RUBIE L. SMITH, SURVIVING WIDOW OF ALMON F. SMITH, PETITIONER V. FREDERICK D. SMITH AND E. V. WILKINS, TRUSTEE, RESPONDENTS.
IN THE SUPREME COURT OF NORTH CAROLINA
Filed 23 July, 1965.
265 N.C. 18
In this Court, Teer moved to dismiss the Highway Commission‘s statement of case on appeal for failure to comply with Rule 19(4), Rules of Practice in the Supreme Court, 254 N.C. 783, 800. The Highway Commission set out the major portion of the evidence offered by Teer under direct examination in question and answer form. It asserts this was necessary to show its objections to this evidence as the basis for its contention there was no competent evidence to support designated findings of fact, citing Maley v. Furniture Co., 214 N.C. 589, 200 S.E. 438. Since decision on this appeal is based on matters appearing on the face of the record, determination as to whether the Highway Commission‘s said statement of case on appeal violates Rule 19 (4) is academic. However, its status has been considered in taxing the costs incident to this appeal.
The costs on this appeal are taxed as follows: Each party shall pay the entire costs of its briefs. Each party shall pay the entire costs of printing its statement of case on appeal. All other costs incident to the appeal shall be taxed one-half against Teer and one-half against the Highway Commission.
For the reasons stated, the judgment of Judge Martin is vacated and the cause is remanded to the superior court for the entry of a judgment (1) vacating the decision of the Board of Review, including all findings and conclusions stated therein, and (2) remanding the proceeding to the Board of Review for further proceedings not inconsistent with this opinion.
Error and remanded.
RUBIE L. SMITH, SURVIVING WIDOW OF ALMON F. SMITH, PETITIONER V. FREDERICK D. SMITH AND E. V. WILKINS, TRUSTEE, RESPONDENTS.
(Filed 23 July, 1965.)
1. Wills § 60-
Litigation which “affects the share of the surviving spouse” within the purview of
2. Same-
Intestate died leaving a widow and one child by a former marriage. The widow‘s stepson deeded his one-half interest in the estate to her and, prior
3. Same-
Intestate died leaving a widow and one child by a former marriage who executed a deed of trust on his one-half interest in the lands of the estate and then conveyed to the widow the same realty in fee. Held: The widow‘s suit to enjoin foreclosure of the deed of trust on the grounds that she individually was the sole owner of the land and that the land was subject to sale to make assets to pay debts of the estate is litigation affecting the widow‘s share in the estate within the purview of
4. Actions § 12-
An action properly instituted remains pending until there is a judgment making a final disposition of it.
5. Wills § 60-
If the surviving widow, while litigation affecting her share of the estate is pending, files a sufficient written request with the clerk for an order fixing a time under which she may make an election under
6. Estoppel § 4-
Equitable estoppel is to be applied as a mеans of preventing injustice and must be based on the conduct of the party to be estopped which the other party relies upon and is led thereby to change his position to his disadvantage.
7. Judgments § 30-
The sole child of intestate was successful in obtaining judgment setting aside his deed to the widow for his intestate share. Held: The right of the widow to elect to take a life estate in the homeplace instead of the fee in one-half of the lands of the estate was not in issue in the action to set aside the deed, and the judgment therein does not constitute an estoppel.
8. Registration § 5-
Deed of the son of intestate to his step-mother for his interest in the lands of the estate was set aside for fraud. On the day judgment was rendered setting aside his deed, he executed deed of trust to his attorneys. Held: The attorneys, having knowledge of the respective rights of the parties, may nоt claim as innocent purchasers for value so as to preclude the widow from thereafter electing to take a life estate in the homeplace under
The widow entitled to one-half interest in the lands of the estate accepted deed to the other one-half interest from intestate‘s sole child. The deed was thereafter set aside for fraud. Held: The acceptance of the deed does not estop the widow from thereafter electing to take a life estate in the homeplace in lieu of her one-half interest, since her right to make the election is founded on statute and is aliunde the deed.
