State ex rel. Bearden v. Am. Surety Co.

Decision Date23 April 1937
Docket NumberNo. 5815.,5815.
Citation104 S.W.2d 755
PartiesTHE STATE OF MISSOURI, AT THE RELATION AND TO THE USE OF JAMES P. BEARDEN, RESPONDENT, v. AMERICAN SURETY COMPANY OF NEW YORK, A CORPORATION, APPELLANT.
CourtMissouri Court of Appeals

Appeal from the Circuit Court of Butler County. Hon. Robert I. Cope, Judge.

REVERSED AND REMANDED.

L.E. Tedrick, M.H. Henson and Phillips & Phillips for respondent.

Bryan, Williams, Cave & McPheeters for appellant.

FULBRIGHT, J.

This is an action initiated in the Circuit Court of Butler County by the plaintiff on the bond of John W. Young, deceased, formerly guardian of the person and estate of the relator, James P. Bearden, who was at the time a person of unsound mind and incapable of managing his affairs, for the recovery of $2147.85, alleged to have been wrongfully and unlawfully expended by said John W. Young as said guardian.

The petition is in two counts. For the purpose of this opinion it is unnecessary to set them out at length. The answer to each of the counts is a general denial. In addition, and as an affirmative defense, defendant alleges that the items for which plaintiff seeks to recover were contained in annual settlements made by the deceased guardian and that certain other items were contained in the final settlement made by the administratrix of said deceased guardian. It also pleaded the good faith of the deceased guardian in contesting the application for a determination and finding that relator at the time had recovered his sanity. The answer to both counts are similar alleging that no objections or exceptions were made to the settlement of the administratrix of the deceased guardian, that no appeal was taken therefrom, that the probate court approved all annual settlements and said final settlement, and that said final settlement has the force and effect of a final judgment and could not be attacked collaterally.

The cause was submitted on an agreed statement of facts which is as follows:

"1. That James P. Bearden was adjudicated incompetent by the Probate Court of Reynolds County, Missouri, on the 16th day of August, 1918.

"2. That John W. Young was appointed guardian of the person and curator of the estate of the said James P. Bearden on the 17th day of December, 1925, succeeding a former guardian and curator.

"3. That the said John W. Young executed the bond sued on in this cause, same being signed by the American Surety Company, the defendant herein, and duly approved by the Probate Court of Reynolds County, Missouri, a copy of which is hereto attached, marked `Exhibit A' and made a part hereof.

"4. That immediately after the filing of said bond the said John W. Young entered upon the discharge of his duties as such guardian and curator and once each year thereafter filed in the office of the Probate Judge of Reynolds County, Missouri, a statement of his accounts as such guardian and curator, including all receipts of property or money and all disbursements made by him, nine in all, which were all duly approved by said Probate Court.

"5. That on the 15th day of September, 1933, proceedings were instituted in the Probate Court of Reynolds County, Missouri, by William Rhea on behalf of James P. Bearden for the purpose of determining whether Bearden had been restored to his right mind and a hearing was had before the Judge of said court on September 25, 1933, who decided adversely to Bearden. Whereupon and thereafter, Rhea requested a trial by a jury, which was had on November 14, 1933, which resulted in a verdict for Bearden. Young then appealed the cause to the Circuit Court of Reynolds County, Missouri, where the case was tried de novo on the 29th and 30th days of May, 1934, again resulting in a verdict for Bearden. Whereupon, Young perfected his appeal to the Springfield Court of Appeals, which said court affirmed the judgment of the trial court on the 7th day of October, 1935.

"6. That this suit is brought to recover the expenses of the above mentioned litigation incurred by Young in resisting Bearden's suit for restoration, and which were paid out of Bearden's estate by Young, itemized statements of which are hereto attached, marked `Exhibits B and C' and made a part hereof.

"7. That the said John W. Young died on the 23rd day of July, 1935, and his widow, Rebecca Young, was, on July __, 1935, appointed administratrix of his estate and duly qualified as such.

"8. That on the 30th day of July, 1935, O.C. Lucy was appointed as successor guardian and curator of the estate of James P. Bearden, and on said date accepted the appointment and filed his bond, which was duly approved by the Court.

