State v. Bagley

96 S.W.2d 331, 339 Mo. 215, 1936 Mo. LEXIS 642
CourtSupreme Court of Missouri
DecidedAugust 20, 1936
StatusPublished
Cited by3 cases

This text of 96 S.W.2d 331 (State v. Bagley) 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 v. Bagley, 96 S.W.2d 331, 339 Mo. 215, 1936 Mo. LEXIS 642 (Mo. 1936).

Opinion

TIPTON, P. J.

The appellant was indicted by the grand jury of Jackson County,' Missouri, for the. crime of embezzlement as a bailee. He was convicted and his punishment assessed at three years’ imprisonment in the State penitentiary. From that judgment and sentence he has duly appealed to this court.

W. C. Elliott, was the owner of some Safety Savings & Loan *218 Association stock and had been trying to sell a part of these shares. The best offer he could get was approximately fifty per cent of its face value. He saw an advertisement in the Kansas City Star that the appellant would loan sixty per cent of its market value. Some time in January, 1934, Elliott went to the office of the appellant and was told by the appellant that he could obtain a loan of sixty per cent of the market value for the stock. No loan was made on that day. On February 1, 1934, Elliott went back to the office of the appellant and endorsed ten shares of this stock so he could obtain a loan. ■ The appellant advised Elliott that he would' have to come back in a day or two to get his money. On February 3, 1934, Elliott went back to the office of the appellant ■ and received the $305.76 as a lo'an on his stock. Interest was due on this stock March 1, 1934, and it was- agreed that- Elliott would be entitled to- the interest. On that date, Elliott did not receive the interest on this stock, and upon investigation was informed by the Savings &,Loan Association that appellant had sold the certificate. He denied to Elliott that he had sold the certificate. He said if it was sold, it must have been sold -by his eastern office; in that event some mistake had been made and “he would straighten the matter out.” .

The evidence disclosed that the appellant transferred the stock to.Robert ,F. Allen on February- 2,, 1934. Some Safety Savings & Loan Association stock w¿s being assembled, by A. E. Howell to be used in purchasing some real estate belonging to the association. The sale was made by G. E. TettersJ- and the purchase price paid for the, stock was $538.

The appellant’s .defense was that he had'a right to sell the stock at any time he thought the stock, had depreciated in value. The . appellant contended that Elliott signed a note for $312, dated February 1,-1934, and due February 1, 1935, secured by the certificate of stock in question. The collateral agreement of the note, among other things, gave-.to-Elmer F. Bagley & Company the. right.to sell the stock if . they felt unsafe or unseeure for any reason whatever, or feared diminution or depreciation in. the value. of the securities. Elliott denied that he signed the note. But he understood that the stock could be sold, but told 'the appellant not to sell it as he,could put up additional securities. Other pertinent facts will be stated in the course of this opinion.

I. The appellant contends, that the court erred in refusing to. instruct, the. jury at the close of a,ll the evidence, to find .the appellant not-guilty* ,. It is the contention - of' the appellant that the contract with-Elliott was-a contract of a pledge.and.not a contract, of bailment. Theréfor'e, the evidence fails to, show an embezzlement of a bailment and the appellant is,not guilty of the crime charged.''

*219 The appellant relied upon the case of State v. Peck, 299 Mo. 454, 253 S. W. 1019. In that case the prosecuting witness bought certain stock from the defendant. No cash was involved in -the transaction. The defendant retained- the stock sold to the prosecuting :witness, who also deposited other , stock to secure the defendant.; .The contract recited that it is understood and agreed that “all securities carried in this account or depositéd to secure the same be carried in our general loans and be sold at public or private sale, .without notice, when such a sale or purchase is deemed necessary by us for our .protection.”' We held that the relation of pledgor and pledgee .was created by the contract, and that being the relation, an indictment of embezzlement by the broker as bailee cannot- be sustained. We also, held that if the -transaction were a bailment, there was an exr press grant of power to defendant’s company to sell the stock, and there could be no embezzlement of the stock by.-the bailee, or of the money for which it was--sold, for under- the contract the- defendant had both the right to sell and -to appropriate the .proceeds to the account of, his company.

We think that case is distinguishable from- the case at -bar. , In the case at bar, the stock certificate was deposited with the appellant on -February 1, 1934. ■ It was sold on .the next-day. It was mot un,til the following day the loan was completed. ■ It is evident from the record that the appellant had to sell the certificate in -order, to. get the money to make the loan to Elliott. The evidence is sufficient to show that the appellant,-sold the certificate before the loan was consummated. At the time it was. sold, certainly the appellant was 'a mere bailee, he was lawfully .in possession of -the. property, but until he transferred the money :to Elliott he did.' not,have any debt to-be secured by a pledge and. therefore could, not,acquire.any interest or title in the. certificate.. He not only sold the property before the loan- was consummated,, but retained the. proceeds over and .above the amount turned over to ■Elliott.

In the. case of State v. Betz, 207 Mo. 589, 106 S. W. 64, a wholesaler sent four diamonds to the defendant under the following conditions: “The goods described below are sent.at your risk for examination and selection, but none are considered sold, nor does.title pass until the .regular bill -of .sale has,.been sent.,”. . We helcbthat. this was not a sale of-the. four diamonds: with an option to defendant to return them if he should not like .them, but an option to purchase them if he was satisfied, hence, the title did not. pass to defendant, and as the defendant sold the -diamonds without accounting to the wholesale dealer he was guilty of embezzlement .as a. bailee. .. .

We think-that the principle' in that case is applicable to the case at. bar.' Here, the appellant, had no interest to protect until.,he advanced the-money to Elliott- This is. go, even if we assume that Elliott signed the note that the appellant claims he did (though’ *220 Elliott'denied doing so). If Elliott did not sign'tbe note wbicb contained the power of sale above quoted and the contract of the pledge was silent as to the right to.sell the pledge then the pledge could not be sold until the debt was due. [49 C. J. 948, sec. 98.] We hold the evidence was sufficient to sustain the verdict.

II. The prosecuting attorney in his opening statement stated that the State would show other transactions similar in character to the one’alleged in the indictment; that the court would instruct the jury that' they were admissible only for the purpose of showing appellant’s fraudulent intent. Upon objection .the court said: “Just omit them from1 the opening statement.” After the opening statements- were made on both sides the appellant asked the court to withdraw all statements -made by the prosecuting attorney with reference to other transactions, which the court did. ■ The appellant requested no further • action of the court, and saved--no exceptions ánd'is therefore in- no position now to charge the trial court with error. [State v. Painter, 44 S. W. (2d) 79, 329 Mo. 314.]

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Related

State v. Thomas
393 S.W.2d 533 (Supreme Court of Missouri, 1965)
State v. Bell
223 S.W.2d 469 (Supreme Court of Missouri, 1949)
State v. Cobb
221 S.W.2d 745 (Supreme Court of Missouri, 1949)

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96 S.W.2d 331, 339 Mo. 215, 1936 Mo. LEXIS 642, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-bagley-mo-1936.