111 Wis. 208 | Wis. | 1901
Lead Opinion
The following opinion was filed June 20, 1901:
While appellant’s counsel filed numerous •exceptions to the findings of fact, and exceptions to refusals to find as requested by them, and assigned error .generally ■on such exceptions, no particular error in that regard is found pointed out in the printed brief, nor is the subject there dismissed, nor was there anything in the oral argument by counsel for appellant to indicate that reliance for reversal is placed on such exceptions, other than the exception to the finding that appellant was not prevented from discovering her statutory rights by the conduct of defendants. The •contention is, as we understand it, that the conclusion of law upon the facts found should have been substantially in •accordance with the prayer of the complaint. While that •situation relieved us from any necessity of examining the evidence at any great length, in view of the importance of the case and its character the evidence has been examined, which has resulted in a conviction that the findings of fact cannot be disturbed under the rules governing that subject,^— except that part thereof wherein it was decided, in effect, that appellant was not prevented from discovering •and asserting her legal rights by the conduct of the defendants or any of them, other than by the failure of Yan Schaiclc •and Patton to fully disclose to her the knowledge they possessed as to the value of the estate and her rights therein before the contract was made; and the further conclusion that all the suggestions appellant’s counsel made as to the facts to be found were in terms or effect embodied in the findings filed, except one to the effect that appellant would
Before proceeding to discuss the questions suggested in the foregoing, upon which the correctness of the judgment appealed from depends, it seems best to consider the contention made by the learned counsel for respondents, that the judgment is right on the evidence and the facts found which are strictly facts; that the conclusion reached by the trial court, that the trustees and executors were in duty bound to see that plaintiff understood and appreciated. her
It seems, by the argument of the learned counsel for respondents in support of the contention that the decision of the trial court is wrong, that the executors owed to plaintiff the duty to inform her as to her legal rights or to place her in the way of obtaining such information and not to deal with her till she possessed and appreciated such knowledge, that they misapprehend the scope of the decision. They argue that it was not the duty of the executors to do anything as regards instructing appellant or stimulating her to obtain information of her rights that would be liable to disturb the scheme of the will, and to that they cite, from 1 Lewin, Trusts (Flint’s Am. ed.), p. 286, and Perry, Trusts (5th ed.), § 433, the elementary principle that, “ Trustees would not be justified in doing any act at variance with the trust. If, for instance, they honestly believed that property accepted by them in trust for one belonged by right to another, they would not be justified in communicating to such other that he could successfully obtain the estate. Trustees have the custody of property, but do not keep the conscience of the cestui que trust.” We fail to see the application of that principle to the facts of this case. Yan Schaick and Patton stood in a far different relation to appellant than that of a mere trustee of the estate of Gov. Ludington for the particular uses and purposes expressed in the will. The entire property of the estate was willed to them for the uses and purposes expressed, and, just as effectually, for such other uses as the law in-grafted onto the will. The will did not disturb appellant’s legal rights, except provisionally. They were written into the instrument, by force of the statute, as effectually as if
Coming nearer to the rule governing at this point in the case are Stephens v. Gibbes, 14 Fla. 331, 356, and Akin v. Kellogg, 119 N. Y. 441, cited by respondents’ counsel, to the effect that there is no duty resting upon the executor of a will making a provision for a widow, to inform such widow of her legal rights; but that she is presumed to know the law and that it is her duty to discover her rights for herself and to assert them. That such doctrine necessarily works oppressively in some cases cannot be denied. It enables an executor, — regardless of the disparity between provisions made for the widow of the .testator by his will and those made for her by the law, and the degree of helplessness of such wTidow as regards choosing between the alternatives thereby presented or exercising any judgment in respect to the matter, and regardless of the degree of ignorance on her part of the value of the estate in which she is interested and the advantages to be secured by her by electing to take her rights under the law, and regardless of the advantages to the executor of her abiding by the will and the degree of his knowledge of her helpless condition as regards doing what is to her best interests,— simply by keeping silent, doing nothing to prevent her from securing her legal rights — by merely remaining passive throughout the entire period allowed by law for her to choose between the two alternatives
