Nations v. Pulse

74 S.W. 1012, 175 Mo. 86, 1903 Mo. LEXIS 47
CourtSupreme Court of Missouri
DecidedMay 27, 1903
StatusPublished
Cited by2 cases

This text of 74 S.W. 1012 (Nations v. Pulse) 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
Nations v. Pulse, 74 S.W. 1012, 175 Mo. 86, 1903 Mo. LEXIS 47 (Mo. 1903).

Opinion

MARSHALL, J. J.

— This is a bill in equity to set aside the sale under a deed of trust made on March 2, 1891, by the plaintiff, John W. Nations, and the defendant, O. L. Pulse, to Lansing Staats, trustee, to secure to 0. C. Frisbee a note for ten thousand dollars, and covering all of sections nine, ten and fifteen of township 27, range 12, in Stoddard county.

The case made is this:

On March 2, 1891, John W. Nations and 0. L. Pulse were partners, engaged in the sawmill business at Bell City, Stoddard county, Missouri. They had both resided in Indiana, and after the partnership was formed Nations continued to live in Indiana, making occasional trips to Bell City, while Pulse removed to Bell City and resided there. On said March 2, 1891, they purchased, from 0. C. Frisbee, the land in question here, being sections nine, ten and fifteen in township 27, range 12, for an agreed price of $12,000, and paid- thereon the sum of $2,000 with partnership funds, and gave their note, secured by deed of trust, on the land, for the balance of $10,000. O. L. Pulse thereafter conveyed to his brother, W. 0. Pulse an undivided half-interest in his part of the land, and later, in December, 1893, John W. Nations sold his interest in the business, including the sawmill, and other personal property, to George H. Fleetwood. This dissolved the firm of Nations and Pulse, and thereupon O. L. Pulse and George L. Fleetwood entered into partnership in the sawmill business, and continued cutting timber on the land, Fleetwood cutting for Nations at so much a thousand to pay the $2,000 he had agreed to pay Nations for his half-interest in the mill. Nations'did not sell his half-interest in the land. Thus the matter ran along until 1896, at which time the indebtedness to Frisbee on the ten-thousand-dollar note had been reduced to $2,848.44. Frisbee demanded payment thereof from both Pulse and Nations, but offered to take $1,000 in cash or in lumber and to wait for the balance. Na[89]*89tions, who was then in Bell City, and Pulse consulted about the situation. Neither had any money. Both were insolvent, and unable to get any money with which to pay Frisbee. Thereupon Nations left Bell City and returned to his home in Indiana, without making any arrangement whatever to meet the obligation to Frisbee. Shortly thereafter Nations was taken sick, and he never did nor attempted to do anything concerning the matter until he brought this suit. •

In addition to his timber business in Missouri and his partnership with Nations and subsequently with Fleetwood, O. L. Pulse was engaged in business in Indiana, in partnership with his brother, W. C. Pulse. The latter had a brother-in-law named C. K. McCollough, who was engaged in the banking business in Anderson, Indiana. The firm of O. L. and W. C. Pulse owed C. IC. McCollough the sum of $1,800. They urged McCollough to buy the Frisbee claim, and thus protect the •claim of $1,800 aforesaid. McCollough did so, and paid Frisbee the balance due on his note of $2,848.44, and took an assignment of the note and deed of trust. Thereupon he sent the note and deed of trust to an attorney in Stoddard county for collection. The attorney demanded payment thereof from O. L.' Pulse, and failing to collect it, he procured the trustee to advertise the property for sale under the deed of trust according to the terms thereof. 'The sale was held at courthouse, at Bloomfield, the county seat, and C. K. McCollough became the purchaser for the sum of five hundred dollars. This sale was in all respects in conformity to the terms of the deed of trust, and was open and free, and there is nothing in this record which impeaches its regularity or legality.

After the purchase thereof McCollough sold sections ten and fifteen to James C. Pulse for $6,400, and thereafter James C. Pulse sold the same to Lemuel Boone Sexton for $7,000. There is nothing in this rec[90]*90ord that in any manner casts any donbt on the bona tides of these sales.

McCollough retained the title to section nine, and leased it to O. L. & W. 0. Pulse.

Thus the matters stood until November 23, 1897, when John W. Nations instituted this suit, against 0. L. Pulse, W. O. Pulse, James 0. Pulse, 0. K. MeCollough, and Lemuel Boone Sexton.

The gist of the petition is that the defendants ‘4 combined, conspired and colluded together for the purpose of defrauding this plaintiff out of said- lands and to procure the title thereto, did, on the eighth day of May, 1896, cause the same to be sold under and by virtue of said, deed of trust by the said Lansing Staats, trustee, and at said sale C. K. McCollough, who in the meantime had through 0. L. Pulse become the assignee 'of the notes and deed of trust hereinbefore mentioned, became the purchaser of all said lands therein described for the sum and price of five hundred dollars. Plaintiff states that said land was then and now is reasonably worth the sum of twelve thousand dollars, and that the said 0. L. Pulse, fraudulently and willfully failed to advise the plaintiff of the sale of said lands or of the desire of the payee or assignee of said notes and deed of trust that payment was demanded. ’ ’

It is further charged that after Nations went back to Indiana he often wrote to 0. L. Pulse about the note and deed of trust, but that Pulse refused to answer his letters and that he, Nations, did not know that the holder of' the note was pressing for his money, but on the contrary that a short time previously he had received a letter from the payee of the note saying he did not want his money, but that the plaintiff and his partner could have more time in which to pay the samé. This allegation, however, is not supported by the proofs, but on the contrary the plaintiff himself admitted that Frisbee was .demanding his money, or at least one thousand dollars in money or lumber, and that he and 0. L. Pulse were [91]*91both, insolvent and unable to pay or do anything, and that he went back to Indiana leaving the matter in this shape and unprovided for, so no further attention need be paid to this averment.

The prayer of the petition is for a cancellation of the trustee’s deed to McCollough, and of the deeds from McCollough to James C. Pulse and from'him to Sexton and for an accounting.

The answer admits the partnership, the execution of the deed of trust, the residence of the parties, denies all the other allegations of the petition, and alleges that the affairs of the partnership have never been wound up and avers that the plaintiff is indebted to the firm in the sum of thirteen thousand dollars, and prays for an accounting.

The reply denies the new matter in the answer, and joins in the prayer for an accounting and to that end asks for the appointment of a referee to take and state the account. Subsequently the defendants were permitted to amend the -answer by striking out the prayer for an accounting.

By consent of the parties the whole case was referred to a referee, who heard the case, and made a report finding that the defendants conspired to defraud the plaintiff out of his interest in the land by having McCollough buy the Frisbee note and deed of trust and then sell the land under the deed of trust, and that O. L. Pulse was guilty of fraud in not notifying the plaintiff of such purchase and sale; that James C.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Loeb v. Dowling
162 S.W.2d 875 (Supreme Court of Missouri, 1942)
State Ex Rel. Turner v. Penman
282 S.W. 498 (Missouri Court of Appeals, 1926)

Cite This Page — Counsel Stack

Bluebook (online)
74 S.W. 1012, 175 Mo. 86, 1903 Mo. LEXIS 47, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nations-v-pulse-mo-1903.