37 N.J. Eq. 180 | New York Court of Chancery | 1883
For many years prior to the year 1871, the complainant had resided in Trenton, and was largely engaged as a dealer in real
On February 15th, 1872, complainant was taken to the asylum, and remained there until June 10th of the same year, when he returned to his home and family in Trenton. In his bill he says, •“ in a short space of time he was restored to perfect health and strength, both of mind and body.” This allegation deserves attention in the consideration of this cause. It was made more
The estate of complainant which had not been used in the payment of his debts, remained in the hands of Jacob. The disposition of this balance aggravated the differences between these brothers and precipitated this litigation.
In the year 1874, the complainant opened a store in Newark,, and attempted business on his own account. During that year these brothers had a serious dispute respecting the property of Alpheus and the management of -it by Jacob, and they separated in great anger. Jacob immediately brought suit against Alpheuson a note for $2,000, given, by Alpheus to Jacob in November,, 1871. Alpheus filed a plea to the declaration in that action, and then presented hi's bill in this court and obtained an injunction restraining the further prosecution of that action at law. That an opportunity might be had for a settlement, counsel for complainant extended the time for filing answer. Jacob promised the counsel of Alpheus that he would furnish to him a statement showing how the accounts stood. After weeks of delay, I
After the commencement of these legal proceedings I infer, from complainant’s testimony, that he and Jacob had a meeting in Newark, and at Dover, and at Hope, with a view of settling their differences. The one at Hope was at the house of an uncle, who says the effort continued through portions of two days. This was in June, 1877, more than a year after complainant had opened a store at that place, and had been carrying on business on a large scale. On the 19th of August of that year (1877) he went to Newton to visit his brother Jacob. He met there his wife and children, his sister, Mrs. Apgar, and his father. He remained over until the 22d. While at Jacob’s, at this time, a settlement was effected. The complainant says he does not think that he and Jacob were engaged in the effort to settle-'over two hours. The result of their interview was reduced to writing. All of that instrument, except the statement of the account, is a follows, viz.: ,
“ Agreement this 21st day of August, 1877, between Alpheus Swayze, of Hope, in the county of Warren, and state of New Jersey, and Jacob L. Swayze, of Newton, in the county of Sussex, and state of New Jersey, witnessed, that the said parties have this day made a settlement of all matters and things arising out of the undertaking and trust wherein the said Jacob Swayze took charge of the business of the said Alpheus Swayze, and- sold bis property and paid bis debts, by virtue of a certain agreement between the parties hereto, and a certain power of attorney, executed by the said Alpheus Swayze to the said Jacob L. Swayze, both bearing date December 16th, 1871, and that they find due to the said Jacob L. Swayze from the said Alpheus Swayze, the sum of §3,207.22, in the foregoing and attached statement of accounts; and the said Alpheus Swayze, for and in consideration of the premises mentioned aforesaid and connected with the trust, doth hereby covenant, promise and agree to pay to the said Jacob L. Swayze the said sum of §3,207.22, with interest from the 1st day of September, 1877, and to secure the payment of the said sum of money, doth hereby ratify and confirm the assignment of two certain policies of life insurance in the Mutual Life Insurance Company of New York, the one on the life of himself and the other on the life of his father, Israel Swayze.”
It was executed in duplicate. One copy was taken by complainant. The father of Jacob and Alpheus, their wives and
The supplemental bill declares the said writing to be void, and prays that it may be so decreed.
It will be pereeived, therefore, that the complainant sets up this agreement and settlement for the purpose of attacking and overthrowing them. Until' removed they are insurmountable barriers.
The defendant, by her plea, presents this agreement and the account, item after item, of debt and credit, covering over twenty
The complainant now insists that the nature of the pleadings— the defendant setting up the release which is admitted in the bill —imposes the burden on the defendant, and that consequently the defendant must not only establish the release, the execution of which is formally admitted in the bill, but every item of it. In support of the view that the burden is on the defendant, counsel cite 1 Dan. Ch. Pr. & Pl. 604, 631. It is insisted that by filing the plea, the cause of action is admitted, but that the subject-matter of the plea operates as a bar, and that this obliges the defendant to maintain his plea, citing 1 Dan. Ch. Pr. & Pl. 663, 718; Flagg v. Bonnel, 2 Stock. 82; 1 Barb. Ch. Prac. 119-124; Stout v. Seabrook, 3 Stew. Eq. 187; Rev. p. 109 § 29; McEwen v. Broadhead, 3 Stock. 129; Dows v. McMichael, 6 Paige 139; Fish v. Miller, 5 Paige 26; State of Rhode Island v. Massachusetts, 14 Peters 210; Daniels v. Taggart, 1 Gill & J. 311; Hughes v. Blake, 6 Wheat. 453; Davison’s Exr. v. Johnson, 1 C. E. Gr. 112; McClane’s Admrs. v. Shepherd’s Exrx., 6 C. E. Gr. 76; Bogardus v. Trinity Church, 4 Paige 178.
