Ashton v. Thompson

• Decision Date: 09 April 1884
• Parties: Katie Thompson Ashton v. Susan L. Thompson, impleaded, etc
• Court: Minnesota Supreme Court

18 N.W. 918

32 Minn. 25

Katie Thompson Ashton v. Susan L. Thompson, impleaded, etc

Supreme Court of Minnesota

April 9, 1884

Plaintiff brought this action in July, 1879, in the district court for Ramsey county against her mother Susan L. Thompson and her uncle Horace Thompson, who had been her guardians, to set aside a settlement and a transfer of property made by her to the former 14 months after she became of age, and for an accounting. The case stated by her in the complaint is in substance as follows:

Plaintiff the daughter of James Egbert Thompson, late of the city of St. Paul, and of the defendant Susan L. Thompson, was born in August, 1856. Her father died intestate, May 27, 1870, and his estate was administered in the probate court of Ramsey county, and, on October 5, 1871, was distributed to his widow, to the plaintiff, and to her four sisters, the court assigning to the plaintiff an undivided one-fifth of the real estate, subject to the dower of the defendant Susan L., and an undivided one-sixth of the personalty. Her share of the real estate she alleges was worth about $ 6,500, and her share of the personalty about $ 43,000.

At or about the date of the decree of distribution, (October 5 1871,) the defendant Susan L. and the defendant Horace Thompson (the latter being a brother of the plaintiff's father) were appointed and qualified as her guardians, and continued to act as such until their discharge, on the termination of the guardianship, on or about October 17 1876. During the period of the guardianship the defendants received and disbursed all the income and proceeds of the property so assigned to plaintiff, and had the same completely within their control as guardians for her benefit and all the net income was by them paid over to the defendant Susan L., the plaintiff receiving only what was paid over to her by Susan L., or was paid for her use by the defendants.

Between October 5, 1871, and October 17, 1876, a large amount of money was thus received and paid over to defendant Susan L., of which but a small portion was paid to plaintiff or to her use, and the residue was applied by the defendant Susan L. for her own use, the particular amounts being stated in the complaint. Accounts of the guardianship were made from time to time, and, soon after reaching the age of 18 years, the plaintiff signed a general release to her guardians, but she did not and was not competent to examine the accounts and release, nor did she have the aid of any competent independent person or legal adviser to examine them for her. And she charges that the accounts falsely overstate the debits and understate the credits of the plaintiff.

From the discharge of the guardians, October 17, 1876, until September, 1877, the plaintiff continued to live as she always had done in the family and under the habitual influence and control of the defendant Susan L., who continued to receive and disburse the income of the estate, paying a small part to the plaintiff, and keeping and using the rest for her own benefit, the amounts being stated in the complaint.

On June 26, 1877, the plaintiff and those of her sisters who were also of age, (one of them being older and two younger than herself,) made with the defendant Susan L. a settlement in writing, which is set out in full in the complaint.

This instrument, made "between Susan L. Thompson of the first part, and Lena B. Thompson, Katie Thompson, Carrie J. Thompson and Ella F. Thompson, of the second part," recites that "certain differences of opinion have arisen and have heretofore existed between the said Susan L. Thompson, of the one part, and the said Lena, Katie, and Carrie J. Thompson, of the other part, as to the disposition of certain real estate and personal property to which the said Lena, Katie, and Carrie J. became by law entitled as three of the children and heirs-at-law of James Egbert Thompson, deceased, and as awarded to them as such heirs-at-law by the probate court of Ramsey county, and which real estate and personal property they afterwards conveyed to the said Susan L. Thompson, by certain deeds and bills of sale;" and that Ella F. is now of lawful age, and entitled to a settlement with her guardians, and a division of the real and personal property, neither of which has been had; and that "it is the declared object of this instrument, and the intent of all the parties hereto, to make a settlement between the said parties respectively, such as will forever set at rest all the said differences of opinion, and to make an equitable division of the property in controversy between the said parties;" and that Susie Thompson, another of the children, is still a minor and under legal guardianship, and cannot join in the agreement; and that "the said Susan L. Thompson still holds and retains her dower interest in and to all the said estate belonging to said deceased, except such part thereof as has been heretofore sold at guardian's sale."

