Rosenau v. Bear

158 So. 175, 117 Fla. 406, 1934 Fla. LEXIS 1283
CourtSupreme Court of Florida
DecidedSeptember 14, 1934
StatusPublished

This text of 158 So. 175 (Rosenau v. Bear) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rosenau v. Bear, 158 So. 175, 117 Fla. 406, 1934 Fla. LEXIS 1283 (Fla. 1934).

Opinion

Ellis, J.

Bertha Rosenau, a widow, exhibited her bill of complaint in the Circuit Court for Escambia County against Max L. Bear, Robert H. Kahn and Lewis Bear, “Executors' of the last will and testament of Morris Bear, deceased,” .and Max L. Bear, Hilda Bear Kahn, and Robert H. Kahn, her husband, and Lewis Bear, individually, and-the Lewis Bear Company, a corporation, and Harry Kahn, Jacob Kahn, Hilma Kahn and Jake Bear; all parties residents of Escambia County and over the age of twenty-one years.

The purpose of the bill was to obtain an accounting from certain of the defendants who, it is alleged by complainant in one way or another, in more or less degree, became custodians of a fraud coming from the estate of the complain *407 ant’s father which should have been divided equally between her brother Jake, her sister Sallie and herself, but which through fraud and deception practiced upon her by her brothers was diverted to their own use, and of which the complainant has been deprived in large part.

The litigation grows out of the death of Lewis Bear, which occurred in August, 1895. He died leaving five children, whose names were Morris Bear, Sallie Bear, Max L. Bear, Bertha Bear, the complainant, and whose name is Roseneau, and Jake Bear.

The facts about which there seem to be no controversy are substantially as follows':

Lewis Bear established in Pensacola, many years ago, a successful grocery and liquor business. In 1888 Morris Bear, son of Lewis Bear, having arrived at the age of twenty-one years and completed a college course, was taken by his father into the business' and given a one-fourth interest. Afterwards Lewis Bear sold an interest in the business to A. Greenhut and still later, in 1892 or 1893, Max L. Bear, another son, coming of age was' given by his father a fourth interest in the business which was then known by the name of Lewis Bear & Company. The extent of the Greenhut interest is not clear.

As the situation existed in August of 1895, the interests in the business were distributed as follows: Lewis Bear, one-half; Morris Bear, one-fourth; Max L. Bear, one-fourth, and A. Greenhut, a “working interest” based on the earnings from his labor and a percentage of the profits accruing to the business. From a copy of a contract attached to the answer of several of the defendants the original appearing in evidence as “Defendants’ Exhibit 5.. Identified by Mr. Klein,” the- interests in the business were distributed as follows: Lewis Bear, $67,627.09; Morris Bear, $17,418.75; A. Greenhut, $17,266.92. That contract *408 showed that Max L. Bear was given an interest by his father amounting to $17,627.09, which was deducted from the interest of Lewis Bear of $67,627.09, leaving to him an interest amounting to $50,000.00 upon which he was to be paid six per cent, interest per annum out of the profits of the business, the remainder to be distributed equally between Morris Bear, Max L. Bear and A. Greenhut. The contract was dated February 1, 1895, and is attacked by complainant as void for lack of authenticity and other reasons among which were that at the date of the alleged contract Lewis Bear was mentally incompetent and was unduly influenced by Morris Bear to enter into the agreement. That point is' covered by the ninth and tenth questions stated in the brief to be involved, the theory of complainant being that the alleged agreement was a fraudulent contrivance of Morris and Max Bear to deprive the other three children of Lewis Bear of their full interest in the personal estate of their father.

In July or August of 1895, a few months after the date of the alleged agreement, Lewis Bear died intestate. His wife had predeceased him. Morris Bear was' appointed administrator of the estate of his father.

The bill alleges that about four and a half years after the death of Lewis Bear, Morris and Max Bear purchased the interest of A. Greenhut in the business using the “funds and assets” of the business for that purpose, so that, according to the bill of complaint, the ownerhip of the business stood as before, to-wit: one-fourth interest in Morris Bear, one-fourth in Max Bear, and one-half interest in the three remaining children, Sallie Bear, who married Harry Kahn, Jake Bear and the complainant, Bertha Bear, who married Rosenau.

In 1901 Morris Bear incorporated the business giving the name of Lewis Bear Company to the corporation. The cap *409 ital stock of the corporation was one hundred and fity thousand dollars, divided into fifteen hundred shares, all of which, except two shares, was taken by Morris and Max Bear. Of the two remaining shares, one share was assigned to Jake Bear and one share to Sam Rosenau, husband to complainant.

It is' alleged that Morris Bear never completed the administration of his father’s' estate. That fact seems to be established by the evidence.

It is alleged that Morris Bear, as administrator, never made an accounting of his father’s estate, nor was he ever discharged from its administration, and that he failed to turn over to the complainant her part of her father’s estate which came into the administrator’s hands, or that should have come into his hands, and never accounted to her for her interest in the estate “except a portion of the cash money as she is advised left by Lewis Bear.”

A short time before the death of Lewis Bear the complainant married Samuel Rosenau.

The bill alleges that about a year after the death of her father, Morris and Max Bear told complainant that they had purchased from their father his interest in the business. It is alleged on information and belief that they also purchased the interest of Greenhut after the death of their father, which interest had been sold to Greenhut by Lewis Bear; that complainant having every confidence in the honor of Morris and Max Bear, her brothers, and being young, inexperienced and ignorant of such business transactions, accepted the statements as true.

It 4s definitely alleged that the interest in the business given by her father to Morris and Max Bear was given in full settlement of their part and portion of his personal estate. In other words, that it was an advancement to them and that therefore at the time of the death of Lewis Bear *410 the other three children, Sallie, Jake and the complainant inherited all the personal estate he possessed.

• It does appear to be established by the pleadings and evidence that upon a division of the personal estate of Lewis Bear each of the five children shared equally, the complainant alleges that in the year 1918 or 1919, about ten years' before the filing of the bill of complaint, the complainant became advised of her alleged rights and confronted her brothers with their deception, and that she learned from them by their confession that they had not bought their father’s interest in the business before his death; that at his' death he did own a half interest in the business. So she made request of her brothers Morris and Max for a séttlement of her interest in her father’s estate which was carried into the corporation which had been formed by her brothers and had grown proportionately with their interest to a very large value.

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Bluebook (online)
158 So. 175, 117 Fla. 406, 1934 Fla. LEXIS 1283, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rosenau-v-bear-fla-1934.