Hewitt v. Frazier

219 So. 2d 149, 1969 Miss. LEXIS 1416
CourtMississippi Supreme Court
DecidedFebruary 24, 1969
DocketNo. 45216
StatusPublished
Cited by5 cases

This text of 219 So. 2d 149 (Hewitt v. Frazier) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hewitt v. Frazier, 219 So. 2d 149, 1969 Miss. LEXIS 1416 (Mich. 1969).

Opinion

BRADY, Justice:

This is an appeal by James E. Hewitt from a decree rendered against him in the Chancery Court of Pike County, Mississippi, which sustained demurrers to his cross-bill filed with his answer to the petition of Mrs. Louise Davis Frazier, Jr., administra-trix of the estate of Lonnie V. Frazier, Jr., to construe a contract for the sale of the merchandise and fixtures of Hewitt’s Pharmacy in Summit, Mississippi.

The facts pertinent to this appeal are as follows: On September 8, 1965, a Contract of Sale and Purchase was entered into by James E. Hewitt, Party of the First Part, Lonnie V. Frazier, Jr., Party of the Second Part, and Mr. and Mrs. Lonnie Frazier, Parties of the Fourth Part. For the consideration of $13,000, which included $3,700 cash and $9,300 payable in sixty monthly installments of $175.50 each beginning October 1, 1965, James E. Hewitt sold to Lonnie V. Frazier, Jr. the stock of merchandise and the fixtures of the Hewitt Pharmacy. The contract provided that in the event Lonnie V. Frazier, Jr., Party of the Second Part,. should default in three consecutive payments the Contract of Sale and Purchase would become null and void and title would revert to James E. Hewitt. The contract further provided that James E. Hewitt was to remain a nominal or dormant partner serving without compensation until July 1, 1966, at which time he would be automatically released from any and all interest in the pharmacy. The contract also stated that in the event of the death or incapacity of Lonnie V. Frazier, Jr., his interest was to pass jointly to his wife, Louise Davis Frazier, Jr., Party of the Third Part, and to Mr. and Mrs. Lonnie V. Frazier, parents of Party of the First Part. The contract was signed by James E. Hewitt, Lonnie V. Frazier, Jr., Douise Davis Frazier, Jr., Mr. Lonnie Frazier, and Mrs. Lonnie Frazier, and it was notarized.

On October 11, 1966, Lonnie V. Frazier, Jr. died intestate leaving as his only heirs at law his wife, Louise Davis Frazier, Jr., and a daughter, Lisa Carroll Frazier, five years of age. Louise Davis Frazier, Jr., was appointed administratrix of the estate of her deceased husband. As administra-[151]*151trix she petitioned the court for permission to operate the pharmacy for a limited time, stating that she believed she would he able to sell the business to a good advantage to one of two prospective buyers within thirty to sixty days. The court granted her permission to operate the business for a period not to exceed one year from October 20, 1966, as provided for by Section 579 of the Mississippi Code of 1942 Annotated (Supp. 1966). On October 20, 1966, the day that the Letters of Administration were granted, a notice to creditors was published in the McComb Enterprise-Journal which stated that all claims against the estate of Lonnie V. Frazier, Jr., deceased, must be registered within six months as provided by Section 1858 of the Mississippi Code of 1942 Annotated (1956).

Louise Davis Frazier, Jr., administratrix, continued to operate the said business until July 11, 1967. The prospective buyers had not materialized, and it appeared that she was not going to be able to sell the business. Because the business could not be operated at a profit, she ceased its operation in order to prevent further loss. In her capacity as administratrix she thereafter petitioned the court for an interpretation of the aforementioned Contract of Sale and Purchase and for a determination of the priority of creditors and an estimate of the amount which was owed to each. On or about August 4, 1967, an answer was filed by Mc-Kesson & Robbins, Incorporated, one of the creditors, asking for similar relief.

On or about September 11, 1967, an answer and cross-bill were filed by James E. Hewitt. The cross-bill stated among other things that “The said sales contract was recorded on the_day of September, 1965 in record book_at pages — of the records in the Chancery Clerk’s Office in Pike County, Mississippi.” James E. Hewitt alleges therein that the estate of Lonnie V. Frazier, Jr. and the parties of the third and fourth parts, whom Hewitt contends are the present owners, have defaulted in five monthly installments and that the title should therefore revert to him according to the terms of the contract. He also maintained that the business was sold to the decedent and that he, Hewitt, remained only a nominal or dormant partner, without compensation, and without any management or control of the business, to help the decedent meet certain requirements in filling prescriptions. He further alleged that the reference in the contract to decedent’s wife and parents having “the rights, privileges, and responsibilities under this transaction” in the event of the death of Lonnie V. Frazier, Jr. made the decedent’s wife and parents guarantors of the purchase price of the merchandise and fixtures.

On or about October 10, 1967, McKesson & Robbins, Incorporated, also filed a cross-bill in which they contended that James E. Hewitt remained a partner until July 1, 1966, and that he was legally responsible for any and all liabilities of the store until that date. They alleged that Mrs. Louise Davis Frazier, Jr. and Mr. and Mrs. Lonnie V. Frazier, Sr. were parties to the contract and that having agreed to assume all the rights, privileges, and responsibilities upon the death of Lonnie V. Frazier, J. they were liable for all legal claims filed within six months from the date of the publishing of the notice to creditors. They further alleged in contradiction of Mr. Hewitt’s cross-bill that Lonnie V. Frazier, Jr. had never been in default during his life on three consecutive installment payments so as to activate the reversionary clause in the contract.

In a petition for authority to sell personal property, Louise Davis Frazier, Jr., admin-istratrix, estimated the estate’s assets at $10,166.55 and its liabilities at $22,017.73 including the $1,600 contract and the $4,408.36 open account to McKesson & Robbins and $6,350 to James E. Hewitt. Some of the fixtures, including part of those sold by Mc-Kesson & Robbins, had a retention of title by the creditors. McKesson & Robbins had sold the deceased drug counter equipment in the sum of $2,038.87, which has a balance remaining of approximately $1,600, this amount being in excess of the amount said [152]*152equipment would bring- on the open market. Davis Wholesale Drug Company, Incorporated, likewise sold to the deceased and retained title to two cabinets and one sink which have a balance due on them of $225.09. The estate was decreed insolvent and Louise Davis Frazier, Jr., administra-trix, was granted permission to sell to Charles H. Best the merchandise for $3,000 cash and the fixtures for $2,000, which included the balance owed to Davis Wholesale Drug Company, Incorporated. Mr. Best was to take the fixtures belonging to McKesson & Robbins, Incorporated, and assume the indebtedness to them. The fixtures and merchandise had previously been appraised by three practicing pharmacists in Pike County, Mississippi, and valued at. between $6,250 and $6,325. This sale was made pursuant to Section 623 of the Mississippi Code of 1942 Annotated (1956). Louise Davis Frazier, Jr., administratrix, was also authorized by the court to sell four hundred shares of stock in Mississippi Valley Portland Cement Company for the sum of $400 cash and thirteen shares of capital stock of the Progressive Bank, Summit, Mississippi, for the sum of $1,000 cash.

Louise Davis Frazier, Jr., individually, joined in the demurrers filed by Mr. and Mrs. Lonnie V. Frazier, Sr. to the petition of Louise Davis Frazier, Jr., Administra-trix of the Estate of Lonnie V.

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Cite This Page — Counsel Stack

Bluebook (online)
219 So. 2d 149, 1969 Miss. LEXIS 1416, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hewitt-v-frazier-miss-1969.