Shocking as that is to a high moral sense of right and wrong, it must be admitted that the purpose of the statute (sec. 2172, Stats. 1898) providing that when a widow is put to her election as to whether she will take under the law or the will of her husband, she shall be deemed to have chosen the latter unless she files in the court having jurisdiction of the settlement of the estate, within one year after the filiqg of the petition for the probate of the will, a notice in writing that she elects to take the former, was to relieve the settlement of estates from the uncertainties that existed at the common law by reason of the equitable doctrine as to the time when a widow must make an election in the circumstances stated, and the binding effect thereof; that it was intended to operate as a statute of limitation, fixing with certainty a time, deemed by legislative wisdom to be reasonable, within which a widow must assert, by an affirmative act as indicated, her intention to take the rights secured to her by law in her. husband’s estate, or suffer the penalty of their irretrievable loss. Eurther, it must be admitted that such statute should be given the same force and effect as any other statute of limitations. There are no two rules governing such statutes. Equity deals the same with one as with another. It must be held, when fully run in a given case, to have absolutely extinguished the right upon which it has operated, and created in those in whose favor it has run a new right of equal dignity, as regards legal and equitable cognizance, with the one displaced by law. Eingartner v. Illinois S. Co. 103 Wis. 373. Such being the case, the statute in question must be en
What is said in the two cases above referred to, where statutes similar to ours were considered, is in perfect harmony with the decisions of this court on the same subject. In Van Steenwyck v. Washburn, 59 Wis. 483, the statute under consideration was held to apply even where the person put to her election was disabled from taking any action whatever by reason of her insanity. It would hardly be possible to suggest a more harsh operation of a statute of limitations than that. It. was said, in deciding the case, that though such an application of the law is contrary to judicial notions of right and justice, the principle must control, that where no exception is made, in a statute of limitations, to protect the interests of the weak and helpless, the court is powerless to remedy the difficulty, since to attempt to judicially supply a remedy would be to turn aside from the judicial function and invade that of the legislature. Such is the law as declared by the courts with but very few exceptions. So far as the general principle mentioned is concerned, they are all in harmony. Courts cannot vary the effect of a statute of limitations in any case because of mere hardship. If the law be not so unreasonable as to violate constitutional rights of property, it must be enforced as written, regardless of judicial notions of whether it is right or wrong tested by a correct standard of legislative policy. Many instances are reported in the books where that doctrine has been as rigorously applied to statutes similar to the one under consideration as by this court in the case cited. Fosher v. Guilliams, 120 Ind. 172; Church v. McLaren, 85 Wis. 122; Sherman v. Newton, 6 Gray, 307; Boone’s Representatives v. Boone, 3 Har. & McH. 95; Hinton v. Hinton, 6 Ired. Law, 274; Lewis v. Lewis, 7 Ired. Law, 72; Col
Some states are more regardful than this state of the probability that a widow may not have capacity to act upon her own judgment in such an important matter as that under consideration, bj^ providing by statute for her protection against ignorance and mistake. Provision is made, either that some person appointed by the court shall investigate the situation and act for the widow, so as to secure that which will be the most valuable to her, or that a guardian shall be appointed to act for her, or that she shall act only upon receiving full information of her rights by the executor or the judge of the court having supervision of the settlement of the estate, or that if she make an improvident election without negligence and through ignorance of the facts she may make a new election (Code Ga. [1882], § 1766; Johnston v. Duncan, 67 Ga. 61; Eev. Code Del. [1874], 534, §7; Code N. C. [1883], § 2108; Ann. Stats. Ohio [1897], § 5966); while other states have held that equity may, for good cause, even where no fraud is claimed, extend the time for making the election, contrary to the rule heretofore discussed, or allow an election to be withdrawn or changed even after the expiration of the time limited by law for making such election (U. S. v. Duncan, 4 McLean, 99; Smither v. Smither's Ex'r, 9 Bush, 230; Grider v. Eubanks, 12 Bush, 510). In U. S. v. Duncan the court had under consideration the right of a widow in the estate of her husband under the statutes of Illinois. Provision was made for her in the will. The statute required her to elect substantially in the manner required by the statute of this state, the time, however, being limited to six months. She failed to make her election because of her ‘ utter ignorance cf her husband’s estate and her want of means within the time limited to discover the facts so as to enable her to act intelligently in regard to the matter.’ The court treated
Flo further discussion of this subject seems necessary. The decisions cited to our attention in the briefs of counsel for appellant, to sustain the theory that a court of equity has power to relieve a widow from the effect of an election or failure to elect to take the provision made for her by law instead of the one made for her by her husband’s will, because of mere ignorance or mistake on her part, cannot be followed. They are out of harmony with the doctrine of this and most courts. So rigorously has the latter doctrine, where fully recognized, been enforced, that, even in the face
“ The lavr expressly declares that if the election is not made and the declaration properly acknowledged and filed, within twelve months from the granting of the letters, the right shall not exist. . . . This language is express and positive. . . . Because for convenience and as a favor to the widow the legislature directed that the court should cause notice to be given to her, it is not to be presumed that they intended to abrogate the maxim that every person is presumed to know the law.”
