Purse v. Estes

65 S.W. 245, 165 Mo. 49, 1901 Mo. LEXIS 255
CourtSupreme Court of Missouri
DecidedNovember 19, 1901
StatusPublished

This text of 65 S.W. 245 (Purse v. Estes) 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
Purse v. Estes, 65 S.W. 245, 165 Mo. 49, 1901 Mo. LEXIS 255 (Mo. 1901).

Opinion

VALLIANT, J.

This is a suit in equity by a judgment creditor who seeks to have subjected to the payment of his debt, lands alleged to have been fraudulently conveyed by the judgment debtor to the defendant Estes, and the rents and profits arising out of those lands. The petition shows that the judgment debtor is dead and administration is pending on his estate, but the administrator is not a party and the record here also shows that since the judgment in the circuit court the defendant has died and the cause has revived against the administrator of his estate, but his heirs are not brought in.

[53]*53Tlie case made by tlie petition is substantially this: Plaintiff’s predecessor in the administration of the estate of Charles C. Wells obtained a judgment in April, 1888, for $31,395 against Lemuel M. Wells. While the suit in which that judgment was rendered was pending, L. M. Wells owned a tract called the Coles land, containing over 3,000 acres, of which about 2,300 lay in Pike, and the rest in Lincoln county. Wells also owned a large quantity of other lands in Pike county, which are known in this record as the Ashley lands. In May, 1881, while plaintiff’s suit was pending, Wells conveyed to defendant Estes, by deed of general warranty, all of the Coles land. At that time the Coles tract, so the petition says, was worth $80,000, and that part lying in Pike county, $65,000. When the conveyance was made, a written agreement was also made by which Wells was given three years in which to redeem the lands from incumbrances held by Estes, which agreement was kept secret and the whole transaction was contrived between them to defraud the creditors of Wells. Notwithstanding the conveyance, IVells remained in possession for a time, but Estes afterwards took possession and collected rents and received profits amounting, according to the petition, to $10,000. The Ashley lands were covered by mortgages, and the allegation is that as to these a secret agreement was made between Estes and Wells that the former should buy up the mortgages, foreclose the same, and take titles to himself, collect rents, etc., and after reimbursing himself for his outlays, pay to IVells the balan.ce of proceeds of sales, rents, etc. Wells was to furnish what money he could to the scheme, and this agreement was to cover all titles that might be acquired by Estes to any of these lands, by deed, decree or otherwise. In September, 1888, execution issued on plaintiff’s judgment, under which the interest of Wells in all these lands in Pike county were sold, Estes becoming the purchaser, and again in March, 1890, an alias execution on the same judgment issued, under which the lands were again sold, and one Tíos[54]*54tetter became the purchaser at that sale. Subsequently, in a suit by Eostetter against Estes, a decree was entered under which the title of Eostetter passed to Estes, and afterwards, Estes caused all the deeds of trust on the’ Ashley lands to be foreclosed and bought in by himself; he took possession and has since, by the plaintiff’s estimate, collected $20,000 in rents from the same. It is further alleged that for use in the transactions Wells furnished Estes large sums of money, how much plaintiff is unable to say. Wells died in 1892, leaving a will which has been probated and one Lewis Holliday has qualified as executor and is now in charge of the estate. Plaintiff’s judgment has been presented to the probate court and placed in the fourth class. The estate is insolvent. The prayer of the petition is that Estes be called, to account for the rents that he has received of these lands since his purchase at the sheriff’s sale, and that plaintiff be paid in full out of the money so brought in, giving preference to plaintiff’s debt over any, if any, that may be found due to defendant, and that these lands be sold, and after paying plaintiff and costs the rest to be paid into court to be disposed of by the court as it may see fit. The answer was elaborate, joining issue on the allegations of fraud, secret agreement, etc., denying that Wells furnished Estes any money to buy titles or incumbrances.

The evidence shows that at the date of the deed from Wells and wife to Estes, in May, 1881, the latter held deeds of trust on the Coles land bearing ten per cent compound interest amounting to $48,880.03, and the payment of the debt was the consideration of the deed. There was a written agreement made at the same time by the terms of which Estes was to reconvey the land to Wells at any time within three years upon his payment of the’ above-mentioned sum with interest at six per cent per annum, Estes to have the right to sell the land or any part of it, but if he did so and if Wells wanted to redeem, the amounts received by Estes from such sale or [55]*55sales, together with the rents that might have been collected by him in the meantime, should be deducted from the $48,880 and interest. This agreement was not put on record, and there was evidence tending to show that the parties designed to keep it secret, but the evidence was not all one way on that point, and in fact the agreement was not kept secret very long if it all.

At the sheriff’s sale in September, 1888, Estes became the purchaser of all the land in Pike county for $5,502.00, which he paid and which went towards the satisfaction of plaintiff’s debt. At the subsequent sale of the same land under execution on the same judgment, it was knocked off to Hostetter for $75. ■ There was also a sale under execution of the land in Lincoln county, and Charles Martin became the purchaser. After Hostetter made his purchase he brought suit against Estes to set aside the latter’s title; this suit resulted in a decree by which the title acquired by Estes at the first sheriff’s sale was declared valid, but there was a finding that after that sale, YTclls without the knowledge of Estes, paid sums aggregating $3,086.50 on valid incumbrances on the Ashley lands to which Estes’ sheriff’s title was subject; it was held that Wells thereby acquired an equitable interest to that extent in the land and that Hostetter had bought that interest at the second sheriff’s sale, and it was decreed that Estes should pay Hostetter that sum of money with interest, that upon such payment Hostetter’s title should pass to Estes and that was accordingly done.

It was shown that in November, 1888, which was after the purchase by Estes at the sheriff’s sale, Wells paid Estes $2,000, which sum the latter afterwards returned to Wells. The testimony of both Wells and Estes on this item was vague, but the conclusion it leaves is that at that time they both regarded the agreement by which Wells had a right to redeem as still in force, and the money was paid on that account, but returned when they regarded the right at an end or abandoned. [56]*56It was also shown, as was found in the Hostetter decree, that after the sheriff’s sale Wells made payments to some holders of the notes secured by deeds of trust on the Ashley lands. The various estimates of witnesses showed the Coles land to be worth from $65,000 to $80,000, and the Ashley lands about $20,000.

There was evidence that during the last illness of Wells, and a few days before his death, he said to Estes that the agreement between them was that after he (Estes) got his money out of the Ashley land the balance was to be turned over to him. Estes said that he did not so understand it, but that he did not want Wells to die feeling unfriendly to him and that he would yield to his understanding of the matter and let it be as Wells said.

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Cite This Page — Counsel Stack

Bluebook (online)
65 S.W. 245, 165 Mo. 49, 1901 Mo. LEXIS 255, Counsel Stack Legal Research, https://law.counselstack.com/opinion/purse-v-estes-mo-1901.