The instrument then provides (in article 1) that as soon as practicable the accounts of guardianship of Ella F. and Susie shall be rendered and settled in the probate court, and their shares of the estate awarded to them, and proceeds as follows:

"Second. As soon as the said interest of the said Susie Thompson shall be so ascertained, an accurate and true account shall be made of all stocks, bonds, and other personal property which originally belonged to the said James Egbert Thompson, deceased, or which now remains on hand, either in the hands of the said Susan L. Thompson in her own right, or conveyed to her by the said Lena B., Katie or Josie, or belonging to the said Ella F., or in the hands of her guardians, and in the hands of the guardians of said Susie Thompson.

"Third. All the incomes, dividends, and proceeds of the said estate of said James Egbert Thompson, deceased, and which shall have been duly ascertained and declared, and credited to account of either the said Susan L. Thompson, Katie, Lena, Carrie J., and Ella Thompson, up to and including the first day of July, 1877, and including the regular semi-annual dividend of the stock of First National Bank of St. Paul which will accrue on that date, shall be paid over and credited to the account of the said Susan L. Thompson. And it is the intention and wish of the said Lena B., Katie, Carrie J., and Ella F. Thompson to forever release and relinquish to the said Susan L. Thompson any and all dividends, rents, issues, and profits of all real estate and personal property of the said J. E. Thompson which has heretofore accrued, and which shall accrue up to said first day of July, 1877, and to which they, or any of them, may have had any right, title, or interest, whether legal or equitable: Provided, that this release shall not relate to any of the scrip dividends of the stocks of the St. Paul & Sioux City Railroad Company, or to any of the compensation stock, or other natural increase of said stocks, or of any other stocks, contracts, or assets of said estate. But it is intended to apply only to the cash dividends and incomes of said property, which has heretofore been received by said Susan L. Thompson, or by the guardians of said Ella F.

"Fourth. [This provides that after Susie's share is ascertained and set apart to her, any balance of money found due to Ella F. from her guardians, on final settlement of their accounts, shall be paid over to her.]

"Fifth. After deducting the share of stocks, bonds and other personal property in the hands of said guardians, which shall be awarded by said probate court to said Susie Thompson, and leaving the same with her guardians, all the balance of the First National Bank stock, stocks of the St. Paul & Sioux City Railroad Company of all kinds * * * which originally belonged to the estate of said James Egbert Thompson, deceased, and now remaining in the hands of, or belonging legally or equitably to, said Susan L. Thompson, Lena B., Katie, Carrie J., and Ella F. Thompson, and including all undivided interests in such personal property, and of all other personal property which originally belonged to said estate and now remaining unsold, shall be divided into five equal shares, whereof one equal share shall be at once conveyed to the said Susan L. Thompson, and one equal share thereof shall at once be conveyed to each of the said Lena B., Katie, Carrie J., and Ella F. Thompson," and the parties bind themselves to make all necessary transfers and conveyances.

"Sixth. [This provides that the income accruing after July 1, 1877, on the property so to be divided, shall be divided in the same manner as the capital.]

"Seventh. [This provides for a division of any income that might accrue from other specified sources in the same proportion.]

"Eighth. The said Susan L. Thompson shall forthwith * * transfer to said Lena B., Katie and Carrie J. Thompson 200 shares of the capital stock of the First National Bank of St. Paul, to each of them, in part fulfilment of this agreement," and also reconvey to each of them "an equal undivided one-fifth of all the real estate which belonged to the estate of said James Egbert Thompson, deceased, * * being the same real estate which said three children have heretofore conveyed to her by the deeds above referred to."

"Ninth. The said Susan L. Thompson shall also convey unto the said Lena B., Katie, Carrie J., and Ella F. Thompson all her dower and right of dower," in the 4-5 of said real estate agreed to be conveyed to them.

"Tenth. Upon the said final division of said personal property and stocks, according to this agreement, and the execution and delivery of said deeds of conveyance and of said relinquishment of dower, the said Lena B. Thompson promises and agrees to pay to the said Susan L. Thompson the sum of eight...