Laughlin v. Laughlin
Laughlin v. Laughlin
Opinion of the Court
Opinion by
This bill was filed by Margaret B. Laughlin, the widow of F. B. Laughlin, to have a trust declared in him for her at the time of his death in certain stocks, the certificates for which stood in his name. Some of them had been issued to him as trustee, without naming the cestui que trust. An answer was filed by his administrator, demanding proof of the allegations of the bill and refusing to assign and transfer the stocks to the complainant until her ownership of them was established. F. B. Laughlin died insolvent. W. O. Stewart, one of his creditors, was permitted to intervene as a defendant and filed
The ownership of the 792 shares of stock was a pure question of fact. To establish it as against the creditors of the insolvent estate of her husband the burden was upon the appellee to show by clear and satisfactory evidence that, when the the securities were purchased by him, she had a separate estate, that it was used by him in purchasing them and that he purchased them for her. The proof of her ownership was of the degree required by the law, and, under it, there could not have been a finding that the stocks awarded to her belonged to her husband. It was not only clear and satisfactory, but consistent, and the appellant offered nothing to impeach it. A recital of the evidence is not needed in this opinion. The facts are of interest only to the parties concerned in the controversy, and it is sufficient for us to say that, standing unchallenged -by any proof offered by the appellant, they made out a complete case for the appellee.
By his 7th, 14th, 15th and 16th assignments, the intervening defendant alleges error in admitting the testimony of S. M. McElroy and Samuel Bailey, Jr., as to alleged declarations by the decedent on the subject of his trusteeship for his wife. When the appellee sold her Penn avenue property in March, 1900, the vendee drew his check to her order for $90,500, which was the amount coming to her after the real estate agent’s commissions had been paid. This check, the proceeds of which were found by the court to have been used for the purchase of nearly all the stocks awarded to the appellee, was handed to F. B. Laughlin, her husband, and by him indorsed, “ M. B. Laughlin, F. B. Laughlin, Trustee,” and deposited to his credit as trustee in the Citizens’ E ational Bank of Pitts-burg on March 3, 1900. When he made the deposit he consulted with McElroy, the cashier of the bank, stating that he
The decedent did not get the purchase money of his wife’s property until March, 1900. lie died in August, 1905, and this proceeding was instituted July 13, 1906. One of the questions raised by the appellant is as to her laches. The eighth finding of fact is that at the time of Laughlin’s death, there were in a box, to which the appellee had the bey, all the certificates claimed by her in her bill of complaint, as well as a number of others standing in her name and not in controversy ; that with these certificates there was a statement in the handwriting of her husband, headed “ List of Stocks and Notes of M. B. Laughlin and F. B. Laughlin, Trustee of M. B. Laughlin,” with their value on April 1, 1901. With this admission of the trust by the husband, laches is not to be imputed to his wife, who filed her bill within less than a year from the time she became his widow. As to this feature of the case the court below very properly said : “ She is old, has been bedridden for years, is now blind, and of frail mind. She had a right to assume that her husband, as agent and trustee, was preserving her property in her name.”
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- Trust and trustees — Husband and wife — Wife’s property in husband’s name — Evidence—Laches. Where a wife claims as her own, securities standing in the name of her deceased husband, she cannot establish a trust in such securities for herself as against her husband’s creditors, unless she shows by clear and satisfactory evidence that when they were purchased by him, she had a separate estate, that it was used by him in purchasing them, and that he purchased them for her. In such a case witnesses for the wife may testify as to what the husband had stated to them as to his trusteeship for his wife, and what he actually did and wanted done in connection with his management of her estate. A wife cannot be charged with laches in delaying for eleven months to file a bill in equity to have a trust declared in her favor as to certain securities standing in her husband's name, but claimed to have been bought with her money, where it appears that such securities, with others standing in her own name, were in a box to which she had the key, and in this box was a statement in the handwriting of her husband headed “ List of stocks and notes'' of the wife, naming her, and naming himself as “ trustee of ” the wife, and it also appears that the wife was old, blind, had been bedridden for years, and was of frail mind.