Treinies v. Sunshine Mining Company

308 U.S. 66 (1939)

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Nature of the Case

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Facts

Amelia Pelkes, the wife of John Pelkes, died testate in Spokane, Washington, in 1922, leaving her husband and one child, Katherine Mason, the offspring of a former marriage, as the beneficiaries of her will. As a part of her community estate, there were 30,598 shares of Sunshine Mining stock. It was not inventoried or appraised. Three-fourths of the shares were assigned to Pelkes and a one-fourth to Mason. The estate was not distributed according to the order of distribution. Pelkes and his stepdaughter, Mason, divided the inventoried property between themselves in accordance with their wishes. It is the contention of Pelkes and his assignee that the partition was in consideration of the release by Mason to Pelkes of all of her interest in the shares of the stock of the Sunshine Mining Company. Mason asserts that Pelkes was to hold one half of the amount owned, 15,299 shares, in trust for her. In August 1934, Mason instituted a suit in Idaho against Pelkes, Evelyn H. Treinies, and the Sunshine Mining Company alleging that she was the owner of 15,299 shares of the stock, that these had been acquired by Treinies from Pelkes with knowledge of Mason's rights, and praying that a trust be established and the stock and dividends be awarded to her. The court agreed with Mason. Before the entry of the first decree of the court in Idaho, Mason filed a petition in Spokane, Washington, involving Amelia Pelkes' will, to remove John Pelkes as the executor for his failure to file his report of distribution and for dissipation of the Sunshine stock. John Pelkes by cross-petition and petition claimed the stock. Mason then applied to the Supreme Court of Washington for a writ of prohibition against further proceedings in the Superior Court on the ground of lack of jurisdiction in that court to determine the controversy over the stock. The writ was refused. On May 31, 1935, a judgment was entered upholding in full the ownership of Pelkes. John Pelkes and Treinies filed, in August 1936, a suit in the Superior Court of Washington against Mason alleging that they were the owners of the stock, further alleging that the Idaho decree was invalid for lack of jurisdiction, and asking that their title to the stock be quieted and the Sunshine Mining Company, a party to this and the Idaho suit be compelled to recognize their ownership. Faced with inconsistent judgments from different state courts, Sunshine Company then filed a bill of interpleader. The district court held that the Idaho decree controlled. The court of appeals affirmed, holding that the Idaho court’s jurisdiction was res judicata in the interpleader action. The Supreme Court granted certiorari. Treinies contends that the interpleader decision fails to consider and give effect to the Washington judgment of May 31, 1935, awarding the property in question to John Pelkes. Treinies contends that the Washington judgment must be considered as effective in this litigation because the question of the jurisdiction of the Washington court was actually litigated before the Supreme Court of Washington and determined favorably to Treinies by the refusal to grant a writ of prohibition against the exercise of jurisdiction by the Washington Superior Court in probate. Treinies claims that this violates full faith and credit.