McDonald v. First Nat. Bank of Kansas City
McDonald v. First Nat. Bank of Kansas City
Opinion of the Court
The First National Bank of Kansas City, Mo., filed its bill of interpleader setting up that John M. W. Pratt and L. E. McDonald each claimed to be the owner of the same 50 shares of the capital stock of the bank and the dividends due thereon, and praying that they might be summoned in and required to assert and litigate between themselves the question as to which of them was the owner of the stock and the unpaid dividends thereon. The parties appeared and set up their respective claims to the stock. John M. W. Pratt, for convenience hereafter designated as the plaintiff, claimed to have acquired the title to the stock under and by virtue of execution sales thereof on two judgments, one for $1,696, and one for $5,375, recovered by him in the circuit court of Jackson county, Mo., against Charles W. McDonald, who prior to 1892 was admittedly the owner of the stock. For the fraudulent purpose of escaping the payment of alimony to his wife, whom he expected would procure a divorce, C. W. McDonald transferred the shares of stock in controversy, with shares of the capital stock of other national banks, to the plaintiff, and later they were transferred to L. E. McDonald, for convenience hereafter designated as the defendant, who claims to- have purchased the same from the holder thereof, and the shares now stand on the bank stock register in his name.
In the view we take of the case, it is not necessary to go into the history of the transactions between the plaintiff and Charles W. McDonald relating to the shares of stock in controversy in this suit and the shares of stock of other national banks concerning which they had dealings. It is enough to say that, as a result of these transactions, it is, for the purposes of this case, conclusively established by the judgments in the state court that Charles W. McDonald became the debtor of the plaintiff in the sum of the two judgments recovered against him. It is equally clear that, if when the shares of stock in controversy were attached and sold they were in fact the property of C. W. McDonald, then the plaintiff is the owner of the same by virtue of his purchase thereof at the execution sale.
There is a great deal of testimony relating to the alleged purchase
We cannot escape the conclusion from the evidence that, if Robinson is not a myth, he was the mere cat’s-paw of C. W. McDonald, and that wherever his name figures in the transaction it stands for that of C. W. McDonald; that when the plaintiff delivered the certificate of stock indorsed in blank to “Robinson” the delivery was in fact to and for the use of C. W. McDonald; that no bona fide sale of the stock was made to the defendant; and that the defendant at no time had any right, title, or interest in the stock other than to hold it in his name in trust for C. W. McDonald, for the purpose of enabling the latter to defraud those to whom he was, or expected to become, indebted.
The decree of the circuit court is affirmed.
Reference
- Full Case Name
- McDONALD v. FIRST NAT. BANK OF KANSAS CITY
- Status
- Published