Mabry v. Churchwell

69 Tenn. 416
CourtTennessee Supreme Court
DecidedSeptember 15, 1878
StatusPublished
Cited by4 cases

This text of 69 Tenn. 416 (Mabry v. Churchwell) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mabry v. Churchwell, 69 Tenn. 416 (Tenn. 1878).

Opinion

Freeman, J.,

delivered the opinion of the court.

The original and amended bills in this case may be briefly summarized by saying they are intended to obtain relief by having certain purchases of property, real and personal, made under proceedings in the Chancery Court at Knoxville, declared void, and have the same set aside on the ground that George W. Churchwell, whose property was thus sold, was of unsound mind, and incompetent to . transact business at the time said proceedings were instituted and decrees made. In fact, the charge is made in the original as well as an amended bill, that he was insane, and [417]*417therefore the proceedings were null and void. Whether he was of competent understanding to be bound by his acts under the circumstances, is the question on which the case turns. The bill is filed by Mabry as administrator of said Churchwell, and by Mabry and wife, the wife being a daughter and distributee and heir of said Churchwell. Mrs. Charleton is a daughter likewise. He had but the two children, and that by his first marriage. Respondent, Sophia M., is his second wife, by whom he had no children. The facts necessary to be noticed are, that his second wife had a fund given to her by the will of. her father,, to be held to her sole and separate use, subject to some limitations, which need not be here noticed. The fund so derived was to be loaned on good security, the interest to be collected annually and paid to Mrs. Churchwell if she desired, if not; the said interest to be reloaned as part of the principal. About 1849 George W. Churchwell was appointed trustee for this fund, on resignation of Dury P. Armstrong, and gave bond for faithful administration of his trust. This fund, in 1853, is shown to have amounted to upward of $13,000, all of which seems to have come into the hands of George W. Churchwell as trustee. Interest to the amount of $3,000, paid in negro property, is acknowledged to have been received by Mrs. Churchwell. The sureties of Churchwell becoming doubtful, one having died in 1856, he gave, under the direction of the Chancellor, a mortgage upon feis home place, a tract of valuable land two miles from the city of Knoxville, containing nine .hundred and [418]*418forty acres, as security for the trust fund. This deed of trust or mortgage was given to Hugh L. McClung, Clerk and Master of the Chancery Court, the fund being under the control and administration of the court. Its conditions were for the faithful management of the fund, payment to the party or parties •entitled, and that the trustee would perform the decree of the court pronounced from time to time. It provided, however, that if by negligence or fraud, or any unfaithfulness,, any portion of said fund should be lost, or the trustee fail in any of the duties imposed on him, the trustee or his successor, under orders of the court, should sell the land, and thus the proceeds be appropriated to the security of the trust fund.

In this state of things it appears that George W. Churchwell had become involved in a very heavy contingent liability as endorser of certain notes in connection with the Bank of East Tennessee, amounting probably to a hundred or more thousand dollars. A suit was pending seeking to enforce this liability. At this time the land secured in the deed of trust, nine hundred and forty acres, is estimated to have been worth from thirty-five to fifty dollars per acre, and was ample security for the fund. This was in the early part of 1861. How the fund was invested does not precisely appear — probably was loaned on securities then in the hands of the trustee, and amounted, as shown by a report of the clerk and master, to about $17,000, or a little over this sum.

Under these circumstances, in January, 1861, a bill was filed in the name of the wife, service of process [419]*419acknowledged by Churchwell, simply asking an account of the trust fund, and a decree for the amount due, with enforcement of the deed of trust. A short answer was put in by Churchwell acknowledging his liability to account, a report was made by the clerk showing the amount of the fund. At the same term a decree was entered for the amount of over $17,000, the land ordered to be sold without redemption, Chuchwell in the meantime, in the same decree,, is allowed to resign his trust, and Armstrong, a brother-in-law of Mrs. Churchwell, appointed in his stead, with authority to bid for the property, and buy it for the benefit of the trust. Advertisement of the property is waived, and so the sale proceeded. I<t was further ordered that if the property did not sell for enough to discharge the decree, an execution was to issue for the balance. There is no suggestion of a breach of trust, or that the fund was not well secured, nor any ascertainment of the character of securities in which it was invested at the time. In a few days after the bill was • filed, by consent of parties, the above decree was entered, reciting the fact that Churchwell had been appointed trustee, the execution of the mortgage as security for the faithful management of the fund and payment thereof whenever required by the court, and now says the decree, in order that this court may see the condition of the fund, give proper directions for the management of said fund, the court ordered an account of the fund in his hands, or what should have come into his hands, with interest, with annual rests, all other ques[420]*420tions being reserved till the report should be in. This report, made at same term, showed that up to-October, 1853, there had been paid into the hands of Churchwell upward of $13,000, and that with interest up to the date of report, January 28, 1861, it amounted to $17,034.46. This report being unex-cepted to, was confirmed, and thereupon a decree rendered in favor of the complainant, his wife, for this amount, for which an execution was ordered. It was then recited that the mortgage had been given, and bound Churchwell to faithfully manage the fund, and pay it whenever ordered by the court, therefore it was ordered and decreed by the court that the land be sold, after thirty days notice, to the highest bidder on six months credit, taking bond and security for the purchase money, a lien to be retained on the land, and on motion it was ordered the sale be without the equity of redemption.

It was then ordered that if the amount bid for said land should not be sufficient to pay the recovery, then an execution should issue against the property of said Churchwell. In addition, Churchwell resigned his trust, and by the same decree it was ordered that 'J. H. Armstrong, a brother-in-law of complainant, be appointed in his stead, who was authorized to buy the land, or any property that might be sold under the decree; the purchase, however to be subject to confirmation by the court at next term of the court. 'This land was sold and bid off by the trustee at $10,200, which left $7,254.63 balance, for which an execution was issued and levied upon what we take [421]*421to have been every article of personal property in possession of Churchwell, as we judge from the number and character of the articles shown in the levy. In addition a levy was made on a tract of land known as the Churchwell Ferry Farm, together with the ferry, the tract containing four hundred acres. Advertisement was waived, it seems, as to the land. The personal property was sold and bought by the trustee for a little over three hundred dollars. After crediting this, the ferry and land were sold, and likewise bought by the trustee at $7,214.74 cents, which, after deducting costs of sale, was applied to balance of the debt.

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Bluebook (online)
69 Tenn. 416, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mabry-v-churchwell-tenn-1878.