The contention of respondents’ counsel that the executors of the estate of Gov. Ludington had a legal and equitable right, if they saw fit, to remain passive for the year subsequent to the admission of the will to'probate, conscious that by so doing the appellant, through her ignorance, would lose her widow’s rights under the law, and that they and the Ludington children would be greatly enriched by such loss, must be sustained.
The foregoing conclusion goes as far in sustaining the contention of counsel for respondents, that the trial court erred in'deciding that Patton and'Yan Schaick breached their duty to appellant in failing to inform her or put her in the way of informing herself as to tvhat was the best course to pursue as regards her husband’s estate, and in dealing with her to her disadvantage, as any of the authorities upon which they rely. All of such authorities speak of some passive failure, so to speak, to inform the widow, unaccompanied by any dealing with her to her disadvantage. The trial court did not decide that such conduct would be a breach of duty of an executor or trustee of an estate circumstanced as were
The learned counsel for appellant who orally argued the case before this court freely conceded that if the executors and trustees had merely remained passive till appellant lost the interest in her husband’s estate secured to her by law, through ignorance of her rights, they could hold the gains thereby obtained for the benefit of the heirs, free from any taint of wrong of sufficient significance that the court could take notice thereof, however much such conduct, under the circumstances, might be said to violate mere ethical rules of conduct; but it was insisted that when they undertook to induce appellant to bargain away to them her property, of which they were the trustees, for the benefit of the heirs and in a measure for their own benefit, they could no longer keep silent consistently with their duty to appellant, but were bound to make to her the fullest and amplest disclosure of all the facts within their knowledge, to her advantage to know, and not to acquire her property at all to her disadvantage. That was what the trial court decided. That is what counsel for respondents must successfully meet in order to demonstrate that the trial court was wrong in holding that «.the executors breached their duty to appellant in failing to correctly inform her of the value of the estate and of her legal rights therein and the manner of securing such rights if she so desired. In this the trial court followed the elementary principle that a trustee cannot bind his cestui
"We have been unable to discover, either in principle or authority, or in anything suggested by the learned counsel for respondents, any satisfactory answer to that proposition as applied to this case. It is useless to argue that the relations of trustee and cestui que trust, to all intents and purposes, did not exist between appellant and Yan Schaiclc and Patton at the time of the transaction in question, or that the relation of trust and confidence did not exist between them independently of the fact that they were the chosen of Gov. Ludington to administer his estate. It is useless to spend time considering the suggestion that appellant had her son' by her side and that she herself was presumed to know the law, so far as the truth or fallacy of such suggestion affects the right of the executors to deal with her as they did. Appellant did not rely at all upon her son in any business affair. * The executors were fully cognizant of that situation. They did not at any time, as the court found, regard him as of any importance or take him into consideration in any way in anything they did or failed to do. Both were members of the Ludington family by marriage. They knew that appellant was entirely unacquainted with business affairs. She had been a faithful wife and affectionate companion of Gov. Ludington for sixteen years, during which time she had done her part to maintain a home for him and his children, where all came or dwelt, as appears, with freedom and cordiality, evincing close family relations between them. She was left surrounded by those children, some of whom she had helped to rear. She had learned to know the executors, not only as members of her family, but as able business men. She trusted them implicitly, and it was most natural for her to do so. They knew that such
