Nugent v. Allen

32 S.W. 9, 95 Tenn. 97
CourtTennessee Supreme Court
DecidedMay 30, 1895
StatusPublished
Cited by2 cases

This text of 32 S.W. 9 (Nugent v. Allen) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nugent v. Allen, 32 S.W. 9, 95 Tenn. 97 (Tenn. 1895).

Opinion

Wilkes, J.

The present case is an offshoot of the case of Allen v. Shanks, reported in 6 Pickle, 359. In that case it was by this Court decreed, in substantial affirmance of the decree below, among other things, that Thos. H. Allen was indebted to the estate of Dr. Lewis Shanks, growing out of his acts as one of the executors, in the sum of $38, - 678.28, and that the estate was indebted to the firm of Thos. H. and J. M. Allen & Co. in the sum of $10,604.55.

[99]*99While the cause was pending in the Court below, prior to this appeal, and on January 15, 1891, a decree had been entered substantially to the effect that Thos. H. Allen was the surviving partner of the firm of Thos. H. and J. M. Allen & Co., and the representative thereof, and entitled to control the judgment in favor of the firm, and that all parties interested having consented thereto, it was ordered and decreed that the two judgments be set off, leaving a balance in favor of the firm of $1,655.52, after com-^ puting interest. The decree recited that it was entered by consent of Thos. H. Allen and all other parties in interest in the suit, and to save the trouble and expense of executing' the decrees separately, and to avoid delay, but not so as to prejudice the rights of either party on appeal or writ of error to contest the amount found due by either.

After this and other decrees were affirmed in this Court, and the cause remanded, a motion was made on petition filed on behalf of the present complainants for the relief now prayed for, which was refused and the petition dismissed.

The present bill was thereupon filed, June 19,-1893, by Perry Nugent and Eugene Soniat, the latter in his representative capacity as syndic in insolvency of Jno. B. Lallande against Thos. H. Allen and all the parties interested in the estate of Dr. Shanks, and J. M. Hill, the co-executor with Allen of Shanks’ estate, in which it is charged, in substance, that the decree of January 15, 1891, purporting to [100]*100be by consent, was not, in fact, consented to by the parties interested in the judgment in favor of Thos. H. and J. M. Allen & Co., and, as a matter of law, was not warranted. It is charged that complainants, Nugent and Lallande, were partners with Thos. II. Allen in the firm of Thos. H. and J. M. Allen & Co.; that each had a specific part of said judgment, and had never given any consent or authority that their interest and share in said judgment should be offset by the personal judgment against Thos. H. Allen, and that the result of the consent decree was to deprive them of their shares and interests in the judgment, inasmuch as Allen had become, and perhaps was insolvent when the consent decree was entered. Hill, the co-executor with Allen of Dr. Shanks’ estate, died before the consent decree was rendered, and after his death Allen continued to act as sole executor. The wives and children of both Hill and Allen are interested in the estate of Dr. Shanks, as they (Hill and Allen) were sons-in-law of Dr. Shanks, as well as his executors.

The bill seeks to set aside the consent deci’ee of January 15, 1891, and the decree of this Court affirming the same, of date February 24, 1893, at least so far as it directs the firm’s judgment to be set off in toto against the individual judgment against Allen, conceding, however, that Allen’s interest or share in the same may be so set off, and judgment is asked in favor of each for his proportionate part of said firm judgment, and for a sale of Dr. Shanks’ [101]*101real estate to pay the same. The Chancellor granted relief, and gave judgment, substantially as prayed, in favor of complainant Nugent for twenty-eight per cent, of the firm judgment, and in favor of Soniat, syndic of Lallande, for eleven per cent, of the same, the latter to inure to the use of Mrs. Ellen H. Allen, the wife of Thos. H. Allen, the decree reciting that the interest of Lallande had, since the filing of the hill, been sold and transferred by his syndic to Mrs. Allen, through Thos. H. Allen, her husband, in consideration of her having previously released certain claims to homestead and dower in lands in Arkansas, for the benefit of Allen’s creditors.

From this decree all the defendants,' except Allen and Jno. C. Latham, appealed, and they have assigned errors.

Without talcing up the assignments in detail, we only state the substance of the contention by each. Defendants insist that Nugent and Lallande were, as a matter of fact and law, represented by Thos. II. Allen in the matter of the consent decree, and that the set-off was authorized, by the express or implied assent and authority of all the partners of Thos. II. and J. M. Allen & Co.; that, independent of any express authority, Thos. H. Allen, as surviving and liquidating partner, with full control and unlimited power to collect the judgment, had a right to make the offset and .agree to the decree, and it will be binding, unless actual fraud is shown in its procurement; that Nugent and Lallande, by seeking to ob[102]*102tain the benefits of the decree, are estopped to deny their consent through Allen, their agent; that no actual fraud appears on the face of the decree, nor does the proof show such a state of facts as amounts to fraud; that complainants have been guilty of laches in allowing the consent decree to be entered in the Court below and affirmed in this Court, and to stand unobjected to for more than two years, until the insolvency of Allen has operated to the detriment of the devisees and legatees of Dr. Shanks; that they are barred by the statute of limitations unless they come in under and accept the decrees obtained by Allen for their benefit; that they cannot recover proportionate ariiounts of the judgment in favor of the firm, but it can only be sued for as an entirety; that the proceedings by which the claim of Lallande was vested in Soniat as syndic, and through him in Mrs. Allen, conferred no right of recovery in either of them beyond the State of Louisiana, where the proceedings were had.

On the other hand, complainants contend that, as a matter of fact, Allen did not consent to the decree either for himself or for them; that he had no authority, in law or fact, to assent to such decree as to their shares in the Shanks judgment; that the relative rights of the partners having been previously fixed by them in certain proportions, they had a right to recover in such proportions; that all parties in interest knew that the claim belonged to the firm, and not to Allen individually, and that the attempt to [103]*103make such offset was a fraud upon them to the extent of their interests.

While there is conflict in the testimony on some material points, it satisfactorily .appears that the claims of T. H. and J. M. Allen & Co. against the estate of Dr. Shanks were placed in the hands of Thos. EL Allen by his partners for collection prior to March, 1869, and with unlimited power and discretion as to their management and mode of collection. The firm had dissolved, and at that time, and for long years afterward, Allen was a man of great wealth, unlimited credit, and unbounded confidence. His assumption of the debt as his own, and to be accounted for by him, would have been agreeable to the partners at any time. He had it thus under his management for over twenty years, and so unlimited was his authority and discretion, that Mr. Nugent states he had almost lost sight of it, and his right to collect it by offset, or in any other way, during this time, would not have been questioned.

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Bluebook (online)
32 S.W. 9, 95 Tenn. 97, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nugent-v-allen-tenn-1895.