Vance v. Kirk

1 S.E. 717, 29 W. Va. 344, 1887 W. Va. LEXIS 5
CourtWest Virginia Supreme Court
DecidedFebruary 5, 1887
StatusPublished
Cited by6 cases

This text of 1 S.E. 717 (Vance v. Kirk) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vance v. Kirk, 1 S.E. 717, 29 W. Va. 344, 1887 W. Va. LEXIS 5 (W. Va. 1887).

Opinion

Gbeen, Judge:

The first question to be decided in this cause is: — Should the court have sustained the demurrer to the plaintiffs’ bill?

The special object of the bill was to compel Jenkins, Jackson and Rathbone, who, when the cause of action arose, were-a partnership doing business under the name of Jenkins, Jackson & Go., to pay to the plaintiffs funds, which they had received from Latham, trustee, in a deed of trust duly recorded, which provided, that said funds should be paid to the plaintiffs. This appears on the face of the bill; and upon these allegations there can be no doubt, that Jenkins, Jackson and Rathbone were not necessary parties to the suit; and, if the plaintiffs had so elected, they might have brought the suit against the trustee and all the cestuis que trust and have obtained a decree for the debt against the trustee, because of his misapplication of the funds, which came into his hands, and out of which it was his duty to pay the plaintiffs’ debt. But as the plaintiffs elected to follow the funds thus misapplied into the hands of those, to whom such funds had been paid, they had a right to make such persons also parties defendant and to obtain a decree against them for the funds, which they had received from the trustee. In such a case the plaintiffs had a right to a decree directing the parties, who had improperly received this fund, to pay it to the plaintiffs; and, if they were unable to meet this responsibility, the plaintiffs had a right to a decree against the trustee as security of the parties, to whom he had improperly paid the fund, which should have been applied to the plaintiffs’ debt. That this is the law clearly appears from Story’s Eq. PL, § 221, which is as follows : — -“If a trustee has fraudulently or improperly parted with the trust-property, the cestui que trust may proceed against the trustee alone to compel satisfaction for the breach of trust, or he may at his election join the assignee also, if he was a party to the fraud, or if he seeks redress from, him.” This proposition of law is supported by the case of Bank v. Pollock, 4 Edw’ds Ch’y 215, the syllabus of which is as follows:—

“Where a bill charges, that shares of stock have by fraudulent conduct of one person got into the possession of two, [354]*354the latter may be proceeded against in one suit, though each holds a distinct number of shares ; and it is. also right to make the wrong-doing person a party.
“ A clerk of a bank through fraud using the borrowed checks of’a firm, whose account (in that way overdrawn) was more particularly under his own supervision, withdrew money from the bank and bought stock with it and caused such stock to be placed in the name of his sisters without consideration — Held, that the sisters were to be construed as trustees for the bank defrauded. ”

The sisters in that case were not participants in the fraud. The Vice-Chancellor says: — “ I consider this case falls within the principle laid down by Mr. Justice Story in 2 Eq. Jur. 513, § 1,258. The identity of the property is shown and traced; and under such circumstances, as it can be laid hold of by a court of equity and distinguished from the property of all other persons and handed over to the equitable and rightful owner. (Thompson v. Perkins, 3 Mason 322 and cases there cited). ”

Point 2 of the syllabus in Bailey v. Inglee et al., 2 Paige Ch’y 278, is as follows : — “ A defendant may in some cases be a proper party to a suit, although he is not a necessary party, as in the case of á fraudulent assignment of a trust fund, where the cestui que trust may at his election either proceed against the trustee alone or may join the fraudulent assignee in the same bill. ”

In Burnet v. Dennett, 2 Brown Ch’y R., it was decided, that in “ a bill against a trustee, who has assigned his trust, the assignee ought to be made a party, as the decree should be first against him, the trustee to stand as security. ” This conclusion is approved by Judge Story in his Eq. Pl., § 155.

It seems to me therefore, that in this case Jenkins, Jackson and Rathbone, late partners under the name of Jenkins, Jackson & Co., were proper parties defendant to this bill. But it is claimed, that they were not so made parties, as in the bill the prayer is, that Jenkins, Jackson and Rath-bone be made parties defendant, that is, that they be individually made defendants. But they would have been made individually defendants, if the prayer had been that Jenkins, Jackson and Rathbone, late partners as Jenkins, [355]*355Jackson & Go.; for they were individually responsible, if the funds were, as alleged in the bill, even improperly received from the trustee by the said firm on claims, which it held against the grantor in the deed of trust. It surely is a mere technicality to say, that, though the bill in one part states, that these persons, when they received this money, were partners under the said firm name, yet, because in the prayer of the bill they were not said to be late partners, the bill was fatally defective. To sustain this position assumed for the first time in this Court, counsel rely on a note in Sands’s Suit in Equity, page 25: — “ If among the defendants there be any one, who fills several characters and is a proper party in each character, care must be taken to make him a party in each. When, for example, a devisee of the equity of redemption ought to be a party, though he be a defendant in the character of executor and answer as such, that will not be sufficient; he must be a party called upon to answer as to his individual interest: (Mayo v. Tomkins, 6 Munf. 520). In a bill brought by a residuary legatee against an executor, if the executor be administrator of one of the residuary legatees, he should be made a defendant as administrator of such legatee as well as in his character of executor. (Stephens v. Starke, 3 Munf. 29). And a decree can not be made against a widow to restrain her from conveying her right of dower, if she be not made a defendant to the bill as widow or in her own right but merely as administratrix of the decedent and guardian of his children (Pennington v. Hanby, 4 Munf. 144). ” There can be no question that Sands lays down the law correctly in this note. But the addition to the individual names of the members of the old firm of the words — - ■“ late partners doing business under the firm name, of Jenkins, Jackson & Oo. ” would not indicate the character, in which they would be sued, but would only be a descriptio personis very proper to be added, but not at all essential. It was obviously so regarded in the court below ; for in the decrees of the court this description of these persons was constantly added. It is unnecessary to consider separately each of the four grounds of demurrer, as they are obviously based on false views of the law or have been shown, by [356]*356what we have already said, to be without foundation. The court therefore did not err in overruling the demurrer.

The commissioner’s report set out in the statement of the-case not being excepted to, though it was returned to the court more than three years before it was acted upon by the court, must be held to be true.

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Bluebook (online)
1 S.E. 717, 29 W. Va. 344, 1887 W. Va. LEXIS 5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vance-v-kirk-wva-1887.