Gartside v. Gartside

20 S.W. 669, 113 Mo. 348, 1892 Mo. LEXIS 36
CourtSupreme Court of Missouri
DecidedDecember 31, 1892
StatusPublished
Cited by19 cases

This text of 20 S.W. 669 (Gartside v. Gartside) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gartside v. Gartside, 20 S.W. 669, 113 Mo. 348, 1892 Mo. LEXIS 36 (Mo. 1892).

Opinion

Thomas, J.

This is a bill to remove defendant from the position of trustee of the property of three of the plaintiffs, Emma and Julia G-artside and Mrs. Matty Duffy, or to compel him to give bond for the faithful discharge of his duties. After a hearing the court dismissed the bill and plaintiffs appealed.

The undisputed facts are about these: Joseph Gart-side, father of the lady plaintiffs and of defendant, died [351]*351December, 1876, leaving a large estate of $700,000 or $800,000. By Ms will be appointed tbe defendant and one Joseph W. Branch his executors and trustees, placing all the property which he gave to his four daughters in the hands of his said son and said Branch as trustees. He left one other daughter besides plaintiffs (married at the time of his death), and one other sdn besides ■defendant, six children in all. The will does not say whether the trustees shall or shall not give bonds. They never gave any bonds as trustees. The defendant, Charles E. Gartside, declined to act as executor, and Branch alone gave bond and was sole executor.

The estate left by the father consisted of considerable real estate in the city of St. Louis, and a large mining property in the state of Illinois. The coal mines in Illinois were owned by a stock company, ■organized under the laws of Illinois and were valued at $600,000, the deceased owning all the shares except a few given to each of his sons so they could be members of the company. The shares were each $100. The will provided that the widow should have the use of the dwelling house in St. Louis during her life, and an annuity of $5,000 a year; that each of the daughters, after they became of age, should have $1,000 a year, to be paid them yearly and to be finally charged to them in the distribution of the estate; that, when the youngest daughter became of age, then the estate should be equally divided among the children, after reserving enough to pay the widow’s annuity. But the shares of the four daughters were still to remain in the hands of the trustees, so that no husband could ever get control of it. The youngest daughter became of age (18) in August, 1882.

In 1882 Branch turned over to himself and defendant, as trustees aforesaid, about $500,000 worth of stock of the coal company and got credit for $25,000 [352]*352commission thereon. It seems, however, that the debts had not been paid, and he continued in charge of the estate as executor till 1887, when upon final settlement had with him he was found to be short in his accounts in the sum of $14,000, which his sureties afterwards paid. About this time he resigned as trustee, leaving defendant sole trustee. Defendant paid to Branch, as executor, the whole income of the estate coming into his hand from 1882 to 1887, for the purpose, as he alleges, of enabling him to pay the debts. The trustees did not pay to the daughters the $1,000 per annum each, as provided by the will, on the ground, as they claim, that they had riothing to pay with. In 1887 a disagreement sprung up between defendant and the beneficiaries, and this went to such an extent that all social intercourse between them ceased. Defendant while admitting a hostile feeling between him and his sisters, claims that ■ it grew out of the interference of Mrs. Duffy’s husband. Be that as it may, it is evident the family is divided into two extremely hostile factions, the mother, one sister and a brother constituting one faction under the leadership of defendant, and the other three sisters constituting the other faction under the leadership of Joseph A. Duffy, the husband of one of them.

After some litigation and a good deal of negotiation, partition of the estate as provided in the will was made in 1889, and deeds were duly executed conveying to defendant, as trustee, the real and personal estate allotted to the four sisters in severalty. In this partition the sisters obtained the annuities due them under the will, payment of which had not till then been made, and at the same time an agreement was entered into between all the parties by which it was stipulated that the sisters should receive the rents and income of their estate without molestation from the trustee, and [353]*353so far as the real estate in the city is concerned there seems to be no trouble but the defendant has in possession the shares of the stock of the Illinois Coal Company belonging to his beneficiaries, each having about six hundred and sixty shares. Defendant is president and treasurer of the company, and he is enabled, without the consent of plaintiffs, to control the election of the board of directors, as he, his mother, his sister that sides with him, and his brother own four thousand and twenty of the shares, while plaintiffs own one thous- and nine hundred and eighty. He pays the dividends on the stock to his sisters. After the institution of this suit defendant did not vote the stock of the plaintiffs, although the by-laws of the company authorized him as trustee to vote it, and it seems that after that time their stock was not voted. He refuses to give his sisters any information in regard to the business of the coal company. The company sold lands in Illinois for $337,000, $265,000 of which defendant invested in bonds of counties in Missouri other than the city and county of St. 'Louis, which bonds are in the custody of the officers of the company, the will providing that all surplus funds of the estate should be invested in real estate, in United States bonds, or bonds issued by the state of Missouri and the county and city of St. Louis.

I. The court erred in not requiring defendant to give bond for the faithful discharge of his duties as trustee. Section 8685, Revised Statutes, 1889, provides that every trustee appointed by any last will, deed or other instrument of writing to hold, manage or dispose of any property for the use of another person may be required by the circuit court to give bond, ‘ ‘conditioned for the faithful execution of the trust/’ unless the will or other instrument creating the trust shall in express terms dispense with security. We may presume, [354]*354though, it does not specifically appear in the record, that the court refused to require a bond of defendant on the ground, that under the agreement of all parties, entered into at the time of the partition of the estate, defendant became a naked trustee with no power to sell the property or receive the rents and income thereof. But the statute even contemplates that such a trustee may be required to give bond, for its provisions extend to a trustee who holds property for another. We think he ought to be required to give bond under the statute, the will not having expressly dispensed with security.

II. We think also that the court erred in not removing defendant from the trust for these reasons: First. He occupies antagonistic relations to the coal company property. He owns stock as an individual, as trustee, he holds the stock of his sisters, and he controls the business of the company as its president. He is, indeed, the company, being in full and complete control of it. He elects himself president and treasurer, and fixes and pays his own salary. He claims and-exercises the power to sell the property of the company and invest the proceeds according to his judgment, without regard! to the provisions of the will. The plaintiffs insist that the will prohibits him from selling the coal lands in Illinois and investing the proceeds except in real estate, United States bonds or bonds issued by the state of Missouri or by the county or city of St.

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Cite This Page — Counsel Stack

Bluebook (online)
20 S.W. 669, 113 Mo. 348, 1892 Mo. LEXIS 36, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gartside-v-gartside-mo-1892.