10. Estoppel § 3- Widow‘s claim of title under void deed from heir held not to estop her from electing to take a life estate in homeplace.
The widow of intestate procured deed from intestаte‘s son for his one-half interest in the lands of the estate and asserted sole ownership of the lands in the son‘s action to set aside his deed for fraud and in her action to enjoin foreclosure of a deed of trust executed by him to a third person. Final judgment was rendered setting aside the deed for fraud. Held: The widow is not estopped from asserting her right to elect, under
11. Dower § 1; Curtesy-
Dower and curtesy have been abolished, but
12. Wills § 60-
The right of the surviving spouse to take a life estate under
13. Same-
The fact that a widow accepts from testator‘s sole child a deed to his one-half interest in the lands of the estate does not constitute an election to take under
14. Estoppel § 4-
The fact that the widow procures by fraud the execution of a deed from intestate‘s son for his one-half interest in the lands of the estate does not estop her, after the rendition of judgment setting aside the deed, from asserting her election under
SHARP, J., dissenting.
BOBBITT, J., joins in dissent.
Lyon & Lyon for Petitioner.
L. Austin Stevens and Wiley Narron for Respondents.
MOORE, J. This is a special proceeding, instituted pursuant to
Almon F. Smith died intestate on 11 December 1961, survived by his widow Rubie L. Smith, petitioner herein, and a son Frederick D. Smith, one of the respondents herein. Frederick is the child of deceased by a former wife and is stepson of Rubie. Rubie qualified as administratrix of Almon‘s estate on 22 December 1961.
On 19 January 1962 Frederick executed and delivered to Wiley Narron, Trustee, a deed of trust conveying his one-half undivided interest in the lands of which his father died seized, to secure the payment of a note of even date payable to L. Austin Stevens on 1 January 1963.
On 28 April 1962 Frederick executed and delivered to Rubie a warranty deed conveying the same realty to her in fee simple. Included in this conveyance was his one-half undivided interest in the homeplace where Rubie resided with Almon until the time of his death, and where she has resided at all times since. On 9 May 1962 Frederick instituted an action to set aside the deed for fraud in its procurement, alleging he signed the deed while intoxicated thinking it was a note for money advanced, the consideration was inadequate, and Rubie had taken advantage of her fiduciary relationship as administratrix. There was a verdict in favor of Frederick and judgment was entered on 4 April 1963 declaring the deed void. Rubie appealed to Supreme Court.
In the meantime, early in February 1963, Narron, Trustee, beсause of default of Frederick, undertook to foreclose the deed of trust and advertised the property for sale - sale date 4 March 1963. On the date of the sale, Rubie, individually and as administratrix, filed a suit to enjoin the foreclosure, alleging that she, individually, was the sole owner of the property and it was subject to sale to make assets to pay the debts of her late husband and Frederick had warranted against encumbrances. This sale was conducted, but on 8 March 1963 a temporary restraining order was issued enjoining consummation of the sale. On 19 March 1963 the restraining order was continued to the final hearing.
On 4 May 1964 Rubie filed with the clerk of superior court an ex parte petition аnd notice of election to take life interest in the homeplace, in lieu of one-half interest in all of the lands of her late husband in fee. She requested the clerk to make an order permitting the election to be filed in accordance with
On 27 June 1964 a judgment was entered in the suit to enjoin the foreclosure of the deed of trust, dismissing same on the ground that the opinion in Smith v. Smith, supra, rendered the action moot.
