Eldredge v. Putnam
Eldredge v. Putnam
Opinion of the Court
The learned counsel for the plaintiff insists that it was error on the part of the court below, to sustain the demurrer on the ground that James Patrick was a necessary party plaintiff. At the same time the counsel frankly admits the general rule to be, that, in actions to obtain an accounting and settlement of a trust fund, all persons interested in such accounting and entitled to share in the distribution are necessary parties; but he claims that the facts stated in the complaint bring the case within one of the well recognized exceptions to that rule. An exception is, that where each beneficiary is entitled to an aliquot part, such as a quarter or half of an ascertained and definite trust fund, each may sue for his portion, as was done in Hubbard v. Burrell, 41 Wis., 365, without making the other beneficiaries parties. Such, he says, is the
According to the complaint, the plaintiff’s assignor, Erwin Evelith, and James Patrick were to receive, as payment for their services in selecting, examining and locating the lands described for the defendant and William S. Patrick, one-eighth of the proceeds of the sales of such lands, less one-eighth of all taxes and interest paid on the same while held by the defendant and William S. Patrick. It is stated that, by an agreement between Evelith and James Patrick, for the lands which were examined and selected by them jointly, each was to receive an undivided one-sixteenth of such sales; while for those which each separately examined and selected, the party so selecting was to receive the entire one-eighth. The number of acres selected by each separately, and by Evelith and Patrick together, is stated. It further appears that all the lands were sold by William S. Patrick, in whom the legal title was vested for that purpose, for the joint benefit and profit of himself and the defendant; and the price received per acre on such sales is alleged. It does not appear, however, that there was ever any accounting and settlement of these various transactions between the defendant and William S. Patrick; though it is stated that the latter died in Pennsylvania in January, 1877, leaving the defendant the sole surviving promisor and trustee, under the written acknowledgment of trust set forth in the complaint. The plaintiff then alleges, upon information and belief, that, during the year 1877 and before the commencement of this suit, the defendant herein fully accounted
The relief asked is, that the partial, imperfect and fraudulent accounting be set aside and held of no effect; that an accounting may be had between the plaintiff and defendant of all the sales and adventures in said lands, and of and concerning the profits, proceeds and receipts of the same and the whole thereof; and that, after deducting such sums as should of right be deducted in the premises, the plaintiff may have a judgment against the defendant for such sum as shall, on such accounting, be found due him for his individual and separate share of the purchase money received by William S. Patrick and the defendant, or either of them.
We have thus given at some length the more material parts of the complaint, in order to show the purpose and scope of the action. It will be seen that the object of the suit is to set aside the' alleged fraudulent settlement or accounting made with the plaintiff by W. S. Patrick in 1873, and for a general accounting of the sales and profits from all the lands, as well
But it was further said that the complaint shows that James Patrick’s interest in the fund has wholly ceased, and therefore that he need not be made a party. We have referred to the allegation that the defendant had fully accounted with and fully paid James Patrick for all moneys, claims or demands due and owing to him separately and individually. A ques
The counsel for the plaintiff referred us to a number of cases which decide that when a person answerable in contract to two jointly, settles wdth one of them so that that one has no longer any real interest in the matter in dispute, it amounts to a severance of the cause of action, and the debtor is liable in an action at law to the other alone. This doctrine was recognized or acted upon in Strohn v. Hartford Fire Ins. Co., 33 Wis., 648; Carrington v. Crocker, 37 N. Y., 336; and Boston & Maine Railroad v. Portland, etc., R. R. Co., 119 Mass., 478. But the doctrine of these cases does not apply here, where a full accounting is sought in equity. There the invariable rule is, that all interested in the account are necessary parties, either plaintiffs or defendants.
It follows from these views, that the order of the circuit court must be affirmed.
By the Gowrt. — Order affirmed.
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