Coast Realty & Colony Co. v. Security Trust Co.

• Decision Date: 18 November 1918
• Docket Number: 20277
• Citation: 118 Miss. 690,79 So. 848
• Parties: COAST REALTY & COLONY COMPANY v. SECURITY TRUST CO
• Court: Mississippi Supreme Court

79 So. 848

118 Miss. 690

COAST REALTY & COLONY COMPANY v. SECURITY TRUST CO

No. 20277

Supreme Court of Mississippi

November 18, 1918

Division A

APPEAL from the chancery court of Jackson county, HON. W. M. DENNY JR., Chancellor.

Suit by the Security Trust Company against P. Bougslog, and others partners doing business at the Coast Realty and Colony Company. From a decree overruling their separate demurrers to the bill of complaint, certain of the defendants appeal.

The facts are fully stated in the opinion of the court.

Affirmed and remanded.

White & Ford, H. B. Everett and H. Gardner, for appellant.

R. L. & W. D. Bullard, for appellees.

OPINION

SMITH, C. J.

This is an appeal to settle the principles of the case from a decree overruling the separate demurrers of several defendants to appellee's bill of complaint. The bill is quite lengthy, and is not drawn with technical accuracy, but, as we understand it, it alleges in substance that appellee sold to appellants, W. H. Bougslog, E. B. Dunten, W. R. Barber, M. P. Bougslog, and I. A. Gingery, partners doing business under the name of Coast Realty & Colony Company, ten automobiles, and accepted in payment therefor notes payable to the Coast Realty & Colony Company and secured by vendors' liens on land of little value, the notes being practically worthless; that the notes were indorsed by the Coast Realty & Colony Company to appellee "without recourse," and that appellee was induced to accept them in payment for the automobiles by false and fraudulent representations of J. A. Witz, the agent of the Coast Realty & Colony Company who negotiated the purchase of the automobiles, made with appellants' connivance, that the notes had been executed by the makers thereof in part payment of land sold to them, one-third or more of the price having been paid in cash; that the land was worth from twenty-five dollars to thirty dollars per acre--all of which was untrue, the land being in fact of little or no value, nothing whatever having been paid thereon by the makers of the notes, the notes themselves having been executed by the makers thereof for the purpose of enabling the Coast Realty & Colony Company to use them to defraud appellee in the purchase of the automobiles, and that as a part of the scheme to defraud appellee a part of its land was allowed to be sold for taxes, and was purchased by appellant E. B. Dunten.

In addition to the members of...