150 A. 169 | Pa. | 1930
Argued February 4, 1930.
A history of the events leading up to the present litigation is detailed in an earlier proceeding which was the subject of consideration by this court, and will be found set forth in the opinion reported in Lawrence's Estate,
Mordecai and Lewis were bachelors, living together, and the necessary care of the house was performed by paid housekeepers. Ultimately, they became dissatisfied with their tenant Swartz, and solicited King, the present defendant, to move with his family from Philadelphia, and take charge. They had known him from boyhood, and apparently deemed the suggested arrangement to be to their advantage. In 1923, at inconvenience and *573 some financial loss to himself, the defendant, accompanied by his wife and children, came to the Delaware County farm, and King remained there until the present dispute arose. In 1922, shortly before his arrival, new wills were executed by the brothers. In both instances the nephews and nieces, from whom the old gentlemen were estranged, were ignored as legatees, each being given only the nominal sum of one dollar. By the testament of Lewis, King was named a devisee if he survived Mordecai, and he was designated as executor. In the first will of Mordecai, Swartz was named remainderman, but in the second, executed later, he substituted King, as appears by testimony of record. In 1923, Lewis, the older of the brothers, then aged eighty-one, died. A caveat was filed against the probate of his will by the nephews and nieces, averring testamentary incapacity and undue influence by Mordecai, who was asserted to have held a confidential relation, and taken advantage of his position to secure its execution, which was claimed to be unnatural, as indicated by the devise to King of the remainder of the estate, if he survived the testator's brother. For the reasons given, the lower court sustained the contention of contestants, but its ruling was reversed, and the orphans' court was directed to probate the paper: Lawrence's Est., supra. What was there said as to the relations of the various parties here concerned, and particularly as to those of Mordecai and King is illuminating. In closing the opinion in that case, it was observed on page 72: "As the property now stands Mordecai can dispose of it as he sees fit; it is highly probable, if treated fairly, he will deal equitably and justly with those of his own blood."
The will case was decided on March 15, 1926, and naturally Mordecai had become even more embittered towards those who had endeavored to prove their charge of wrongful conduct influencing the preparation of the will of Lewis, with whom he lived. Hon. Francis Shunk *574 Brown, former attorney general of Pennsylvania, appeared as counsel for proponent in the will contest, and was successful in defending against the assertions made by the contestants. After the decision of this court, Mordecai called upon his attorney, in the late spring or early summer, for the purpose of procuring a conveyance of certain interests in the real estate to King. At the time, he fully explained his desires and intentions, stating his reasons for deeding a part of his property. The effect of his proposed action was fully made known to him, but the court has found that Mordecai was not able to mentally grasp the situation and the result of his contemplated conveyance, — a mere deduction, without any support in the evidence of record. So that due consideration might be given, and no step taken until after proper reflection, he was advised to put his thoughts in writing, and this he did. On October 20, 1926, the instructions were presented to his counsel, with the request that a deed be prepared to King for a fractional interest in the land which he owned, so that the grantee and his family should have the title to the property described, and be placed as well in a position to defend any legal attack the nephews and nieces might make to set aside the transfer.
King was no stranger, having known the brothers from boyhood, and he moved to the farm, at their request, in 1923, so as to furnish them aid and assistance. Though he disbursed their funds, by direction, and used, also, the proceeds of certain Philadelphia property, then owned by him, in maintenance and improvement of the Lawrence homestead, yet he could not be said to have been their confidential adviser. Even if so, it was shown, under the facts here disclosed, that he exercised no undue influence in securing the grant to him. He had assisted Lewis until he died, and, thereafter, aided Mordecai, though the latter continued to control his own affairs, executing leases and collecting rents. King managed the household from the time of his arrival in *575 1923, making outlays on behalf of the brothers, paying bills, and, by their order, for this purpose using funds belonging to them, as well as his own. By Lewis's will, probated in 1925, he was named devisee of the realty, contingent upon surviving Mordecai, and was also appointed executor of the former's will. Later, he filed his account of the moneys received and payments made, which was approved by the orphans' court in 1928.