On 6 August 1964, by consent of interested parties, the clerk entered an order in the election proceeding, permitting Rubie to file her notice of election as provided by
Thе matter was heard by Hobgood, J., and judgment was filed on 18 November 1964. The judgment finds as a fact that at the time the petition and notice of election were filed on 4 May 1964 there were actions pending in the superior court of Johnston County which “did involve the share and interest of the said Rubie L. Smith ... in said lands,” and that the “request and petition for the written order was made within apt and reasonable time within the meaning of the statute.” The pleas in bar were overruled. It was decreed that petitioner “is hereby permitted and allowed to file her notice of election to take a life estate ... as of May 4, 1964,” and that the proceedings are remanded to the clerk for an order carrying out this judg
If an intestate is survived by only one child, the share of the surviving spouse shall be one-hаlf of the net estate, including a one-half interest in the real property.
Rubie qualified as administratrix on 22 December 1961. Claims against the estate were required to be filed within six months after the publication of the first notice to creditors.
The first question for decision is whether the action to set aside the deed for fraud and the suit to restrain the foreclosure of the deed of trust were litigation affecting the share of the surviving spouse. Re-
We do not agree that the expression, “litigation that affects the share of the surviving spouse in the estate” is to be so narrowly limited and applied. The definition contained in
It is a fair inference that Rubie did not wish to accept one-half interest in a house and be subjected to possible annoyance, interference and unreasonable dеmands of a cotenant, and run the risk of a sale for partition - particularly in view of the fact that it had been and was her home. The alternative was to take a life estate in the whole
Before execution of the deed to Rubie, Frederick had executed and delivered to Narron, Trustee, a deed of trust conveying as security his interest in all of the lands of the estate, including his interest in the homeplace. While the fraud action was still pending, Narron, Trustee, undertook to foreclose the deed of trust under the power of sale therein. Rubie was confronted with these possibilities: A sale under foreclosure of a one-half interest in the homeplace, if she was not the successful bidder, would place her in the same position she occupied before she acquired the deed from Frederick; to permit the proрerty to be sold without objection might amount to a waiver of her right of election in the event she did not prevail in the fraud suit (19 Am. Jur., Estoppel, § 91, pp. 747-749); and her deed from Frederick contained a warranty against encumbrances and a sale might cut off possibility of recovery on the warranty. She instituted a suit to enjoin the sale, asserted her ownership of the property, pointed out her right as administratrix of the estate to resort to the property as an asset of the estate for payment of debts, and tendered payment of the indebtedness secured by the deed of trust upon condition the debt and security be assigned to her to protect her rights under the warranty. Narron, Trustee, and his codefendant, answering, declined the tender and refused to assign the indebtedness and deed of trust. Whether the sale was consummated and, if so, whether she was the suсcessful bidder at the sale, would affect her decision in the matter of making an election under
The second question presented by the appeal is: Was this proceeding commenced within apt and reasonable time within the meaning of
The court below adjudged that the proceeding is deemed to have been commenced on 4 May 1964 when petitioner filed ex parte her notice of election and requested the clerk to make a proper written order. If this ruling is correct, the proceeding was commenced while litigation affecting the share of petitioner was pending, and no question of laches or of “apt and reasonable time” is involved.
The first petition, filed on 4 May 1964, though inartfully drawn, was sufficient to require the clerk to make the written order fixing time limit. The clerk did not enter such order until 8 August 1964. The most likely explanation of the delay is that the procedure is new and the clerk did not fully understand the nature and extent of his duty. In any event the delay may not be imputed to petitioner. The written order was made in compliance with petitioner‘s written request which
The final question presented is whether petitioner is estopped by her conduct and other circumstances to make an election. Appellants contend that petitioner is estopped by judgment, deed, prior inconsistent election, prior inconsistent position, and fraud.
