Martineau v. Mehlberg

267 N.W. 9, 221 Wis. 347, 1936 Wisc. LEXIS 359
CourtWisconsin Supreme Court
DecidedApril 28, 1936
StatusPublished
Cited by2 cases

This text of 267 N.W. 9 (Martineau v. Mehlberg) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martineau v. Mehlberg, 267 N.W. 9, 221 Wis. 347, 1936 Wisc. LEXIS 359 (Wis. 1936).

Opinion

Fritz, J.

The principal facts upon which the plaintiff seeks to recover herein from the defendant Mehlberg and the Guaranty Company, as surety on his bond as administrator of Samuel McKee’s estate, for Mehlberg’s failure to account for $5,000 of the assets of that estate, were stated in the opinion filed herein on a former appeal, and reported in Jones v. United States F. & G. Co. 214 Wis. 629, 254 N. W. 95. Substantially the same facts were established on the trial which resulted in the judgment now under consideration. That judgment was ordered by the court after a trial upon which it was established conclusively that Mehlberg, as administrator of Samuel McKee’s estate, had failed to inventory and account for $5,000, either invested in bonds or owing by Mehlberg to Samuel McKee, and constituting part of the latter’s estate to be accounted for by Mehlberg as administrator. .Upon the trial, the court submitted two questions to the jury for a special verdict, and answers were returned by the jury in accord with contentions of the appellant. As the jury’s first finding is immaterial in this action, it is only necessary to consider the second answer, by which the- jury found that Mehlberg’s failure to include those $5,000 in the assets of the estate was not a result of an agreement or conspiracy between him and the appellant.

Upon motions after verdict, the court changed that negative finding by substituting therefor its affirmative finding that Mehlberg’s failure was the result of such an agreement or conspiracy between him and the appellant; and the court then ordered the judgment under review, holding the appel[352]*352lant as well as Mehlberg, and the Guaranty Company as the latter’s surety, liable to the estate of Samuel McKee for the loss of the $5,000, and also holding the appellant and Mehl-berg liable over to the Guaranty Company, upon the payment by the latter of that loss with interest thereon and costs for the benefit of that estate.

On this appeal, the appellant contends that the jury’s finding that Mehlberg’s failure to inventory and account for the $5,000 was not a result of'such an agreement or conspiracy between him and Mehlberg, was sustained by credible evidence; that the court erred in holding that the appellant’s testimony was not credible, and that there was no credible evidence to sustain that finding; that the burden of proof was upon the surety to establish the existence of such an agreement or conspiracy by clear and convincing evidence to a reasonable certainty and it failed to discharge that burden; and that, in any event, there was under the evidence at least an issue of fact for the jury in that respect, and the court erred in substituting for the jury’s answer, its finding that Mehlberg’s failure to account for that $5,000 was the result of such an agreement or conspiracy between him and the appellant. Those contentions (excepting in so far as the proposition as to the burden of proof is concerned) cannot be sustained. A review of the evidence discloses that the court was fully warranted in substituting its affirmative finding for the jury’s negative answer because the existence of such an agreement or conspiracy between the appellant and Mehl-berg, and the latter’s failure as a result thereof to inventory and account for $5,000 of the estate’s assets were established beyond room for dispute by admissions in appellant’s testimony and other undisputed proof on the trial to the following effect: That Mehlberg suggested to appellant before he joined in petitioning for Mehlberg’s appointment as administrator the withholding of the $5,000 from the inventory. That although appellant knew of Mehlberg’s concealment of [353]*353that $5,000, as thus suggested to him, at all times while the estate was being probated, and until it was finally closed in August, 1929, he never informed his brother and coheir, Elmer McKee, or County Judge Jones of that fraud, but, on the contrary, signed a deceptive receipt for his balance of the estate (without including the $5,000) which read: “This is to certify that I, the undersigned, have this date received of A. H. Mehlberg, administrator of said estate, the sum of $1,913.36, in full satisfaction of and for share of personal estate assigned to me by the judgment of said county court, and in full discharge of said administrator from any and all liability to me.” That appellant offered no excuse for his failure to disclose that concealment, excepting that it was Mehlberg’s way of doing it and the latter wanted it done that way. That appellant received three payments of $125 each directly from Mehlberg in July, 1929, January, 1930, and July, 1930, respectively, as interest on bonds for $5,000 which had belonged to his brother, Samuel, and were part of the latter’s estate upon his death, and that, without informing his brother, Elmer, or otherwise disclosing his receipt of those payments, he had deposited and kept those moneys in his bank account for his own benefit. And that he also had included that $5,000' belonging to Samuel McKee’s estate in a written demand which he made on April 25, 1931, upon the Oconto National Bank for the delivery to him of bonds aggregating $20,000 as property belonging to him. The appellant’s admitted acts and conduct in those respects conclusively established that he had not only failed to disclose to the probate court and to his coheir that Mehlberg had suggested to him, and pursuant thereto had wilfully withheld $5,000 of the assets of the estate from his inventory accounts and final distribution therein, but also that the appellant had at all times acquiesced in that fraud and finally furthered its commission by his deceptive receipt purporting to accept $1,913.36 in full satisfaction for his share of the estate, and [354]*354in full discharge of the administrator’s liability to him, and that, pursuant to that fraud, and as a result thereof, the appellant with full knowledge thereof, succeeded in profiting thereby to the extent of the three interest payments of $125 which he had received from Mehlberg, and attempted to profit further on his demand upon the Oconto National Bank for the delivery of that $5,000 to him as his own property. As it is obvious, in view of those established facts and circumstances, that the appellant was fully in accord with Mehl-berg’s proposed omission to include that $5,000 in the assets of the estate, and personally profited thereby, the court was certainly warranted in finding that Mehlberg’s failure to include that $5,000 in the assets of the estate was a result of an agreement or conspiracy between him and the appellant.

Appellant further contends that even if Mehlberg’s failure to include $5,000 in the assets of the estate was the result of an agreement or conspiracy between them, then the only affirmative relief which can be granted in this action against the appellant is to bar him from participating in the proceeds of the judgment rendered in favor of the plaintiff for the benefit of the estate, and that after the payment, of expenses of administration and inheritance tax, one half of the remaining proceeds so paid in by the Guaranty Company, which would otherwise go to the appellant, should be returned to that corporation; but that the appellant cannot be required to pay to the Guaranty Company any moneys which it is required to pay in this action to the estate for either the benefit, of Elmer McKee or for use for inheritance tax purposes. In that connection, appellant claims that under the decision on the former appeal herein (see Jones v. United States F. & G. Co., supra),

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Bluebook (online)
267 N.W. 9, 221 Wis. 347, 1936 Wisc. LEXIS 359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martineau-v-mehlberg-wis-1936.