Uo rule is better established than that, if a trustee or a person standing in relations of trust and confidence to another deal with the cestui que trust or such other in respect to the subject of such trust, for his own benefit or that of others whom he represents, serving two persons at the same time, in form, when in contemplation of law he can serve but one loyally, the transaction cannot be upheld if called in question by the cestui que trust, unless the trustee is able to prove to the satisfaction of the court by clear and satisfactory evidence that the two were at arm’s length in the transaction, that no confidence was reposed in him by the .beneficiary, that the bargain was profitable to the beneficiary, and that he was fully informed in regard to the value of the property and the nature of his interest in it. Beach, Trusts, § 518; Puzey v. Senier, 9 Wis. 370; Roller v. Spilmore, 13 Wis. 29; Barker v. Barker, 14 Wis. 131; Cook v. Berlin W. M. Co. 43 Wis. 433; Davis v. Dean, 66 Wis. 100; Creamer v. Ingalls, 89 Wis. 112; Disch v. Timm, 101 Wis. 179; Saunders v. Richard, 35 Fla. 28; Spencer’s Appeal, 80 Pa. St. 317; Brown v. Cowell, 116 Mass. 461; Re Hodges' Estate, 63 Vt. 661; Cole v. Stokes, 113 N. C. 270; Mills v. Mills, 63 Fed. Rep. 511; 1 Story, Eq. Jur. § 321. The policy of the law is to regard all transactions of a contract nature, between a trustee and his cestui que trust, whereby the former obtains the interest of the latter, or .some part thereof, in the subject of the trust, as presumptively fraudulent and void at the election of the latter. If ■such a transaction be permitted to stand it is upon condition that the trustee satisfies the court, fully and completely, that the cestui que trust received a full equivalent for that which he parted with, and that the transaction was to his advantage -rather than to his disadvantage. The burden of proof in such a case rests upon the trustee to
“ It is the language of all the authorities that such a transaction is always scrutinized in a court of equity with a watchful eye, and will not be sustained to the disadvantage of the cestui que fy’ust except upon the most complete and satisfactory evidence of good faith and fair dealing on the part of the trustee.” Puzey v. Senier, 9 Wis. 376.
The following illustrations of the result of abuse of confidential relations are in point:
“ The rule is universal that, where a person to be benefited by a will or a voluntary deed has a controlling agency or influence in procuring its execution, it is regarded as a very suspicious circumstance, requiring the fullest explanation. Especially is this so where there exists a confidential relation, as . . . even that- existing between a neighbor and near friend.” Disch v. Timm, 101 Wis. 179.
‘ It would not be controverted that an executor or administrator is subject to all the responsibilities as regards beneficiaries under the will, as is the strict trustee to the cestui que trust.’ Tatum v. McLellan, 50 Miss. 1.
“ It is only when it is made to appear to the entire satisfaction of the court that the beneficiary had full knowledge of all the facts . . . and acted therein advisedly and without undue influence, that a contract of this character, between the trustee and the beneficiary (to the benefit of the former) will be sustained.” ‘ Mere proof that the beneficiary was of sound mind and fully understood the nature and effect of the contract will not avail, in the absence of anything to show that he had an adequate knowledge of the matters covered by the contract.’ In re Hodges’ Estate; 63 Vt. 661.
The trustee must show, “ by unimpeachable and convincing evidence that the beneficiary, being sui juris, had full information and complete understanding of all the facts concerning the property and the transaction itself, and the person with whom he was dealing, and gave a perfectly*241 free consent, and that the price paid was fair and adequate, and that he made to the beneficiary a perfectly honest and complete disclosure of all the knowledge and information concerning the property possessed by himself or which he might, with reasonable diligence, have possessed.” 2 Pom-eroy, Eq. Jur. § 958.
