63 Md. 371 | Md. | 1885
Lead Opinion
delivered the opinion of the Court.
On the thirty-first day of May, 1882, Ernault H. Williams conveyed all his property of every kind to his father, George H. Williams, the appellant in this case. It was stated in the deed of conveyance that it was made in consideration of one dollar, and for “ other good causes and considerations.” The property was conveyed to the grantee and his heirs forever, on certain trusts declared in the deed; these were that he should collect the rents,
On the 13th of December, 1882, Ernault H. Williams filed a bill of complaint against his father, in the Circuit Court of Baltimore City, in which he charged that his father was desirous to obtain possession and control of his estate; and to deprive him of his legal rights thereto ; and to reduce him to a dependence on his will; and to secure for himself the benefits which would accrue from the possession and management of his son’s large property; and to accomplish other objects which he personally desired on his own account to secure ; and that he procured the execution of this deed, by the abuse of the influence which he possessed and exercised over his son, and of the confidence which
The controversy in this case imposes a very painful duty upon the Court, but we cannot shrink from the full and faithful peformance of it. A candid and careful consideration of the evidence requires us to say that the aspersions made in the bill on the conduct and motives of the ap
Ernault H. Williams was a young man about twenty-five years of age. He had been afflicted with a severe illness in childhood, which had left permanent effects on mind and body, debilitating both to a very considerable extent. He was deficient in personal firmness, and seems to have been totally unable to cope with dangers suddenly assailing him. He had contracted the habit of drinking intoxicating liquors to great excess ; and was licentious in his conduct in other respects. At the time of the execution of this deed he was suffering from a loathsome and immoral disease, the result of sensual indulgences. Not-withstanding his physical condition he was engaged to be married to a young lady residing in the City of Baltimore, and the marriage day was near at hand. On the morning of the 31st of May, 1882, he received a letter from Dr. Buckler, an eminent and estimable physician, in which he pointed out to him the criminality of contracting matrimony in the condition of his health at that time, and in which he said he must come to see him at once; and stated that if he failed' to do so he would communicate to the yoirag ladyis father all the particulars concerning the condition of his health. This letter alarmed Mr. Ernault H. Williams very much. He was perplexed in the extreme. We find that about ten o’clock in the morning on which he received it, he was at the office of his cousin, Mr. James Gittings, in a state of great excitement and trepidation, saying that if the family of the young lady found out the condition in which he was, they would certainly kill him. The idea that his life was in danger had taken complete
This young man under the dominion of this overmastering terror disposes of everything he has in the world, amounting in value to a quarter of a million of dollars, and receives in return an annuity of two thousand dollars, a year for life, with a power to the grantee to increase the amount of the annuity if he should see fit to do so. To he sure, at his death the property was to be conveyed to. his right heirs then living; but his own control over it was gone forever; he could not even dispose of it by will. His heirs would he his own children or descendants, if he should leave any; if he left none, his heirs would be his brothers and sisters, or their descéndants ; but if none of' these were living at the time of his death, his sole heir would he his father. The motive in making this deed was
We have seen how very small and inadequate an interest the grantor retained in his own property, by the terms of this deed. But the benefits conferred on the grantee were very great. Without dwelling on the valuable commissions which would accrue to him from the management .of so large an estate, we must not forget that the whole of it, with its accumulations, was secured to the other children of the grantee, or their descendants, in case Ernault should die without issue, and if they became extinct in the life-time of the father, it would all go to him. The probability that the father would ever personally receive anything under this deed was very small ; but it would be in vain to argue that there was no benefit conferred on the father by the deed. • The interests limited to his other children cannot be regarded as matters of indifference to him. If the property went to them eventually, he would be accomplishing one of the great objects for which the great majority of men endure the toils and
The rights and duties of parties standing in fiduciary relations have frequently been declared by the Courts. The cases have been extremely varied in their circumstances, but there has been great unanimity of opinion in the statement of the principles applicable to them. We do not purpose to compile the many useful and striking observations made by the Judges on these occasions. The law is not a mere collection of cases, but a liberal and enlightened science, founded on general principles, which must be applied to the facts in judgment by the rule of right reason. But it may illustrate the merits of the present controversy, if we consider the mode in which the question in these cases has been stated by eminent jurists..
