E.R. Spotswood & Son v. Estes

• Decision Date: 28 September 1915
• Citation: 178 S.W. 1082,165 Ky. 743
• Parties: E. R. SPOTSWOOD & SON v. ESTES.
• Court: Kentucky Court of Appeals

178 S.W. 1082

165 Ky. 743

E. R. SPOTSWOOD & SON v. ESTES.

Court of Appeals of Kentucky.

September 28, 1915

Appeal from Circuit Court, Pulaski County.

Action by J. E. Estes against E. R. Spotswood & Son, a corporation consolidated with an action by defendant against plaintiff.From the judgment for plaintiff, defendant appeals.Reversed with directions.

O. H Waddle & Sons, of Somerset, for appellant.

Wesley & Brown, of Somerset, for appellee.

CARROLL J.

From 1902 until November, 1910, the appellee, Estes, was employed by the appellant, Spotswood & Son, a corporation, to look after and manage its business in Pulaski county relating to the purchase and manufacture of timber.In 1910 Estes was discharged, and in 1911 brought a suit to recover $3,430.42 alleged to be due him as salary, subject to credits amounting to something over $400.For answer to this suit Spotswood &amp Son admitted its indebtedness to Estes on account of his claim for salary, but asserted a counterclaim against him for some $9,000, that it alleged was the amount due by him on a correct settlement of the matters in issue between them.

Shortly after the institution of this suit, Spotswood & Son brought a suit against Estes, seeking to have conveyed to it a tract of land purchased by and conveyed to Estes, on the ground that the conveyance to Estes was a fraud upon its rights.After this the two suits were consolidated, and referred to the master commissioner of the court for settlement of the accounts.The commissioner filed a report, to which exceptions were duly taken by Spotswood & Son; but the exceptions were overruled, and judgment given in favor of Estes, in accordance with the report of the commissioner, for $2,713.39, with interest from June 1, 1910, and the costs of each of the consolidated actions.From this judgment, Spotswood & Son appeals.

The principal office of Spotswood & Son was in Lexington, Ky. and its business in Pulaski county consisted in purchasing timber and manufacturing it into lumber.This business, which included the buying of timber, the employment of hands, the purchase of material and machinery, and everything connected with the manufacture of timber into lumber, was in charge of Estes.In the management of this extensive business, during the eight years of his employment, Estes received and expended for Spotswood & Son about $84,000.

It appears the business between these parties was conducted substantially as follows: Spotswood & Son, as stated, had its principal office and place of business at Lexington, Ky. some distance from Pulaski county, and all of the money expended in its business in the purchase of timber and the manufacture of it into lumber was attended to by Estes.From time to time Estes would make out statement, showing the money needed in the transaction of the business, as well as the money that had been expended by him in the business since the last report, and send this statement or account to Spotswood &amp Son, and it would then forward to him the needed money.Spotswood & Son had implicit confidence, not...