Shelton v. Harrison

167 S.W. 634, 182 Mo. App. 404, 1914 Mo. App. LEXIS 425
CourtMissouri Court of Appeals
DecidedJune 13, 1914
StatusPublished
Cited by16 cases

This text of 167 S.W. 634 (Shelton v. Harrison) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shelton v. Harrison, 167 S.W. 634, 182 Mo. App. 404, 1914 Mo. App. LEXIS 425 (Mo. Ct. App. 1914).

Opinion

STURGIS, J.

The relief prayed for and granted in this case in the trial court is to declare and adjudge a resulting trust in favor of plaintiffs and against the defendant, Edna Harrison, widow of A. H. Harrison, in the excess proceeds of eighty acres of land in Barry county, Missouri, over and above the amount due on a deed of trust thereon, in default of which the land was sold and such excess proceeds paid to defendant Edna Harrison. The salient facts giving rise to this controversy are that, A. H. Harrison, a route agent' of an express company, living at M'onett, originated and promoted a scheme having for' its object the purchase of this land for a fruit farm with money to be paid in monthly installments by him and his associates, the twelve plaintiffs and the other four defendants. These four defendants failed to make the’ payments and have disclaimed any interest in the fund in controversy. The execution of the plan contemplated the forming of a corporation after the land was paid for to own and hold the land, in which said Harrison and his associates, these plaintiffs, would be stockholders in proportion to the amounts paid by each. Each stock[410]*410holder was to pay ten dollars per month for twelve months. There were originally other parties in the scheme but a number of these dropped out early. The management of the matter seems to have been left almost entirely to said Harrison, his associates being his friends and for the most part employees of the same express company and who had entire confidence in him. This confidence was in nowise abused by Harrison, as he kept a faithful account of all the money paid to him, applied same to the purpose for which it was paid in as fast as needed and made known in every way the fact that he was acting for his associates. Whenever payment was made to him, he issued a receipt in this form: “Received of--the sum of ten dollars being the--monthly payment on the purchase price of land in south one-half of southwest one-quarter of sections 36, 24, 28, to be incorporated and stock to be issued for the amount paid in, when twelve monthly payments of ten dollars each have been paid.”

Soon after the first payments were made to him, Harrison purchased said tract of land for $1777.50, paying $200 cash, taking the title in his own name, and executing his notes to the vendor, payable monthly, for $100, each, secured by a deed of trust on said land. Thereafter, he continued to collect the monthly payments from his associates, paid the. purchase money notes with interest as same became due each month, until eight notes with interest, in addition to the initial cash payment of $200', were paid, making $1000 and interest two dollars and eighty-five cents paid and invested in this land. Thereupon Harrison died. No one was left to manage or look after the business, monthly payments were no longer paid or collected, default was made in paying the remaining purchase money notes and in due time the deed of trust was foreclosed, the land sold thereunder for $1665, the unpaid notes and expenses of the sale paid out of such proceeds, leav[411]*411ing a balance of $752.42, which was paid over to and received by the defendant, Edna Harrison, wife of said A. H. Harrison, deceased.

At the time of his death, the said A. H. Harrison had collected from each of his associates, the twelve plaintiffs, nine monthly payments of ten dollars each, except that one plaintiff only paid eight of such payments, making a total collected by Harrison of $1070'. He had paid out in addition to the $1002.85, paid on the purchase price of the land, other legitimate items for recording, abstract of title, postage, etc., making the total expenditures $1044.95. All these facts are shown by the books and papers kept by said' Harrison and he seems to have been careful to keep and leave a complete record of the whole transaction: There is no doubt whatever that the part of the purchase price of the land paid at and prior to Harrison’s death was paid with money furnished by these plaintiffs. The defendant; Mrs. Harrison, knew these facts and testified to the same on the witness stand. In fact, after her husband’s death, Mrs. Harrison furnished one of the plaintiffs a written statement showing the names of the parties who had furnished money to buy this land and the amounts contributed by each, making a total of $1140, but in making such statement she had figured her husband as paying to himself, which he did on paper, the same monthly payments as his associates, making ninety dollars contributed by him, and overlooked the fact that one plaintiff had taken over the share of another party after two payments of ten dollars each had been made, and thereby credited him with paying only seventy dollars instead of ninety dollars. She also stated therein that there was a balance due on the land of about $800; and referred to the receipts given to the plaintiffs and the deed to her husband for a description of the land. It is also shown and admitted that Mrs. Harrison had some negotiations after her husband’s death and [412]*412before tbe sale of the land under the deed of trust and made an offer looking to the purchase by her of the ‘ ‘ shares ’ ’ of the various plaintiffs in this land.

Under the facts of this case there can be no doubt but'that these plaintiffs furnished all the money that went into the purchase of this land and that in equity and good, conscience such plaintiffs are entitled to the excess proceeds arising from the sale of the same. Appellant seems to concede this by arguing and presenting nothing but cold points of law, which she asserts prevents plaintiffs’ recovering in this case. It is, therefore, for this court to determine whether there is any rule of law constituting an absolute barrier to plaintiffs’ recovering what is justly theirs.

On the theory that under the pleadings this is an action at law, defendants demanded a jury trial, which was overruled. On the same theory defendants insist here that there is a misjoinder of causes of action and parties plaintiff, in that each party has a separate and distinct interest and entitled to a separate recovery and therefore .that each should bring a separate suit. This would be true in an action at law for conversion or assumpsit, but this suit is a suit in equity to establish á resulting trust in the land and its proceeds purchased by A. H. Harrison with the money of these plaintiffs, the title to which was taken in his name instead of the true owners, these plaintiffs. While the judgment prayed for is a money judgment in favor of plaintiffs severally, the process of reaching that judgment involves the finding that the land in question was held by Harrison in trust for these.plaintiffs and the following of the proceeds of such land as a trust fund into the hands of Mrs. Harrison, with knowledge on her part of its being a trust fund. The money judgment followed as a necessary consequence because of the establishment of the trust relation existing between the plaintiffs and A. H. Harrison as to this land and that the proceeds thereof arising from the [413]*413forced sale under the deed of trust passed into the hands of Mrs. Harrison impressed with such trust relation. Such is the theory of the case both on the pleadings and proof and it is properly one of equitable cognizance. The establishment of trusts and the enforcement of trust relations is one of the ancient grounds-of equity jurisprudence.

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Bluebook (online)
167 S.W. 634, 182 Mo. App. 404, 1914 Mo. App. LEXIS 425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shelton-v-harrison-moctapp-1914.