State Ex Rel. Brickey v. Nolte

169 S.W.2d 50, 350 Mo. 842, 1943 Mo. LEXIS 625
CourtSupreme Court of Missouri
DecidedMarch 2, 1943
DocketNo. 38252.
StatusPublished
Cited by12 cases

This text of 169 S.W.2d 50 (State Ex Rel. Brickey v. Nolte) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Brickey v. Nolte, 169 S.W.2d 50, 350 Mo. 842, 1943 Mo. LEXIS 625 (Mo. 1943).

Opinions

This is an original proceeding instituted in this court by the filing of a petition for an alternative writ of prohibition. Relator, Norville W. Brickey, seeks to prohibit respondents, Hon. Julius R. Nolte, judge of the Circuit Court, Division No. I, of St. Louis County and John A. Nolan, Referee appointed by said circuit judge, from proceeding further in an equitable accounting in a cause entitled, School District of Festus, an Incorporated School District, plaintiff, v. Norville W. Brickey, defendant, pending in the circuit court of St. Louis County before said circuit judge. Upon the filing of the petition of relator, we issued a preliminary rule in prohibition and respondents have made return thereto setting out cause why our preliminary rule should not be made absolute.

Relator contends (1) that the circuit court did not have jurisdiction to order an equitable accounting because "the pleadings and evidence showed beyond question that plaintiff had an adequate remedy at law"; and (2) that the circuit court did not have jurisdiction to order an equitable accounting by N.W. Brickey, because "he was not properly before the court" and had not been properly summoned into court and made a party defendant.

The said cause, now pending in the circuit court of St. Louis County before respondent, Hon. Julius R. Nolte, and wherein respondent John A. Nolan was appointed referee, was instituted in the Circuit Court of Jefferson County on December 13, 1938. It was subsequently removed to St. Francois County and then to St. Louis County. The purpose of the suit, as disclosed by the petition, is (1) to secure an equitable accounting; (2) to impose, for the benefit of plaintiff, a constructive trust on all the property of defendant N.W. Brickey "into which the monies of the plaintiff can be traced"; (3) to enjoin and restrain said Brickey from conveying, transferring or disposing of any of his property; (4) to require a full and complete accounting to plaintiff of all things done by defendant as a member and president of the school board of plaintiff district since 1922; and (5) to require said defendant to pay over to said plaintiff all sums found to be due said plaintiff. No particular amount is claimed.

In said petition it is alleged that plaintiff is an incorporated school district organized and existing under the laws of the [52] State of Missouri, and governed and controlled by a Board of Education, to wit, a board of six school directors as provided by law; that defendant N.W. Brickey is and has been a duly elected, qualified, and acting member of the board of directors of said school district and the president of such board; that he has been continuously re-elected to *Page 847 and has held the respective positions since 1922; and that said school board of plaintiff school district was authorized to and did borrow money and issue notes and bonds and sell bonds to the general public.

The petition further alleged, "that the negotiation and execution of said loans, both to the banks and by bond issues as aforesaid, and the payment and retirement of said notes and bonds, were assumed and taken charge of by the defendant N.W. Brickey alone acting as President of the Board of the plaintiff, and plaintiff states that the members of the Board of the plaintiff and its officers had great trust and confidence in the ability of the defendant N.W. Brickey to negotiate and handle said loans. That from time to time, and in breach of said trust and confidence, and in violation of the defendant N.W. Brickey's duties and obligations as a member of and as President of the plaintiff's Board, the said defendant N.W. Brickey reported or represented to the Board of the plaintiff that a sum or sums of money were required to meet a loan of the plaintiff at a bank or on an outstanding bond issue, when in truth and in fact the amount due as aforesaid was a lesser amount than the sum or sums reported to the Board of the plaintiff by the defendant N.W. Brickey, and that the Board of the plaintiff, relying upon the defendant N.W. Brickey and his representations as to the amount then due, permitted the defendant to pay said sum or sums in discharge of the debt of the plaintiff then due, and that the said defendant, improperly, and in breach of his trust, withdrew from the funds of the plaintiff said sum or sums for the purpose of paying said debt, which sum or sums were in excess of the amount due by the plaintiff on said debt. That in other instances the defendant N.W. Brickey withdrew from the funds of the plaintiff for the purported purpose of paying a loan due by the plaintiff at a bank or on a bond issue, a sum or sums of money, without the knowledge of the Board of the plaintiff, when in truth and in fact said sum or sums were in excess of the amount actually due by the plaintiff, or when the plaintiff did not then have a loan or commitment on a loan coming due. That on other occasions the said defendant, without the authority and knowledge of the Board of Directors of the plaintiff, borrowed money at a bank in the name of the plaintiff School District, and purportedly in behalf of and for the benefit of the plaintiff School District, and did execute papers pursuant thereto in the name of the plaintiff School District, but the plaintiff states that it did not receive the proceeds of said loans, although the plaintiff ultimately paid said loans at the bank. That in other instances various school districts lying near the plaintiff School District paid a sum or sums of money to the defendant N.W. Brickey for the purpose of paying the tuition of children living in said paying school districts, so as to permit the attendance of said children in the schools operated by the plaintiff School District, and that although under the law said money properly belonged to the *Page 848 plaintiff, and should have been turned over to the plaintiff by the said defendant, yet the said defendant failed so to do, and the plaintiff has never received the benefit of said tuition payments. That in other instances checks are known to have been drawn by other persons in favor of the plaintiff and endorsed by the defendant N.W. Brickey, without the plaintiff having received the proceeds of said checks. That in other instances when the plaintiff had paid the principal and interest due on bonds of the plaintiff at their maturity, the defendant N.W. Brickey used said bonds for his personal benefit, for which he should be held to account to the plaintiff for the use of said bonds, and furthermore, the said N.W. Brickey did in some instances cause the plaintiff to pay interest on said bonds after they had been retired, but the exact amount so improperly paid by the plaintiff as interest on the bonds theretofore retired is not known to the plaintiff." A specific instance is then given wherein defendant N.W. Brickey used for his own purposes at least $7000 out of $10,000 in refunding bonds being held by him for plaintiff and it is alleged that defendant caused the plaintiff to pay interest on bonds at a time when such payments should not have been made. It is further alleged that "at all times herein mentioned the defendant N.W. Brickey, in his capacity as a Director and President of the Board of the plaintiff, occupied a fiduciary[53] or trust relationship towards the plaintiff . . . That the plaintiff is not fully informed as to the exact amount which is now due and owing to the plaintiff from the defendant N.W.

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Bluebook (online)
169 S.W.2d 50, 350 Mo. 842, 1943 Mo. LEXIS 625, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-brickey-v-nolte-mo-1943.