McGowan v. St. Louis Union Trust Co.

369 S.W.2d 144, 1963 Mo. LEXIS 715
CourtSupreme Court of Missouri
DecidedJuly 8, 1963
DocketNo. 49393
StatusPublished
Cited by8 cases

This text of 369 S.W.2d 144 (McGowan v. St. Louis Union Trust Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McGowan v. St. Louis Union Trust Co., 369 S.W.2d 144, 1963 Mo. LEXIS 715 (Mo. 1963).

Opinion

COIL, Commissioner.

This case has come on reassignment to the writer, not present when the case was presented orally but who thereafter listened to the recorded arguments.

Appellants sought to recover a money judgment (in excess of $15,000) against respondent for alleged breaches of trust. The trial chancellor entered a judgment dismissing the suit and this appeal ensued.

All the relevant facts- were stipulated prior to trial and, other than varying constructions of, and differing inferences from, certain facts and exhibits, there is no dispute as to the facts.

On October 2, 1901, the only lineal descendants and heirs at law of Mr. and Mrs. [146]*146George S. Myers were their three adult and married daughters, Mildred (Mrs. John S. Cravens), Georgie (Mrs. Herbert Coppell), and Bob (Mrs. Graham E. Babcock), and one living grandson, George Myers Church, the son of Mrs. Coppell by her previous marriage to Mr. Church. On that date, October 2, 1901, Mr. Myers caused to be formed a Missouri corporation named “The Coppell-Cravens-Babcock Real Estate & Investment Company,” and furnished the full amount of its capital, $100,000, to be represented by a thousand shares of $100 each, of which 991 shares were issued to Mr. Myers. The term of the corporation’s existence was fixed at fifty years. On October 30, 1901, a 4-year-old child, Doris Dolan, was legally adopted by Mr. and Mrs. Graham E. Babcock. In January 1904, Mr. Myers executed and delivered to respondent, St. Louis Union Trust Company, a trust indenture, and the trust therein stated was accepted and thereafter administered by respondent. Under its terms and provisions Mr. Myers delivered to respondent as trustee 989 shares of Coppell-Cravens-Bab-cock Real Estate and Investment Company with instructions to hold said stock and vote it at all meetings of the corporation as directed in writing by Mr. Myers during his lifetime and, after his death, as directed in writing by a majority of the surviving beneficiaries of the trust, and during the existence of the corporation to collect the net income and dividends on the stock and to pay the same to “the beneficiaries hereinafter named as follows:

“To GEORGIE MYERS COPPELL, MILDRED MYERS CRAVENS, BOB TANSEY BABCOCK, daughters of the party of the first part, and GEORGE MYERS CHURCH, grandson of the party of the first part, during their joint lives, each the one-fourth part of such net income and dividends; the portion going to said grandson, shall, during his minority, be paid to the party of the first part, George S. Myers, and after his death to his guardian, and after said grandson becomes of age, to him directly.
“Upon the death either of said grandson or of either of said daughters of the party of the first part without a child or children, should any such death or deaths occur during the existence of said last named corporation, the share of the one so dying, in such net income and dividends, so above directed to be paid in equal portions, to said daughters and grandson, shall be paid in equal portions to the survivors or survivor of such daughters and grandson, or the whole thereof to the last survivor of such daughters and grandson, as the case may be; but should the said grandson or any of the said daughters of the party of the first part, die leaving a child or children hereafter born, surviving him or her, then all his or her rights so dying, to such net income and dividends, and to such survivorship, shall pass to and vest in his or her child or children, and be paid to such child or children of said grandson or of such daughter so dying, in equal parts, or to the guardians of such as are minors.
“When said Coppell-Cravens-Babcock Real Estate and Investment Company ceases to exist as a corporation, either by reason of the expiration of the time for which it is now organized, or previously, by reason of other causes, and upon the winding up of the affairs of said Company, then said trustee, as holder in trust as aforesaid, of said 989 shares of stock therein, shall collect and receive all the proportionate share of the assets of said last named company, to which said trustee may be by law entitled as such holder of said shares of stock, and shall turn over, transfer, assign, convey and deliver the whole or such assets of whatsoever nature or kind they may be, whether real or personal, to the said George Myers Church, or to his heirs should he be then deceased, then to be and become vested in him, the said George Myers Church, or in his heirs, absolutely, free from all trusts or conditions.”

Mr. Myers died testate in 1910. From the time defendant accepted the trust, it paid the net income from and the dividends on the stock of the investment company in [147]*147equal shares to the four named beneficiaries until Mrs. Coppell died in July 1933, then in equal shares to the remaining three beneficiaries until Mrs. Babcock (who by then was Mrs. William Downey) died in March 1942, and thereafter in equal shares to the two remaining beneficiaries until Mrs. Cravens died in July 1943, and thereafter the entire amount of the income to the remaining beneficiary, settlor’s grandson, George Myers Church, until the dissolution of the corporation on November 3, 1943. On November 2,1943, Mr. Church executed a written direction to the trustee to vote the 989 shares of stock at a special meeting of the corporation to be held on that day in favor of and to do the things necessary to effect dissolution. In consequence thereof, an affidavit of dissolution was filed on November 3, 1943, and the corporation was dissolved. Whereupon, the trustee, in compliance with the provisions of the trust indenture, distributed and paid over the entire corpus of the trust estate (together with accrued and undistributed income) in an amount in excess of $3,300,000 to George M. Church.

After the death of Mrs. Coppell in July 1933, with no child surviving her other than George M. Church, her son by a previous marriage, certain questions arose as to the parties entitled to and the proportions in which they were entitled to the income from the trust estate and to determine that controversy, the trustee in the fall of 1933 instituted a suit in the Circuit Court of the City of St. Louis wherein Mrs. Cravens, Mrs. Babcock Downey, and George M. Church, the surviving beneficiaries named in the trust indenture, were defendants, as individuals and as representing all who might derive or claim to derive any title to the trust estate as heirs, devisees, alienees, donees, or grantees of the defendants or any of them. We shall refer to the 1933 suit in more detail hereinafter.

Sometime prior to 1929, Doris Babcock McGowan, the child who was adopted by Mr. and Mrs. Babcock in 1901, had married and, in 1933, lived with her husband and children in Burlington, Vermont. Mrs.. McGowan was not a party to (except as her future rights and interests, if any, had to come to her from her mother who was a party) and did not participate in the 1933 suit. Mrs. Babcock Downey died in March 1942 and her only surviving child was her adopted daughter, Doris Babcock McGowan. The appellants are the four (all adults) children of Doris McGowan.

Mrs. Downey, formerly Mrs. Babcock, died testate March 5, 1942, while a resident of Bergen County, New Jersey, and in her will named her husband, William H. Downey, as her sole executor and as the residuary legatee of her estate. He filed the will on March 14 and qualified as executor, and letters testamentary were issued to him on March 17. Mrs. Downey’s will bequeathed to her adopted daughter, Mrs.

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Bluebook (online)
369 S.W.2d 144, 1963 Mo. LEXIS 715, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcgowan-v-st-louis-union-trust-co-mo-1963.