General Brown prepared one of the conveyances now in question, and mailed it to plaintiff, who kept the same in his possession for six weeks. On November 18, 1926, he went to the office of his counsel, and, in the absence of King, after a full discussion and explanation of the contents of the documents with General Brown and A. Carson Simpson, Esq., associated with him in the practice of law, executed the deed in question. The trial judge finds, and the members of this court well know, the high standing and integrity of both of the attorneys referred to. The effect of transferring an absolute and unconditional title to the grantee named, was fully explained to the grantor. Though advanced in years, the capacity of Mordecai to conduct his business matters at the time was clearly established, and he was amply advised that he was giving up all the interests deeded, as he desired and intended. The papers relating to partition proceedings, having for their purpose the severance of the interests of the nephews and nieces in the land, were executed at the same time. To correct an error in description, a second deed was signed later on February 15, 1927. No one can read the testimony of the eminent counsel who prepared the papers here involved, and come to any other conclusion than that Mordecai had adequate knowledge of the extent of his property and the part he was giving away, well knew what he was doing when he transferred the interests now in question, and had ample reason, from his standpoint, for doing as he did, and purposely made King the owner, thus carrying out the *576 intention previously disclosed by his own will and that of the deceased brother.
The partition proceedings were instituted in November of 1926, but not brought to hearing until the summer of 1927. Later in the same year, he resumed friendly relations with his nephews and nieces, and departed from his old home, due to a disagreement with King. In January, 1928, the bill now in suit was filed, seeking to set aside the deed to defendant, on the ground that the grantor was mentally incompetent when the conveyances were executed, and that the same had been obtained by the exercise of undue influence, without consideration. The only decree asked, except the prayer for general relief, was the cancellation of the deeds and the restraint of defendant from encumbering the property. The learned court, after hearing, made extensive findings of fact and conclusions of law, and filed an exhaustive opinion, supporting his viewpoint by an elaborate discussion. A decree nisi, containing 16 paragraphs, was entered, by which all the relief asked for was granted, and, in addition, directed the release of a $30,000 mortgage which King had placed on his Philadelphia property and on that conveyed to him, as well as an accounting of all moneys at any time received by defendant from the Lawrences, appointing an assessor to determine this amount. It entirely overlooked, however, the legal requirement that an order in such cases must be limited to the relief prayed for in the bill on which the proceeding is based (Luther v. Luther,
Though the record in its entirety has been carefully examined, the many conclusions can be but briefly referred to, if this opinion is to be confined within a reasonable compass. Attention should first be called to the principle that, though findings of fact are ordinarily binding on a court in banc, as well as the appellate court, upon which line of authorities great stress is here laid, yet it must be kept in mind that this rule cannot be applied where there is no evidence to justify the conclusion in question, nor is it controlling where constituting a mere deduction from facts actually proven: Hamilton v. Fay,
The court below determined the property in question was held on a constructive or resulting trust, and that King was as well a trustee ex maleficio, thus justifying the decree complained of. Mordecai, though eighty-five years old, was mentally competent, and the court so found, though declaring that, by reason of age, he was more easily subject to the influence of others. The only medical testimony to show incapacity was that of Dr. Thomas, and an examination of it will show that, as proof of such condition, it is quite unconvincing, and the court did not base a finding thereon. The remarks made in Phillip's Estate,
Having determined the grantor was capable of transacting business, we are next concerned with the position of King. He was not a stranger, having been a friend for years. He came, after solicitation, to the Lawrence house with his family in 1923, to take care of the two brothers, giving up his own work in Philadelphia. Before his arrival, both Lewis and Mordecai had made wills providing that he should become owner of their interests, when the survivor died. He performed the necessary services about the house, making on his own account some outlays for improvements, and supplying essential maintenance, at the direction of the brothers, from their funds. He was executor of Lewis's estate, and, in 1928, duly accounted to the orphans' court for the funds received and expended in that capacity. From 1923 to 1927 he was engaged in straightening out the involved titles to lands in which the estate was interested. All of this time Mordecai was attending to his own business affairs, signing leases and collecting rents, and, in 1928, two years after the deeds were made, executed a judgment for $4,000, and a mortgage for $10,000, to others, neither of which transactions is assailed as improper or made by one incompetent. He *580 successfully carried on the will contest, and consulted fully with his attorneys, making the transfers now complained of after giving written instructions and being advised as to their effect. The court was impressed, however, with the fact that the plaintiff received but a comparatively small amount of cash from his brother's estate, but that is scarcely a reason for imputing misconduct when King's accounts as executor were passed on and approved by the orphans' court. It is true, cash was drawn from the trust company and expended by King in the maintenance of those resident in the homestead, but this was done at the request of plaintiff. An examination shows these withdrawals began in 1923, and a considerable portion of the sum involved had been so used before the conveyance in question was made, and were not complained of by plaintiff until this suit was instituted. The giving of a mortgage in 1927, after the deeds were executed, embracing the land owned by him in Philadelphia, and the interests transferred to him by Mordecai, cannot be said to indicate wrongdoing, and this transaction is not asserted to be fraudulent in the bill filed.
