Starr v. Weir, Exrx.

172 N.E. 537, 35 Ohio App. 374, 1929 Ohio App. LEXIS 392
CourtOhio Court of Appeals
DecidedOctober 21, 1929
StatusPublished

This text of 172 N.E. 537 (Starr v. Weir, Exrx.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Starr v. Weir, Exrx., 172 N.E. 537, 35 Ohio App. 374, 1929 Ohio App. LEXIS 392 (Ohio Ct. App. 1929).

Opinion

Hamilton, J.

This case is here both on appeal and on error. The action was one in equity and was originally brought by Merritt Starr, the present appellee, in the court of common pleas of Hamilton county, Ohio, for the pursuit of assets of the estate of Frederic C. "Weir, deceased, to satisfy a judgment' for legal services in the sum of $67,000.48, obtained in the United States District Court of the Northern District of Illinois, February 28, 1923. The action here was instituted September 23, 1923.

The facts relating to the assets in question may be summarized as follows:

Frederic C. Weir, a resident of Cincinnati, died March 1, 1899. At the time of his death he was the owner of 2,575 of a total issue of 3,000 shares of stock of the Weir Frog Company. His will was probated in the probate court of Hamilton county, Ohio. The will named his brother, Levi Weir, as executor and sole legatee of all his property.

In 1904, Levi Weir, under an order of the probate court, took over all of the assets of the Frederic C. Weir estate. He thereupon recapitalized the company, with 6,000 shares of preferred stock, and 4,000 shares of common stock, all of which he owned at the time of his death. The form, but not the substance, was thus changed. This traces 85 per cent, of the stock belonging to the estate of Frederic C. Weir into the estate of his brother Levi Weir.

*376 Levi Weir died in 1910, leaving in Ms estate the stock in question. Upon distribution of the estate of Levi Weir the defendants, some four or five in number, received the stock as distributees, and at the time of the bringing of this action the stock was held by them. Therefore, the stock assets of Frederic C. Weir are thus clearly and definitely shown to be in the hands of the defendants, and, unless plaintiff is barred by statute or court action, these assets, as found by the trial court, are subject to the satisfaction of plaintiff’s judgment.

Upon the death of Levi Weir, in 1910, Joseph L. Lackner was appointed admimstrator de boms non of the estate of Frederic C. Weir, deceased. He is one of the plaintiffs in error in the error proceeding, and elects to present the error case here. All the other defendants elect to present the case on appeal.

Appellants concede that appellee has a good and valid judgment against the estate of Frederic C. Weir and Joseph L. Lackner, administrator de bonis non, to the full extent of any assets in possession of said administrator, but contend that appellants are not bound in any respect by said judgment unless it be established: (a) That they were parties to the original action in the federal court of Illinois; or (b) that they were privies in interest of Frederic C. Weir. While much might be said on the first proposition, we do not find it necessary to go into that question, in view of the. fact that the record shows that these appellants, while not made parties of record, appeared in the case by counsel, both personal and local; and contested the case by their pres *377 ence in court, if not in person, by counsel, over a period of many years; and paid counsel for those services.

There is much in the record as to the rendition of services by appellee’s law firm to the firm of Weir, McKechney & Co., of which Frederic C. Weir was a partner, which is of little aid in determining this case. In passing will observe that the judgment of appellee was obtained on account of legal services rendered the partnership of Weir, McKechney & McKechney. Before judgment, Frederic C. Weir died and final judgment was rendered against the estate of Frederic C. Weir and the McKechneys.

The federal court having jurisdiction of the parties and the subject-matter, the judgment is not open to collateral attack, and is of binding effect in a creditor’s suit based thereon. Henry v. Vermillion & Ashland Rd. Co., 17 Ohio, 187; Swihart v. Shaum, 24 Ohio St., 432, and cases therein cited.

We are of opinion that the shares of stock in question, as part of the assets of the estate of Frederic 0. Weir, are subject to a trust for the payment of the debts of his estate and distribution of the assets. There is substantially nothing in the hands of the administrator de bonis non with which to pay the appellee’s judgment. The authorities are numerous that a creditor may, in equity, follow the assets of the testator into the hands of legatees and distributees and compel a refund. Such legatees and distributees are in equity treated as trustees for this purpose. 3 Story, Equity Jurisprudence (14 Ed.), Section 1659, and cases noted. Whether this be done on the ground of privity or simple justice to the *378 creditor at the hands of the legatee or distributee is immaterial. The law is that the creditor may so follow the assets.

Appellants and plaintiffs in error cite some sections of the General Code of Ohio bearing on the filing of claims against an estate, and the accrual of causes of action; and, further, place reliance on an order of the probate court ordering distribution. Bearing on these questions are the following facts:

On December 29,1903, Peck, Miller & Starr mailed to the McKechneys and Levi 0. Weir, executor, a complete statement of their account, as evidenced by letter of which the following is a copy:

“288 East Ohio Street,
“Chicago, Dec. 29th, 1903.
“Mr. L. 0. Weir, 59 Broadway, New York, N. Y.
“Dear Sir: I am in receipt of the communication from Messrs. Peck, Miller & Starr, enclosing their account; also a copy of letter to Lawrence Maxwell, and copy of disbursements to Barnard 8s Miller and Walton, James and Ford, and expenses to the country, in which communication it is stated that a copy has also been forwarded to you. I would suggest that the matter of those gentlemen’s account ought to be taken up without delay and adjusted— not by correspondence but by personal conference. We certainly cannot stop now. If we continue we will require the services of those gentlemen, and perhaps at a personal conference they might be induced to modify their account in some particular. Enclosed you will please find a copy of my letter of this date to Messrs. Peck, Miller and Starr.
“Very truly yours,
‘ ‘ John McKechney. ’ ’
*379 “59 Broadway, New York.
“Dec. 31st, 1903.
“Messrs, Peck, Miller & Starr, Monadnock Block, Chicago, Ills.
“Gentlemen: Since writing to you today, Mr. Weir has handed me Mr. McKechney’s letter to him of Dec. 29th, enclosing your letter of December 26th, addressed to John McKechney, John McKechney, Jr., L. C. Weir and L. C. Weir, Executor. After my return to Cincinnati, whither I go today, and a receipt of an answer to my former letter of today, you may expect to hear from me concerning Mr.

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Bluebook (online)
172 N.E. 537, 35 Ohio App. 374, 1929 Ohio App. LEXIS 392, Counsel Stack Legal Research, https://law.counselstack.com/opinion/starr-v-weir-exrx-ohioctapp-1929.