“... estoppel is a bar which precludes a person from denying or asserting anything to the contrary of that which has, in contemplation of law, been established as the truth, either by acts of judicial or legislative officers or by his own deed or representations, either express or implied.” 19 Am. Jur., Estoppel, § 2, p. 601. “... equitable estoppel (which is estoppel in pais), grows out of such conduct of a party as absolutely precludes him, both at law and in equity, from asserting rights which might have otherwise existed, either of property of contract, or of remedy, as against another person who in good faith relied upon such conduct, and has been led thereby to change his position for the worse, and who on his part acquires some corresponding right, either of contraсt or of remedy.” Boddie v. Bond, 154 N.C. 359, 70 S.E. 824. “... estoppels should be resorted to solely as a means of preventing injustice and should not be permitted to defeat the administration of the law or to extend beyond the requirements of the transactions in which they originate. ... the doctrine of estoppel when misapplied may be a most effective weapon for the accomplishment of injustice.” 19 Am. Jur., § 4, p. 602. The conduct of the party claiming an estoppel must be considered no less than the conduct of the party sought to be estopped. Peek v. Trust Co., 242 N.C. 1, 86 S.E. 2d 745.
Appellants say, “We have litigated title to this property in the case of Smith v. Smith, 261 N.C. 278, and the matters therein adjudicated concerning title, we submit is res judicata between the parties.” The case referred to is the action instituted by Frederick to set aside his deed to Rubie on the ground of fraud. Before the exeсution of the deed Frederick owned a one-half undivided interest in the homeplace in fee
Appellants further contend that “the petitioner claimed the full fee in the property under the fraudulent deed, and ... that she is now estopped to deny that Frederick D. Smith owns the one-half interest he purportedly conveyed to her.” They contend that Rubie‘s claim of title, in the fraud and foreclosure suits, under the deed from Frederick, though the deed was later judicially declared to be void, now estops her in this proceeding to elect to take a life estate. They cite in support of this proposition, Fisher v. Toxoway Co., 165 N.C. 663, 81 S.E. 925; Monds v. Lumber Co., 131 N.C. 20, 42 S.E. 334. These cases do not stand for the proposition asserted; they hold that the grantee in a deed or other instrument, who claims title solely by reason of the deed or instrument, is estopped to deny the title of the grantor in an action between grantee and grantor, or his assigns, involving the title, though the deed or instrument be void. “While no one can impugn the title under which he holds, as a gеneral rule, an estoppel by deed runs against the grantor rather than the grantee, the exceptions to such rule being limited in scope. Thus, it is generally held that, by accepting a deed, a grantee is not estopped to deny the grantor‘s title or seizin, ex-
In both the fraud case and foreclosure case, petitioner in her pleadings asserted sоle ownership of the homeplace in fee. Appellants say that this now estops her from claiming a life estate therein. They say that she may not change her position and make a claim contrary to that asserted in the earlier actions. “... the following have been enumerated as essentials to the establishment of an estoppel under the rule that a position taken in an earlier action estops the one taking such position from assuming an inconsistent position in a later action: (1) The inconsistent position first asserted must have been successfully sustained; (2) a judgment must have been rendered; (3) the positions must be clearly inconsistent; (4) the parties and questions must be the same; (5) the party claiming estoppel must have been misled and have changed his position; (6) it must appear unjust to one party to permit the other to change.” 19 Am. Jur., Estoppel, § 73, pp. 709, 710. Only one of these essentials is clearly present in the instant case - rendition of judgment. Petitioner did not sustain her position in the earlier cases; the positions taken by her are different but not necessarily inconsistent; the questions involved are not the same; respondents have not been misled and have not changed their positions; it is not unjust for petitioner to claim what the statute gives her, especially when she now claims only an estate for life and renounces all rights to any of the property in fee, ceding the remainder interest in fee to Frederick and his assigns in all of the property. In High v. Pearce, supra, a widow defended an ejectment suit, instituted by the purchaser at a foreclosure sale, on the ground that her dower had been allotted in the homeplace. It was held that she was not, after an unfavorablе judgment in the ejectment suit, estopped to move to set aside the allotment of dower (which was in law void), and to have her dower properly allotted. In Etheridge v. Davis, 111 N.C. 293, 16 S.E. 232, defendant denied that he owned certain logs, but the verdict established his ownership. It was held that he was not estopped by his pleading, denying ownership, to claim his personal property exemption in the logs when plaintiff sought to take them under execution. See also Boddie v. Bond, supra. Petitioner is not estopped by her pleadings in
Respondents further contend that, by accepting the deed from Frederick and asserting title in fee in the fraud and foreclosure cases, petitioner made an election to take in accordance with
Finally, it is said that petitioner is estoрped by her fraud in procuring the deed from Frederick. Her fraud in that transaction has been established. Smith v. Smith, supra. A person may be estopped by fraudulent conduct. Indeed, estoppel in pais arises only by reason of fraud, undue advantage, overreaching or unconscionable conduct. In re Will of Covington, 252 N.C. 546, 114 S.E. 2d 257; Hawkins v. Finance Corp., 238 N.C. 174, 77 S.E. 2d 669; Peek v. Trust Co., supra. Petitioner is not now claiming any benefit or advantage springing from her fraud. That matter has been laid to rest, and she has paid the penalty. Re-
The judgment below is
Affirmed.
