Mason v. Spurlock

63 Tenn. 554
CourtTennessee Supreme Court
DecidedDecember 15, 1874
StatusPublished
Cited by2 cases

This text of 63 Tenn. 554 (Mason v. Spurlock) 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
Mason v. Spurlock, 63 Tenn. 554 (Tenn. 1874).

Opinion

McFarland, J.,

delivered the opinion of the Court.

D. G. Stone died about March' or April, 1857. The executors of his will, Samuel Henderson and Washington Britton, filed a bill in the Chancery Court at McMinnville, 19th September, 1859, for a settlement of his estate, which involved many matters, and transactions not important to the present case.

In his life-time, Stone was a partner with Sam Henderson and D. C. Spurlock, in a firm known as D. G. Stone & Co., which had- done a large business. About the 6th of November, 1856, this firm was succeeded, or bought out by a new firm, Spurlock, Henderson & Spurlock,” Stone retiring, and S. B. Spurlock with Henderson and D. C. Spurlock constituting the new firm. The settlement of the business growing out of this partnership business, was one of the matters intended to be settled by the bill of the executors.

The cause progressed, but was not finally settled, and upon the resumption of business, after the war was again proceeded with. The Clerk and Special Commissioner, in taking an account ordered in 1868, reported that there was a large debt of $2,138, with interest from April 23, 1857, due from S. B. Spurlock individually, to the estate of D. G. Stone, which had never been paid.

[556]*556S. B. Spurlock excepted to the report upon the ground (among others) that no such claim was made against him in the bill, and no such relief sought; that he was only made a party as a member of the firm of Spurlock, Henderson & Spurlock, and the matter was not in issue. The Chancellor did not finally determine the question, but again referred it for further proof, with instructions to examine S. B. Spurlock and Henderson upon interrogatories. At this stage of the proceeding, the exception of Spurlock being probably conceded to have been well taken, the present bill was filed by B,. H. Mason, Clerk and Master of the Court, and receiver of the assets in the cause, and testamentary guardian of Stone’s minor children, who were legatees under his will. .This bill refers to the former proceeding, and is styled an original bill, in the nature of a cross-bill, and in the nature of a bill of interpleader. It sets forth the foundation of the claim against S. B. Spurlock in favor of Stone’s estate referred to above, and charges, in substance, that it was never paid to Stone in his life-time, but whether paid to his executors or not, he does not know; if so, they are liable therefor, having failed in their accounts rendered in the progress of the cause, to render any account thereof; that Washington Britton is dead, and his estate insolvent; that Sam Henderson, the surviving executor, is insolvent, and their bond as executor is lost; that under the decree in the former cause, there is a fund in Court due them, which they pray may be held to meet their liability, in the event they be [557]*557liable for the same. In the event the debt has not been paid, they pray a decree against Spurlock for the amount.

The foundation of the claim against Spurlock dates from the time Stone sold out his interest in the firm of D. G. Stone & Co, November 6, 1856. Spurlock sold to Stone as a part payment for his interest, a tract of land called school land,” upon which Spurlock owed a note payable in the branch bank of Tennessee, at Sparta.

Spurlock executed an instrument under seal, as follows: “I, S. B. Spurlock, do hereby obligate and bind myself to pay D. G. Stone on the first day of August next, the amount of my notes in the branch bank of Tennessee at Sparta, which were placed there for the school land that I have since sold to D. G. Stone; the above obligation is upon the condition that the said D. G. Stone takes up my notes in Sparta, on or before that time; this, November 22, 1856.

S. B. Spurlock. [seal.]”

This obligation was found among the valuable papers of Stone, and is made exhibit A to the present bill. There was also found the following paper, made exhibit B to the bill:

“We, D. G. Stone and S. B. Spurlock, in our trade relative to the school land trade, which was made November 6, 1856, understand each other this way — according to our agreement, D. G. is to take up the note by renewal, that S. B. Spurlock executed for the balance on said school land. The note is [558]*558payable at the Bank of Tennessee, at Sparta, and the said S. B. Spurlock is. to pay the amount of the note and interest from the date of the note up to the 6th of November, 1856, the balance of interest that may accumulate on said note, the said D. G. Stone is to pay; and it was considered a cash trade at the time. The said S. B. Spurlock is -to settle with Stone for them when taken up according to this agreement, ($16 entitled to a credit on S. B. Spurlock & Co.’s books,) this, November 22, 1856.

Signed. S. B.. Spuklock,

D. G. Stoke.”

The latter sentence seems to have no connection with the matter.

It appears that Stone did not, in his life-time, lift Spurlock’s notes from the bank as contemplated by these agreements, but .he made a trade with Ebenezer Jones, by which Jones was to substitute his notes ■ for Spurlock’s notes, and this was done by Jones after the death of Stone, as we think the proof fully shows,

Henderson, Spurlock and the administrator of Brit-ton answered' the bill — the two former filed a joint answer. They all agree that the debt was not paid by Spurlock to the executors. Spurlock, says, in his answer, that, after the execution of exhibit A, it was reported to have been lost, and that exhibit B was executed in lieu thereof, and the date had to correspond with exhibit A, and that he afterwards paid D. G. Stone according to the terms of exhibit B, and took his receipt upon a duplicate of exhibit B, re[559]*559tained by him, which receipt and duplicate was lost by the casualty of the war, about 1863; they say, also, that he was not to pay to Stone the full amount of the notes when lifted by Stone, but a less amount agreed upon' between them, but the amount is not stated.

As stated, Henderson joins Spurlock in this answer, and it is somewhat difficult to determine what position he takes in regard to the question whether the payment was made to. Stone in his life-time, but he seems at least to acquiesce in Spurlock’s statement. Brit-ton’s administrator knows nothing of the facts, but expresses the opinion that the money was never paid.

The cause was heard, and there was a decree against Spurlock for the amount of this claim, from which he has appealed.

The first question urged for a reversal is that the Chancellor erred in refusing to dismiss the bill upon the defendant’s motion, upon the ground that the complainant, Mason, had no right to revive the bill. It is very clear, that, ordinarily, the personal representatives are the only parties who have the right to maintain suits to recover debts due to the deceased, but where they, by collusion with the debtor, are refusing to take the necessary steps, and where they are insolvent, and the debt is about to be lost, we think the parties ultimately entitled may, in equity, proceed at once against both the debtor and representatives, to enforce their rights by the proper decree. See Story’s Eq. Jur., §581, note 1.

[560]*5602.

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Related

In Re Estate of William C. Link
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566 B.R. 503 (E.D. Tennessee, 2017)

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63 Tenn. 554, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mason-v-spurlock-tenn-1874.