“A trustee may buy from the eestm que trust, provided there is a distinct and clear contract, ascertained to be such after a jealous and scrupulous examination of all the circumstances, providing that the cestui que trust intended the trustee should buy, and there is no fraud, no concealment, no advantage taken by the trustee of information acquired by him in the character of trustee,” — that the trustee took no advantage whatever of his situation, and that he gave his cestui que trust all the information which he possessed. Lord Eldon in Coles v. Trecothick, 9 Ves. 247.
•More need not be said to demonstrate the correctness of the decision of the trial court that Van Schaick and Patton wronged appellant in failing, under the circumstances, to disclose to her as fully as they reasonably could the nature and value of her interest in her husband’s estate and the steps necessary to be taken by her to preserve that interest if she desired to do so. Eor the purposes of this case, whether the validity of the contract, whereby appellant parted with such interest, turns on mere relations of trust and confidence having existed between her and Van Schaick and Patton when the contract was made, or the legal relations of trustee and cestui que trust under the will, it is not necessary to inquire, nor to decide whether their conduct was characterized by a distinct purpose to defraud appellant. From the fact that the transaction in question was pecuniarily injurious to appellant and the circumstance of the existence of either of the relations mentioned, a presumption of fraud arises which must prevail, even if only the first relation mentioned existed, in the absence of evidence showing affirmatively that appellant dealt with a.full understanding and appreciation of her rights, and must pre
“ The general rule is, that the trustee shall not take beneficially by gift or purchase from the cestui que trust, even although the supposed trustee and purchaser is a mere inter-meddler and not a regularly recognized trustee; the question is not whether or not there is fraud in fact, the law stamps the purchase by the trustee as fraudulent per se, to remove all temptation to collusion and prevent the necessity of intricate inquiries in which evil would often escape detection and the cost of which would be great. The law looks only to the facts of the relation ánd the purchase.” Perry, Trusts, § 195.
We should say in passing that a trustee can no more deal with one for whom he stands, and to the disadvantage of that one for the benefit of himself as the representative of others, than he can for the benefit of himself absolutely. There can be, in the very nature of things, no difference between disability to deal in the one case and in the other.
It is conceded that appellant had but six years after the discovery of the fraud alleged to have been perpetrated upon her, within which to seek relief. Sec. 4222, Stats. 1898. Counsel for respondents challenge the finding of the trial court on' this branch of the case, claiming that the evidence shows conclusively that appellant knew, or by the exercise of ordinary care might have known, of all the facts affecting her rights more than six years before the commencement of this action. It must be conceded that the statute of limitations commenced to run against appellant from the time she obtained knowledge of the fraud or might have obtained such, knowledge by the exercise of reasonable diligence.' We
The fact that such false impression was a mistake of law does not militate against appellant’s right to relief in equity. One of the most familiar of the many exceptions to the general rule that courts will not relieve against mistakes of law, is the one that such mistakes are relievable as readily as mistakes of fact where the transaction is between trustee and cestui que trust or persons standing in analogous
It is suggested that appellant forfeited her right to the aid of equity by delay in asserting her claim, independent of the statute of limitations. We are unable to sustain that view. Any mere delay, short of the statutory period for commencing an action in equity, does not bar the right involved. We are unable to discover any evidence in this case that defendants were prejudiced in any material particular by the failure of appellant to commence this action at the very earliest moment the evidence shows she was possessed of the requisite knowledge or was bound to be' so possessed.
But it is said appellant did not restore to the estate what she received therefrom under the contract she seeks to avoid, and that such restoration was a condition precedent to her right to commence this action. The doctrine, that in case of a contract voidable upon the ground of fraud the injured party must totally rescind it and restore to the guilty party all that he received from him as a condition precedent to the right to recover what he parted with, is based on the rule that, by the injured party retaining what he received and suing to recover what he parted with thereafter, he occupies inconsistent and inequitable positions which the law will- not permit. - That is a general rule applicable to legal actions which proceed upon the theory of a precedent rescission. But even in such actions the rule is subject to some exceptions. Friend Bros. C. Co. v. Hulbert, 98 Wis. 183; Gay v. D. M. Osborne & Co. 102 Wis. 641. It does not apply in any arbitrary way at all to actions in equity for the
“ There was no necessity for an offer to return the consideration before the bill was brought. A bill in equity is not like an action at law, brought on the footing of a rescission previously completed. . . . The foundation of the bill is that the rescission is not co’mplete, and it asks the aid of the court to make it so.”