"9. That on the 20th day of August, 1935, the said Rebecca Young, in her capacity as administratrix of the estate of John W. Young, filed with the Probate Court of Reynolds County, Missouri, what she designated as her final settlement of the account of the said John W. Young, deceased, as guardian and curator of the estate of James P. Bearden, which was sworn to before the said O.C. Lucy and a copy thereof delivered to him on the 15th day of August, 1935, a copy of said settlement is hereto attached, marked `Exhibit D' and made a part hereof.

"10. That Rebecca Young delivered to O.C. Lucy on the 15th day of August, 1935, copies of the settlement which she subsequently filed as and for a final settlement, and the said O.C. Lucy receipted for it as such; that on said date she also delivered to him vouchers numbered from 1 to 44, inclusive, totaling $1285.05, which she stated represented legitimate expenditures by the guardian and which O.C. Lucy receipted for as such; that she also delivered to him a statement of the Bank of Piedmont showing the said estate had on deposit in said bank the sum of $1019.72; that she delivered to O.C. Lucy also at said time two assignments of fees to the estate of James P. Bearden and her check as administratrix of the estate of John W. Young for $226.64, representing the amount of cash belonging to the estate of James P. Bearden which John W. Young had in his possession at the time that he died; that thereafter, and on the — day of August, 1935, and after O.C. Lucy had been appointed guardian and curator of the estate of James P. Bearden and after Rebecca Young had filed her said settlement, and after it had been examined and approved by the Probate Court of Reynolds County, Missouri, Rebecca Young delivered to the said O.C. Lucy, as guardian and curator of the estate of James P. Bearden, the deeds of trust and notes and the bonds listed in the said settlement of Rebecca Young, and the said O.C. Lucy, in his capacity as guardian and curator of the estate of James P. Bearden, executed and delivered to Rebecca Young his receipt for said property. A copy of the receipt for copies of the said settlement of Rebecca Young, the said vouchers, bank statement, assignments and check dated the 15th day of August, 1935, and a copy of the receipt for the deeds of trust, notes and bonds dated the — day of August, 1935, being in one instrument, is hereto attached, marked `Exhibit E' and made a part hereof.

"11. That no notice of the time and place of the final settlement was ever published in any newspaper, and that no notice thereof was ever delivered to James P. Bearden, or O.C. Lucy, the successor guardian and curator.

"12. That said Rebecca Young, administratrix of the estate of John W. Young, deceased, did not cause a copy of her settlement of the estate of John W. Young, deceased, together with a written notice stating the day on which and the court in which she would make such settlement, to be delivered to James P. Bearden or to O.C. Lucy as successor guardian and curator of the estate of James P. Bearden, at least four weeks next before the first day of the term of the Probate Court of Reynolds County, Missouri, at which said purported settlement was filed and approved.

"13. That in her settlement the said Rebecca Young charged the said John W. Young with all of the assets remaining in his hands after the disbursements and expenditures made by him and accounted for in his several annual settlements and which disbursements and expenditures in his several annual settlements had been duly approved by the Probate Court of Reynolds County, Missouri, and also charged the said John W. Young with all moneys and property which he had received as guardian and curator of the estate of James P. Bearden following the date of his last annual settlement.

"14. That said settlement was examined, considered and approved by the Probate Court of Reynolds County, Missouri, on the 20th day of August, 1935.

"15. That same was also approved by the Veterans Administration of Jefferson Barracks, Missouri.

"16. That there is no controversy about any of the settlements made by John W. Young except the eighth and ninth annual settlements, copies of which are hereto attached, marked `Exhibits F and G,' respectively, and made a part hereof, and the settlement made by Rebecca Young and hereinabove referred to as Exhibit D.

"17. That when the said John W. Young appealed from the judgment of the Circuit Court he filed in said court a supersedeas bond.

"18. That although John W. Young died on July 23, 1935, while said appeal was pending, there was no reviver of said cause of action in said Court of Appeals against O.C. Lucy as guardian and curator, or against Rebecca Young as administratrix, or against the successors in interest of said John W. Young.

"19. That prior to and at the time of his opposing Bearden's restoration, Young had been advised by several experts in mental diseases that Bearden was insane and had not recovered his sanity and was also informed by a number of citizens who had occasion to observe Bearden, but who were not experts in mental diseases, that in their opinions the said James P. Bearden had not recovered his sanity.

"20. That Young himself was of the opinion Bearden was insane and that he had been advised by his...

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