Tracy v. Sluggett

• Decision Date: 11 September 1950
• Docket Number: No. 41644,No. 1,41644,1
• Citation: 232 S.W.2d 926,360 Mo. 1120
• Parties: TRACY et al. v. SLUGGETT et al
• Court: Missouri Supreme Court

Page 926

232 S.W.2d 926

360 Mo. 1120

TRACY et al. v. SLUGGETT et al.

No. 41644.

Supreme Court of Missouri, Division No. 1.

Sept. 11, 1950.

Motions for Rehearing or to Transfer to Court en Banc Denied

Oct. 9, 1950.

John T. Sluggett, St. Louis, pro se and attorney for Elizabeth Sloan Delany and John T. Sluggett III.

Stephen C. Rogers, St. Louis, for appellants Margaret Watson and Marie Schaefer.

Richard D. Gunn, St. Louis, guardian ad litem and next friend for appellant Elizabeth Martin, a minor.

J. L. London, St. Louis, for respondents Edwin F. Tracy and Mary K. tracy.

Walther, Hecker, Walther & Barnard, St. Louis, for resondent Walter L. Roos, guardian of the Person and Estate of Elizabeth S. Delany.

VAN OSDOL, Commissioner.

Action in equity to cancel a trust indendure executed by Elizabeth Sloan Delany, to quiet title, and for other relief. The action was instituted by Edwin F. Tracy, a fourth cousin of Elizabeth Sloan Delany, and by his mother, Mary K. Tracy, against John T. Sluggett III, personally and as trustee under the indenture; and against Marie Schaefer, Margaret Watson, and Elizabeth Martin, a minor, daughter of Marie Schaefer, beneficiaries. The donor in the indenture, Elizabeth Sloan Delany, alleged to be of unsound mind, was also joined as a party defendant as was John T. Sluggett, an attorney, who had supervised the preparation of the trust instrument and who has appeared and filed answer for defendant Elizabeth Sloan Delany. Walter L. Roos, who had theretofore been appointed guardian of the person and curator of the estate of Elizabeth Sloan Delany, was granted leave to intervene. The trust instrument, which plaintiffs seek to cancel, conveyed and assigned to the trustee realty and personalty of alleged value in excess of $300,000.

The case involves questions of the power of a court of equity to act in matters involving a person and the property of a person of unsound mind.

Plaintiffs alleged in their petition that Elizabeth Sloan Delany was of unsound mind and incapable of managing her affairs and had been so adjudged by the Probate Court of the City of St. Louis; that the Probate Court had appointed Walter L. Roos guardian, but an appeal had been taken to the Circuit Court, wherein, upon a trial de novo, a jury found Elizabeth Sloan Delany to be of unsound mind; that defendant John T. Sluggett, purporting to act for Elizabeth Sloan Delany, had indicated he would file a motion for a new trial and perfect an appeal from the ensuing judgment; that the trust instrument is void by reason of the mental incapacity of Elizabeth Sloan Delany, and by reason of the undue influence and duress exercised upon her by defendants Marie Schaefer and Margaret Watson; that the trust instrument constitutes a cloud on the title to real property belonging to Elizabeth Sloan Delany; that defendant John T. Sluggett, attorney, was only purporting to act for Elizabeth Sloan Delany in the insanity proceeding and was in reality acting for and on behalf of defendants Marie Schaefer, Margaret Watson and Elizabeth Martin; that defendants John T. Sluggett and John T. Sluggett III (father and son) have acted for the benefit of the trustee and defendants Marie Schaefer, Margaret Watson and Elizabeth Martin rather than for the benefit of Elizabeth Sloan Delany; that plaintiff have reasonable cause to believe that defendants may sell and convey the property of Elizabeth Sloan Delany, and her estate may be dissipated and squandered; and that plaintiffs have instituted the action primarily for the benefit and protection of Elizabeth Sloan Delany and for the preservation of her property, and, secondarily, for themselves and others similarly situated, that is, 'on behalf of other heirs who have an inheritable and contingent interest' in the property, particularly the real estate of Elizabeth Sloan Delany. Plaintiffs prayed for the cancellation of the trust indenture; for an order enjoining defendants from transferring the property or interfering with the person of Elizabeth Sloan Delany; for the appointment of a receiver or guardian ad litem to recover and protect the property, and for orders of accounting, and restoration of other property which defendants have heretofore acquired during the mental incompetency of Elizabeth Sloan Delany; and for a decree determining the title to the real property to be in Elizabeth Sloan Delany, free of all claims of other defendants; and for other and full and complete relief.

