J.W. Reynolds Lumber Co. v. Smackover State Bank

This is a garden variety embezzlement case. The Chancery Court lacked jurisdiction, and the case should be remanded for transfer to a circuit court.

The only allegation in Reynolds’ complaint suggesting chancery court jurisdiction was one of “express trust,” but no fact, such as a reference to a trust instrument, was alleged in support of finding an express trust. In his letter opinion the Chancellor states that Reynolds alleged an implied trust (apparently meaning constructive or resulting trust), and apparently that was a theory upon which Reynolds proceeded before the Chancellor without…