Priest v. Capitain

• Decision Date: 02 July 1917
• Docket Number: No. 20033.,20033.
• Citation: 197 S.W. 83
• Parties: PRIEST et al. v. CAPITAIN et al.
• Court: Missouri Supreme Court

197 S.W. 83

PRIEST et al. v. CAPITAIN et al.

No. 20033.

Supreme Court of Missouri, Division No. 1.

July 2, 1917.

Motion for Rehearing or to Transfer to Court in Banc Denied July 14, 1917.

Error to St. Louis Circuit Court; Thos. C. Hennings, Judge.

Suit by John G. Priest, trustee, and others, against Sophia M. Capitain and others, wherein Ringrose J. Capitain and Isabella Capitain Williams, of the defendants, sought to secure the remainder of a trust fund from the Mississippi Valley Trust Company, trustee; the Wagner Electric Manufacturing Company becoming interpleader for the fund. From a judgment denying its right, it appealed, but dismissed the appeal, and sued writ of error. Judgment affirmed.

Albert Blair, John F. Lee, Arthur Digby and Thomas S. McPheeters, all of St. Louis, for Wagner Electric Mfg. Co. Robt. E. Collins and Edward D'Arcy, both of St. Louis, for Mississippi Valley Trust Co. Douglas W. Robert, of St. Louis, and William F. McLaughlin, of Los Angeles, Cal., for defendants in error.

GRAVES, J.

This case, and others growing out of it, has had a long and checkered career. In October, 1869, Ringrose J. Watson conveyed to trustees, for the use and benefit of his daughter, Sophia M. Watson, a tract of about 33 acres of land in St. Louis county. The conveyance was such that the said Sophia had a life estate only, with remainder to the heirs of her body. Sophia married one Frank J. Capitain shortly thereafter. John G. Priest was not a trustee named in the deed, but was appointed as a successor trustee by the circuit court of the city of St. Louis; the original trustees having resigned. In 1892 Priest, the trustee, applied by petition to the circuit court for an order to sell the land to one Stewart at the price and sum of $48,000. Sophia M. Capitain and her three minor children were first made defendants. An adult child, Manette, and the husband, Frank J., joined with the trustee in this action. Mrs. Capitain was insane at that time, and did not recover her sanity until 1905. Attempted service of process was made in Los Angeles, Cal., upon Sophia M. Capitain and her three minor children, Ringrose J., Isabella, and Chouteau. This service was recognized by the court, and in 1892 decree was entered authorizing the sale to Stewart for $48,000, and the sale was made and money paid. Out of the money existing incumbrances and taxes were paid, and shortly thereafter the Mississippi Valley Trust Company was appointed trustee, upon the resignation of John G. Priest. Priest turned over to such company about $35,000, which trust fund it held and undertook to administer. Stewart conveyed, and through mesne conveyances the title passed, until in 1905, as stated in appellants' brief, it thus stood:

"The right of way of the Wabash Railway Company passed through the entire tract from south to north, dividing it into two principal portions. The one on the western side, about 10 acres in quantity, was then occupied and claimed by the Continental Realty Company, and was called `Peach Orchard.' The portion of the Capitain tract east of the Wabash right of way was divided into four parcels: First, the land belonging to the South Riverdale Syndicate, consisting of about 5.33 acres; second, the North Cornet tract, consisting of about 2.22 acres; third, the South Cornet tract, consisting of about 2.33 acres; fourth, that portion held by Edward Pryor, trustee for the Wabash Company, consisting of about 10 acres. All of these pretended titles had been acquired by mesne conveyances from A. K. Stewart, the original purchaser from Priest. Between the north and south Cornet parcels Plymouth avenue extended from east to west."

The deed from Priest to Stewart purported to convey both the life estate and the estate in remainder. It contained no specific covenant of seisin, nor did the Watson deed contain such specific covenant. In 1905 the Wagner Company, appellant herein, wanted ground in that territory, and took options on portions of the Capitain lands. Through its investigation of the title it was discovered that there was trouble in the service of the process in California upon which the decree of sale had been made.

In 1906 the three Capitain children who were minors in 1892, upon which this attempted service was had, brought suit to set aside this decree of sale. This suit was against the Mississippi Valley Trust Company and others. Whilst this suit was pending the defendants therein undertook to amend the return of service of process in the old case of Priest v. Capitain, and were permitted so to do. From that order and judgment an appeal was taken to this court. This order and judgment allowing such amendment was reversed, and the cause remanded, with directions. Priest v. Capitain, 236 Mo. 446, 139 S. W. 204.

