Kaut v. Gerdemann

109 Mo. 552
CourtSupreme Court of Missouri
DecidedOctober 15, 1891
StatusPublished

This text of 109 Mo. 552 (Kaut v. Gerdemann) 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
Kaut v. Gerdemann, 109 Mo. 552 (Mo. 1891).

Opinion

Brace, J.

On the fourteenth of September, 1887,. William Kaut, then the husband of the plaintiff, Lavinia Kaut, executed and delivered a warranty deed, in which his wife, the said Lavinia, joined, conveying lots 8 and 9, block 73, of Thomas Allen’s second addition to the city of St. Louis (for the recited consideration of $5,000) to the defendant, August Gerdemann, in trust for the sole and separate use of his wife, the said defendant, Emma F. Gerdemann, subject “to a certain deed of trust and the taxes for, the year 1888.” On the twenty-second day of October, 1887, the said William Kaut, who has since died, and his wife, the said Lavinia Kaut, instituted this suit.

The petition charges in substance, that the said William Kaut being indebted to his wife in the sum of about $4,250, which she had loaned to him, of moneys belonging to her statutory separate estate, and being desirous of securing the payment of such indebtedness, agreed with her to convey the premises to her by deed, subject to said deed of trust in discharge thereof, but “the said August Gerdemann, -designing- and scheming to defraud plaintiff, Lavinia Kaut, out of the title to the said property, and to himself obtain [555]*555control and possession of the same, represented to plaintiffs that a conveyance of said property could not legally be made direct from plaintiff William to his wife, plaintiff Lavinia, but that, in order to render such conveyance valid and effectual, it would be necessary to interpose one or more third persons as conduits of said title; that if plaintiffs would first sign and execute a deed thereof to defendants the defendants would thereupon, at once, or upon demand, convey back the said property to plaintiff Lavinia, thus vesting the title to the same in her according to said agreement.”

That thereupon the said August caused said deed of the fourteenth of September, 1887, to be written, and the said William and Lavinia Kaut, relying upon said representations and promises of the defendants, executed the same without any other or further consideration. That afterwards plaintiff Lavinia requested the said defendants to execute a deed to her of said premises in accordance with their said agreement, which they refused to do, but, in furtherance of the fraudulent scheme aforesaid, the said August had placed the same on record, and is now threatening to seize possession of said lands, and collect the rents thereof. Wherefore plaintiffs pray that the defendants may be declared to hold the title to said property to the use of the said Lavinia, and that they be required to convey the same to her, and that they be enjoined from taking possession of, or conveying the same to any other use, and from collecting the rents, issues and profits thereof, and for general relief.

Defendants, in their answer, admit the execution of the deed, deny all the other material allegations of the petition, and allege the truth of “the matter” to be, that the said William Kaut being indebted to the said defendant, Emma E. G-erdemann, in about the sum of $3,500, and being unable to pay the same, exe[556]*556cuted the deed in question in full satisfaction of such indebtedness. The plaintiff replied, denying this allegation. The case'was submitted to the court on the evidence, and the issues found for the plaintiff, the specific relief prayed for denied however, and a decree entered canceling the deed and the costs adjudged against the ■defendants from which decree and judgment they appeal.

It appears from the evidence that the plaintiff, Mrs. Lavinia Kaut, and the defendant, Mrs. EmmaE. Gerdemann, are sisters; that Mr. Kaut was the owner in fee of the premises subject to the deed of trust mentioned in the conveyance at the time he and his wife ■executed the deed in question; that he acquired his title thereto November 3, 1879; that there were on the lots two two-story brick dwelling-houses, one of which was occupied by Mr. Kaut and his family as a homestead, and the other let to a tenant; that the premises were of the market value of $8,000 or $9,000; that the amount of the incumbrance upon the property was ■about $1,000; that, at the time of the execution of the deed, and for many years prior thereto, Kaut had been engaged in the commission business in the city •of St. Louis under the firm-name of William Kaut ■& Co.; that the defendant, August Gerdemann, his brother-in-law, was at first in his employ as cashier and bookkeeper, and afterwards, on the first of January, 1880,. was admitted to an interest in said ■concern under the following agreement: “It is herewith understood by William Kaut, trading in the firm-name of William Kaut & Co., and August Gerdemann, that in consideration of twenty-eight hundred and sixty dollars ($2,860) in cash, paid unto and properly entered on the books, to the credit of August Gerdemann, the latter is to receive one-third of the net profits in lieu of a stipulated salary, said profits to be computed at the end of each year. It is further under[557]*557stood that the said August Gerdemann is to continue-to keep the books and attend to all other business as heretofore. It is also agreed that said August Gerdemann is allowed to draw out of the firm the sum of not to exceed $1,000 per year for the purpose of defraying living and other expenses.”

Some time after this arrangment was made, probably in 1883 or 1884, but the exact time does not appear, the mother of Mrs. Kaut, Mrs. Gerdemann,. died, leaving an estate of which the defendant,. August Gerdemann, became the administrator; and as such the distributive shares of his wife and Mrs. Kaut in their mother’s estate, amounting to-about $4,000 each, came into his hands. The share of Mrs. Kaut was with her knowledge and consent paid over to Kaut and used in the business. The share-of Mrs. Gerdemann was with her knowledge and consent retained by her husband, and the evidence tends to show that out of her moneys the sum of $3,670 was advanced by Gerdemann to Kaut, and went into the business. Gerdemann made his final settlement in 1886.

The concern in 1887 seems to have met with some heavy losses, and became involved in a lawsuit, which was lost, and Kaut, in whose name the title was vested,, commenced conveying the business property in payment of its debts. It is impossible to tell from the evidence what was exactly Kant’s financial condition in September, 1887; or the state of the accounts of either Kaut or Gerdemann on the books of the concern, but Kaut’s condition was evidently one of embarrassment, and prior to the fourteenth of September, 1887, he had transferred to his creditors about all his property acquired for and in the business, leaving only the individual property in question in his name. About that time he conceived the idea of conveying this property [558]*558to Ms wife, in consideration of the money of hers which he had used in Ms business; and for this purpose had a Mr. Hull to prepare such a deed to her direct.

G-erdemann testifies that, “on the fourteenth of September, Kaut sent his little girl up to the office and requested me to send the porter up to Leon L. Hull & Co., that he had a deed there, and to tell the porter to bring it down. I thought there was something wrong that he wanted to make a deed to his wife.” That he went himself, got the deed, and took it first to Ms friend, Mr. Hensler. The result of his consultation with Hensler was that they both went to a notary by the name of Nohl, to whom the deed was exhibited, and after some consultation with him G-erdemann evidently conceived the idea of preventing the conveyance to Mrs.

Free access — add to your briefcase to read the full text and ask questions with AI

Cite This Page — Counsel Stack

Bluebook (online)
109 Mo. 552, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kaut-v-gerdemann-mo-1891.