The principle that the burden is on defendant, thus contended for, is without exception, I believe, in case of pleas purely affirmative. It is not true, however, in case of pleas styled negative. The latter are in some respects founded on allegations in the bill. 1 Dan. Ch. Pl. & Pr. (4th ed.) 604. They are sometimes called anomalous pleas, which consist mainly of denials of substantial matters set forth in the bill. Story’s Eq. Pl. § 651. The plea in the case before us is of this negative or anomalous character. The supplemental bill sets forth the agreement respecting the settlement of the accounts, and then alleges that he, the complainant, was nervous and was overcome, and that his brother took advantage of his weakness and procured the execution of the agreement by his dictatorial manner, and that therefore it is void. The plea denies all the allegations in the complainant’s
This being so, on which party does the law cast the burden ? I think upon the complainant. He casts or fashions the issue by his bill and supplemental bill. He presents a ease which, if established, entitles him to relief—entitles him to a decree setting aside the agreement. He admits the execution of this instrument, but assails it nevertheless. Clearly, he has the affirmative. Until he sustains the allegations in his bill, this writing and this account must stand, unless the court should permit the complainant to surcharge and falsify the account. I find no exception to this rule. If an account be pleaded in bar to a bill in equity, such plea will be sustained except so far as the complainant can show it to be erroneous. Chappedelaine v. Dechenaux, 4 Cranch 306. In this case the court observes : “That the plea in bar must be sustained except so far as it may be in the power of the representatives of Chapperdelaine to show clearly that errors have been committed, is a proposition about which no member of the court has doubted for an instant. Ho practice could be more dangerous than that of opening accounts which the parties themselves have adjusted, on suggestion supported by doubtful or by only probable testimony. But if palpable errors be shown, errors which cannot be misunderstood, the settlement must so far be considered as made upon absolute mistake or imposition, and ought not to be obligatory on the injured party or 'his representatives, because such items cannot be supposed to have received his assent. The whole labor of proof is upon the party objecting to the account, and errors which he does not plainly establish, cannot be supposed to exist.” Although no plea was filed, the defendant relying on an answer, to the same effect is Nourse v. Prime, 7 Johns. Ch. 69. So in Perkins v. Hart, 11 Wheat. 237, the court says a settled account is prima fade evidence of its correctness.
In Lockwood v. Thorne, 11 N. Y. 170, 175, it is stated: “ That if either party attempts to impeach the settlement and to open the accounts for re-examination, either wholly or in part, and
These authorities are in harmony with the deductions of Lord Redesdale, as expressed in 1 Dan. Ch. Pl. & Pr. 696, thus : “ If, therefore, a plea is allowed upon, argument, or the plaintiff, without argument, thinks it, though good in form and substance, not true in point of fact, he may take issue upon it and proceed to disprove the facts upon which it is endeavored to be supported. This he does by filing a replication, in the same manner that he would do if the defendant had simply put in an answer to the bill in the usual way.” On page 698 he adds: “ If he has in his bill alleged any matter which, if true, may have the effect of avoiding the plea, such as notice or fraud, he may, after replying to the plea, enter into evidence in support of his allegation. And where the plea introduces matter of a
I have referred to the authorities on this point more fully than I should have done had not counsel for complainant, apparently, in presenting their views, relied so confidently upon the conviction that the burden was on the defendent, and pressed it with so much skill and energy. And besides, it is proper to observe that the complainant undertook to maintain the allegations in his supplemental bill. He assumed the affirmative and first examined all his principal witnesses. At no time did he call upon the defendant to maintain the issue until the examination of witnesses had been rested on both sides. Indeed, this method of procedure seemed so sensible and logical, and at the same time so essential, that the complainant pressed into his service every shade and complexion of evidence. I thought then he was not only justified in that course, but required so to do under the pleadings; and the very elaborate argument presented at the hearing has not changed my mind as to the side entitled to and obliged to maintain the affirmative.
The question, however, remains, Are any of the material allegations in the supplemental bill, or the amendment thereto, so far supported by evidence as to justify the court in declaring the agreement void, and in allowing the restatement of the account ? In other words, Was this agreement fairly obtained ?
