Franz v. Buder

82 F. Supp. 379, 1932 U.S. Dist. LEXIS 1926
CourtDistrict Court, E.D. Missouri
DecidedApril 4, 1932
DocketNo. 6682
StatusPublished
Cited by4 cases

This text of 82 F. Supp. 379 (Franz v. Buder) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Franz v. Buder, 82 F. Supp. 379, 1932 U.S. Dist. LEXIS 1926 (E.D. Mo. 1932).

Opinion

FARIS, District Judge.

The matters before the Court have to do with many motions and exceptions, made and filed by divers parties to the cause, and others, or, at least, one other, namely, the State of Missouri, which comes in by way of an intervention for its own interest, or alleged interest.

I see no reason why, the whole matter, and all of the motions, interventions and exceptions may not be fully dealt with in a single oral opinion, bottomed upon which the various necessary orders may be settled, signed and entered. All of the motions, matters and things before me are so inextricably entangled by interdependency as that hardly one of them may be ruled, without ruling upon all of them, save and except the matter of an alleged fee and lien therefor, claimed by S. Mayner Wallace, Esquire, against the individual interest in the trust estate of plaintiff, Ehrhardt W. Franz.

Claim and Alleged Lien of S. M.

Wallace, Esquire.

This claim has been three times set down for final hearing. On two occasions counsel were not ready, and on the third setting no one appeared, and the matter went back without order to the general docket. Since I can, in fairness, delay the other matters no longer, I shall, until the claim of Mr. Wallace can be fully heard and ruled, temporarily order that, out of the sum, amount and interest apportionable under the decree and orders of this Court to plaintiff, Ehr-hardt W. Franz, there be paid by the Trus[381]*381tees into the registry oí this Court the sum of $40,000, in cash, or that amount in value in such equivalent properties as such Trustees may hold for said Ehrhardt W. Franz, and that said stím of $40,000, or so much thereof as this Court may hereafter order, if any, may stand in lieu of said Franz’ entire interest in the estate, so far as concerns the alleged claim and lien of Mr. Wallace. While the sum so to be paid into Court shall have the lien, if any, of Mr. Wallace transferred to it, there is otherwise no significance to be attributed to the amount fixed and ordered to be retained.

Upon the final hearing and ruling upon the claim and alleged lien of Mr. Wallace, the said sum of $40,000, or the balance thereof, if any, shall be ordered to be paid to plaintiff, Ehrhardt W. Franz, less such costs, if any, as may lawfully attach to the same.

The Motion of Plaintiff, Ehrhardt W. Franz, for Contribution from the 6-2/3 Interests, for His Costs, Expenses and Attorneys’ Fees.

I am constrained upon the record to overrule this motion. The reasons for doing so are numerous. A substantial sum is embraced among the items of this motion for the hotel bills and travelling expenses of Ehrhardt W. Franz, while consulting, and in order to consult, with his attorneys, and in attending upon trials and hearings.

These defendants from whom movant now desires contribution could, of course, have been allocated, on account of apparent interest, to plaintiff’s side of the case. But they were not so_ placed in the case, and they chose to become adversary parties in fact, by assuming in their pleadings, attitudes hostile to movant’s position and prayer for relief. Moreover, and this consideration, I think, is conclusive, they took no adjudged or decreed relief, though it was open to them by the opinion and finding of this Court (see oral opinion on final decree) and it was proffered by the proposed final decree submitted by plaintiff’s solicitor. The final decree is silent as to the interests of the 6-2/3 remaindermen (so called herein for brevity), because they did not ask to have their interests decreed, and these interests have never been decreed by this Court.

Necessarily, upon the evidence, papers, documents and former decree of the State Court, rendered on the sixteenth day of June, 1910, it was clear that these 6-2/3 interests were remaindermen, precisely as was plaintiff himself. But they appeared herein by their own solicitors, asked for no affirmative relief, filed no cross-bills, but contented themselves with denial of the existence of the remainder interest in dividends of stock. It is true that, in addition to the above denial, there were set up by them affirmative facts touching the execution by them of divers documents, and the receipt by them of divers gifts of money by the tenant for life, which, accruing since the decree of the State Court, were averred by them to have had the effect of exhausting their interests in remainder.

While this Court finds, as, clearly, it ought to have found under the facts and the law, that none of the things done by them subsequent to the decree of the State Court had the effect to destroy their remainders, yet, for reasons best known to them, they did not see fit anywhere to ask for a formal decree in their favors, and so none was entered.

The defense that dividends declared in stock and not in cash, were income and so inured to the tenant for life as her absolute property, rather than that such dividends were corpus, and so must be allocated to the estate in remainder, was a doubtful legal question when this action was begun. Two views were held about the question. In many, perhaps in the greater number of the States of the Union, dividends declared in stock were held to be income. In the rest of the States, such dividends were held to be a part of the corpus of the estate. There was but one opinion by the Supreme Court of the United States, which seemed squarely to rule the point. Gibbons v. Mahon, 136 U.S. 549, 10 S.Ct. 1057, 34 L.Ed. 525. The Supreme Court of Missouri had not at that time ever ruled the question. It has since done so, and, in effect, followed Gibbons v. Mahon, supra; Hayes v. St. Louis Union Trust Company, 317 Mo. 1028, 298 S.W. 91, 56 A.L.R. 1276.

[382]*382Moreover, as forecast, it was not wholly free from legal doubt as to whether the question was one in which the local law should govern, or whether it was one wholly relegable to federal decisions. This, obviously, was one of the important legal questions, in this case. The other defenses were ancillary and incidental; for, obviously, if stock dividends were by law al-locable to income and not corpus, then the remainder interests in effect were worth practically nothing, and their continued existence vel non was well-nigh an academic question.

Inevitably, of course, the question whether stock dividends are allocable to income or corpus, would have arisen in this case sooner or later. If it had not arisen herein, it would, without doubt, have arisen after the death of the life tenant. But not necessarily among the plaintiffs and defendants here, as it has arisen.

Concededly, when one of a class sues for the benefit of all persons who belong' to such class, and succeeds in recovering or preserving a fund, such suitor may demand contribution for moneys laid out in fees of counsel and for expenses of maintaining the litigation. But the above conditions are not involved in the case at bar. This case is anomalous, and if the test be, as I think it is, that the result of the suit (in which the charges are made) must be beneficial to the members of the class sought to be charged, then movant cannot, and should not, recover. As pointed out, there were no concrete benefits to the 6-2/3 remainder interests, who employed, moreover, their own solicitors in the case, whom, of course, they must personally pay, without hope of contribution.

So, the motion for contribution will be overruled.

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Related

State Ex Rel. Scott v. Roper
688 S.W.2d 757 (Supreme Court of Missouri, 1985)
Saulsbury v. Denton National Bank
335 A.2d 199 (Court of Special Appeals of Maryland, 1975)
In Re Franz Estate
245 S.W.2d 1 (Supreme Court of Missouri, 1952)

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Bluebook (online)
82 F. Supp. 379, 1932 U.S. Dist. LEXIS 1926, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franz-v-buder-moed-1932.