The distinction above referred to has not been definitely observed in this court, though our decisions, in the main, are in substantial harmony therewith. Weed v. Page, 7 Wis. 503; Hendricks v. Goodrich, 15 Wis. 679; Hyslip v. French, 52 Wis. 513; Friend Bros. C. Co. v. Hulbert, 98 Wis. 183; Gay v. D. M. Osborne & Co. 102 Wis. 641; and Gates v. Raymond, 106 Wis. 657,— were actions at law. In each, a total rescission of the contract and return of the money or property received thereunder, or such rescission and an offer to make such return, was heldNnecessary, except where' the contract was severable so that no injustice would be done the guilty party by the contract being considered severable and discharged in part by payments made thereon, and sub
“ The defrauded party need not rescind and sue in an action at law for' the consideration parted with upon the fraudulent contract. He may bring an action in equity to rescind the contract, and in that action may .have full relief. Such an action does not proceed as upon a rescission, but proceeds for a rescission. In such a case it is sufficient*248 for the plaintiff to offer in his complaint to restore to the defendant what he received, and the rights of the parties can be fully regulated and protected in the judgment to be entered.”
The great weight of authority is in accordance with the case last cited. It is sufficient in an action for rescission to show by the complaint'a willingness to do equity, to submit to a complete rescission, so far as practicable, and to make the defendant good for what was received from him,, in such manner as the court may direct. Thackrah v. Haas, 119 U. S. 499. The court having jurisdiction of the whole subject and the parties can do complete equity between them. It can compel full restoration to the defendant in specie, so far as justice requires, as a condition for rescission, and may deny-or give costs, having regard to the necessity of resorting to litigation for the relief finally awarded.
This fully meets counsel’s contention that restoration by appellant of what she had received under, and complete disaffirmance of, the contract in question, was a condition precedent to the maintenance of this action to avoid it. The complaint shows willingness to account for everything appellant has received, and in that it shows willingness to do equity, satisfying all the essentials of the right to invoke equity. If the complaint had not been so framed as to show such willingness, the defect could only have been reached by a demurrer for insufficiency on the particular ground 'that a cause of action in equity was not stated for the reason that plaintiff failed to show a willingness to do equity. Taylor v. Fulks' Adm'r (Ky.), 29 S. W. Rep. 349; Ormsby v. Budd, 72 Iowa, 80; Newman v. Smith, 77 Cal. 22.
A further contention is made that the judgment should be affirmed regardless of the ground upon which it was rendered, because the proper forum to consider the subject of the action was the probate court of Milwaukee county, and that the judgment of such court assigning the estate to the
It is further contended that the judgment of dismissal should be affirmed because the evidence shows that the case was fatally tainted with champerty. There is some support for that claim in the evidence of appellant, but it seems reasonably clear that the real contract between her and her attorney was embodied in a writing which was offered and received in evidence, and which is free from anything looking like champerty. It is unnecessary to state here the precise terms of that written contract. We .are only required to determine whether it embodied the real agreement between her and her attorneys and is free from any cham-
The further contention is made that'the commencement, of the actions at law, or either of them, against respondents, for damages for the alleged fraud upon the theory of an existing contract, constituted an election to abide thereby, and a bar to the maintenance of this action to rescind. In that, the familiar principle was invoked that if a person has inconsistent remedies the choice of one, generally, constitutes, an irrevocable waiver of the others. Bank of Lodi v. Washburn E. L. & P. Co. 98 Wis. 547; Carroll v. Fethers, 102 Wis. 436; Fuller-Warren Co. v. Harter, 110 Wis. 80. Counsel for appellant reply that the rule in this case operates the-very reverse from what counsel for respondents contend for that appellant first elected to rescind the contract by the commencement of this action, and that its pendency was-pleadable in bar of the actions at law. Counsel for respondents seek to escape from that position by pointing to their-argument that appellant did not rescind the contract before the commencement of this action, therefore that the first election was the commencement of an action at law for damages. The infirmity of that contention has been clearly shown. The commencement of an action in equity to obtain a rescission of a contract does not require a precedent rescission. It is just as effective an election as a rescission by act of the party followed by an action upon the theory that the original* situation of the parties, so far as legal, rights are concerned, has been thereby restored. The appli
"What has been said covers all the contentions of respondents’ counsel that the judgment appealed from should be affirmed, regardless of the points decided by the trial court, which are deemed of sufficient importance to require special mention. Those not referred to have been considered. The findings of fact, so far as adverse to respondents, must stand as verities in the case.