With this amended return in evidence in the case of Capitain v. Mississippi Valley Trust Co. et al., the court proceeded to try the case upon its merits, and as a matter of course found for the defendants. From this judgment the plaintiffs appealed to this court, and such judgment was reversed, and the cause remanded. Capitain v. Trust Co., 240 Mo. 484, 144 S. W. 466. In reversing and remanding the cause we then said:

"What view the trial court might have taken of this case under the views which we have expressed as to this amended proof of service, and the judgment of the circuit court in the original Priest Case on the original proof of service, is not exactly clear. The court erred in holding the original judgment valid and binding, and for that error its judgment must be reversed, and cause remanded. With that original decree held to be good, there was nothing of substance left in plaintiffs' bill. With that judgment and decree held to be bad, as we have indicated should be held, it would of necessity force a fuller consideration of other matters pleaded in the answer. The petition we think states a good cause of action, but we will leave the matters of defense open to a more thorough consideration upon a retrial of the cause, in the light of the views expressed in this opinion, as well as those expressed in the opinion in the original Priest Case. These questons were on the former trial overshadowed by the greater question of the validity of the original judgment. With these views we reverse and remand the cause."

Pursuant to this order the cause was retried, and there was a judgment for defendants, from which the plaintiffs again appealed. Capitain v. Trust Co., 177 S. W. 628.

In this case we then held that, whilst the judgment in Priest v. Capitain was void, and further that plaintiffs, in their said action to set aside that decree, were not barred by the statute of limitations, yet we further held that all of the plaintiffs had ratified the sale under such judgment by securing and accepting proceeds of such sale, and were therefore estopped from questioning the validity of the sale or the deed made thereunder.

Some other data becomes material. In the summer of 1905 the Wagner Company had taken options on some three portions or subdivisions of the original Capitain lands. These options were from Cornet and the South Riverdale Syndicate, and for these the Wagner people had paid respectively $500 and $1,000. The Wagner Company also paid $4,000 for an independent tract to make switch connections with the Wabash Railroad. Then it was discovered by Mr. Blair that there was a defect in the title. These option contracts were never complied with, within the time. To correct the defect in title Cornet brought suit in St. Louis county, and the bringing of this suit was shortly followed by the suit of Capitain v. Trust Co. to set aside the order of sale and sale, which case on appeal here is first reported in 240 Mo. p. 484, 144 S. W. 466, and upon second appeal in 177 S. W. 628.

The Wagner Company, being anxious to get its factory site permanently settled, began to take steps. Accordingly on March 10, 1906, the said Wagner Company took a quitclaim deed from the Capitain heirs to the three parcels of land, two parcels of which stood of record in the name of Henry L. Cornet, and one parcel in the name of the Riverdale Syndicate through trustee. This deed also covered Plymouth avenue, a street between the two Cornet tracts. The recited consideration was $1. About the same time said Wagner Company took a quitclaim deed from Cornet conveying the two tracts for the recited consideration of $24,000, but the actual consideration was $23,000 out of which was deducted the option money of $500, although the option had expired. At or about the same time the said Wagner Company took a quitclaim deed from the trustee of the South Riverdale Syndicate for the other tract. The pendency of these transactions no doubt accounts for the fact that neither Cornet, the Wagner Company, nor the South Riverdale Syndicate, through its trustee, were never made parties to the suit of Capitain v. Trust Co., supra. Cornet dismissed his suit to try title.

In 1908 Sophia M. Capitain died, and a new set of facts blossomed out in the Capitain Case. In 1909, February 27th, Chouteau Capitain received and receipted for his part of the trust fund in the hands of Mississippi Valley Trust Company. The decree of the circuit court dismissing plaintiffs' bill in Capitain v. Trust Co. was in December, 1908, and that case was on appeal here. On February 3, 1909, Manette (Capitain) Raab had likewise receipted for and received her portion of the said trust fund. On July 1st following Ringrose J. Capitain and Isabella (Capitain) Williams received and receipted for one-half of the remainder of the trust fund which remained, which remainder, with accrued interest, was the sum of $16,535.95, less such sum as might be due the trustee for administering the trust.

It is the remaining one-half of this remainder that is in dispute in this case, and it was upon these facts as to participating in this fund by all the Capitain heirs that upon the second...