Thompson v. Cohen

28 S.W. 984, 127 Mo. 215, 1895 Mo. LEXIS 245
CourtSupreme Court of Missouri
DecidedMarch 5, 1895
StatusPublished
Cited by10 cases

This text of 28 S.W. 984 (Thompson v. Cohen) 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
Thompson v. Cohen, 28 S.W. 984, 127 Mo. 215, 1895 Mo. LEXIS 245 (Mo. 1895).

Opinions

Gantt, P. J.

This is a proceeding in chancery to divest the title of a certain two story brick store building in Eredericktown, Madison county, out of William L. Cohen and vest the same in William A. Hargadine. Since the commencement of the suit and judgment in the circuit court, Mr. Hargadine has died, and his executors, the respondents have been duly substituted in [220]*220his stead. The circuit court decreed the divestiture as prayed, and the defendants have appealed.

For many years prior to 1879, Philip Cohen had been a dry goods merchant in Fredericktown, and in that year failed. He was indebted to various wholesale houses in St. Louis. An effort was made by him to obtain an extension and a compromise of his indebtedness, but it proved ineffectual, and certain of his creditors began 'Suit at once and obtained service while he was yet in the city of St. Louis. From this circumstance they have been denominated in this record his unfriendly creditors. The others, who were disposed to grant some concessions, also began suit at once in Madison county, where he lived, and it would appear that he purposely permitted these last to obtain their judgments before the unfriendly creditors could get theirs in the city. The friendly creditors at once levied upon and seized Philip Cohen’s stock of goods and his store building, the real estate involved in this suit. In due time all the property, both real and personal, was sold and was bought in by Crow, Hargadine & Company, in trust for themselves and the other friendly judgment creditors, acting with them.

After this purchase was made, Crow, Hargadine & Company, through their trusted agent, Mr. Swain, and the other creditors through Mr. Fischer, acting by and with the advice of Messrs. Nalle and Edwards, the local counsel at Fredericktown, who had obtained the judgments and represented the friendly creditors in the whole transaction, sold the stock of goods to Mrs. Emma C. Cohen, the wife of Philip Cohen, and took her note for $2,000 therefor, secured by a deed of trust on a farm of hers in "Wayne county she had inherited from her father. Mr. Swain testified that Nalle and Edwards made the arrangement for the sale to Mrs. Cohen, and fixed up the papers, took her note and the [221]*221deed of trust. After she had executed these instruments, he says he was directed by Messrs. Nalle and Edwards to deliver the goods to her, and thereupon he says: “I took the keys over to her house and gave them to her, telling her she was the owner of the goods; that the property was hers and I wanted she should treat them accordingly, and she said, ‘Yes sir.’ ” It is admitted by Mr. Hargadine that this note was paid to him and its proceeds distributed among the friendly creditors.

After this store was reopened and the business resumed in the name of Mrs. Cohen, W. L. Cohen testified that he let them, Philip and his wife, have about $4,000 to restock the store.

In the meantime, the so-called “unfriendly” creditors were proceding with their actions, and in due course of law obtained their judgments and at once proceeded to levy executions on Mrs. Cohen’s stock of goods, claiming it was her husband’s, and was simply covered up to avoid the debts.

At this juncture Philip Cohen took the sheriff of Madison county to Chester, Illinois, where his half brother, William L. Cohen, resided. He sought the aid of William L. Cohen to make a bond, but William declined to go on the bond but said he would come to Missouri and investigate. He testifies that when he reached Eredericktownin April, 1880, he first ascertained the condition of affairs, and employed Mr. B. B. Cahoon, a member of the local bar, and advised with him about buying the judgments of the unfriendly creditors, under which the stock of goods had been seized. He then went to St. Louis and bought the judgments. Mr. Cahoon represented him in seeing that they were properly assigned to him.

The testimony of Messrs. Jones and Metcalf, the counsel who represented the unfriendly creditors in St. [222]*222Louis, discloses that Mr.. Binswanger made several propositions of compromise, all of which were rejected until he finally offered seventy-five cents on the dollar, and they concluded to accept it; that thereupon Mr. Binswanger introduced William L. Cohen as the person who would pay the money, and asked to have the various judgments assigned to him to protect him in so doing; that thereupon the sum of $3,114.89 was paid over by J. Meyberg & Company, of St. Louis, for W. L. Cohen, Cohen then and there directing Meyberg to draw on him at Chester, Illinois, for $1,600 of the amount. This draft is in evidence, and was paid by W. L. Cohen. Having obtained the judgments, under the advice of Mr. Cahoon, he took a bill of sale from Emma and Philip Cohen to the stock of goods and directed executions to issue on the judgments, and had the goods sold under them and bought them in.

Having bought the goods, he opened the store and ran it from that time until the commencement of this suit in 1889 in the name of William L. Cohen. He testifies he employed Philip, his brother, to run the business for him. He sáys, “I told him I would allow him to take a living out of the business, and if it afterward paid, I would give him a salary.”

The evidence tends to establish very clearly that William Cohen continued to reside in Illinois; that he dealt largely in horses and mules, and owned several valuable farms in Illinois and Missouri; that he was a man of good financial standing, worth at least $40,000; that he entrusted the mercantile business in Frederick-town to Philip; that while the business was done in the name of William L. Cohen, Philip was the resident manager. He deposited the cash in St. Louis with Meyberg & Rothschilds in the name of William L. Cohen and drew it out by drafts signed “William L. Cohen, per Philip.” Mr. Hargadine was advised as [223]*223early as 1881, that the business was being done by Philip in William L. Cohen’s name. William went to the business house of Crow, Hargadine & Company, and notified them not to let Philip buy on credit on his name. Philip Cohen .continued to buy goods of Crow, Hargadine & Company in the name of William L. Cohen.

On the thirty-first day of August, 1881, Crow, Hargadine & Company addressed the following communication to William L. Cohen:

“August 31, 1881.

11 William L. Cohen, Esq., Chester, HI.

“Deab Sib: — Those creditors of your brother, Philip Cohen, who are interested in the store and other property held for them in the name of our Mr. Hargadine, are very desirous of having the matter closed up in some way that they may realize something from it, and have determined that, unless some other arrangement can be made, they will pay off whatever lien Judge Schulte may have on the property and take possession and dispose of it. Prior to taking this action, they make this proposition: If you or your brother will pay them fifteen hundred (1,500) dollars, Mr. Hargadine will make a quitclaim deed conveying the property to whoever you may name. This property is well worth $4,000, and probably more. Judge Schulte’s claim, as he states it, is something less than $2,000. So you would be saving at least over $500 by making this settlement.

“Your favorable consideration of this proposition and an early answer are desired, and are important, as the creditors in interest will proceed in the other direction without delay if this or some other satisfactory arrangement is not concluded.

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Bluebook (online)
28 S.W. 984, 127 Mo. 215, 1895 Mo. LEXIS 245, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thompson-v-cohen-mo-1895.