Young v. Auxier

195 S.W.2d 295, 302 Ky. 571, 1946 Ky. LEXIS 727
CourtCourt of Appeals of Kentucky (pre-1976)
DecidedJune 11, 1946
StatusPublished
Cited by2 cases

This text of 195 S.W.2d 295 (Young v. Auxier) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky (pre-1976) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Young v. Auxier, 195 S.W.2d 295, 302 Ky. 571, 1946 Ky. LEXIS 727 (Ky. 1946).

Opinion

*572 Opinion op the Court by

Morris, Commissioner

Affirming.

The 'matter .presented is an outgrowth of litigation which resulted in three former appeals. Pinson v. Williams, 288 Ky. 314, 155 S. W. 2d 869; Pinson v. Bentley, 293 Ky. 490, 169 S. W. 2d 305; 298 Ky. 396, 182 S. W. 2d 974. The reader is referred to them for a history of the litigation which begdn as far back as 1935. We shall only state the situation and status of parties following our last opinion.

That appeal involved the disbursement of funds remaining of the deposit by Bentley and Johnson, purchasers of William’s right of redemption of the Pinson lands, sale having been theretofore set aside. Johnson and Bentley had deposited this sum in 1937, and the commissioner had made a deed and placed them in posséssion. They had used the land and had collected some royalties. The chancellor adjudged that Bentley and Johnson should take down their deposit, allowing interest at 6% from the date thereof, taxes and expenditures for improvements, and charged them with rentals at $700 per year. Day et al. on appeal contested the allowance of interest, and contended that rentals should have been $1200 per year, and the occupants charged with waste. We upheld the chancellor as to rentals, and allowed for waste, but reversed as to interest. This left the matter in the same shape it was following our 293 Ky. opinion, with Johnson and Bentley out and the clerk holding the fund. Following the mandate reinstating the right of Pinsons to redeem their lands, on December 27, 1941, they procured from Day, Rice, Billiter and Johnson $22,000, the amount thought, necessary to redeem. At the same time the Pinsons conveyed fee simple title to Day et al., who in turn executed an option to Auxier to purchase within six months at $26,000.

Following our opinion in the 298 Ky. case, the court entered a confirming order, reciting that Johnson and Bentley had been paid $21,063.32, the amount due them under the judgment of December 1943. The chancellor adjudged that they were only entitled to $14,047.62, resulting in an overpayment to them of $7,915.50,’ and adjudged that “plaintiffs” recover that amount with interest, and it was paid to the clerk.

This closes the history to the point of the instant *573 litigation. In February 1945, R. O. Wells filed affidavit setting out that in June 1935 he had obtained judgment against Earl Pinson with accrued interest, totaling $1,583.69, which was unsatisfied. Alleging that Pinson had no property to satisfy the judgment, and the clerk ■had in his hands a sum of money belonging partly to Earl Pinson, he asked for garnishment. Young asked like relief in respect of unsatisfied judgments against William. All suits mentioned in the prior appeals and the instant one, including the above motions, were consolidated with the original under which the Pinson lands were sold.

Attachments issued on the Wells and Young claims and were executed. Day et al. moved to discharge, and the creditors filed response and cross-petitions alleging that Day et al. had no right to or interest in, the fund, since they had conveyed to Auxier; that while Auxier held legal title, the Pinsons owned an equitable title, and that no one had a claim on such interest unless it be Auxier, and he was called upon to disclose. They prayed for a sale of a one-third interest in the lands to satisfy their claims. A reply by Day et al. denied in general and alleged “that as a part of the consideration for the deed to Auxier, they had bound themselves to proceed herein in such manner as might be necessary to recover from Bentley and Johnson, and so much of the fund in court, as might be determined to be due, for the use and benefit of Auxier, in his own right and as attorney for these parties and the Pinsons, and to account to him therefor.”

Auxier filed intervening petition in the consolidated cases, in which he set out all matters transpiring up to this point, his activities as attorney, and particularly the pleading of Day et al., the option to purchase, which was extended periodically until October 14, 1943, and conveyance to him upon payment of $26,000 of his own money and interest on the sum these parties had advanced. He alleged that the Pinsons were parties to the deed, and they and Day et al. agreed to prosecute their claims for refund for his benefit, and to assign to him all rights and equities they might have in any fund growing out of former transactions. These facts he *574 alleged constituted Mm the real party in interest and entitled to the amount adjudged to be refunded.

In a second paragraph he alleged his employment, by the Pinsons to, and that he did, represent them through all litigation in the Circuit and Court of Appeals; that he was employed by Day and associates all the way through as far as their rights were involved, and at all times rendered services necessary and proper, for which parties had agreed to pay him reasonable fees, which he alleged to be $10,000, with none paid. He asserted a lien on the judgment in favor of plaintiffs in the Pinson v. Bentley case, and the fund, under Sec. 30.200, KRS, superior to those of Wells and Young. He sought an order discharging the attachments and directing the clerk to pay him the fund.

This pleading brought joint answer from Young and Wells, admitting that Day and his associates put up the money for redemption, but say that it was advanced for the use and benefit of the Pinsons; that the deed to them was in trust to secure repayment of the money they had advanced; that it may be true that Day et al. executed the option, but “deny that they (holding the property in trust or for security) could convey legal title to Auxier, or anyone.” They denied Auxier paid out of his own money the sum of $26,000 or any sum, but if so it was out of the property of Pinsons. They say that while it may be true that plaintiffs prosecuted their claim for “refund for such amount as might be finally determined,” they deny that it was for the use and benefit of Auxier, but for the Pinsons, and that the money attached was their property. They denied specifically paragraph 2 (attorney’s lien) and asked that the intervening petition be dismissed. This pleading was controverted.

Some proof was taken and upon hearing the chancellor adjudged that as the record stood then and at the time of former judgment, the Pinsons had no interest in the lands or fund; that Auxier had the right to proceed in the name of Day and his associates for his own use and benefit after he had exercised his option (Civil Code of Practice, Sec. 20) and held that the fund should be paid to him. The court further adjudged that “even if the named plaintiffs, the Pinsons, had any interest, Auxier had a superior lien to secure his attorney’s fee, in excess of the amount in the clerk’s hands.”

*575 Tlie court discharged the garnishments of Wells and Young, insofar as they affected the funds in the clerk’s-hands. The creditors sought new trial on the sole ground that the evidence was insufficient to support the judgment in favor of plaintiff on motion to discharge the-attachment; this was overruled and appeal is prosecuted..

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Bluebook (online)
195 S.W.2d 295, 302 Ky. 571, 1946 Ky. LEXIS 727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/young-v-auxier-kyctapphigh-1946.