91 Tenn. 241 | Tenn. | 1892
Lead Opinion
On January 4, 1884, complainant was married to S. B. Spurlock. On December 24, 1883, after the parties became engaged, a • marriage-contract was executed by complainant, who was then Margaret Mallon, and Spur-lock, by which he conveyed to her an estate for life in a house and lot, and she agreed as follows:
“And I, the said Margaret Mallon, contract and agree with the said S. B. Spurlock, in consideration of the above conveyance, upon the consummation of said marriage, to accept the above as my portion of his property, either real, personal, or mixed, moneys, dioses in action, or accounts, and I do hereby relinquish all my rights of dower or home
Complainant had been in business, and had accumulated about $3,700, which, at the time this contract was made, and at the time of her marriage, was loaned to Spurlock. Nothing was said by the contracting parties in regard to this money, nor of the effect of the marriage upon it. On March 13, 1890, about a year before his death, he executed and gave to her his note for this money, with some interest, aggregating $3,735.50, conditioned that it should not bear interest during his life. Spurlock died January 23, 1891, leaving no descendants. Respondents are his next of kin'. His estate at his death was worth, net, about $100,000. If there were no marriage-contract, complainant, as sole .distributee, and for dower, would succeed to an estate worth about $50,000.
She filed her bill setting up these rights. In it she discloses the marriage-contract and attacks its validity as a bar to her claims. The answer specifically denies every material allegation of the bill, and controverts every proposition of law relied on by complainant. 'It avers- that she executed the contract freely, understandingly, and for a sufficient consideration. It relies upon the contract as an equitable bar to complainant’s legal rights in Spurlock’s estate.
Spurlock, at the time of the marriage, was about sixty-three. Early misfortune had permanently impaired his health and caused him to withdraw from social life. lie was a wholesale grocery merchant, and Mrs. Mallou was his customer. He knew her for years before her marriage, was familiar with her surroundings, and was her business adviser. It is in proof that he did not expect any children from the union. At the time the contract was made he was largely in debt, but his estate theii was worth, net, fully as
Complainant avers that she was induced to sign the instrument by Spurlock, who represented to her that it was meant only to save her the annoyance of going to the court-house to acknowledge deeds to his property, and that it did not cut her off' nor affect her rights as wife. This direct charge of unmitigated fraud is in strange contrast with her repeated assertions in her testimonj'- that Spur-lock was a most honorable man, who never did lie nor wrong any one.
An admission, though not conclusive against the party making it (12 Heis., 150; 7 Hum., 41), is, when made freely and without any qualification, the highest evidence. Miller v. Denman, 8 Yer., 237. To overcome it, the proof must be full and
To corroborate complainant, two witnesses testify that she told them, on the day the contract was made, that she had signed a .paper for Spurlock without reading it.
In Hayes v. Cheatham, 6 Lea, 10, the Court says: “ The rule is that where it is attempted to be established that the statement of a witness on oath is a recent fabrication, or where it is sought to destroy the credit of a witness by proof of contradictory representations, evidence of his having given the same account of the matter at a time when no motive- existed to misrepresent the facts ought to be received, because it naturally tends to inspire confidence in the sworn statement.” This rule was approved in Glass v. Bennett, 5 Pickle, 479. It is sometimes a matter of nice judgment to determine that no motive, at a given time, existed to misrepresent the facts. It could not be assumed in this case that no such motive existed at- the time these declarations were made, for if the testimony of Gr. J. Stubblefield that he had read and explained the contract to her be
To sustain complainant’s declaration that she did not know and was misled as to the contents of the contract, and for the further purpose of showing that it is not binding. because not within the contemplation of either contracting pai’ty, it is contended that Spurlock himself was ignorant of its real effect. It is argued that Stubblefield proves that the contract, as prepared by him, goes beyond the written memorandum given him by Spurlock as a basis of the instrument, and that this memorandum did not cut off her marital rights; and further, that this fact, taken in connection with statements made by Spurlock to purchasers of realty from him, fully demonstrates that he did not understand that the agreement cut her off from his estate, thus confirming her testimony that he induced her to sign it by staling that it was a mere paper to save her from trouble and annoyance, and that it did not affect her rights as wife.
It is true that Stubblefield states that the memorandum furnished by Spurlock only contained, so far as he could remember, a description of the bounds of the lot, a provision for a life estate in her, and a disposition of the remainder. He states further that he might not remember every thing. He says that Spurlock came to him to write a marriage-contract, and that he came back in some days,. when witness read to him the contract he had prepared, it being the same one subsequently
The proof shows that Spurlock was a successful business man, who had dealt frequently in real estate. It is most improbable that a man of this character would have taken the precaution of having two witnesses go to her home to attest her signature to an instrument which was wholly for her benefit; and it is still more improbable that he did not know the contents of a paper executed by him on such an occasion and with such solemnity.
