O'Shaugnessy v. Humes

129 F. 953, 1904 U.S. App. LEXIS 4783

This text of 129 F. 953 (O'Shaugnessy v. Humes) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Western Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'Shaugnessy v. Humes, 129 F. 953, 1904 U.S. App. LEXIS 4783 (circtwdtn 1904).

Opinion

HAMMOND, J.

Chronologically, the averments of this bill may be stated as follows:

(1) Prior to March, 1887, the defendant Milton Hu'mes was the attorney and managing agent of Mrs. Ada Fane, and in that relation became indebted to her for sums of money not necessary now to notice, because they are not involved in the controversy over this demurrer.

(2) March 17, 1887, he sold to his own wife, one of the other defendants, Mrs. Ellelee C. Humes, real and personal property belonging to Mrs. Fane. The real estate in Madison county, Ala., was conveyed to Mrs. Humes for a recited consideration of $25,000, and “pictures, drawings, paintings, statuary, and other personalty,” amounting to $5,000. It is not understood that the money for the personal property is involved in this controversy over the demurrer. The averments of the bill concerning this transaction are meager, indeed. The deed is neither set out in its particulars, nor exhibited with the bill, and, if it has any such relation as that which is suggested in the argument to the subsequent transactions between the parties, so as to create the relation of principal debtor between Mrs. Humes and Mrs. Lane, it is only a matter of inference, and is scarcely made to appear by the specific averments of this bill. Presumably Mrs. Humes in some form, we do not know how, agreed to pay the recited consideration of $25,000, but this is only an inference to be drawn from the bare averment of the bill that the deed of conveyance recited a consideration of $25,000.

(3) The bill avers that on the 3d of August, 1887, the defendant Milton Humes informed Mrs. Lane that the balance due her from all sources in the management of her property was $30,000, and that he had invested that amount in good securities yielding 8 per cent, interest. How this information was given is not stated, but the bill states that “this instrument [whether it means the deed to Mrs. Humes or the instrument containing the information we cannot say] should have brought the said Mrs. Lane an annual income of twenty-four hundred dollars.” Then the bill states that the complainant, who is Mrs. Lane’s assignee, is now informed and believes that Humes never made any investment of the money, but converted the moneys realized by him to his own use, and only made remittances and disbursements on Mrs. Lane’s account out of his own personal funds.

[955]*955(4) The bill avers that on the 4th of September, 1887, Mrs. Humes and her husband conveyed the real estate in Alabama to one James F. O’Shaugnessy for $25,000, that this consideration was never paid, .and on the 26th day of January, 1892, O’Shaugnessy and his wife “reconveyed” the property to Milton Humes. Again, this deed is not set forth in its particulars, nor is it exhibited with the bill, nor are there any averments about it in its relation to subsequent transactions. Evidently it was not a “reconveyance,” for that would have required a deed to Mrs. Humes herself, while this was to her husband. No averments are made in the bill as to the payment of the consideration or any undertakings of Humes in relation thereto, either with O’Shaugnessy or with his wife, Mrs. Humes, and we know nothing from the bill as to any adjustment of that matter as between these parties. What disposition was made of the indebtedness to Mrs. Lane from Mrs. Humes which is to be inferred from the fact that the property was conveyed to the latter by Mrs. Lane’s agent and attorney is not shown by the bill, and therefore it throws scarcely any light except by inference upon the subsequent transactions involved in the controversy over this demurrer. It is not to be assumed as one of these inferences, however, we should think, that Mrs. Humes, without the consent of Mrs. Lane, by this transaction denuded herself of any indebtedness which she owed to the latter because of her original purchase of Mrs. Lane’s property.

(5) The bill next avers that on February 13, 1892, the defendant Milton Humes conveyed another of the lots in Alabama to one Mrs. Wells for a consideration of $6,500, and that the title to the other three lots still remains in the said Milton Humes.

(6) The bill avers that Mrs. Lane was constantly making unsuccessful efforts to secure an accounting with Milton Humes, and at last, on the 1st day of October, 1889, he and his wife, “well knowing that the money recited in the deed of conveyance to Mrs. Humes as the consideration of twenty-five thousand dollars had never been paid, delivered to her an instruitient of writing, as follows :

“This instrument of writing, witnesseth: That we, the undersigned Milton Humes and his wife, Ellelee O. Humes, hereby acknowledge that we hold for Mrs. Ada Lane Twenty-five Thousand ($25,000.00) which is loaned out at 8 per cent per annum. We are to collect the interest and pay it to her as near as we can in monthly installments as called for by her.
“[Signed] Milton Humes.
“Ellelee C. Humes.”

(7) On the 7th of March, 1896, Milton Humes, being the owner of real estate in Shelby county, described in the bill as situated on the Poplar Boulevard, and known as the “Humes Place,” executed a mortgage to his wife, the defendant Ellelee C. Humes, conveying this real estate to her. The bill avers that the mortgage “recites that it is given as security to Mrs. Ellelee C. Humes on account of her signing the above-described acknowledgment of twenty-five thousand dollars indebtedness to the said Mrs. Ada Lane, and for the consideration of ten dollars in hand paid.” Again, the bill gives no further particulars as to this mortgage, nor does it exhibit the same, or a copy thereof, with the bill, nor in terms make it a part of the bill, but it is referred to as being of record in the register’s office of Shelby county, giving the book and [956]*956page where it is to be found. It will be noticed that the bill does not say that the mortgage was given as a security to Mrs. Humes in any particular capacity or relation to these transactions, but it simply avers that the mortgage recites that it was given as above stated in the quotation from the bill. By consent of counsel arguing this demurrer, we are permitted to turn to the brief of counsel for the complainant, where the recitals of the mortgage are more fully set forth, as follows:

“Know all men by these presents, That I, the undersigned Milton Humes, am indebted to Ada C. Lane, as evidenced by my obligation to her, which is also signed by my wife, Ellelee O. Humes, — and Whereas, I am desirous of securing my said wife from any liability by reason of her signing said note—
“Now therefore, in consideration of the premises and the sum of Ten Dollars to me in hand paid, the receipt of which is hereby acknowledged, I, the undersigned Milton Humes, do hereby bargain, sell, alien, and convey unto my said wife, Ellelee O. Humes, the following described property, to-wit:
“[Description,!
“To have and to hold the above described property, unto the said Ellelee O. Humes, her heirs and assigns forever, but nevertheless, upon the following conditions : That whenever the said Milton Humes shall pay and discharge said debt to said Ada O. Lane, then this conveyance shall become null and void, and of no effect, and the said Ellelee O. Humes shall make this conveyance satisfied on record thereof, or, re-convey the property above described to said Humes, as he may elect.”

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Stewart v. Masterson
131 U.S. 151 (Supreme Court, 1889)
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94 F. 375 (Fifth Circuit, 1899)

Cite This Page — Counsel Stack

Bluebook (online)
129 F. 953, 1904 U.S. App. LEXIS 4783, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oshaugnessy-v-humes-circtwdtn-1904.