Vaughn v. Tealey

• Decision Date: 22 November 1899
• Citation: 58 S.W. 487
• Parties: VAUGHN v. TEALEY.
• Court: Tennessee Supreme Court

58 S.W. 487

VAUGHN v. TEALEY.

Court of Chancery Appeals of Tennessee.

November 22, 1899.

Appeal from chancery court, Davidson county; H. H. Cook, Chancellor.

Suit by Hiram Vaughn, administrator, against Addie R. Tealey. Appeal from an order setting aside a former order. Reversed.

F. W. Tealey died testate on the 29th of March, 1881, leaving his widow, Addie R. Tealey, their child, Addie R. Tealey, Jr., his sisters, Caroline Malke and Wilhelmina Weckener, and the three children of his brother, August Tealey, deceased. His will was probated at the May term, 1881, of the Davidson county court, and was as follows: "After my just debts are paid, I give and bequeath to my daughter, Addie, all property, real and personal, of which I may die seised and possessed; and should my said daughter Addie, die leaving no child or children, then I will and bequeath all my estate, real and personal, to my sisters, Wilhelmina Weckener and Caroline Malke, and the children of my deceased brother, August Tealey, — the latter children living in the United States, and my two sisters living in Germany. During the life of my daughter I will and bequeath to my sister Wilhelmina Weckener $200 per year during her life, and the children of my brother $100, to be paid them until the youngest shall attain the age of fifteen years. This June 6, 1880. [Signed] F. W. Tealey." On the 4th of May, 1881, Hiram Vaughn qualified as administrator with the will annexed. Mrs. Tealey dissented from the will, and dower was assigned to her, and her year's support also, and the personalty was divided. There was belonging to the estate certain street-railroad stock, going to Addie R. Tealey, Jr., for life, amounting to $19,500. At the same time other persons held the same kind of stock as follows: Judge A. L. Demoss, $12,625; Mrs. Addie R. Tealey, $6,000; Hiram Vaughn, $4,750; Isaac Litton, $800, — aggregating $24,175. The total stock of the street railroad was $72,000, and these persons used the $19,500 going to Addie R. Tealey, Jr., to secure a controlling interest in the company, for the purpose of enabling them to control the road and enhance the value of the stock of all concerned. An offer to purchase $43,675 of this stock was made by John P. White, and on October 23, 1882, Judge Demoss qualified as the guardian of Addie R. Tealey, Jr., and on October 26, 1882, John P. White put his offer in writing, whereby he proposed to purchase the $43,675 of stock at par, everybody to get cash for their stock except Addie R. Tealey, Jr., and she was to get a note at 12 months. Other persons were at that time selling stock at par also. On the same day (October 26, 1882) Judge Demoss, Addie R. Tealey, Sr., and Hiram Vaughn accepted this offer, and on November 4, 1882, said Vaughn, as administrator, and Judge Demoss, as guardian of Addie R. Tealey, Jr., filed a bill in the chancery court of Davidson county, seeking to have the court accept the offer for the minor, Addie R. Tealey, Jr. The main object of the bill was to have the court approve the sale of the stock in the street-railroad company belonging to Addie R. Tealey, Jr., and to have accepted an offer made by one James S. Sharp for the purchase of one of the parcels of realty belonging to the estate, and to sell a vacant lot in McGavock's addition, as being manifestly to the interest of the said minor and the other parties in interest. The bill, however, recited the death of F. W. Tealey, the making of his will, and all of the other facts which have been recited above, together with a statement and description of the property of the estate and its rental value, and gave many reasons why the sale of the stock should be approved, and also the sales of the two lots mentioned. This bill was answered by Addie R. Tealey, Jr., through her guardian ad litem, on the 16th day of January, 1883, and also was answered by all of the other parties in interest (except Caroline Malke, who was not made a party); all parties professing want of knowledge as to the propriety of the action sought, and asking that their rights be protected by the court, except Mrs. Addie R. Tealey, the widow, who filed an answer in thorough accord with the bill. On the 24th of January, 1883, a decree was entered finding all the material facts set forth in the bill, and referring the cause to the master to report upon the propriety of accepting the offer of John P. White for the stock and of Mr. Sharp for the lot, and of the sale of the lot in McGavock's addition. On the 2d of February, 1883, the master reported in favor of all these matters, and his report was confirmed. This decree, after confirming the report, proceeds as follows: "The guardian [Judge Demoss] of Addie R. Tealey, Jr., in open court produced his bond as such, given in the county court, and the same was examined; and the court was of opinion that it was sufficient, and covered the note aforesaid of White and others, and that it should be approved, and that said guardian should hold such note, or its proceeds, for his ward, under the provisions of her father's will, and that he may pass his accounts as such guardian, and make settlements, both as to touching the matters in relation to the real and personal assets of his ward, in this court instead of the county court; and, that the cause should be retained in court for that purpose, doth so decree." The court also ordered a reference to the master to report upon the compensation to Judge Demoss for his services in the cause. On the 20th of July, 1883, the master reported that $1,000 would be a reasonable compensation for Messrs. Demoss & Malone, the firm of which Judge Demoss was a member, for conducting the cause, and to Judge Demoss for his services as guardian of Addie R. Tealey, Jr., for conducting the sale of the street-railroad stock; this $1,000 to be compensation for all of said services. This report was unexcepted to, and was confirmed, and the chancellor ordered that the sum mentioned should be allowed and paid out of the John P. White note of $19,500, and that the allowance should be divided between the firm of Demoss & Malone and Judge Demoss himself, as they might agree. On the 5th of November, 1891, the death of Wilhelmina Weckener was suggested. It was also stated in the order that the master had in his hands rents on the Cherry street lot mentioned in the bill, and he was ordered to report the ages of the defendants Eddie, Minnie, and Carrie Tealey, and what charge their annuity was upon the rents in his hands. On the same day (November 5, 1891) the master reported that the death of Wilhelmina Weckener was proven, and also reported concerning the ages of the children above mentioned, and their interest in the rents above referred to, which need not be specially mentioned here. The master also reported that he had in his hands $1,005.77. The court directed, after reserving $100 out of this to meet the annuity of the children above mentioned, that the residue be paid to Judge Demoss as guardian of Addie R. Tealey, Jr.

