. In Bowlus, Executor, v. Winters, 117 Kan. 726, 233 Pac. 111, it was said:

“It is settled law that within its jurisdiction a judgment of a probate court unappealed from is as binding as that of a court of general jurisdiction. (Lake v. Hathaway, 75 Kan. 391, 89 Pac. 666.)” (p. 729.)

In the course of the same opinion it was further said:

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Bluebook (online)
55 P.2d 423, 143 Kan. 286, 1936 Kan. LEXIS 317, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-state-bank-ex-rel-johnson-v-mitchell-kan-1936.