Wheeler v. Hawkins

19 N.E. 470, 116 Ind. 515, 1889 Ind. LEXIS 102
CourtIndiana Supreme Court
DecidedJanuary 12, 1889
DocketNo. 12,974
StatusPublished
Cited by7 cases

This text of 19 N.E. 470 (Wheeler v. Hawkins) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wheeler v. Hawkins, 19 N.E. 470, 116 Ind. 515, 1889 Ind. LEXIS 102 (Ind. 1889).

Opinion

Coffey, J.

This cause, when commenced, was an action by John P. Hawkins, assignee of Thomas Shakes, against Amzi L. Wheeler, for the recovery of money.

Hawkins obtained judgment, but upon an appeal to this court the j udgment was reversed for insufficiency of the complaint, and the cause was remanded for further proceedings. Wheeler v. Hawkins, 101 Ind. 486.

After the cause was remanded Hawkins filed an amended complaint, which charged that, on the 11th day of February, 1874, Thomas Shakes, an insolvent debtor, made a voluntary assignment of all his property to the plaintiff for the benefit of his creditors, under the provisions of the act of March 5th, 1859; that the deed of assignment, a copy of which was filed with the amended complaint, was recorded in due time in the county of Marshall, in this State, where Shakes resided and where the property was situate ,• that the said Hawkins gave [516]*516bond and qualified as the assignee and trustee of the said Thomas Shakes, Horace Corbin, Albertus C. Capron, George R. Reynolds and Alexander C. Thompson becoming sureties on his bond, after which he took charge of the estate so assigned to him; that a part of the property so conveyed to him by the deed of assignment was one hundred and sixty acres of land, described in the complaint, and situate in said county of Marshall, upon which the defendant, Wheeler, held a mortgage securing notes amounting in the aggregate to the sum of four thousand dollars, executed by the said Thomas Shakes, Daniel E. Van Valkenburgh and Lawrence Shakes to the defendant for a part of the purchase-money of said land; that the plaintiff, Hawkins, proceeded to convert the personal property assigned to him into money, and deposited the pi’oceeds in the Plymouth bank, an institution owned and controlled by the defendant; that a large number of unsecured claims, amounting in the aggregate to ten thousand dollars, were filed and allowed against the estate of the said Thomas Shakes; that the defendant did not file his notes against the estate, but continued to hold the same as secured claims; that the plaintiff, at the time, believed the equity of redemption in the mortgaged lands to be of considerable value, and having been notified by the defendant that one thousand dollars of the mortgage debt was due and the foreclosure of the mortgage imminent, and the defendant having proposed that if he, the plaintiff, would, out of the trust funds in his hands, pay the interest due on the notes secured by the mortgage and six hundred dollars of the amount due on the principal sum, he, the defendant, would withhold foreclosure, and give him, the plaintiff, further time to sell the land and realize, if possible, something in that way for the general creditors; the plaintiff accepted the proposition of the defendant, and, accordingly, on the 2oth day of August, 1874, paid to the latter, out of said trust funds, the interest due on the mortgage debt, and six hundred dollars on the principal, amounting in all to nine hundred and forty-one [517]*517dollars and fifteen cents; that at the time of such payment the defendant well knew that the same was paid out of the trust fund in the hands of the plaintiff belonging to the estate of the said Thomas Shakes, and that the plaintiff had no right to make such .payment on the mortgage notes; that when the payment was made the defendant agreed that if the general creditors should become dissatisfied with it, and should object to it, or if the court should refuse to ratify such payment, he would, on demand, pay the amount of money thereby received by him back to the plaintiff; that from said 25th day of August, 1874, to the time of the commencement of this suit, the plaintiff was unable to sell the mortgaged lands for anything in excess of the mortgage lien; that the defendant, on or about the 1st day of January, 1876, commenced an action in the Marshall Circuit Court to foreclose his- mortgage, and that the mortgaged lands at the time did not exceed in value the balance due on the mortgage debt, including the costs of foreclosure; that the entire assets which had come into the plaintiff’s hands did not exceed in value the sum of three thousand dollars; that there would, consequently, be a large deficiency of assets for the payment of the general creditors of the estate; that the payment made to the defendant as herein above stated was without the knowledge or consent of the general creditors; that the defendant, upon demand, had refused to repay or return said sum of nine hundred and forty-one dollars and fifteen cents, or any part thereof. Wherefore judgment was demanded.

The defendant demurred to this amended complaint, but his demurrer was overruled.

After filing the foregoing amended coinplaint by Hawkins, Capron, Reynolds and Corbin, three of the sureties on the bond given by Hawkins, filed their petition asking leave to-be made parties plaintiffs to the action, which was granted.

They thereupon filed what they termed an amended supplemental complaint in their own names as plaintiffs, in which they repeated and set forth the substantial facts averred in [518]*518the amended, complaint of Hawkins as above set out,'and proceeded to allege that since the institution of this suit the general creditors of Thomas Shakes had brought suit against Hawkins and his sureties on his bond for alleged breaches of his trust, the chief complaint being based upon his payment of the sum of nine hundred and forty-one dollars and fifteen cents, as above shown, to the defendant, Wheeler, which was at the trial adjudged to have been an illegal payment; that in said action the said general creditors recovered against Hawkins and his said sureties a judgment for one thousand four hundred dollars, mostly on account of such payment; that Hawkins was at the time insolvent, and that by reason of the premises they, the said Capron, Reynolds and Corbin, as such sureties, were compelled to pay, and did pay, on such judgment in equal proportions the sum of one thousand and ninety-six dollars; that in said action against Hawkins and his sureties it was adjudged that the said Capron, Reynolds and Corbin should become the owners of the money so held to have been illegally paid by Hawkins to the defendant to the extent that they might be required to pay the judgment therein rendered, and that they should be subrogated to the rights of Hawkins in such money. Wherefore they demanded that they should be subrogated to all the rights of both Hawkins and the general creditors of Thomas Shakes in the money in question, and that they might have all other proper relief.

The defendant moved to strike out this complaint of Ca-pron, Reynolds and Corbin, upon the ground that it was inconsistent with and antagonistic to the complaint of Hawkins, and was in fact the commencement of a new suit against him. The court overruled this motion; and the defendant then filed a demurrer to said complaint upon the ground that there was a defect of parties plaintiffs, because Capron, Reynolds and Corbin were improperly joined with Hawkins as plaintiffs in the action, and that it did not con[519]*519tain facts sufficient to constitute a cause of action against him ; but his demurrer was also overruled.

Afterwards issues were formed upon the complaints, and the ■circuit court, after hearing the evidence, made a special finding of the facts which was in general accord with the allegations of the complaint of Capron, Reynolds and Corbin.

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Cite This Page — Counsel Stack

Bluebook (online)
19 N.E. 470, 116 Ind. 515, 1889 Ind. LEXIS 102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wheeler-v-hawkins-ind-1889.