The intervener, Walter L. Roos, adopted certain paragraphs of plaintiffs' petition, and further alleged the Elizabeth Sloan Delany, because of her condition, should have the protection of a guardian of her person and property; that 'a cloud has been cast upon the status' of the intervener; and that he has heretofore instituted actions to recover her personalty. The intervener prayed the court to hold the trust instrument void ab initio, and to declare him to be the duly appointed guardian and exclusively in charge of the person and property of Elizabeth Sloan Delany under the supervision of the Probate Court of the City of St. Louis; that the court make such orders as are necessary for her protection and for the conservation of her property; and that he be directed to recover all of her properties, real and personal, and wherever situate.

Having heard the evidence, the trial court found it had jurisdiction because of and under and by virtue of Sections 1684 and 2100, R.S. 1939, Mo.R.S.A. Secs. 1684, 2100, as well as by virtue of the inherent jurisdiction of a court of equity over persons of unsound mind; that May 16, 1947, Elizabeth Sloan Delany had been adjudged as of unsound mind by the Probate Court, and intervener Walter L. Roos appointed guardian; that Elizabeth Sloan Delany had been of unsound mind for at least three years prior to the adjudication of May 16th; that defendants have acted in consort with each other in depriving Elizabeth Sloan Delany of her property; that the trust instrument is not the instrument of Elizabeth Sloan Delany but of defendants Marie Schaefer and Margaret Watson; that the instrument is unconscionable and the result of the concerted efforts of defendants Marie Schaefer and Margaret Watson to obtain the control, use and benefit of the property of Elizabeth Sloan Delany; that intervener Walter L. Roos has all the powers and duties of a guardian, and a sufficient interest in the subject matter to permit his intervention in the cause; that a large part of the estate of Elizabeth Sloan Delany has been dissipated; and that ancillary orders theretofore entered by the Circuit Court were proper. The trial court ordered, in part, that none of the defendants other than Elizabeth Sloan Delany has any interest in her property; that the trust indenture be declared void; that conveyances (executed by Elizabeth Sloan Delany) of real property in the State of Michigan be declared void, and surrendered by John T. Sluggett III for cancellation, he to execute a reconveyance of the property to Elizabeth Sloan Delany; that defendants Marie Schaefer and Margaret Watson return all moneys and other property received by them during a three-year period prior to May 16, 1947, and to the time of the rendition of the judgment; that temporary restraining and eviction orders, theretofore entered, be made permanent; that in order to avoid a multiplicity of suits the court should assume jurisdiction of other actions pending in the Circuit Court of the City of St. Louis, with the view of according the parties complete relief; and that the court retain jurisdiction for such further action as the court might deem proper in order to collect and preserve the property of Elizabeth Sloan Delany.

Elizabeth Sloan Delany is the childless widow of John O'Fallon Delany who died in 1930. When the proceeding of inquiry into her sanity was instituted in 1947, she was 89 years old. Her property then consisted of the Delany residence (and valuable personalty therein) on Lindell Boulevard, a rental building at the southwest corner of the intersection of Tenth and Locust Streets in St. Louis, and parcels of land and summer cottages thereon at Douglas, Michigan. Mrs. Delany's nearest relatives are cousins of the second degree. Margaret (Smith) Watson, defendant, was first employed by Mrs. Delany as a cook in 1917 or 1918, and has continued to serve in various capacities in the Delany home. When Margaret first came to the Delany home, she brought with her a small daughter, Marie Smith, child of a former marriage. Marie was then four years old. Mrs. Delany became fond of Marie, who was treated as a member of the Delany family; however, although urged to do so by Margaret and Marie, Mrs. Delany always refused to adopt Marie. Marie married one Martin in 1931; and Elizabeth Martin, defendant, namesake of Mrs. Delany, was born to the marriage. Later, the Martins were divorced. Three subsequent marriages of Marie were also dissolved by divorce. At and for some time prior to the trial of the instant case, Marie was married to August Schaefer.

An inquiry into the sanity of Mrs. Delany was instituted May 9, 1947, in the Probate Court of the City of St. Louis, by one Kathleen Franciscus. The Probate Court found Mrs. Delany was of unsound mind and incapable of managing her affairs, and appointed Walter L. Roos, intervener-respondent herein, guardian of her person and estate. John T. Sluggett, defendant, acting as attorney for Mrs. Delany, perfected an appeal to the Circuit Court of the City of St. Louis, wherein, in Division No. 4, December 1, 1947, Judge Robert L. Aronson presiding, the case was tried before a jury; but a mistrial was declared. The jury could not agree upon a verdict. January 8, 1948, Mrs. Delany purportedly executed the trust indenture, more particularly referred to infra. April 5, 1948, a second trial was had before a jury in Division No. 5 of the Circuit Court, Judge Francis E. Williams presiding. The jury...