Fairchild v. Lohman

• Decision Date: 09 January 1926
• Docket Number: No. 680.,680.
• Citation: 13 F.2d 252
• Parties: FAIRCHILD v. LOHMAN, Public Adm'r, et al.
• Court: U.S. District Court — Western District of Missouri

13 F.2d 252 (1926)

FAIRCHILD v. LOHMAN, Public Adm'r, et al.

No. 680.

District Court, W. D. Missouri, W. D.

January 9, 1926.

Owen C. Becker, of Oneonta, N. Y., and Charles M. Blackmar, of Kansas City, Mo. (Haff, Meservey, Michaels, Blackmar & Newkirk, of Kansas City, Mo., of counsel), for plaintiff.

Paul Barnett, of Sedalia, Mo., for defendants.

REEVES, District Judge.

The question in this case arises on the motion of the complainant to dismiss the cross-bill of the defendant Lohman, ancillary administrator. The complainant's bill alleges he is the owner of 1,500 shares of corporate stock of Theodore Gary & Co., a Missouri corporation; that the title to said stock accrued to him under the last will and testament of George W. Fairchild, deceased; that George W. Fairchild in his lifetime was a citizen and resident of the city of Oneonta, Otsego county, N. Y.; that his estate was administered there, and as a legatee under the will of said decedent the complainant herein became the owner of said shares of stock; and that same were duly delivered to him by the executors under the will of the said decedent.

He alleges, furthermore, that all legacies, debts, and taxes, and other demands against the estate, have either been discharged or provided for; that all taxes and assessments on said stock in the state of Missouri have been paid, and he is entitled to have a transfer of the shares of said stock made on the books of defendant corporation, Theodore Gary & Co.; that the defendant Ira H. Lohman, as public administrator of Cole county, Missouri, has applied for and obtained ancillary letters of administration upon the estate of said decedent in Missouri, and now seeks to have delivered to him certificates of stock evidencing ownership of said 1,500 shares of corporate stock of Theodore Gary & Co.; that such proceeding on the part of said defendant administrator is not for the purpose of conserving and protecting said stock for distributees, or for the benefit of creditors of the said decedent, but solely and alone for the fees that might accrue to him in the administration of said property.

Plaintiff seeks to prevent interference on the part of the defendants with his property rights in said stock, and prays that such interests therein be vouchsafed and protected to him.

The defendant ancillary administrator admits practically all the allegations in the bill, except that he denies that there are no debts existing against the estate in Missouri. It is asserted by him that the actual shares of said stock were never in New York, but in Missouri, the domicile of the corporation. He says that it was for the benefit of the estate, and in behalf of creditors in Missouri, that he sought administration upon said shares of stock. He prays for a determination of the interest of the several parties in and to said stock by this court, and for a mandatory injunction compelling Theodore Gary & Co. to issue certificates of stock to him, as ancillary administrator.

Complainant challenges the sufficiency of the cross-bill by his motion to dismiss.

1. By section 9743, R. S. Mo. 1919, "the stock of every company formed" under the laws of Missouri "shall be deemed personal estate." "The general rule is that personal property has no locality, but follows the person of the owner, and is assignable, transferable, or transmissible by his voluntary act, according to the laws of the country of his domicile." 32 Cyc. 675.

2. The foregoing rule is subject to the exception that property of the character in suit may have such a situs in Missouri as to facilitate the collection of taxes thereon, and for the protection of creditors, if any, of the owner in said state. Because of this exception, it has been declared that the situs of shares of stock "for some purposes is at the domicile of the owner, and for some purposes at the domicile of the corporation." Norrie et al. v. Kansas City Southern Ry. Co. et al. (D. C.) 7 F.(2d) 158.

3. The administration laws of Missouri are designed solely for the protection of distributees and creditors. Where the heirs or other beneficiaries and creditors are agreeable to such course, no administration may be had. In fine, interested parties only can demand administration. Johnston v. Johnston, 173 Mo. 91, 73 S. W. 202, 61 L. R. A. 166, 96 Am. St. Rep. 486; Troll v. Landgraf, 183 Mo. App. 251, 168 S. W. 268; Todd v. James, 157 Mo. App. 416, 138 S. W. 929; Bell v. Farmers' & Traders' Bank, 188 Mo. App. 383, 174 S. W. 196.

4. In the instant case, complainant is the only interested distributee of said estate. Subject to the intervening rights of creditors, he is entitled to receive said certificates of stock, and have same transferred upon the books of the corporation. As concerns other beneficiaries of the estate, full title has passed to him. Admittedly the executors, whose duty it was to...