102 P. 211 | Utah | 1909
Lead Opinion
(after stating the facts as above.)
It is contended on behalf of the plaintiffs, appellants, that the findings of fact are not only unsupported by, but are contrary to, the evidence, that the judgment is against law, and that the court erred in denying plaintiffs the relief prayed for in the complaint. We think this contention is well founded. The evidence conclusively shows that the fiduciary relation of physician and patient existed between, Joseph S. Peterson and the Budges at the time the sale in question
The evidence further shows that Peterson and the Budges were, and for many years had been, close friends, and that Peterson had great confidence in the Budges, and that they had considerable influence over him. This is
There is no rule of law more firmly established than that which holds that transactions between persons occupying fiduciary or confidential relations with each other,
“The law is well settled that from the time the relation of physician and patient is created, until it ceases to exist, the physician is not only legally hound to act in the utmost good faith in his treatment of his patient professionally, hut he is inhibited from6 taking advantage of the confidence growing out of this relation, reposed in him hy his patient, and, by misrepresentation, or other unfair means, or by the exercise of undue influence, induce his patient to convey, transfer, or otherwise dispose of, to such physician, or to other parties whom the physician may represent in other capacities, valuable property rights for a wholly inadequate consideration.”
And tbe rule is well settled that in actions of this kind, where these confidential relations are shown to exist
*610 “The law is jealous, and public policy sanctions it, that transactions between persons occupying these relations shall receive the most careful scrutiny, and the burden of proof is shifted so as to require the beneficiary to establish the validity of bequest, gift, or grant.” And again, in section 191: “Wherever a fiduciary relation exists, and there has been confidence reposed which invests the person trusted with an advantage in treating with the person confiding, it imposes the burden of proof upon the person taking securities, or making contracts inuring to his benefit to show that the transaction is just and fair, and that he has derived no unfair advantage from his fiduciary relation.”
Mr. Pomeroy, in volume 2, section 95 6, of bis excellent work on Equity Jurisprudence, says:
“■While equity does not deny the possibility of valid "transactions between the two parties, yet, because every fiduciary relation implies a condition of superiority held by one of the parties over the other, in every transaction between them by which the superior party obtains a possible benefit, equity raises a presumption against its validity, and casts upon that party the burden of proving affirmatively its compliance with equitable requisites, and thereby overcoming the presumption.”
In 6 Ency. of Ev., p. 10, the rule -is tersely stated as follows :
“Thus, in transactions between persons occupying such relations, in which the stronger or superior party obtains a benefit or advantage, fraud is presumed, and the burden is cast upon the superior party to show fairness, adequacy, and equity in the transaction. This rule has been held applicable to transactions between attorney and client, . . . physician and patient.”
The following authorities are to the same effect: 9 Cyc. 456-458; 1 Beach on Contracts, 825; 1 Page on Contracts, 214; Cadwallader v. West, 48 Mo. 483; Woodbury v. Woodbury, 141 Mass. 329, 5 N. E. 275, 55 Am. Rep. 479; Unruh v. Lukens, 166 Pa. 324, 31 Atl. 110; Thomas v. Whitney, 186 Ill. 225, 57 N. E. 808.
It having been shown that the confidential relation of physician and patient existed between the Budges
Up to this point there is no conflict in the evidence, but as to what transpired thereafter there is a sharp conflict. Peterson testified, and his testimony is corroborated by that given by Mrs. Peterson, that Budge said to him: “You can see that Preston and Nebeker are going to start suit against you and will squander some of your estate, and others are coming here after your property, and the only thing you can do, as we are old friends, is to turn it over to me, and
We think the great preponderance, of the evidence clearly establishes the following propositions: (1) That the plaintiff, at the time of the conveyance in question, was, and for about 10 days prior thereto had been, sick and nervous and greatly distressed in mind. (2) That, while in such mental condition, he was induced and led to believe by improper and undue influence that the bank was about to foreclose its mortgages .and compel him to make a sacrifice of his mortgaged property. (3) That the confidential relation of physician and patient existed between the Budges and Peterson at the time the deed in question was made and executed. (4) That if the Budges were not active participants
After the Budges obtained the legal title to the property in question, they received and used the rents collected on the smaller house until January 11, 1908, on which date a receiver, on application of defendants, was appointed by the court to take possession of all of the property and to hold the same and collect the rents thereon during the pendency of the action.
The judgment is reversed, and the case remanded, with directions to the trial court to set aside the findings of fact and conclusions of law heretofore made, and to make findings quieting the title of the property in plaintiffs. It is further ordered that an accounting be had between the parties and that the party in whose favor a balance is found to be due have judgment for the amount of such balance. Costs to be taxed against defendants.
Dissenting Opinion
Dissenting.
I cannot concur in the result reached by my associates. I was originally of the opinion, ini view of the whole record, that the judgment should be affirmed, but, after mature reflection, I have arrived at the conclusion that, for the reasons hereafter stated, the judgment should be reversed, and the cause remanded for a new trial.
