McDonnell v. Milholland

48 Md. 540, 1878 Md. LEXIS 129
CourtCourt of Appeals of Maryland
DecidedMay 3, 1878
StatusPublished
Cited by4 cases

This text of 48 Md. 540 (McDonnell v. Milholland) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McDonnell v. Milholland, 48 Md. 540, 1878 Md. LEXIS 129 (Md. 1878).

Opinion

Alvey, J.,

delivered the opinion of the Court.

In June, 1868, Ellen Kelly and Ann McDonnell, the appellant, entered into a co-partnership, to carry on a small grocery business in the City of Baltimore, at the corner of Forrest street and Hull’s lane. In the articles of co-partnership, dated the 2'Tth of June, 1868, it was stipulated that all the net profits accruing from the business should be held and owned jointly by them, share and share alike; and that, in the event of the death of either, the survivor should have the body of the deceased decently buried, according to the rights of the Church to which she might belong, and pay the sum of $200, out of the funds of the joint business, for charitable purposes; and after that, the survivor was declared to be “ entitled to have and hold all and every part and parcel of the property that may have been held jointly by the said co-partners.”

Ellen Kelly died in November, 1816, leaving a will, by which she made certain bequests, principally for the benefit of certain charities connected with her Church, and constituted Arthur Y. Milholland, one of the appellees, her executor.

[543]*543After the formation of the partnership and during its existence, a leasehold interest in a certain lot of ground and improvements, on the corner of Forrest and Douglass streets, was purchased hy these parties for the sum of $1150, and by deed of assignment, bearing date, the 1st of April, 1869, such interest in the property was conveyed to Ellen Kelly and Ann McDonnell as tenants in common.

It also appears that in January, 1812, there were purchased fifteen shares of stock in the “ Carroll Building Association of Baltimore, No. 4,” in the name of Ellen Kelly, on which were paid the weekly dues or instalments down to the time of her death, amounting to a considerable sum. Besides these transactions, there was a running deposit account kept in the Savings Bank of Baltimore, in the joint names of the deceased and the appellant, subject to the order of either or the survivor ; and the balance due on which at the death of Ellen Kelly was drawn out by the appellant.

The object of the lull filed hy the appellant, shortly after the death of Ellen Kelly, is twofold: First, in regard to the assignment of the leasehold property, and second, in regard to the shares in the Carroll Building Association ; the appellant alleging that both the leasehold property and the shares of stock in the Building Association were purchased with and paid for out of the partnership funds and profits.

1. And first, as to the conveyance of the leasehold property. In the bill, after stating the circumstances that induced the purchase, it is alleged, that the parties being ignorant of law and of conveyancing, they requested a common friend to have the deed of conveyance of said property prepared, and he did so ; hut he, equally ignorant, failed to give special instructions to have it drawn and executed to them in joint tenancy, and through mistake, inadvertence, and failure to give special information as to how the same was to be held under the terms of said agreement, [544]*544the said deed was drawn so as technically to vest the said property in your oratrix and said Ellen, as tenants in common, and not as it should have been, in joint tenancy ; and your oratrix avers and charges that by reason of such mistake, each half was respectively held in trust to abide the contingency of such survivorship, and upon the death of said Ellen, your oratrix became entitled to the whole interest therein in her own right.” And the prayer of the bill, in respect to this property, is, that the sole ownership may be decreed to be in the appellant, and that the executor of Ellen Kelly may be decreed to convey by deed to the appellant, the undivided moiety of said lot, with the improvements thereon.

The allegations of the bill are flatly denied by the answer of the executor of Ellen Kelly; and the Court below, upon the pleading and proof, decreed adversely to the claim of the appellant.

In reply to the argument of the appellee that the proof is not of a character to justify the reformation of the deed, it is said for the appellant, that this is not an application to have the deed reformed upon the ground of the alleged mistake in its prepartion ; but that it is an application simply to have a trust declared and executed, in conformity to the alleged intention of the parties, and the right of the appellant as fixed and determined by the articles of co-partnership. But, whether the application be regarded as one for the reformation of the deed, or as for the establishment and declaration of a trust in respect to the property conveyed by the deed, the effect is substantially the same. In either case, the beneficial effect and operation of the deed is proposed to be essentially changed and modified. And such being the nature of the application, it is a well settled principle, that all the essential facts to entitle the party to relief must be made out and established in the most clear and decided manner, and to the entire satisfaction of the Court. Wathins vs. Stockett, 6 [545]*545H. & J., 445 ; Showman vs. Miller, 6 Md., 485 ; Gillespie vs. Moon, 2 John. Ch., 585. And, upon a careful examination of the record, we are of opinion that the proof falls very tar short of this requirement.

In the first place, there is really no satisfactory proof that any portion of the partnership funds was applied in the purchase of the property for which the deed was taken. The purchase was made in less than a year from the commencement of the partnership ; and the only proof in the case that the appellant contributed any capital to the business, is a casual declaration made by Ellen Kelly, that the appellant had put into the business between five and six hundred dollars. It is, however, quite apparent from what source the money came that was paid on the purchase of the property described in the deed. Ellen Kelly had been carrying on business for a considerable time before the formation of the partnership with the appellant; and she had on deposit in the Savings Bank, twelve or thirteen hundred dollars. That account was kept in the joint names of herself and her daughter, Mary Maloney, (who became the wife of Michael McDonnell in April, 1867,) payable to the order of either or the survivor; and on the 27th of April, 1868, that account was closed, and Ellen Kelly drew from the bank $1,306.96. She opened another account in the bank, the heading of which as it now stands, according to the copy furnished in proof, is, Ellen Kelly and Ann McDonnell, subject to the order of either or the survivor but the first entry in that account is of May 6th, 1868, a deposit of $1200,— • nearly two months before the partnership was formed. There were several other deposits made of small amounts, between the date of the first entry and the 31st of March, 1869, and nothing drawn out; and on the latter date the sum of $1200 was drawn out by the appellant, leaving a balance on deposit of $260. This account continued to run and accumulate until the death of Ellen Kelly ; im[546]*546mediately after which event it was closed, and the balance due thereon of $809 54 was drawn out by the appellant..

Prom all the evidence in the case, it is quite certain, indeed conceded, that of the $1200 drawn from the Savings Bank .on the 31st of March, 1869, the purchase money was paid for the property in question.

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Bluebook (online)
48 Md. 540, 1878 Md. LEXIS 129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdonnell-v-milholland-md-1878.