From appellant’s standpoint the situation is the same, but it seems that, in addition to the facts found, the court should have decided in accordance with requests made by appellant’s counsel, that she was prevented from discovering and seasonably asserting her legal rights in her husband’s estate by the fraud practiced upon her by the executors and trustees. It seems that such must be the correct conclusion from the evidence and the facts found. As we have heretofore stated, the executors cultivated if they did not create in the mind of appellant the idea that she was dependent upon the favor of the heirs for anything she might obtain out of the estate in addition to the provision made for her in the will. The attorney for the trustees, because of his former position as adviser of Gov. Ludington, in approaching appellant in a manner naturally calculated to inspire confidence that he was guarding her interests, confirmed the impression in her mind that the paper he presented for her signature was at least not against her interests. She testified that he expressly stated that the bargain she had made and which was embodied in the paper was good for her and that she was fortunate in the matter. He denied making any such statement, and we may pass the matter over as not proved. Heverthless, the evidence shows, as the fact is according to the decision of the court, that when the paper was signed appellant supposed the attorney who presented it was rep
We will say here in passing that we do not decide that there was such scheming or any wicked purpose to injure appellant in the transaction under consideration. We go so far only as to decide that appellant was misled in a manner to impose legal responsibility on the trustees the same, substantially, as if the injury inflicted was intended. Before she had time after her husband’s funeral to reflect at all over her situation, or obtain needed rest to enable her to act considerately, on the very afternoon of the burial, the will
How it can be said, under the circumstances which we have detailed, that the executors and trustees did not prevent appellant from discovering her legal rights, we are unable to understand. True, as the trial court found, appellant never intended or determined to elect to take the provision made for her by law; but if the reason thereof be. found in the conduct of the executors and trustees, we must consider the situation the same as if such intent was formed. We cannot doubt, reasonably, but that, if such conduct had been proper appellant would have elected to stand upon her legal rights rather than to accept the offer made to her in the will or by the heirs. In determining that question we look at all the circumstances of the case in the light of reason and common experience. Appellant had always been surrounded by wealth and would naturally have rebelled against anything that threatened to materially change her situation in that regard had she appreciated the danger. She gave up the income from property valued at $80,000 for the privilege of becoming the wife of Gov. Ludington. She. had two children by her former husband to whom she was warmly attached and whose comfort and prosperity she
In this we do not ignore, wholly, the statement made' in the will that the provision there made for the appellant was satisfactory to her and was embodied in the will by agreement between her and the testator. . If any conversation to that effect ever occurred between the parties, it is evident that it made no impression on appellant’s mind which she retained, for upwards of three years which intervened between its occurrence and the. reading of the will. Further,
The foregoing inquiry indicates that appellant must go
In Smart v. Waterhose, which is cited by appellant’s counsel, such principles were applied to a case substantially like the one before us, the only difference being that the widow was preventéd by fraud from making her election after she had formed a purpose to do so. But as we have held that if a person fraudulently prevents the formation of a purpose to do an act which, if once formed, would probably be executed, he is in effect guilty of fraudulently preventing the execution of such purpose, the cases must be considered as in every - respect similar. As in the case at bar, the actors in the commission of the fraud in the cited case were the executors. The widow, the same as here, reposed implicit confidence in such executors. They took advantage of her condition of mind in that regard, and of her ignorance, to make with her an unconscionable bargain whereby she omitted, for the time provided by law, to elect to take the provision out of her husband’s estate secured to her by statute. The court summed up the situation and the law governing it thus:
“ This woman has been prevented by the fraud of those who were interested in the estate from entering her dissent.*258 ;'Sbe was .about to avail herself of-the provisions of an act made for her benefit, and the defendants interposed, and by •fraud prevented her, and now they set up the consequence •of this fraudulent act as a bar to the right she would have ■obtained; this we think they cannot do. It is a rule laid ■down and acted oh in many cases that where an act has been prevented from being done by fraud, equity will consider it exactly as if it had been done.”
