Monteverde v. Christie

134 S.W.2d 905, 23 Tenn. App. 514, 1939 Tenn. App. LEXIS 59
CourtCourt of Appeals of Tennessee
DecidedMarch 24, 1939
StatusPublished
Cited by7 cases

This text of 134 S.W.2d 905 (Monteverde v. Christie) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Monteverde v. Christie, 134 S.W.2d 905, 23 Tenn. App. 514, 1939 Tenn. App. LEXIS 59 (Tenn. Ct. App. 1939).

Opinions

ANDEBSON, J.

This proceeding was begun by a petition filed in' the Probate Court of Shelby County by L. J. Monteverde, as special Guardian and also as next friend of Mary Jo Christie, a minor, against Mrs. Charlotte Christie, the general Guardian and mother of said minor, and the surety on her guardian bond, the New York Casualty Company, for the alleged purpose of having said Guardian and her surety “account to this court” for $8,000 of the guardianship funds alleged to have been wrongfully and illegally invested, and also to recover the further sum of $940.80 representing certain taxes paid out of the guardianship funds on real estate acquired by the Guardian as a result of said illegal investments. After motions to dismiss: challenging the jurisdiction of the court had been overruled, the> Guardian and her surety filed separate answers and the issues thus, made were tried on oral evidence introduced before the Probate Judge without a written stipulation that the case’should be so tried. The result was a decree granting the relief sought. The regulaf *516 Guardian was also removed and another appointed in her place. She and the surety appealed in error.

In the view we have of the case, the determinative question is whether the Probate Court of Shelby County has jurisdiction to try and determine issues such as those presented and render the decree which it did render. The disposition of this question requires a more detailed statement of the circumstances that gave rise to the controversy, the nature of the proceedings, and the relief granted.

On March 14, 1930, the defendant, Mrs. Charlotte Christie, was appointed the general Guardian of her daughter, Mary Jo Christie. She qualified and gave the defendant, New York Casualty Company, as a surety on her guardian bond, which is in the penalty of $20,000. There came into her hands $10,000 belonging to her ward. She desired to invest these funds and sought advice of the Trust Officer of the Union Planters National Bank & Trust Company who introduced her to the officers of the Union & Planters Company, an affiliate of the former company. Advised of her desire, these officers selected, •and offered to her for investment of the funds, certain securities then ■owned by it. Among these was one interest bearing note in the principal sum of $4,000, executed by one White and wife and secured by a first mortgage deed of trust on improved real estate in Memphis. Another was a note of like amount executed by one Wade and wife and secured in a like manner. The original loans to White and Wade, respectively, had been made by the Union Planters Title Guaranty Company, also an affiliate of the Union Planters National Bank & Trust Company. Before the transaction was closed the Trust Officer of the bank, acting for the Guardian, filed a petition in the Probate Court describing the proposed investment, and on the same day an order was made approving and authorizing the proposed deal. The transaction was thereupon consummated by the delivery of the notes or bonds to the Guardian by the Union & Planters Company and her payment therefor to that company out of the guardianship funds.

On April 6, 1932, the Guardian filed her first biennial settlement covering the period from March 27, 1930, to March 27, 1932, which showed a disbursement of $9,800 in payment of the purchase price of first mortgage bonds which included the notes here involved. This settlement was reported upon by the clerk and confirmed by order of the court entered on April 27, 1932. At this time there had been no default with respect to the notes here in question.

In March, 1933, defaults occurred in both investments, and on the 28th of August, 1933, this situation was brought to the attention of the court by a verified petition filed by the general Guardian. On the same day, after a hearing, an order designated as an ‘1 Order for instructions to Guardian” was entered, in which, with respect to both investments, it was adjudged to be to the best interest of the ward that the trust deeds securing the notes held by the Guardian *517 be foreclosed. The Guardian was accordingly ordered and directed to cause the foreclosure of the trust deeds and in the protection of the investments was authorized to bid for the property at the foreclosure sale up to the amount of the secured indebtedness “in the name of Charlotte S. Christie, Guardian of Mary Jo Christie.” Pursuant to this authorization and direction, the sales were had and the properties were purchased by the Guardian by way of protection of the investments. On April 5, 1934, the Guardian filed her second biennial settlement for the period from March 22, 1932, to February 23, 1934. This settlement was reported upon by the clerk and confirmed in all respects by the court on June 5, 1934, “except as to investments. ’ ’

On February 8, 1938, the Guardian filed a verified petition in the Probate Court, alleging that she had been advised that there was serious doubt as to the legality of the investments in the Wade and White notes or bonds aggregating $8,000 in which defaults had occurred and on which foreclosure proceedings had been had in compliance with the order of the court of August 28, 1933. It was further averred that the petitioner was advised “that there are or may arise material conflicts between her own interests and those of her said ward in the adjustment of any legal wrongdoing on her part in making said investments in the manner and form stated.” She prayed that a guardian ad litem be appointed for the special purpose of protecting the rights and interests of the ward in these particular investments. Upon consideration of this petition the court appointed L. J. Monteverde, Esq. as special Guardian with the power to take such steps as might be necessary to effectuate that end. Pie filed the petition in the instant ease on March 3, 1938, setting tip the facts with respect to the original investments, and subsequent foreclosure and purchase of the properties by the general Guardian, and further charged that the general Guardian had paid out of the guardianship fund the sum of $940 covering certain delinquent taxes on the real estate which she had purchased.

The petition prayed that the regular Guardian and her surety be made to account for said investment amounting to $8,000 with interest thereon from March 31, 1930, and for the sum of $940 with interest thereon from the 11th day of July, 1935, and “that any and all proper or necessary orders, proceedings and act be taken and had herein to effect said accounting” and for general relief. On the presentation of this petition, an order was made peremptorily directing the Guardian and her surety “to render a full and correct account to this court in the matter of the aforementioned investments and the present condition of the said ward’s estate pertaining thereto.” In the same order it was directed that notice by service of a copy of same be given the Guardian and her surety directing them to make the account as ordered within ten days. To this peti *518 tion written motions to dismiss were filed by the Guardian and her surety challenging the jurisdiction of the court and setting forth certain other grounds of defense not necessary to be mentioned at this point.

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134 S.W.2d 905, 23 Tenn. App. 514, 1939 Tenn. App. LEXIS 59, Counsel Stack Legal Research, https://law.counselstack.com/opinion/monteverde-v-christie-tennctapp-1939.