Johnson v. Blell

61 Mo. App. 37, 1895 Mo. App. LEXIS 8
CourtMissouri Court of Appeals
DecidedJanuary 29, 1895
StatusPublished
Cited by3 cases

This text of 61 Mo. App. 37 (Johnson v. Blell) 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
Johnson v. Blell, 61 Mo. App. 37, 1895 Mo. App. LEXIS 8 (Mo. Ct. App. 1895).

Opinion

Biggs, J.

The plaintiffs are judgment creditors of the C. E. Blell Millinery Company, a business corporation. Their execution against the company having been returned unsatisfied, they instituted the present action, which is in the nature of a creditor’s bill, against the defendant, C. E. Blell.' The company was also made a party defendant. It is charged in the bill that Blell was the president and managing director of the corporation, and as such received the sum of $2,500, which represented a portion of the capital stock of the corporation, and which he had failed to account for, and that during his management, which extended over a period of about twenty months, he received divers other sums of money, aggregating the further sum of $2,500, of which no satisfactory account had been rendered, and that, if the accounts between him and the company were properly adjusted, a large ballance would be found due from him. The petition prays that such account be taken, and that whatever amount is thus found to be'due be divided ratably between the plaintiffs and such other creditors of the Millinery Company as may see proper to come in and assist in the prosecution of the action.

The defendants filed answers denying the averments of the bill, and setting up the special defense that on the thirtieth day of November, 1887, the Millinery Company made a general assignment for the benefit of its creditors; that the assignee qualified and proceeded to adjust all claims and demands against the assigned estate; that the plaintiffs failed to have their demand allowed by the assignee, and that subsequently the assignee was, by the order of the court where the assignment was pending, duly discharged.

The cause was sent to a referee with instructions to take the testimony, and report his findings and recommendations to the court. This was done. The [40]*40plaintiffs’ debt was ascertained to be $1,728.47, and $47 costs, and Blell was found to be indebted to the Millinery Company in the sum of $3,329.58, which amount the referee recommended should be ratably distributed between the plaintiffs and such other creditors as might thereafter join in the proceeding. The report also recommended that notice be given to the other creditors of the result of the reference.

Both parties filed exceptions to the report, the plaintiffs’ exceptions going to the recommendation that other creditors should share in the distribution, which the court sustained. The defendants’ exceptions were to the effect that the finding of the referee as to the indebtedness due from Blell to the Millinery Company was unsupported by the evidence, and that the referee erred in finding against the special defense set up in the answers. These exceptions the court overruled, and a decree was entered in favor of plaintiffs against Blell in the total sum of $1,800.30, for which execution was ordered to be issued. The court also found that Blell was indebted to the Millinery Company in the total sum of $3,329.58. The defend-' ants have appealed.

The defendants insist that the ease was not a proper one for reference, and that they were thereby wrongfully deprived of their right of trial by jury. There is no merit in this. The statute provides that the trial court may, on its own motion, direct a reference “where the trial of an issue of fact shall require the examination of a long account on either side.” R. S., sec. 2138. The question of reference must in every case be determined by the face of the pleadings. Father Matthew, etc., Society v. Fitzwilliams, 12 Mo. App. 445; s. c., 84 Mo. 406. In that case the court also held that a reference does not become erroneous expost facto, for the reason that the evidence was such [41]*41on the hearing as to supersede to some extent the examination of the account. Under the averments in the present hill the trial of the issue, frima facie, involved the examination of a long account, which made the reference a proper one. The Millinery Company was organized in March, 1886, and it continued to do business until November 29, 1887. During that time the defendant Blell was its managing director. It was charged that he had converted, or failed to account for, $2,500, which represented a portion of the capital stock of the company, and that during his management he had received divers other sums of money belonging to the concern, for which he had rendered no satisfactory account. The fact that the finding of the referee covered only the single item of capital stock does not, as was decided in the Fitzwilliams case, invalidate the reference. Besides, the evidence before the referee took a much wider range. The plaintiffs undertook to charge, and their evidence had some tendency to prove, that Blell received, and had failed to account for, other sums of money belonging to his "company. As to this, the referee held the evidence to be insufficient. The plaintiffs also attempted to charge Blell with the amount of his salary account as manager of the company. While the referee was of the opinion that the money had been illegally paid, he held that, having been paid, it could not be recovered back. Thus it appears that the case was essentially one for a referee. This assignment may be dismissed with the observation that the defendants were not on account of the reference, as claimed by them, deprived of a jury trial. The action is strictly equitable. It is not an action for the recovery of money or property only (R. S. 1889, sec. 2131), but is one for an account, with the view of ascertaining the amount of funds held by the defendant Blell in trust for his' company. Hunter [42]*42v. Whitehead, 42 Mo, 524; Biddle v. Ramsey, 52 Mo. loc. cit. 159; 3 Pomeroy’s Equity Jurisprudence, see. 1415.

It is also claimed that the finding of the referee as to the indebtedness of Blell is not warranted by the evidence, and that the evidence adduced in support of the finding was erroneously admitted. The only evidence offered by the plaintiffs was a certified copy of their judgment and the execution showing a return of nulla lona, and the deposition of Blell taken in the original case of plaintiffs against the C. E. Blell Millinery Company. The deposition was properly admitted, as it contained admissions by Blell against his interest. The competency of such evidence is no longer an open question in this state. Kritzer v. Smith, 21 Mo. 296; Priest v. Way, 87 Mo. 16; Bogie v. Nolan, 96 Mo. 85.

Blell stated in his deposition that the Millinery Company was organized in the spring of 1886 with a paid up capital of $5,000; that he subscribed for $4,500 of the stock, and his two sisters subscribed for the balance; that $2,500 of the money was used in the purchase of an old stock of goods from him, and that he kept the remainder of the money in his private safe. He admitted that he did not deposit any portion of the money in bank. He claimed that he paid it out during the first three or four months for goods. He could not remember from whom he made such purchases, or where they did business. He could not name a single one. The referee accepted his admission that he received the money, but rejected as unworthy of belief his statements as to its disposition. It was stated that the explanation was too incredible to be accepted. It is contended that this was violative of the established rules of evidence — that the admission of a party, when coupled with matter of discharge, must be accepted or rejected as a whole. This is not the rule in this state. [43]

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Bluebook (online)
61 Mo. App. 37, 1895 Mo. App. LEXIS 8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-blell-moctapp-1895.