Hunt v. Lucas

68 Mo. App. 518, 1897 Mo. App. LEXIS 389
CourtMissouri Court of Appeals
DecidedJanuary 19, 1897
StatusPublished

This text of 68 Mo. App. 518 (Hunt v. Lucas) 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
Hunt v. Lucas, 68 Mo. App. 518, 1897 Mo. App. LEXIS 389 (Mo. Ct. App. 1897).

Opinion

Biggs, J.

Briefly stated the facts out of which this litigation has arisen are these: Mary C. Hunt was the only child of Charles L. Hunt, deceased. Charles L. was a stockholder in the National Express and Transportation Company, a Virginia corporation. In 1866 the company became embarrassed, and on the twentieth of September of that year it executed a deed of trust to certain trustees named, conveying all of its property and assets to secure its creditors. Among its assets was an uncalled liability on its capital stock amounting to $80 on each share. The trustees did nothing, and in consequence one of the judgment creditors of the company, acting for himself and all other creditors, instituted a suit in the chancery court of the city of Richmond, Virginia, against the officers of the company and the trustees for the purpose of ascertaining the- indebtedness of the concern and for the removal of the delinquent trustees. On December 14, 1880, a decree was entered in said cause removing the trustees and appointing one John Glenn as sole trustee in their place, and making a call of $30 per share on all stock. On the twenty-sixth day of March, 1886, a further call of the remaining $50 per share was made by the court. Prior to the failure of the company Hunt sold his stock to James H. Lucas and it was transferred to Lucas on the books of the company. A statute of Virginia then in force provides, that whenever any stock shall be assigned, the assignee and assignor shall be .severally liable for any installments which have already accrued or which may accrue after the assignment. Both Hunt and Lucas died before [522]*522the calls were made and the estate of Lucas had been finally settled. Mary O. Hunt was the executrix and sole legatee and devisee of Charles L. Hunt. Glenn sued her in the St. Louis circuit court for the amounts due on the stock, and on the fifth day of February, 1892, he recovered judgment against her. The supreme court affirmed the judgment on the nineteenth day of February, 1894. At that time the debt amounted to $6,612.91, and the costs to $337.'90, all of which Mary O. Hunt paid. The defendants are the children of James H. Lucas. Each of them received from the estate of their father money and other personal property of the value of $40,000 or more, and they also inherited from their father real estate of the value of $100,000 or more. On May 1, 1894, Mary C. Hunt demanded of the heirs of Lucas the amount thus paid by her. Two of them paid their pro rata parts, but the defendants declined to pay. Thereupon she instituted this suit against them to recover the balance alleged to be due her, and she asked that the amount be decreed as a special lien or charge against certain real estate which the defendants owned jointly and which had descended to them from their father.

As defenses to the action the defendants pleaded first, the statute of limitations; second, a judgment in their favor in the United States circuit court, wherein Glenn sued them (as the heirs of Lucas) for the amounts due on account of said stock; and, third, that under the will of their father the defendants took as devisees and not as heirs. To this answer there was a reply. The cause was submitted to the court. There was no dispute at the trial as to the substantive facts of plaintiff’s cause of action. They were admitted to be as above stated. There was evidence tending to prove the second defense, and in support of the third the will of James H. Lucas was read in evidence. The [523]*523issues were found in favor of the plaintiff, and the amount found to be due to her was $5,979.14. The court apportioned- the amount among the several defendants and determined that the sum of $979.19 was due from each. A separate judgment was rendered for that amount, and against each defendant was made a charge or special lien against his interest in the real estate mentioned in the petition. Each of the defendants applied for and perfected a separate appeal. Their contention is that under all or either of the defenses made the judgment ought to have been for them.

Ao?stSfri^ht agafnsf'assignee mente™rfaply-’ cans: limitation, Touching the plea of the statute of limitations the contention is that the plaintiff’s cause of action against the defendants (if it ever existed), is barred, as the assessments or calls on the stock were made more than five years prior to the institution of the plaintiff’s suit. The section of the statute relied on (R. S. 1889, sec. 6775), provides that “an action upon a liability created by a statute other than a penalty or forfeiture” will be barred after five years. The defendants misconstrue the plaintiff’s cause of action, and hence misapply the statute. It is true that the liability of Hunt for future calls on the stock was purely statutory, but his right or that of plaintiff against Lucas or his heirs for reimbursement is purely contractual. By reason of the assignment of the stock and the statute of Virginia which continued Hunt’s liability for future calls, there arose by implication an obligation on the part of Lucas to protect Hunt against such liability. The relation existing between them was one of primary and secondary liability. This relation has for its foundation the principle that where two persons are equally liable for a debt, the party in possession of the property out of which the debt arises [524]*524is primarily liable and if the other is compelled to pay the debt he will have indemnity from the other. Roberts v. Crowe, L. R. 7 O. P. 629; Brinkley v. Eam- ■ bleton, 67 Md. 167. It follows that until Hunt or his representative paid the debt there was no demand against the defendants. Burckhartt v.'Eelfrich, 77 Mo. 376; Eearne v. Keath, 63 Mo. 84. As this suit was begun a few days after the plaintiff paid the money, it is clear that there is nothing in this defense.

Plof nabfift^by litigating. In this connection the further suggestion is made that Mrs. Hunt could not prolong the liability of the defendants by litigating the claim with Grlenn. There is likewise no merit in this., pursued the only safe course, since her right to be reimbursed depended upon a legal liability on her part to pay the assessments. Indeed some of the authorities go so far as to hold that to entitle her to reimbursement it must appear that she paid the money by proceedings in inviüm. Hutzler v. Lord, 64 Md. 534.

Pacdon:b^dgsuitl resTmeí61 Glenn sued the defendants in the United States circuit court for the purpose of collecting from them the assessments which the plaintiff afterward was compelled to pay. In that action there was a judgment in favor of the defendants. They insist that that judgment is a complete bar to the present action. There are several objections to this. The plaintiff was not a party to that suit, and therefore as against her all of the proceedings are res inter alios acta. In this action we have no concern with the liability of the defendants to Glenn. The liability of the plaintiff to Glenn for the' unpaid calls and the obligation of the defendants to reimburse her, are the only questions for our considertion. The former is conclusively settled by the decision of the supreme court (Glenn v. Hunt, 120 Mo. [525]*525330), and the latter depends upon the disposition made of the last defense. It may be remarked, however, that the plaintiff attempted to interpose the same judgment as a defense against the suit of G-lenn, and the supreme court held that the plea was of no avail to her.

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Related

Hutzler v. Lord
3 A. 891 (Court of Appeals of Maryland, 1886)
Mayor of Baltimore v. Fledderman
8 A. 758 (Court of Appeals of Maryland, 1887)
Hearne v. Keath
63 Mo. 84 (Supreme Court of Missouri, 1876)
Sauer v. Griffin
67 Mo. 654 (Supreme Court of Missouri, 1878)
Burckhartt v. Helfrich's Administrator
77 Mo. 376 (Supreme Court of Missouri, 1883)
Glenn v. Hunt
25 S.W. 181 (Supreme Court of Missouri, 1894)
State ex rel. Muller v. Pohl
30 Mo. App. 321 (Missouri Court of Appeals, 1888)

Cite This Page — Counsel Stack

Bluebook (online)
68 Mo. App. 518, 1897 Mo. App. LEXIS 389, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hunt-v-lucas-moctapp-1897.