SHARP, J., dissenting.
The majority concede that, unless litigation affecting her share in her husband‘s estate was pending, petitioner was required “to make her election (to take a life estate) on or before July 22, 1962 or a date shortly thereafter, depending on the date of the first publication of notice to creditors.” She did not attempt to make the election in: ques-
Intestate died December 11, 1961. Petitioner was appointed his administratrix December 22, 1961. On April 28, 1962, intestate‘s son, respondent Smith, conveyed to petitioner his one-half interest in the dwelling she was occupying at the time of her husband‘s death. Prima facie, she then owned the fee in the whole of this property. Ten days later, however, respondent instituted an action against petitioner to set this deed aside for her fraud in procuring it. On April 4, 1963, the deed was set aside. This, then, is the litigation which the majority say affected the widow‘s share in the estate. How can it be said that it affected her share in the husband‘s estate when, no matter how the fraud action terminated, she still retained the share she acquired from her intestate husband as his widow, a fee simple in one-half of the dwelling in controversy? If she should lose, the title to the realty remained as it had been transmitted to both beneficiaries by the death of the decedent. If she should win, in addition to the one-half she acquired through her husband, she had the son‘s share, from the son. The market value of the property was likewise unaffected; it remained the same, whether it was owned by two persons or by one. In no wise did this litigation affect the share which the widow derived from the husband‘s estate; it affected only the share of her stepson, the other beneficiary.
The majority opinion states that “any litigation which may substantially and materially affect the choice the surviving spouse is entitled to make affects the share of the surviving spouse in the estate.” With this statement I would agree - provided the reference is confined to litigation growing out of transactions by the decedent in his lifetime or connected with the proper administration of his estate. Clearly a contested mortgage, a disputed account, or a pending tort action might affect the net value of the husband‘s estate and thereby affect the widow‘s election and her share in the estate within the meaning of
It may be conceded, without in the least weakening the thesis of this dissent, that the evidence in respondent‘s action to set aside the deed made out a minimal case of fraud. Nevertheless, upon that evidence the jury found that petitioner had fraudulently secured the deed from her alcoholic stepson while acting as the administratrix of his father‘s (her husband‘s) estate. This Court, in an opinion to which there were no dissents, affirmed the judgment of the Superior Court setting the deed aside. Smith v. Smith, 261 N.C. 278, 134 S.E. 2d 331. The humanitarian urge to take care of widows is always strong, and the facts in this case graphically illustrate the possible disadvantages of a tenаncy in common. Yet fraud is not an acceptable means of ridding oneself of the annoyance, interference, and unreasonable demands of a co-tenant nor of the risk of partition. Surely it is not for this Court, who did not see or hear the witnesses, to substitute our judgment for that of the jury in a case which we have heretofore affirmed on appeal. To do so would merely add another hard case to the quicksands of the law.
In this case petitioner simply failed to make her election to take a life estate within the time required by law. She was not, in my opinion, protected by
BOBBITT, J., joins in dissent.