One Williams testified that he bought a lot from Spurlock in 1889, and that, in response to his inquiry as to the necessity for Mrs. Spurlock to sign the deed, Spurlock said: “No; that he had a marriage-contract with his wife, which he made so as to save her from having to sign deeds.” This is but a report of a conversation, which is weak testimony at best. If he had said that Spurlock stated he had a marriage-contract with his wife, and that it was so made that she did not have to sign deeds, the testimony would not be significant. He not only undertakes to state the effect,
Auother real estate purchaser testifies that Spur-lock said: “I have signed a paper of about $35,-000 to her; that she would not have to go all over the State ■ and county signing of his deeds for such land as he might sell.” This testimony is discredited by the statement that the paper gave her $35,000, which Spurlock could not have made without telling a conscious falsehood, and the absurdity of saying she would otherwise have to go all over the State to sign deeds. Independent of these ear-marks of invention, the language as reported does not conclusively declare the purpose for which the contract was made, but rather expresses the effect.
This is all the evidence, besides her own testimony, going to show that Spurlock did not know the scope of the contract. It weighs for nothing
The evidence shows to our entire satisfaction that both Spurlock and liis wife executed the paper knowing it was a marriage-contract, and that it cut off her marital rights in his property.
The proof clearly shows that all question of the money he had borrowed of her was, on making the contract, passed over srt6 silentio.
She surrendered all prospective marital rights in his estate, then -worth, net, $100,000, and received a life estate in realty which had cost him, two months prior to the marriage, but $5,000, and on which he had spent in improvements about $1,000.
It is contended for defendants that marriage alone is a sufficient consideration to sustain any antenuptial agreement the parties may make respecting present or future rights in the property of each other.
The authorities are much in conflict. One class of cases view the interposition of the contract as merely an equitable bar, which is held conclusive provided it be entered into freely and understanding^. The other class treat the reliance on 'it as an invocation to the Court for its active .interposition to enforce it specifically; and inasmuch as specific performance is not an absolute right, but is always within the discretion of the Court, they proceed to apply to the contract the usual tests to determine whether, under all the circumstances, the agreement is fair, just, and equitable, and especially whether the consideration be adequate. The methods of treating the contract, would not produce such conflicting conclusions were it not for the high estimate put by one line of authorities upon marriage as a consideration and its entire preter-mission by the opposing line, which seems to look only to the pecuniary features of the transaction.
In Naill v. Maurer, 25 Md., 538, and Forwood v. Forwood, 86 Ky., 114, marriage alone is held to be a sufficient consideration to sustain an ante-
The same rule', though not necessarily involved in the decisions, and therefore not authoritatively adopted, is approved in the following cases: McNutt v. McNutt, 116 Ind., 545; Mann v. Mann, 53 Ver., 54; Hafer v. Hafer, 33 Kan., 460; Wentworth v. Wentworth, 69 Me., 247; Brooks v. Austin, 95 N. C., 476. The case of Peet v. Peet, 46 N. W. Rep., 1051, cited to sustain this view, is not in point, and by implication rests on the opposing doctrine.
The following authorities hold that the contract to be enforced must secure a provision for the wife not unreasonably disproportionate to the means of the intended husband: 2 Scrib. Dow., 424 (2d Ed.); Grould v. Womack, 2 Ala., 83; Woerner Am. Law Admn., 1, 264; Kline’s Estate, 64 Penn. St., 122; Ruth Bierer’s Appeal, 92 Penn. St., 265; Pierce v. Pierce, 71 N. Y., 154; Tarbell v. Tarbell, 10 Allen, 278; Shea’s Appeal, 121 Penn. St., 302; Stetter v. Folger, 14 Ohio, 647; Smith’s Appeal, 115 Penn. St., 319; Neeley’s Appeal, 124 Penn. St., 406; Ludwig’s Appeal, 101 Penn. St., 535.
The common law cherished nothing more than the right of dower. The wife was dowable in. one-
"Where a settlement made by the husband on the wife, without fraud on her part and in consideration of marriage, has been attacked by creditors, it has been uniformly sustained,' and all the authorities concur in saying that marriage is the highest consideration for such a' settlement. It is a sufficient consideration from the woman to enable her to take all of her intended husband’s estate from his creditors. In our opinion there is no sound reason why she may not, if of age and acting freely and understandingly, agree, in consideration of th'e marriage alone, to give up the pecuniary benefits that would come from it. The
In this case the contract recites that a marriage is to be solemnized, and then proceeds as follows: “I, 8. B. Spurlock, in consideration of the consummation of said marriage, do hereby and herein give,” etc. When the portion binding her is reached, it says: “And I, the said Margaret Mal-lon, contract and agree with the said S. B. Spur-lock, in consideration of the said conveyance,” etc. Marriage is not made a consideration for her agreement. It need not be specifically mentioned as a consideration. Naill v. Maurer, 25 Md., 538. But here the terms of the instrument confine the consideration expressly to the conveyance made to her. Being so exactly limited in a contract di’awn by his lawyer, it may well be held to have been entirely pecuniary. When this contract was made, the engagement to marry had been entered into. By the engagement she acquired a valuable right which, in case of a breach of contract, could have been enforced, and measured with reference to Spurlock’s estate. She could have refused to sign the contract without impairing her right to have the marriage consummated or to enforce indemnity for a refusal.
