Justice v. Morris

143 S.W.2d 105, 24 Tenn. App. 274, 1940 Tenn. App. LEXIS 30
CourtCourt of Appeals of Tennessee
DecidedMarch 8, 1940
StatusPublished
Cited by1 cases

This text of 143 S.W.2d 105 (Justice v. Morris) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Justice v. Morris, 143 S.W.2d 105, 24 Tenn. App. 274, 1940 Tenn. App. LEXIS 30 (Tenn. Ct. App. 1940).

Opinion

KETCHUM, J.

The only question raised on this appeal is with reference to the compensation of C. N. Frazier for his services as guardian of his ward, William P. Morris, a non compos mentis. ■He has settled in full with the Commerce Union Bank of Nashville, his successor as such guardian, for all the assets which came into his hands except the balance claimed on account of his compensation amounting to $935.15.

*275 The matter was referred to the clerk and master to hear proof and report as to his compensation, and the master upon the proof submitted reported that $1,500 would be a fair and reasonable compensation for the services rendered, of which amount sums totalling $564.85 had been allowed as credits in his annual settlements, leaving a balance of $935.15 to which he was justly entitled. The Commerce Union Bank, the successor guardian, excepted to the report insofar as it allowed him this additional compensation, upon the ground that the unusual services rendered for which the additional compensation is claimed enured to the benefit of the Hartford Accident and Indemnity Company, the surety on the bond of the Peoples Bank & Trust Company, his predecessor as guardian of said ward. The chancellor sustained this exception and disallowed the claim for additional compensation, and from this decree Frazier has appealed and assigns error.

A brief history of the guardianship from the beginning, will be helpful in passing upon the question to be determined.

A. S. Justice was first appointed guardian of the said William P. Morris and his three sisters, the minor children of W. L. Morris, deceased, in the county court of Benton County, in February, 1919, and handled said guardianship until after the said William P. Morris became of age on the-day of October, 1926.

On October 26, 1926, upon the oral application of the Peoples Bank & Trust Company, of Camden, an order was entered in the county court of Benton County, adjudging that the said William P. Morris was of unsound mind, and appointing the said Peoples Bank l& Trust Company as his guardian; its bond as such guardian was fixed at $16,000, and it qualified by making, bond with the Hartford Accident & Indemnity Company of Hartford, Connecticut, as its surety; and shortly after its qualification the Peoples Bank & Trust Company made demand upon the said A. S. Justice, guardian, for a settlement of the amount due his said ward.

The said A. S. Justice, guardian, thereupon filed his bill in the chancery court of Benton County against the said W. P. Morris, E. E. McDaniel, administrator with the will annexed of W. L. Morris, deceased, and the Peoples Bank & Trust Company, setting out the facts as above related, and alleging that he was ready and willing to make his settlement as such guardian, but that he was afraid to settle with the Peoples Bank l& Trust Company as such guardian because the said William P. Morris had never been legally adjudged to be of unsound mind, and because the appointment of the Peoples Bank & Trust Company as his guardian had been made without any notice to the said W. P. Morris or to complainant as his guardian. He alleged that the said William P. Morris was as a matter of fa'ct feeble minded or of unsound mind, that he had an undivided interest in certain real estate described in the bill, as well *276 as tlie assets in liis bands as guardian; and lie prayed for an inquisition of lunacy to inquire and ascertain whether the said William P. Morris was a person of unsound mind; and that his rights in his father’s estate in the hands of E. E. McDaniel administrator with the will annexed be settled, that his interest in the real estate be sold, and that complainant be permitted to make his .settlement as guardian and be discharged in the chancery court.

The said William P. Morris was legally adjudged to be of unsound mind in this proceeding, the guardianship was transferred to the chancery court from the county court, the Peoples Bank '& Trust Company was appointed as guardian of said ward, with the Hartford Accident & Indemnity Company as surety, the interest of the ward in the real estate was sold, and the complainant A. S. Justice made his final settlement with the Peoples Bank & Trust Company, guardian, and was finally discharged.

The Peoples Bank & Trust Company served as guardian until it failed and was placed in the hands of the superintendent of banks, as receiver, in October, 1930. Shortly thereafter the Hartford Accident and Indemnity Company, as the bank’s surety, filed its petition in said cause asking that the said Peoples'Bank & Trust Company be discharged as guardian and that the Commerce Union Bank of Nashville be appointed as such guardian in its stead. The Commerce Union Bank declined to qualify, giving as its reason that the assets of the estate consisted largely of notes and county warrants which were not securities in which guardians are authorized to invest the funds of their wards, that the receiver of the bank was refusing to turn the assets over to it, and that on account of the unsettled condition of the estate and the likelihood of litigation, it desired to be relieved of said appointment, and suggested the appointment of C. N. Erazier as such guardian.

Thereupon the Hartford Accident. & Indemnity Company also filed its petition in said cause setting out the above facts, and the refusal of the Commerce Union Bank to qualify as such guardian and praying that C. N. Erazier be appointed as such guardian. Frazier was appointed in accordance with the prayer of this petition on March- 9, 1932, and executed his bond in the penalty of $16,000 with the Hartford Accident Indemnity Company as his surety on March 12, 1932.

His inventory filed at the November term, 1932, shows that up to that timé there had come into his hands the sum of $3,137.02 from the clerk-and.master, the proceeds of the ward’s interest in the real estate sold," and that he would receive approximately $2,000 more from that source. He exhibited with his inventory a copy of the settlement of the Peoples Bank & Trust Company filed on August 10, 1930, which showed that the bank had in its hands as such guardian at that time the further sum of $7,971.01, but that this *277 liad not come into Ms hands as there was a controversy over the disposition thereof which was still pending.

The controversy here referred to grew out of the claim of the receiver of the hank that these assets belonged to the bank and that the bank as guardian was a general creditor of the defunct bank. This litigation was finally determined in this court in favor of the guardian. The assets which came into Frazier’s hands from this source consisted of county warrants, real estate notes which had been purchased by the bank as guardian without authority from the court, and without an appraisal of the property on which the loans were made. Practically none of the assets which came into his hands from the bank were securities in which a guardian is authorized to invest the funds of his ward, and it was for this reason, and because of the likelihood of a prolonged litigation in realizing on the assets, that the Commerce Union Bank declined to qualify as guardian of said ward when requested to do so.

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Bluebook (online)
143 S.W.2d 105, 24 Tenn. App. 274, 1940 Tenn. App. LEXIS 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/justice-v-morris-tennctapp-1940.