That doctrine is fully sustained in the cases upon which the learned counsel for respondents rely to support the judgment appealed from. In Stephens v. Gibbes, 14 Fla. 331, 357, relief was denied upon the ground that no fraud was shown, the court saying:
“ The statute gives to the widow this time to inform herself of all the circumstances necessary to the exercise of a judicious and discriminating judgment, and if she neglects thus to do, she cannot be relieved of its consequences, unless her ease is brought within that class of cases where a court of equity extends its corredme i/nfluence on account of franid, imposition, misrepresentation, or mistake.”
The same doctrine was declared in Akin v. Kellogg, 119 N. Y. 441, upon which respondents’ counsel lean with confidence. That case involved a statute precisely like the one in question, and would be as decisive in favor of respondents as any judicial authority of a sister state could be, were it not that the decision was based on the absence of any satisfactory showing of fraud, it being stated, in effect, that, if such absent element were present, the injured party would have been entitled to relief. In the same line is Fosher v. Guilliams, 120 Ind. 172, 175, where the court said:
“ If, through any fraud or contrivance of those interested in the estate, the widow was prevented from making an •election, a court of equity might find means of affording relief against those who perpetrated the fraud.”
So it will be seen that the authorities upon which both .sides rely, when applied to the facts as we have found them to be, support the claim of appellant’s counsel that the judgment appealed from is erroneous and that a decree should
The result of the foregoing is that we must hold that the wrongful conduct of the executors and trustees of the Lud-ington estate was the proximate cause of appellant’s losing her statutory rights in her husband’s estate, hence she must have that part thereof which came into the trust as personal property which she would have secured by an election to take under the statute, or have its equivalent, and further have the same as of the time she would have obtained it in the regular course of the settlement of the estate. If more than legal interest has been obtained by the trustees for the use of the property in the meantime, she is entitled to the benefit thereof, She must be made good for all allowances to which she would have been entitled out of the estate for her support or otherwise had she made her election as indicated, and have the same as of the time such allowances would have come to her possession in the regular course of the administration of the estate. She must also have all the
“Whoever receives it must,take it tainted and infected with the undue influence and imposition of the person procuring the .gift; his partitioning and cantoning it out amongst his*262 relations and friends will not purify the gift and protect it against the equity of the person imposed upon. Let the hand receiving it be ever so chaste, yet if it comes through a corrupt, polluted channel, the obligation of restitution will follow it.” j
The same principle applies in case property is obtained by fraud in any other way than by mere gift, and then distributed to others for whom the person procuring it acted. The principal cannot enjoy the .fruits of the • fraud of his agent.
'The accounting, which a final disposition of the case in accordance with the foregoing requires, involves many details not covered clearly if at all by either the findings or the evidence so that this court can pronounce final judgment. Therefore, the judgment appealed from must be reversed and the cause remanded for further proceedings in accordance with this opinion, such further evidence to be taken as may be necessary to enable the trial court to determine definitely the rights of the parties in accordance with the principles here laid down for the government of the case. The judgment for costs in this court should be paid out of the estate.
By the Court.— So ordered.
After most anxious consideration, I find myself unable to agree with the decision of this case. I do not differ from my brethren as to the duty of uberrima fides owed by the trustees to the plaintiff, nor as to her right to have rescinded any unfair contract or release of rights which she has made in ignorance of her rights, albeit without any affirmative deceit or intentional imposition by the trustees, but I fail to discover any such result as to justify the interposition of a court of equity. To briefly summarize the transaction: It is apparent that all parties met upon the supposition and understanding that the plaintiff expected and purposed to receive whatever might come to her of her
Concurrence Opinion
I concur in the foregoing opinion of Mr. Justice Dodoe.
A motion for a rehearing was denied September 24,1901.