It is manifest that she was not put in a position to deal intelligently with her rights. The result ' justifies this conclusion. Spurlock, by the marriage, acquired the absolute right to the $3,700
This is not a case simply of ignorance or mistake of law on her part. This, standing alone, cannot be relieved against. Other elements exist in the transaction. Those in whom she had confidence, upon whom she had a right to rely, procured from her (though certainly, so faf as Stub-blefield is concerned, not with wrong intent), for an expressed pecuniary consideration, a contract most detrimental to her; and, though voluntarily assuming to instruct her, they failed to advise her as to her legal rights and as to the real consideration she was getting under the combined effects of the contract and the marriage.
Mr. Pomeroy thus states the rule: “ If the mistake of law is not pure and simple, but is induced or accompanied by other special facts giving rise to an independent equity on behalf of the mistaken person, such as inequitable conduct of the other party, there can be no doubt that a Court of Equity
A mistake in law, produced by the representations of the other pai’ty, is as good a ground for relief in equity as a mistake in fact. Drew v. Clark, Cooke, 374. If a party, acting in ignorance of a plain principle of law, give up an indisputable right under the name of a compromise, equity will relieve from the effect of such mistake where, accompanying it, there is ignorance, weakness, or misplaced confidence upon the one side, or an unconscionable advantage is obtained. Warren v. Williamson, 8 Bax., 431; Trigg v. Head, 5 Hum., 533. A widow, ignorant of her legal rights, yielded to an administrator property which was exempt. This Court, through Chief Justice Nicholson, held that she acted in ignorance of her own rights under the law as widow, and that it was the. administrator’s duty to communicate to her what her rights were. Dalton v. Wolfe, 11 Heis., 502. A mere naked ignorance of the law will not be sufficient to authorize a Court of Chancery, to set aside a contract, but if that ignorance be superin-duced by the other party, or if there be misplaced confidence, or if advantage be taken of the weakness of intellect so as to obtain property at a greatly inadequate price, these and other influences mixed- with ignorance of law will be sufficient. Sparks v. White, 7 Hum., 87.
In Wheeler v. Smith the Supreme Court of the Hnited States set aside a release from an heir at
The Court reformed a contract made in mistake of law through a reliance upon the representation, honestly made by the company’s agent, that the insurance in the form adopted would give the protection sought. The party relied upon the larger experience and greater knowledge of the agent. The Court says: “In deciding, therefore; as we do, that the complainants are entitled to have the policy reformed in accordance with the original agreement, it is not perceived that we enlarge or' depart in any just sense from the general and salutary rule that a mere mistake of law, stripped of all other circumstances, constitutes no ground for the reformation of written contracts.” Snell v. Insurance Co., 98 U. S., 91.
Complainant was not dealing at arm’s length nor under the advice of her own counsel. Assuming to instruct, they should have done so fully, and she had a right to presume that such was the case. A failure -to so advise, where such close confidence is reposed, whether purposely or through ignorance or misapprehension, is equivalent to positive misadviee.
There is another important fact which has great weight, and must be considered as one of the controlling elements in the transaction. She testifies that Spurlock told her that he was heavily in debt, and made the impression on her that he was not worth much. Other witnesses testify that he frequently spoke of being oppressed by his large indebtedness, and thus she is corroboi’ated. Thus the impression produced by him was calculated to influence her to yield, as of little value and for an inadequate consideration what, upon full information, would have been apparently of great value. If the contract was freely entered into in consideration of marriage, the disproportion between the
The decree of the Chancellor is affirmed.
Dissenting Opinion
DISSENTING OPINION.
I cannot agree to the conclusion reached by a majority of the Court in this case. The Court correctly,, as I conceive, holds that the marriage-contract was executed by Mrs. Spurlock with a full knowledge of its terms; but because she was not informed of the legal effect of marriage upon some money she had loaned Spurlock before marriage, the marriage-contract is to be set aside, and not to be held binding on her. If she understood, as I agree with the Court she did, the terms of the marriage-contract, that it was explained to her, knew the effects • thereof, knew what she was to get from his estate in the event of marriage, and then signed and acknowledged it, she, after marriage, is bound thereby, although she may have been ignorant of. the effect in law of marriage upon some money she had loaned Spur-lock before marriage. It does not affirmatively
Tbe result is, that although the marriage-contract Avas well understood by her, and fully explained, yet, because it does not affirmatively appear she knew the legal effect of marriage upon some property of hers, the contract must be held invalid and of no force and effect, and this though no inquiry was made and no thought given the subject by either party. The parties evidently had an understanding in regard to this money, for, after the marriage, she demanded and he gave his note for the amount, which she held at the time of his death. Such a ruling by this Court would virtually do away with all marriage-contracts, for if the wife had any property, however insignificant in amount, at the time of signing the contract and marriage, and after many years it could not be affirmatively shown that she knew the legal effect of marriage upon said property, the contract would not be binding, however well its effects and terms were known and understood by -the parties. Such certainly never was the law, as I think, until this decision, from which I respectfully dissent.