Smith v. Thompson's Heirs

46 Ky. 305, 7 B. Mon. 305, 1847 Ky. LEXIS 22
CourtCourt of Appeals of Kentucky
DecidedJune 25, 1847
StatusPublished
Cited by4 cases

This text of 46 Ky. 305 (Smith v. Thompson's Heirs) 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
Smith v. Thompson's Heirs, 46 Ky. 305, 7 B. Mon. 305, 1847 Ky. LEXIS 22 (Ky. Ct. App. 1847).

Opinion

.Cudge Simpson

delivered this opinion of the Court.

Philip Thompson, in his lifetime, had been for .many years, acting as the counsel and attorney of the complainant, Moses E. Smith, in the management of a considerable estate, which he claimed as devisee, under the will of ■his uncle, William B. Smith. By the .contract between the parties, Thompson was to attend to the settlement of the whole business, defending such suits as had been ■brought for any portion of the land devised, and prosecuting any suits that might be necessary to the complete -settlement of the estate. A certain specified portion ~of the estate devised, was designated and set apart for the •use of Smith, to which he was to have the exclusive right, ■the residue of it, after the payment of all the costs incurred in its investigation and adjustment, was to be divided equally between the parties.

[306]*306The estate which was subject to division under this contract, consisted of a considerable body of lands ira the county of Henderson, the legal title to which, had been conveyed to a certain William R. Griffith, for the ostensible purpose of indemnifying him as the security of the devisee, Moses F. Smith, who had qualified as the executor of his uncle’s will, and had given Griffith as security in the bond.

Whilst affairs stood in this attitude, and before any final adjustment of th,e estate had been made, and whilst Thompson was still acting as the counsel of Smith, he entered into a contract with a certain Memucan .Allen to bring a suit in chancery for him, against Smith. A judgment had been obtained in the name of Daniel J.,Smith against the executors of William B. Smith, on which an execution had been issued, and returned, no property found. This judgment, including debt and- interest, amounted to upwards of twenty eight hundred dollars, and a transfer of it had been obtained by Allen. It was agreed between Allen and Thompson, that a suit in chancery should be instituted for the purpose of subjecting to the payment of that debt, as well the aforesaid lands in Henderson county, as also another tract of eight or nine hundred acres, in the county of Daviess, being the same tract of land, which, by the contract between Smith and Thompson, belonged exclusively to Smith, the legal title to all of it being in Griffith. The whole of the land in both counties, was to be purchased under the decree, and divided between the parties. Thompson, for his part, was to have one thousand acres of the land in Henderson county, on the north side of Green river, and Allen was to have the residue of the Henderson lands, and also the tract of eight or nine hundred acres in Daviess county, all of which the parties contemplated purchasing under a decree to be obtained in that suit.

The suit was accordingly brought, and after it had been pending upwards of a year, Thompson and his client, Smith, entered into a-written agreement, by which it was stipulated that if Thompson would get a decree for Allen against Griffith, Smith would procure Allen to bid the whole amount of the sum decreed, for the land in Daviess, [307]*307and Thompson was to have all the unsold land in Henderson’s grant, except two hundred and fifty acres reserved for Daniel Smith. The answers of Smith and Griffith were filed, consenting to a sale, Griffith, however, upon the condition that the Court in decreeing a sale, should also decree a credit to the executor, so as to release him as the security.

The suit was managed on both sides by Thompson, a decree for a sale of the whole land was rendered, and a commissioner appointed, who afterwards returned a report, stating that Allen became the purchaser of the land in Daviess, at the price of one hundred and fifty dollars, and Thompson the purchaser of the lands in Henderson, for the sum of twenty five dollars.

A written ratification of the commissioner’s sale by Smith, was afterwards procured by Thompson, in which Smith gives up to him all the land in Henderson county, on the north side of Green river, and to Allen all the land on the south side of that river, to pay legacies for which Smith was bound.

After this writing had been executed, the commissioner who made the sale having died, another was appointed by the Court to convey the land to the purchasers. Before, however, the commissioner had acted under the order, Smith brought this suit in chancery, to prevent the execution of the decree — to have the sale vacated upon the ground of fraud, and to compel Griffith to convey to him the legal title. Upon bearing, the Court below dismissed his bill, without giving him any relief whatever.

The management of this suit, brought in Allen’s name as complainant, presents the extraordinary scene of a lawyer conducting a suit on both sides, having separate and distinct contracts with the complainant and defendant, and finally purchasing at a sale controlled and superintended by himself, a large tract of land, of the value of several thousand dollars, for the small sum of twenty five.

The motive that influenced Smith to enter into the contract in relation to the suit, is involved in considerable mystery. Allen’s conduct throughout, is equally inscrutable ; the inference from what does actually appear, be.[308]*308itig'strong, that they were all-acting in-concert to accomplish some end that is not avowed or made manifest. Smith may have been induced to believe it important that he should get the title from Griffith- The object of Thompson, however, is perfectly obvious. It was to secare to-himself, a large and valuable tract of land, exceeding considerably the part to which he was entitled under his contract with Smith, for the settlement and* adjustment of the whole estate.

The'cOiinsel of a party who deceives him by false representations on'his part, or who knowingly permits his client to be deceived by the repreSehtatia'n s' ofothers violates the duty arising from that confi«fential relation,- and will not be permitted to avail himself of any contract made under such circumstances.

Whatever may have been Smith's object in consenting to* the prosecution of this suit in chancery in the name of Allen-, to subject to sale the whole of his land in the-counties of Daviess and Henderson, and whatever influences-may have been brought to bear on him to induce him to ratify the sale, after it had been made, it is elearly manifest, that the operation has resulted greatly to his prejudice, without having ever promised, so far as he is concerned, a more favorable termination.

The conclusion is, therefore, irresistible, that he acted throughout under a-strong delusion. It it were produced by the representations of Thompson, or knowing its existence, as he must have done, Thompson failed, so far as practicable, by his advice and counsel, to remove it; in either case he was violating the duty that grew out of the confidential relation that existed between him and his client, and will not be permitted to use an advantage resulting from such violation of duty. The purchase, therefore, if invalid in itself, connot be legalized, by the subsequent ratification of Smith, obtained under such circumstances.-

If the sale made under the decree, cannot be sustained upon the ground that it was sanctioned by Smith, it is apparent that it cannot be sustained at all. The purchaser is the attorney who managed the sale. The price paid by him is so inadequate as to evince, if not unfairness, at least mismanagement in conducting it.

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Bluebook (online)
46 Ky. 305, 7 B. Mon. 305, 1847 Ky. LEXIS 22, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-thompsons-heirs-kyctapp-1847.