The parties were brothers, the complainant being the younger. The complainant had early engaged in business as a country merchant in Hope, and was very successful. In 1866 he commenced business in Trenton. Jacob was admitted to the bar, and, after practicing a short time, moved to Newton and engaged in banking. There is nothing in the case which leads me to conclude that either was endowed with gifts superior to the other; or that opportunities more highly favored one than the other; or that the complainant’s misfortunes are to be ascribed to a failure in either. The complainant’s misfortunes, financial,,
These manifold expressions of eminent judges leave no uncertain impressions. It was Jacob’s duty to account fully. He had no right to impose any unnecessary or illegal charges. The question is not whether the parties were upon an equal footing or not, but, supposing one to have had advantages, however great,
From this it does not appear by what means or in what manner this fear and submission were effected, except the dictatorial manner of Jacob. But accepting the statement as sufficient in itself, I am not satisfied with the proof offered in support of it. On the contrary, the statements of the father, who was also visiting Jacob at that time, and saw the two sons several times while they were together, and before the agreement was signed, and the statements of Mrs. Apgar, a sister, who likewise came on a visit on Monday afternoon (as the agreement was signed the next day, in the evening), while the brothers were engaged at the settlement, most effectually repel the insistment of mental or bodily prostration, as well as the charge of domination and undue influence on the part of Jacob. When Mrs. Apgar went into the hall of the house, her brothers left their room and met her with a hearty and cheerful welcome. The father, Mrs. Apgar and others were there until the paper was signed. From the testimony, I can have no doubt but that complainant had the faculties to understand, and that he did understand what he did, and the legal effect of it, when he signed the agreement. There is nothing to show that the defendant was deprived of his freedom to act. Giving the utmost latitude to the contention that the conlplainant was laboring under mental weakness, aberrations or
And looking further at the charge that Jacob had such power or control over complainant as to deprive him of his free agency, it is to be remarked that there is not a single faot or circumstance brought forward, from all their intercourse, that shows the exercise of it on any other occasion. On the contrary, the history of several of their meetings, as given by the complainant, absolutely dispels the charge and appears to render such a result as is contended for, morally impossible. For example, about the 1st day of January, 1874, he says Jacob called at his house in Trenton and wanted to settle on the basis of the account here produced, when, in their disagreement, he (complainant) waxed so hot that he ordered Jacob from his house, and because he did not go, he (complainant) went to a closet and got a weapon and compelled him to leave. With this fact, out of the mouth of complainant, it cannot be urged, as the case now stands, that Jacob accomplished anything by dictation or threats. In addition to this, complainant said that Jacob met him at the Park House, in Newark, at Dover, and at the house' of an uncle, in Hope, for the purpose of a settlement, but without effecting any terms. Had Jacob possessed the power of subduing complainant to his wish, it is more than reasonable to suppose that he would have undertaken it on one of these occasions. And it is to be observed that if Jacob’s presence or manner had the effect of unmanning the complainant so that he acted without thought or will on the occasion when the settlement was reached, it is remarkable that there is no proof of their unhappy influence at any other period of their lives.
The question of capacity being disposed of, I am again brought to inquire whether or not the agreement was fairly obtained. Whether so obtained or not depends upon the character of the accounts, whether long and intricate, or embracing a variety of subjects, or peculiarly within the knowledge of Jacob, while the complainant remained in ignorance of some material fact, which, if known to him, he probably would have acted upon. I think neither circumstance exists in this case. The subject-matters were
There was no surprise; the question was not suddenly thrust upon him. He says that on the 6th of January, 1874, Jacob wanted him to settle on the basis of this same agreement at the house of complainant, in Trenton. After this they had at least three meetings for the same purpose, one of which was at Hope, and the consideration of the subject continued through two days. In August, 1874, the bill in this cause, ■which involves these accounts, was filed. The statements in this bill show that the complainant could not have been taken by surprise August 21st, J 877. And the correspondence offered, and other evidence, show that the subject of dispute was very frequently agitated after the filing of the bill, in other ways than by meetings between the parties for that purpose.
These same considerations show with equal force and certainty that the complainant was not ignorant of the subject-matter, nor of the details, nor of the methods pursued by Jacob, nor of the principles upon which Jacob proposed to settle.
Again: I think these views are more firmly impressed by a consideration of the complainant’s conduct after the settlement. This was in the evening, The complainant and his family remained with Jacob until next morning. Before leaving for his home he told the cashier of the bank of the settlement, and expressed his satisfaction therewith. He carried the agreement, home and placed it in his safe; and it does not appear, except from allegations in his supplemental bill, that he ever was dissatisfied, in Jacob’s lifetime, although, when he told his counsel, soon after the settlement, he says his counsel told him he had been greatly wronged. He also says that after the act, he felt that he had done an unwise and foolish thing.
But notwithstanding any of these considerations, it would be a reproach to the character of a court of equity to plant its judgments upon forms or technicalities, or mere lapse of time in such cases, if it became apparent that the defendant holds a portion of the money or estate of the complainant, unless the complainant should stand aloof in the spirit of speculation, taking advantage of the death of important witnesses or the destruction of documents. To this stage we are carried by the pleadings and proofs before us. And with this in view, in the midst of the trial, the court allowed an amendment to the supplemental bill, so that if the release itself should stand, and palpable errors appear, the complainant might proceed upon the sure ground of surcharging and falsifying the account. But I cannot find anything in the case to justify me in allowing the complainant to move to that extent” I think his hand should be stayed. It was the intention of the parties to bury their disputes and to forever put to rest their differences under this settlement. It was a compromise. The supplemental bill makes this most plain. The complainant’s mind was brought to that point, by the earnest solicitations of his wife and father. In the language ■of Lord Langdale: “ When parties whose rights are questionable have equal knowledge of facts, and equal means of ascer
In my judgment, the complainant has not established the allegations in his supplemental bill nor in the amendments thereto, and I shall therefore advise a decree that they be dismissed, with costs. I shall advise that the original bill be dismissed, but without costs, since that was pending at the time of the settlement, and the costs must have been included therein.