King and his family lived with plaintiff at his request, and performed the services contemplated and required. We are not convinced that he bore any such confidential relationship, within the legal meaning of that expression, so as to give him any overmastering influence on plaintiff, and was thereby enabled, because of any mental or physical infirmity of the latter, to obtain some advantage, undue and unintended by plaintiff. A mutual friendship or reliance on another, arising from previous business relations, is not enough to shift the burden of proof to the donee to show the fairness of the transaction attacked. The evidence discloses plaintiff attended to his own business affairs, and that the acts performed by King were done at the former's request. "Where undue influence and incompetency do *581
not appear, and the relation between the parties is not one ordinarily known as confidential in law, the evidence to sustain a confidential relation must be certain; it cannot arise from suspicion or from infrequent or unrelated acts": Leedom v. Palmer,
If, as clearly appeared, Mordecai had mental capacity, he had the right to convey any property owned by him to another, though no valuable consideration passed: Weber v. Kline,
As was said in Keen's Est.,
The court below conceded the capacity of plaintiff to transact business, yet held that, as King was his confidential adviser, he was in position to take advantage of the former's enfeeblement resulting from age, and did so, though holding there was "no actual fraud or undue influence exercised." Seizing upon one paragraph of the written letter of instructions sent by Mordecai to his attorneys, it held that the purpose of the deed was solely to furnish King with the means for raising money to carry on the partition proceedings against the nephews and nieces, in case the grantor should die before the same were completed. To so hold is to disregard the other parts of the same paper, one of which reads: "Because I want the said Edwin J. King, Sr., or, if he be dead, his family, to not only have the above interests, but all the interests of my estate that I shall die seized and possessed of real, personal and mixed." The conclusion reached by the trial judge also makes necessary *583 the disregarding of the testimony of General Brown and A. Carson Simpson, Esq., both attorneys for the grantor. Having reached the view expressed, it determined King held the land under a constructive, and also a resulting, trust. Under the facts presented in the case, it was neither. Here was a voluntary gift, which transferred the title to King, as plaintiff plainly intended, with full knowledge of the facts and consequences.
It is argued that the conveyances, though purposely made, were executed for two specific purposes, neither of which was carried out, and, therefore, are ineffective, and King becomes a trustee ex maleficio. The court suggests that the deeds were given solely to enable defendant to raise money to finance the partition proceedings and the litigation pending to set aside the will of J. Lewis Lawrence, plaintiff's deceased brother. As to the second reason, the court seems to have overlooked the fact that the will contest had been entirely concluded when the deeds were made in 1926; and, as to the former, the written instructions as a whole show the purpose of the grantor was to transfer the land to the King family, and deprive the nephews and nieces of any possible future interest therein.
A more detailed discussion of the findings and the evidence on which they are based, though largely deductions or inferences from facts proven, is not practicable, nor will space permit a more extended review of the legal principles involved, or make it possible for us to comment on or distinguish the very many authorities cited. We have referred to the general rules applicable to the case before us, and have carefully perused the entire record and attempted to apply them to the situation disclosed. As we view the case, there was here a voluntary gift by one fully competent, made without the exercise of any undue influence. It was an intentional transfer executed in 1926, carrying out an intention shown to exist when the mutual wills of 1923 were signed, and at a time before King moved to the home, for the express *584 purpose of keeping the land from the ultimate possession of those against whom the grantor, at the time, and for reasons which he deemed sufficient, felt aggrieved. True, his desires have changed, but no legal reason has been shown for setting aside his voluntary and clearly intended act, well understood by him.
The decree is reversed and the bill is dismissed at the cost of appellee.