On the 21st of December, 1892, Judge Demoss filed a petition in the cause. This petition recited the death of F. W. Tealey, the making of his will, the survival of his widow and child, the appointment of the administrator, the dissent of the widow to the will, and the assignment to her of her rights as widow; the appointment of the petitioner as regular guardian of Addie R. Tealey, Jr.; the filing of the original bill, and the action of the court thereunder; the decree of the court that the cause should remain in court, and that the petitioner should pass his accounts as guardian in said chancery court; that on the 28th of July he had accordingly made a report showing in detail the condition of the estate, with his vouchers showing the disbursements; the approval of this report by the court; that of the $19,500 note on John P. White there was left in his hands, of the date of January 6, 1893, the sum of $17,631.58, as the corpus of the personalty that passed to his ward under the will of her father; the condition of the real estate; the payment to him by the master from time to time of a surplus in his hands over and above the amounts needed to pay the annuities; the sale of the McGavock lot, and the carrying of its proceeds to the corpus of the estate; that petitioner had from time to time received other amounts of money; that he had not carried the surplus fund to the corpus, but had treated it as a separate corpus, belonging absolutely to his ward; that he had in his hands, at the time the petition was filed, as corpus of the estate $19,661.06, and as a balance of income due the ward $3,126.18, making a grand total of $22,787.24; that he had made the statement of his account with annual rests, the petitioner carrying to the credit of his ward annually interest upon all surplus incomes in his hands; that he had credited himself annually with $250 as compensation to him for his services as guardian; that he had been engaged in a very dangerous litigation brought by the Mt. Olivet Cemetery Company against the administrator of Tealey, the widow, the petitioner, and his ward, seeking to recover two lots belonging to the estate, and he had succeeded in settling this suit by the payment of costs. The petition then continues: "Petitioner now shows to the court that, while his ward and her mother have in the warmest terms expressed their satisfaction with his management of the estate, and their desire that he should continue to manage it, yet he feels, in justice to himself, he ought to ask to be permitted to resign. Petitioner states for several years his health has not been good, and that as the result of a very serious attack of illness his strength has now become impaired to such an extent that he no longer feels able or willing to bear the burden of any business except his own. He therefore files this petition to be permitted to pass his accounts before the clerk and master, and turn over to the...