Owing to the great mass of evidence and the irreconcilable conflict among the statements of the witnesses with respect to the controlling elements of the case, it is impracticable to set forth the evidence even in condensed form so as to give the reader an opportunity to arrive at an intelligent conclusion. I shall therefore quote only the statements of appellants from which it is apparent that their contentions with respect to the transfer of the property in question do not square with the theory upon which the case was ultimately
I shall not refer further to any .specific evidence, but will
Tbe court, however, was not justified in bis finding and conclusion that tbe relation of physician and patient did not exist at tbe time of and immediately prior to tbe transfer of tbe property. I fear therefore tbat in arriving at bis conclusions tbe trial court relied entirely upon actual, rather than upon presumptive, fraud. Had tbe court found tbat tbe relation, of physician and patient existed, and bad it appeared to me tbat be bad given tbe relation due effect in arriving at bis conclusions, I am firmly of tbe opinion tbat bis judgment ought not to be disturbed at long range, in view of tbe great conflict in tbe evidence and tbe personal element, wbicb always is to be given full scope in determining tbe
A careful reading of the cases will also disclose that, while the general principle must always be kept in mind, nevertheless this principle must be applied in each particular case in accordance with the facts and circumstances developed in that case. Eor two well-considered eases illustrative of the general principle applicable between' physician and patient, I refer to Unruh v. Lukens, 166 Pa. 324, 31 Atl. 110, and Cadwallader v. West, 48 Mo. 483. In both of those cases it will be seen that the principle is applied in its full scope as between physician and patient upon the ground that the physician was the trusted counsel and adviser , of the patient in business affairs, as well as his physician'. To say that the former feature is, to any extent, present in this case, is, in my judgment, wholly unwarranted by the evidence. Moreover, it seems to me that my associates have overlooked one salient, if not controlling, feature in this ease. This feature is always considered by all courts where either actual or con
I am further of the opinion that too much importance is attached to the disparity between the value of the property as testified to and the consideration agreed upon between respondents and Peterson. If the evidence was such as would-; justify a finding that there was neither actual nor constructive fraud or influence — and I think it was — then the disparity of value became a mere element in the case to he considered and weighed in connection with all the other facts and circumstances. No doubt, where a fiduciary relation is established, the presumptions that it had some effect in inducing the gift or transfer prevails, and unless this presumption is entirely overcome, and the transaction is shown to be entirely free from the influence presumed, this disparity may alone be sufficient to turn the scales in favor of the don- or or grantee. If the transaction is purged, however, from the influence presumed against it, then the mere disparity of value, unless greatly inadequate, is generally not of great importance. To illustrate: In this case the brother of appellant Peterson placed the value of the property at about $5500, one real estate dealer placed it at $1000, another at $4000 to $5000, and still another at $4500, while one of the respondents placed it at $3500. All the other witnesses
True, most any one would be likely to follow tbe temptation which is always present in such cases to fix some point between tbe highest and lowest figure given. Tbis for the purpose of fixing tbe value in condemnation or other proceeding where tbe value must be fixed at some point is always proper. But tbe same rule is not equally applicable when the sole question is whether tbe consideration paid is so inadequate as to- indicate unfair dealing. I think in- such a -case other elements are to be considered. In tbe first place, as is clearly apparent from tbis record, tbe purchaser might be unwilling to purchase at a price placed upon tbe property by others. In tbe judgment of such purchaser tbe property may not be worth what another says it is, and, even if it were, the purchaser in making tbe purchase is entitled to bis own judgment. Again, tbe purchaser may not desire to buy tbe property unless be can obtain it at what be considers a speculative price; that is, unless be feels reasonably certain that there is a profit in it for him. Tbis again is bis own affair. If therefore tbe respondents refused to- take tbe property unless they co-uld buy it at their own price, as they testified, and if they did not influence Mr. Peterson in any way, and be was free to act upon bis own judgment, and did act upon it, then tbe law cannot aid him. In a ease where a bargain and sale is not involved, but where it involves a transaction where one sustaining a fiduciary relation to another has, by
In this case the trial judge, whom we know to be conscientious and upright, was evidently not willing to place the value of the property at a figure greatly in excess of what respondents agreed to pay therefor, as is disclosed by his findings. He simply found: “That a fair cash value of said property at the time of said conveyance was somewhat in excess of the consideration paid therefor. . . . That there was no such an inadequacy of consideration as to enable the court to grant plaintiffs any relief on that ground.” If the court had found the property to be of some definite value, and from the amount soi found it would appear that the consideration paid was so far below tlqe real value as to indicate that such difference was not a mere error or difference of judgment with regard to values, I could then say with some degree of certainty that there was something which operated upon Peterson’s mind, either real or imaginary, which induced him to part with his property, and that respondents thereby obtained an advantage which in good conscience they ought not to retain in view of the relationship existing between them and Peterson at the time; but, even
Tu,.™ nf the case upon which, however, the trial court made no finding. After the action was commenced, the appellants and respondents seemed to have arrived at some understanding with respect to the controversy, and appellants then signed the paper referred to in the prevailing opinion. The circumstances under which this paper was signed were shown by at least three disinterested witnesses from whose testimony the conclusion is certainly well founded that there was neither influence nor coercion of any hind practiced by respondents at that time. Neither is it claimed that the relation of physician and patient between Peterson and respondents existed at that time. The effect of this transaction between the parties could well be considered as an affirmation of the transfer by Peterson. It is true that the Petersons claim that the transfer was based upon the promise of respondents, that they would reconvey the property. The court, upon ample evidence, however, was justified in not believing these claims. Here again Peterson went contrary to the advice of his counsel, who was a lawyer other than the one who advised him in the principal transaction. My brethren seem to think that Peterson’s disregard of this attorney’s advice was caused by respondent’s influence over him. I confess I can find no evidence or circumstance from which this inference may logically be drawn. Upon the other hand, it seems to me to be a strong inference that what respondents and their witnesses said about the transaction is in the main true, and that Peterson thought so himself.
Por the reasons therefore that the court erred in finding that the relation of physician and patient did not exist, and that the court, to some extent at least, may thereby have beeni induced to find for respondents, I think the case should be