Walton v. American Inv. Co.'s Receiver

• Decision Date: 02 November 1910
• Parties: WALTON v. AMERICAN INVESTMENT CO.'S RECEIVER.
• Court: Kentucky Court of Appeals

131 S.W. 275

140 Ky. 472

WALTON v. AMERICAN INVESTMENT CO.'S RECEIVER.

Court of Appeals of Kentucky.

November 2, 1910

Appeal from Circuit Court, Fayette County.

Action by the American Investment Company's Receiver against Matthew Walton. Judgment for plaintiff. Defendant appeals. Affirmed.

Forman & Forman and T. T. Forman, for appellant.

Thornton & Johnston and R. A. Thornton (John R. Allen and Charles Kerr, of counsel), for appellee.

HOBSON J.

On February 19, 1902, the president of the American Investment Company was out of the state, and its business was conducted by the vice president and secretary. They placed in the hands of Mat Walton $10,940 of the company's money, under an agreement then made with him that he was to deposit it in the Ph nix National Bank of Lexington, and that they were to give checks on the bank in settlement of the coupons and general expenses of the company without actually having any money to the credit of the company in the bank, but, when certain amounts were paid out by way of overdraft, he was to make the overdraft good by his check as trustee on the $10,940; it being agreed that he should receive a fair and reasonable compensation for his services. The reason the arrangement was made was that the vice president and secretary feared that the fund would be attached by dissatisfied holders of coupons if it remained in the bank to the credit of the company, and so it was placed in Walton's hands to keep it intact and to protect it from attachment. A number of checks were drawn by the company, and on March 1st Walton made the overdraft good by his check for $7,500. On March 12th, he made another check for $2,400 to cover an overdraft up to that time. On the same day he rendered an account to the company for $300 and drew a check payable to himself for this amount. On March 14th the company made an assignment for the benefit of its creditors to Joe S. Botts. Walton then tendered to Botts, as assignee, a check for $740, being the balance left in his hands. Botts declined to accept the check for $740, insisting that Walton should pay him $1,040, being the balance of the fund in his hands after deducting the $9,900 which he had paid out on the overdrafts. Walton declined to pay the $1,040, and this litigation ensued; the facts being submitted to the circuit court on practically an agreed case. The court adjudged Walton to pay Botts $1,040. Walton appeals.

The thing in controversy is $300, the sum which Walton paid himself out of the trust fund; one-half of it being for his commissions as trustee, and the remainder for services he had rendered the investment company as its attorney. The circuit court held that he was entitled to no compensation as trustee, and that for his services as attorney for...