Rau & Rieke v. Boyle & Boyle

68 Ky. 253, 5 Bush 253, 1868 Ky. LEXIS 253
CourtCourt of Appeals of Kentucky
DecidedJune 5, 1868
StatusPublished
Cited by1 cases

This text of 68 Ky. 253 (Rau & Rieke v. Boyle & Boyle) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rau & Rieke v. Boyle & Boyle, 68 Ky. 253, 5 Bush 253, 1868 Ky. LEXIS 253 (Ky. Ct. App. 1868).

Opinion

JUDGE PETERS

delivered the opinion oe the court:

Appellants having purchased a quantity of tobacco in that part of Kentucky west of the Tennessee river, [256]*256then within the military command of General Payne, of Paducah fame, that officer seized and held their tobacco under pretense of military authority to do so. They, on the 11th of August, 1864, while their property was thus wrongfully withheld from them, made a written contract with John Boyle, by which he undertook to procure its release for the compensation therein expressed (the terms of said contract will hereafter be substantially stated); and at the same time they made a transfer of fifty-nine hogsheads of tobacco to said Boyle, to enable him to carry out his part of said contract, the terms of which will be, also, hereafter stated. A subsequent contract was made by John and J. T. Boyle with appellants, for the purchase of tobacco and cotton on speculation, which was in writing, and will be again referred to.

On the 26th of January, 1866, John Boyle and J. T. Boyle brought this action in equity against appellants, Rau & Rieke, the said John Boyle joining in the action as plaintiff, for the use of said J. T. Boyle, on said two contracts, which are made parts of their petition, marked “A” and “ D,” respectively, and allege in substance that said Rieke represented that they had fifty-nine hogsheads of tobacco, purchased west of the Tennessee river, all of which was paid for; that other tobacco had been purchased, on which there was represented to be five thousand' dollars of the purchase money unpaid and due, in which said John Boyle was to be interested to the same extent that he was interested in the fifty-nine hogsheads, to-wit: one half; that neither that sum, nor any part of it, was owing on said tobacco, nor was any amount paid by said Rieke; but that Rieke had executed and delivered to said John Boyle a transfer of the fifty-nine hogsheads, in which [257]*257he asserted that they had all been paid for by him, intending by said transfer to give to said John Boyle the entire control and possession of the tobacco. It is further alleged, that said Boyle did, from the date of the first contract, devote his time and energies to procure the release of said tobacco, and finally succeeded; whereby he became entitled to the one half thereof, or of its proceeds; that the same were sold by Shotwell & Co. in New York, and averaged per hogshead one hundred and fifty-two dollars and sixteen cents, aggregating the sum of eight thousand nine hundred and seventy-seven dollars and forty-four cents, the whole of which appellants had received and would not account to John Boyle, nor to J. T. Boyle, to whom it is alleged John Boyle had assigned his part, for any part of said funds.

The assignment by John Boyle of the part claimed by him of the proceeds to J. T. Boyle, is in writing, and is filed as a part of the petition.

It is also alleged, that, in addition to the one half of the proceeds of the fifty-nine hogsheads, appellants are indebted to them in the sum of $ 1,387 85, which grew out of the second agreement in writing, between the parties before referred to, to the following effect: That Rau & Rieke, being acquainted with the business, should buy cotton and tobacco, and ship the same under a permit then held by said John Boyle, from Major General Burbridge, or other permits which he might thereafter obtain; and the profits realized from said purchases and shipments were to be divided equally between the parties.

Under said agreement, appellees allege only twenty-two hogsheads of tobacco and three bales of cotton were purchased; but that appellants, pretending that' they needed money to make the purchases contemplated by [258]*258said contract, induced J. T. Boyle to accept and indorse two bills, one for six thousand dollars and one for ten thousand dollars, on which S. B. Shotwell & Co. advanced the money to appellants; and, having thus obtained it, they fraudulently appropriated it to their own use, and failed to take up said bills when they matured, with the fraudulent intention of forcing Shot-well & Co. to apply the proceeds of all the tobacco and the three bales of cotton, which had been consigned to them, to the payment of said bills, although not as much as six thousand dollars was used in the purchase of tobacco and cotton under the last named contract.

They allege, finally, that the proceeds of the whole of the tobacco and cotton were insufficient to satify said bills by the sum of $2,775 70, the one half of which J. T. Boyle was compelled to pay, and which appellants are legally bound to refund to him; and that, added to the one half of the price realized for the fifty-nine hogsheads of tobacco aforesaid, makes the aggregate of $5,876 57, for which appellees pray judgment, together with all proper and equitable relief. And the chancellor, having rendered judgment in their favor for that sum, with interest from the day on which the action was instituted, and costs less the half of the $204 87, pleaded as a counterclaim in the answer, Rau & Rieke have appealed.

In their answer appellants aver that five thousand dollars were due on the purchases of tobacco, which they paid after the date of the contract, and for which payment they insist they have, by the terms of said contract, a right to a credit. They deny that there were as many as fifty-nine hogsheads of tobacco embraced by the transfer to John Boyle, but fail to state the quantity. They deny that they appropriated to their own use the greater portion, or any part, of the sixteen thousand dollars pro[259]*259cured from Shotwell & Co. on said bills; but fail to show how said funds, or any part thereof, were used. They do not produce any account, and fail to make a statement of the manner or purposes to which said funds were appropriated; but aver that John Boyle had no interest in any other tobacco than that mentioned in the writing, which states that five thousand dollars of the price were unpaid, and, by the terms of their contract, were to be paid out of the proceeds, and of the residue said John Boyle was to have one half. That only nine hogsheads had then been delivered, and which were seized by General Payne; the balance of the tobacco purchased had not been delivered by the planters, in consequence of the order for its seizure by General Payne. They deny that John Boyle procured the liberation of said nine hogsheads, or any of the tobacco whatever; but aver that General Payne, while he was in command, refused to release the tobacco, and after he was removed, and General Meredith was put in command, appellant Rieke obtained the release from him. They deny that all the money procured on the acceptances was intended to be used in making purchases under the last contract; and say if it had been so used, the losses would have been much greater than they were, the one half of which they insist appellees should bear. They deny that they made any fraudulent pretense of needing the money, or took it with any fraudulent intent or purpose. They aver that, instead of twenty-two hogsheads only having been purchased under the last contract, thirty-two. were purchased, nine of which were sent to the Pickett tobacco warehouse, and one was sent by J. J. Mooney to St. Louis. That all the money raised on said acceptances was used — a part in paying for [260]

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Bluebook (online)
68 Ky. 253, 5 Bush 253, 1868 Ky. LEXIS 253, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rau-rieke-v-boyle-boyle-kyctapp-1868.