Ernault H. Williams within a few months after the execution of this deed returned from Europe, and married the young lady to whom he was engaged. A child of the marriage has been born, and it is contended by the appellant that this child ought to be a party defendant to this suit, for the reason that there is a limitation in the deed to the “right heirs of said Ernault living at the time of his death.” It is impossible at this time to ascertain what persons will sustain the relation of heirs to him at the period of his decease; and in the meantime, on the assumption that the deed is valid, the trustee represents all interests in the property conveyed. But if this were otherwise, we do not consider that the rule of proceeding, is the same when the validity of a deed is assailed on the charge of fraud, actual or constructive, on the part of the grantee. The issue in such case is non est factum; and the deed must stand or fall according to the judgment passed on the transactions between grantor and grantee. In this case the only inquiries relate to the charges affecting the conduct of the grantee, and to them he alone must respond. The contingent-remaindermen are merely volunteers, and their estates must be defeated if the circumstances in which the deed had its origin condemn it. In Huguenin vs. Baseley, there were no defendants, except those persons whose conduct was arrainged as fraudulent, and there can be no necessity for bringing volunteers before the Court when this is the only subject of investigation. We should have been much gratified if we could have avoided the discussion of the questions presented by this record. But the obligations of our duty did not permit us to consult our personal feelings. We
Decree affirmed ; the costs in this Court must be paid by the appellant, and the costs in the Circuit Court must be paid by the appellee.
Dissenting Opinion
delivered the following dissenting opinion in which Judge Robinson concurred:
The object of the hill in this case is to vacate and annul a deed executed by the complainant Ernault H. Williams, to his father George Hawkins Williams, the defendant. This deed which is dated the 31st of May, 1882, is very brief and plain. By it, the grantor, in consideration of'the sum of one dollar, and other good causes and considerations him thereunto moving, conveys all his estate
At the date of this deed, the complainant was about twenty-five years of age, and unmarried, though it appears he was engaged, and the marriage was to have taken place a short time thereafter. The property conveyed, real and personal, amounted so far as the testimony discloses, to something over §200,000, most of which the complainant derived under the will of his grandfather, the late John S. Grittings, who died in December, 1819, leaving his will, which was executed in September, 1864. The principal beneficiaries under this will were the testator’s nine grandchildren. Seven of whom, including the complainant, were the children of his daughter, Eleanor A. Williams and her husband, the defendant, and the other two the children of a deceased son. Mrs. Williams died in May, 1881, after the death of her father, and in the same year the defendant was, by decree of a Court of equity, appointed in her place sole trustee, under the will of Mr. Grittings, the trust being to receive and pay over the in
The relations, however, of parent and child, and trustee and cestui que trust, did undoubtedly exist, and it has been earnestly argued that this fact draws the deed within the familiar principle of equity in reference to transactions between parties standing in fiduciary relations. Lord Penzance has • stated this equitable doctrine thus: “ In equity persons standing in certain relations to one another— such as parent and child, man and wife, doctor and patient, attorney and client, confessor and penitent, guardian and ward — are subject to certain presumptions when transactions between them are brought in question; and if a gift or contract made in favor of him who holds the position of influence is impeached hy him who is subject to that influence, the Courts of equity cast upon the former the burthen of proving that the transaction was fairly conducted as if between strangers: that the weaker was not unduly impressed hy the natural influence of the stronger, or the inexperienced overreached hy him of more mature intelligence." Parfitt vs. Lawless, Law Rep., 2 Prob. & Div., 462.
