Miles v. Bacon

27 Ky. 457, 4 J.J. Marsh. 457, 1830 Ky. LEXIS 299
CourtCourt of Appeals of Kentucky
DecidedOctober 9, 1830
StatusPublished

This text of 27 Ky. 457 (Miles v. Bacon) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miles v. Bacon, 27 Ky. 457, 4 J.J. Marsh. 457, 1830 Ky. LEXIS 299 (Ky. Ct. App. 1830).

Opinion

Judge Underwood,

delivered the opinion of the court.

On the Sth of November, 1821, Jacob Castleman conveyed to Charles P. Bacon certain premises situated in Frankfort, in trust’, for the purpose of indemnifying him on account of securityships, and for the purpose of securing the payment of a debt to Charles Miles of $1150, as stated in the deed’, evidenced iSbv note bearing date the day of 18 f and also for the purpose of securing the pryrnent of a •mote for $1200, bearing date the day of 18 by which Thomas White and said Castleman , were bound to the legatees of John Allen, deceased, and also to secure the payment of an account in favor of Joseph and Collin Cooper, against said Castle- . man, for $520; and also to secure an unsatisfied balance of $2000, due upon a replevin bond executed to Jacob [458]*458Allen Tharp, which sum of $2000 was ehdorsed on thé execution, for the benefit of David Castleman. The deed of conveyance expressly names the “rents, issues and profits” of the estate as conveyed, for the purposes of the trust. The true design and intent of the conveyance is declared to be, “to indemnify and keep harmless the. party of the second part, in and concerning his liability, by reason of his becoming security as aforesaid, and to secure to the several persons and parties herein before specified and named, the payment of the respective sums of money so owing to them, by the party of the first part.” To accomplish the purposes intended, power is given to Bacon, “at any time to sell and dispose of the premises or any part or parts thereof, either by private sale or at public auction, for cash or on a credit, to. any person or persons, whomsoever, and on such sale, to convey the title, &c., and out of the monies arising from such sale or sales, to secure, indemnify and remunerate himself, for of and concerning his said liability, &c., and to pay himself, and to pay and satisfy all and singular, the several sums of money herein before recited, owing, by the party of the first part, to the persons and parties aforesaid, to effectuate which security and indemnification, and to satisfy, pay and discharge which debts, this writing hath been executed, and these powers granted, together with all costs, charges and expenses that shall or may be due, accrue, arise.or happen, by reason or on account of such sale or sales, and the overplus money, if any, to be paid on demand, to the party of the first part.”

In .1826, Miles and White, as joint complainants, filed their bill against Bacon, David Castleman, Joseph and Collin Cooper, and Jacob Castleman, alleging, that they were suffering in consequence of Bacon’s failure to execute the trust, by selling the trust estate. They •claim the sums mentioned in the deed of trust, as intended to be secured for their benefit, they call on the defendants to set forth their demands specifically, and to say whether the whole or any part has beeri paid or satisfied by said Castleman or his trustee, and they conclude by asking for a decree, directing a sale, &c., and for general relief.”

David Castleman, although served with a subpoena, filed -no answer.

[459]*459Joseph and Collin Cooper say, in their answer, that their claim, as set out in the deed of trust,'is still due and unsatisfied. They join with the complainants in praying for a sale of the trust estate, and require a fair--distribution of the proceeds among those unsettled. They also claim their just proportion of the rents and profits. It does not appear that this answer was verified by oath.

Bacon answered, expressing a willingness to have the trust terminated. He alleged, that he “had expended large sums of money in relation to the trust, and for repairs made on the premises, amounting to $ , as an offset to which, he had received certain rents, accruing from the premises, amounting to $ , all which will fully appear from accounts filed as part of this answer.” He prayed that an auditor might be appointed to adjust and settle the claims of the respective parties, in order to enable the court to enter up a final decree.

Jacob Castleman did not answer the original bill.

The complainants filed a supplemental bill, in which, Miles charges, that in consequence of the note held by him, on Jacob Castleman, not being present when the deed of trust was executed, that a mistake was commit-' ted in describing its amount, and that the debt, which was intended to be secured, was $1282, (for which sum Castleman’s note is exhibited) instead of $1150.

Jacob Castleman, in an answer to the supplement, admits its truth.

Bacon, in an answer to the supplement, requires full proof of its allegations, and contends, if it be true, that the debt intended to be secured, was $1232; nevertheless, the complainant, Miles, cannot succeed beyond the sum assured and guaranteed by the deed of trust. The Coopers did not answer the supplement..

Bacon amended his answer, and charged that he had recently discovered that the Coopers had received sundry payments from, Jacob Castleman on account of the demand intended to be secured to them by the deed of trust, and for which they had given no credits. He charges, that they drew an order bearing date, 8th November, 1821, upon J. Castleman, in favor of B. N. [460]*460Hindi man, upon which Castleman, on the 12th of Jan--uary, 1822, paid §25’.), and on the 1st of May, 1822, §111 25 cents more, for which sums receipts were cn--dorsed on the. order which he exhibits. He, therefore, prays that his answer may be taken as a cross-bill against the Coopers, and that they may be compelled to answer on oath, &c. It does not appear that he took out any process against the Coopers. They did not answer.

At the March term, 1827, whoa Bacon’s answer was filed, and when the complainants amended their bill, by consent, the cause was submitted to the court for a decree, The court appointed a commissioner to audit and, state the accounts of the parties. The cause was recommitted to auditors, until three or four reports were obtained from them. It appears from tire reports of evidence in the cause, that Bacon paid, as surety for J. Castleman, in notes on the hank of the commonwealth, on the 13th of June, 1822, §1313 10 cents, then worth 514 cents to the dollar; on the 28th of February, 1823, §700, then worth 58 cents to the dollar; and on the 22d of July, 1821, §609, then worth 50 cents to the dollar. It appears from the reports, that Bacon received considerable sums for rents, and that he expended liberally for repairs. The last report shows a balance against him exceeding §1000. The times when he received the various,sums for rent, (most of which were received in notes on the bank of the commonwealth,) are stated, and likewise the value of commonwealth’s paper at these different periods. The commissioner reported an allowance of §250 in commonwealth’s paper, in lieu of §400, claimed by Bacon for his services, as trustee.

The first report of the. commissioner was returned during the term at which he was first appointed. At the same term, to-wit: on tire 5th of April, 1827, the report was ordered to be fded, and the question of distribution resumed for a final decree; and then, as the record states, f‘by consent of parties, this cause is again submitted to thp court for further decree.” The court proceed to order, “that unless J.

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27 Ky. 457, 4 J.J. Marsh. 457, 1830 Ky. LEXIS 299, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miles-v-bacon-kyctapp-1830.