State ex rel. Lyons v. Maryland Casualty Co.

278 S.W.2d 754, 1955 Mo. LEXIS 622
CourtSupreme Court of Missouri
DecidedApril 11, 1955
DocketNo. 44271
StatusPublished
Cited by1 cases

This text of 278 S.W.2d 754 (State ex rel. Lyons v. Maryland Casualty Co.) 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. Lyons v. Maryland Casualty Co., 278 S.W.2d 754, 1955 Mo. LEXIS 622 (Mo. 1955).

Opinion

HOLMAN, Commissioner.

Action by plaintiffs (appellants) to recover damages in the sum of $14,400 upon the official bond of defendant, J. A. Pur-dome, former sheriff of Jackson County, Missouri, and his surety, Maryland Casualty Company (respondents). Upon a trial to the court, a judgment was entered for plaintiffs in the sum of $1. Plaintiffs sought a new trial upon the issue of damages only and upon their motion for such being overruled, they have appealed.

This case grows out of litigation which has already been before this court upon three occasions. A complete history of the factual background upon which the instant case is based may be obtained by a reading of those cases. DeMayo v. Lyons, 358 Mo. 646, 216 S.W.2d 436; DeMayo v. Lyons, 360 Mo. 512, 228 S.W.2d 691; DeMayo v. Lyons, Mo., 243 S.W.2d 967.

This being a jury-waived law action, the statute requires that we review the case upon both the law and the evidence as in suits of an equitable nature and “the judgment shall not be set aside unless clearly erroneous.” Section 510.310 RSMo 1949, V.A.M.S.; Beckemeier v. Baessler, Mo., 270 S.W.2d 782.

In January, 1944, Frank DeMayo and Leonard A. Lyons agreed to avail themselves of a special offer of the American Distilling Company and purchase a quantity of whiskey. They bought 1,440 cases of Special Privilege brand at $28 per case and 180 cases of Prerogative brand at $42 per case. To finance the transaction, DeMayo advanced $16,101.33 and the balance required was borrowed by Lyons from the Commerce Trust Company upon the security of certain real estate and the warehouse receipts for the whiskey. The Bismarck Grill (of which Lyons owned 98 per cent of the stock) was to sell the liquor and the profits were to be divided equally between DeMayo and Lyons.

Lyons sold a considerable quantity of the whiskey and DeMayo filed the original suit for an accounting. In due time, the referee reported his findings of fact and conclusions of law. He found that Lyons had sold enough whiskey to pay the indebtedness to the trust company and had in his hands a profit of $11,805.52, and there remained in the warehouse 853 cases of the whiskey. He recommended that DeMayo be granted a judgment against Lyons in the sum of $22,004.09, being the amount advanced by DeMayo plus one-half of the accumulated profit. He found that De-Mayo and Lyons were the joint and equal owners of the remaining liquor. It was the further recommendation of the referee that DeMayo’s judgment be a lien upon all of the remaining whiskey and that all of said whiskey be sold “accordingly as the court may order and direct,” and after the payment of costs the proceeds be applied to the payment of the aforesaid judgment and the remainder, if any, be paid to Lyons.

The circuit court, on November 13, 1947, adopted the report of the referee in its [756]*756entirety and specified that it “finds that the plaintiff, Frank DeMayo, and the defendant, Leonard A. Lyons, are the joint, sole and exclusive owners of the warehouse receipts in question here; and that they are the joint, sole and exclusive owners of the 698 cases of the Privilege brand of whiskey, and the 155 cases of the Prerogative brand of whiskey, covered thereby; and further finds that the defendant, Leonard A. Lyons,'is now justly indebted to the plaintiff, Frank DeM'ayP, in the sum of $22,004.09, and that the plaintiff, Frank De-Mayo, is now entitled to a general judgment against the defendant, Leonard A. Lyons, in the aforesaid sum of $22,004.09; and that such general judgment in the aforesaid sum is hereby declared to be, and to constitute,' a first, just, valid, subsisting and equitable lien upon the aforesaid warehouse receipts, and the aforesaid whiskey covered thereby.”’ Other than adopting the report of the referee, the decree made no reference to a,sale of the liquor.

Lyons appealed from the decree but failed to give a supersedeas bond so that there was no. stay of execution upon the judgment in DeMayo’s favor. On January 13, 1948, an execution was issued upon said judgment and delivered to Sheriff. Pur-dome. DeMayo, on January 17, filed a motion which recited that the sheriff had leyied, upon the one-half -interest, of Lyons in.the afore-mentioned whiskey and prayed for an order directing the Commerce Trust Company to deliver the warehouse receipts covering same to the ¡sheriff. -A few days later, the court sustained this motion and made the order requested. At the direction of the sheriff,, the warehouse company, on February ,11, 1948, issued a receipt to De-Mayo for one-half of the liquor and delivered it to his attorney. This was all withdrawn from the warehouse by DeMayo during March, 1948. The receipt for the other one-half was issued in the name of Lyons and delivered to the sheriff.

On April 22, 1948, the sheriff sold the whiskey stored in the name of Lyons at execution sale and it was purchased by DeMayo for $13,000.

After- the execution was issued and prior to- the sale, there were a number of discussions in the office of,the sheriff as to the meaning and effect of the judgment and decree in the accounting case. DeMayo’s attorney contended -that only Lyons’ half of the whiskey should be sold, and the attorney for Lyons argued that it should all be sold and the proceeds applied on the judgment. It is evident that the sheriff was,advised by his attorney to levy upon and sell only one-half thereof and this was the course he followed. On April 19, 1948, the attorneys for Lyons filed a motion to quash the execution and levy for the reason that the sheriff had only levied upon one-half of the whiskey when under the judgment, as they contended, he should levy upon and sell all of it. This motion'was overruled on the day of the sale.

Upon the'appeal in the accounting case, this court reversed the judgment for the reason that the contract between DeMayo .and Lyons to. sell liquor without a. license was illegal and the court would not help DeMayo enforce an illegal contract. DeMayo v. Lyons, 358 Mo. 646, 216 S.W.2d 436.

Thereafter Lyons filed a. motion in the trial court for a judgment of restitution for ■ the value of the liquor. The court denied the motion stating that since the contract was illegal neither party was entitled' to any relief. Upon appeal, this court' held that Lyons was entitled to a judgment of restitution. It was stated in that opinion that such a judgment Would not be a recovery upon the illegal contract, but'a restoration to Lyons of the value of property taken from him under an erroneous judgment of the trial court. DeMayo v. Lyons, 360 Mo. 512, 228 S.W.2d 691. In accordance with this mandate, the trial court rendered a judgment of restitution for Lyons against the estate of DeMayo in the sum of $36,986.19. .The executors of the DeMayo estate appealed from that judgment but the appeal was held to be without merit and was dismissed. DeMayo v. Lyons, Mo., 243 S.W.2d 967.

[757]*757It is obvious that Lyons, the principal plaintiff in the instant case, does not and indeed could not complain of the action of the defendant sheriff in levying upon and selling one-half of the liquor as no bond had been given to stay such action.

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Bluebook (online)
278 S.W.2d 754, 1955 Mo. LEXIS 622, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-lyons-v-maryland-casualty-co-mo-1955.