Stokes v. Burns

33 S.W. 460, 132 Mo. 214, 1896 Mo. LEXIS 18
CourtSupreme Court of Missouri
DecidedJanuary 28, 1896
StatusPublished
Cited by7 cases

This text of 33 S.W. 460 (Stokes v. Burns) 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
Stokes v. Burns, 33 S.W. 460, 132 Mo. 214, 1896 Mo. LEXIS 18 (Mo. 1896).

Opinion

Robinson, J.

On February 12, 1892, plaintiff in this case brought suit against defendants by attachment for the recovery of $4,170.50, due for flour sold by plaintiff to defendant in car load lots shipped from Waterton, Dakota. The first car load on December 15, 1891, and the last on February 6, 1892. Under the writ of attachment issued in the case, the sheriff levied upon and seized certain flour as the property of defendants, being at the time in possession of Harry S. Piggott.

Said Harry S. Piggott filed his interplea claiming the property so seized, under a deed of trust executed by defendants February 10,1892, in which he was trustee and the National Bank of St. Joseph, Missouri, and the Ayr Lawn Company were beneficiaries.

Plaintiff then filed the following answer:

“Plaintiff in his answer to the interplea, alleges that the debt named in the deed of trust was fictitious, that the deed was made by defendants with the design of defrauding, hindering, and delaying defendants’ creditors, and that the interpleader and beneficiaries participated in that design; that about the same time with the making of this deed, defendants with a like design, participated in by interpleader and those represented by him, made other conveyances disposing of the balance of their property, and further charges that for about ninety days before the making of said deeds, defendants, in pursuance of a conspiracy formed by them with the other parties to said deeds, bought large quantities of merchandise from plaintiffs and others, with the purpose not to pay for the same, but to convert the same, to the use of defendants and said other parties; that the merchandise in controversy, and that purchased from plaintiffs, and much more, was converted [218]*218to their use by means of said deeds ostensibly made to secure debts owing by defendants; that large quantities of merchandise greatly in excess of that usually carried by defendants, and in excess of the legitimate demands of their business, were purchased during this time and pursuant to this design, and that in order to aid them in buying more heavily, the National Bank of St. Joseph, knowing them to be insolvent, represented that defendants were worthy of credit, that defendants were indebted to merchandise creditors at the time said deeds were made for about sixty-five thousand ($65,000) dollars on about $40,000 of which attachment suits were brought. That John E. Sibbald, who is a son-in-law of defendants and a grantee in one of said deeds, about thirty days before the making of said deeds opened up a pretended business in the line of business conducted by defendants, and by means thereof aided in disposing of the merchandise procured by said fraudulent scheme.”

Said answer further charges that defendants, in furtherance of their fraudulent scheme and to prevent detection of it, spirited away and concealed their books of account.

Interpleader Piggott then filed his reply to plaintiff’s answer, denying the allegations thereof, except the execution of the deed of trustJ to him, and that he took possession of the property named therein; and further replying says that the deed of trust was executed for the purpose of securing the debts therein named and that the same were honest and bona ficle.

Under the pleading there was nothing for the interpleader to prove, the burden resting upon plaintiff to prove something alleged in his answer that would invalidate the deed of trust, and his right to the property under it in favor of the interpleader. The plaintiff so understood the situation and assumed the burden.

[219]*219Although the allegations in plaintiff’s answer to the interplea, that the debts secured by the deeds of trust were fictitious, they offered no testimony whatever tending to impeach them. Plaintiff’s case was tried upon the theory of the existence of a conspiracy between Burns & Company and the beneficiaries in the deed of trust, whereby defendants were to buy large amounts of goods from him and others and not to pay for same and that in some way the beneficiaries' of the deed of trust were to assist him in the fraud. The interpleader tried the case on the theory that the sole inquiry was the attempted fraud in the conveyance of Burns & Company to him. That the fraud on part of Burns & Company, by means of which they procured the property named in the deed of trust, was wholly immaterial as well as the question of the beneficiaries’ participation therein. All the reasons assigned for the offering of testimony and all objections made thereto were upon the line above indicated, and it was upon those questions as then presented that the trial court was asked to pass, and to those questions we will confine ourselves.

Considering all the testimony introduced, together with all legitimate inferences to be drawn therefrom, under any and all theories by which his case might have been tried, we think there were not sufficient facts shown to authorize its submission to the jury.

In order to show the theory upon which plaintiff presents his case we have given a brief statement of the facts as developed by him at the trial:

Stephen J. Burns, and his wife, Martha, for several years prior to February 10, 1892, were engaged in the wholesale flour and feed business, and were running an oatmeal mill all under the firm name of ‘‘Burns & Co.” and down to the time of the bringing of this suit made their deposits at the National Bank [220]*220of St. Joseph and borrowed money from it and the Ayr Lawn Company. During this time . Calvin E. Burnes was the president of the National Bank of St. Joseph, and vice-president of the Ayr Lawn Company, and a director in both institutions. C. C. Burnes was president of the Ayr Lawn- Company, and a director in both institutions.

During the fall of 1891, Burns & Company owed the Ayr Lawn Company and the bank about $26,000, as evidenced by five notes, all dated between September 7, and November 2, 1891. About the months of September or October, 1891, Calvin F. Burnes procured a statement from defendants’ bookkeeper showing the condition of the firm, the bills receivable and what they owed, including all assets and-liabilities. By that statement defendant was shown to be in strained circumstances; also that they were owing to divers mercantile firms throughout the country about $25,000; that afterward and up to the time of the failure, the bank and the Ayr Lawn Company continued to loan and advance money to defendant and permitted them to overdraw at the bank until the amount reached the sum of fifty odd thousand dollars, about $20,000 more than when the statement showing defendants’ financial standing was left with Calvin F. Burnes at the bank by defendant’s bookkeeper; that at the time of the failure, the defendants owed to merchants for goods purchased about $60,000; that of this indebtedness to merchants about $35,000 had been made within the past four or five months, and that defendants had bought largely in excess of the demands of their trade, and that they would buy from anyone who would give to them credit, and were constantly hurrying up merchants and mill men to send in goods faster; and that the demands of their trade did not call for such stock as they were then carrying, nor was there any business reason [221]

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Bluebook (online)
33 S.W. 460, 132 Mo. 214, 1896 Mo. LEXIS 18, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stokes-v-burns-mo-1896.