McDonald v. Hartford Trust Co.

132 A. 902, 104 Conn. 169
Supreme Court of Connecticut·Decided February 5, 1926·Published·Cited by 70 cases

Opinion

Wheeler, C. J.

We give in the first instance an outline of the case sufficient for an understanding of the discussion to follow; in the treatment of one or two of the points involved it will be necessary to give a more detailed statement of the immediate facts essential to the consideration of these points and this we shall do in connection with their consideration. The defendant’s decedent, McDonald, who was the plaintiff’s husband, and the plaintiff were married in Louisville, Kentucky, on November 14th, 1888, and lived together until his death on October 21st, 1912. On April 19th, 1890, the plaintiff received from her mother’s estate a one-half interest in two mortgages which were assigned to her sister and self. One of the mortgages was paid by the medium of a check for her one half, *173 made payable to her and endorsed to her husband and used in large part to pay plaintiff’s sister for her one-half interest in the other mortgage which was transferred to plaintiff. Subsequently this mortgage was satisfied by a check made payable to the plaintiff, or to the plaintiff and her sister, and endorsed to McDonald. The amount received by the plaintiff from her interest in her mother’s estate cannot be exactly ascertained, but was between $5,000 and $5,220.55. The steps taken to secure to plaintiff and reduce to cash her share from her mother’s estate were taken without action or suggestion from McDonald, but with his consent and approval. When these checks were turned over to McDonald by plaintiff, she asked him to invest these amounts as he thought best, and he promised to do so. He deposited the checks in his own bank account, and invested and reinvested the proceeds at his pleasure and in his own name; thereafter he deposited the increment therefrom, together with all funds received by him from any source, in his own bank account, and drew against it for all his expenditures, whether on account of investments, household, personal, or other charges. At the time of his marriage to plaintiff, McDonald received a salary of $1,200 a year, which was soon increased to $1,500 and so continued to his death, with the exception of two years when he received $1,700 a year. He lived frugally. He had-acquired some property before his marriage and he made a substantial saving out of his salary. For the last six years of his life he speculated on margin, his transactions exceeding a half million dollars. At his decease he was in possession of eleven different securities valued at nearly $33,000. Upon the former trial it appeared that the administrator, his final account having been accepted by the Court of Probate, had in his hands for distribution upward of *174 $29,000. The only outstanding and unpaid claim is that of the plaintiff. Neither McDonald nor the defendant has ever returned to the plaintiff any part of the funds so received from her, or the proceeds of properties purchased with them and resold, or made an accounting therefor. Plaintiff has made two demands upon defendant for these securities in its hands or cash in lieu thereof, which defendant refused. In the first count the plaintiff alleges that these eleven securities were purchased by her husband with this money, received from her or from the income thereof, or the proceeds of sales of other securities purchased with her funds, under the promise to invest and reinvest the proceeds thereof as his judgment might approve, and that her funds were accepted upon these conditions. In the second count she further alleges that the decedent has dealt with the funds so received by her from her mother’s estate as his own, and refused to render an account of the funds or property so received, or any part thereof.

The plaintiff claims: (1) Damages. (2) A decree that all the described property was held by the decedent as trustee for the plaintiff and received by the defendant subject to this trust. (3) A decree that the defendant render an account of all this property, which the decedent held as trustee for the plaintiff and .which came into the hands of the defendant.

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McDonald v. Hartford Trust Co., 132 A. 902, 104 Conn. 169 (Colo. 1926).

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