It has been often said that this is a salutary doctrine, and the tendency of the more recent decisions, no doubt, is to extend its application to all the variety of relations in which dominion may he exercised hy one person over
Now, in view of these authorities, it would seem to be quite impossible to say that the deed now before us can be brought within the rule which subjects transactions between parties standing in fiduciary or confidential relations to suspicion and condemnation. Upon its face and by its terms the whole property, as well as the entire income from it, is devoted to the grantor himself and to his heirs-at-law, who will be his own children and their descendants, if he leaves any, otherwise his .brother and sisters and their descendants. No power is given to apply it to any other purpose, or to any other parties. The trustee can receive nothing by means of it which the law recognizes as a pecuniary benefit or advantage. The contingency of his outliving his six children and their descendants, and becoming heir-at-law of this son upon his death, is too remote and improbable to be taken into consideration. In fact, if contingencies of this character can be looked at, there is more probability that he will lose than gain by the deed, for more than $100,000- of the property is personalty, and this, without the deed, would have gone to him solely and absolutely in case of the son’s dying before him intestate and without issue, whereas under the deed it goes, in that event, to the heirs-at-law of the son. The deed interposes between him and any possible chance of his taking any benefit under it, not only the son’s children and their descendants, but his younger brother, and his sisters and their descendants. It fixes no
The complainant in his bill charges, in substance, that the deed was procured from him by the unlawful abuse, by the defendant, of the influence which he possessed and exercised over him as father, and of the confidence he reposed in him as his confidential legal adviser; that to accomplish his purpose and obtain the deed the defendant represented to, and advised the complainant that he had power under the will of Mr. G-ittings to make such disposition of that part of the estate devised to the children of Mrs. Williams as he might choose, and that complainant was dependent upon his pleasure as to the value of the part of the estate which complainant should receive, and threatened that unless complainant’s conduct should be satisfactory to him he would exercise this power to his loss and detriment, which construction of the will complainant implicitly believed to be correct, and did not think of seeking legal advice in respect thereto
The defendant in his answer meets these allegations with an explicit and emphatic denial, and the proof utterly fails to sustain them. In fact, there is not a particle of testimony, not even that of the complainant himself, to support most of these grave charges. There is no proof that Mr. Williams ever threatened to use the power, or supposed power, contained in the will of Mr. Grittings to the detriment of this son, unless he would make over his property to him. On the contrary, when it was suggested by others that he should use it in order to
Much has been said in regard to the mental condition and capacity of the complainant, and what the testimony discloses on this subject is substantially this: In early childhood he suffered from a severe illness,the permanent effect of which was a slight paralysis of one side of his body, and this made him the object of special indulgence, care and solicitude on the part of both his parents. He was wayward, restless, eccentric and timid. Great pains were taken in his education, hut in intellectual attainments he was inferior to most young men of his age, who may have had similar or even less educational advantages. But it is clear that he had sufficient natural capacity and intelligence to understand fully the force and effect of a deed
Shortly told, the history of the execution of this instrument is as follows: On the morning of the day it was executed the complainant received a letter from Dr. Riggin Buckler, the purport of which will be stated hereafter. On receiving this letter he immediately sought his friend and relative, Mr. James O. Grittings, for advice, and expressed to him his purpose of making a deed of trust of
But with the writing and sending of this letter, Mr. Williams, the father, had nothing to do. Shortly before this he was informed for the first time that his son had this disease, and of course concurred in the views of these physicians that the marriage ought to he prevented. The plan then agreed upon, and in which he acquiesced, was that the physicians or one of them should see the father of the young lady in person, and inform him upon the subject. This plan was afterwards changed by the doctors without his knowledge, and the letter to the complainant himself was written instead. The father testifies that he had not the slightest idea that any suph letter was to he written, and Dr. Buckler swears that Mr. Williams had nothing whatever to do with it.
The effect of the letter, as might have been expected, was to excite the complainant, and to create in his mind an apprehension that the father or brothers of the young lady would inflict personal violence upon him if his condition was made known as the doctor had threatened, but it communicated nothing that was new to him in regard to his health. He knew perfectly well what that was. He had been repeatedly warned that he was in no condition to marry, and had been advised by his physicians to
Ho doubt the letter hastened the execution of the' deed, and it is true that his state of fear and alarm continued after he had executed it, and induced, in part, his speedy and secret departure from Baltimore, and the adoption of the-indirect route he took to reach New York. It is also true that the position in which he found himself placed was a delicate and difficult one, but it is equally true that this difficulty was brought about solely by his own wilful misconduct, and not in the slightest degree through any
If these views are correct, little need be said as to other criticisms of this deed. The fact that it contains an irrevocable power of attorney adds nothing to its force or effect, and requires no further notice. In some of the authorities absence of a power of revocation in a voluntary settlement, has been relied on as a circumstance creating suspicion of unfairness or undue influence; but such a power would have been out of place in this deed, because it would have defeated the principal object the grantor sought to secure by making it. Henry vs. Armstrong, Law Rep., 18 Ch. Div., 668. A deed which he could revoke at pleasure, would afford little or no protection to his property as against his own improvidence.
The complainant is now married, has a child and may have others, and it would certainly be hard if he should be •confined to the $2000 per year out of the income of so large an estate. But there seems to be no good reason to apprehend that he will ever be subjected to this hardship. The power to the trustee to increase the annual allowance was put in the deed for the very purpose of meeting such a contingency, and there is nothing to prevent its liberal exercise. The proof shows that Mr. Williams has been an affectionate and indulgent father to all his children, and especially to the complainant. He has borne with patience, though with weariness and sorrow, the misconduct of. his son, and there is nothing in the record to create the suspicion that he will not use his power of increasing the allowance, even to the extent of the entire income, in order that the complainant may live and support his wife and family according to the station in life to which he was born, and to which he has been accustomed.