Majority — Harlan J.
Syllabus
APPEAL .PROM THE CIRCUIT COURT OE THE UNITED STATES FOR THE SOUTHERN DISTRICT OF GEORGIA.delivered the opinion of the court.
This suit was brought by the widow of the late James A. Ralston, Jr., to obtain a decree cancelling certain deeds of gift of real estate, executed by her husband to the appellee, George B. Turpin, as trustee for his children. The original bill, fileu August 7, 1883; sought this relief upon the ground that Turpin obtained the execution of the deeds by undue influence exercised by him over the grantor while the. latter was in declining'health, with a constitution seriously impaired by dis
• The Circuit .-Court dismissed the suit, placing its decision upon two grounds: first, that when the deeds were' made the grantor was capable of disposing.of his property as he thought, proper; second,That its disposition -was in conformity with the long settled and cherished purpose of hi's life,-and was not brought about by a betrayal of trust or any improper influencg upon the part of the grantee. 25 Fed. Bep. 7.
The relations between the grantor and. Turpin Will appear from the following facts, somé of which aré conceded, while the others are established by a clear preponderance* of evi-' dence.
James A. Kalston, Sr., died in 1864, possessed of considerable property, principally real estate in Macon, Georgia, which passed, in equal parts, to his widow, and sole surviving' child, James A. Balston, Jr. During the lifetime of the father, Tur
On the 3d of May, 1869, Turpin, having made a final settlement of his accounts as guardian before the proper court, and turned over to his ward, who had then reached his majority, the property and assets belonging to the latter, received from that court a formal letter discharging him from the guardianship. Immediately after the relations of guardian and ward were thus severed, Turpin and his partner Ogden, composing the firm of Turpin & Ogden, were employed by young Ealston to take charge of his real estate, and to collect rents, make repairs, etc. In addition to the relations between him and Turpin, arising out of this employment, there existed between them a warm personal affection.
In 1873 the mother of Ealston died, leaving a will by which a considerable part of her estate was devised to him; and this, also, was committed by him to the management of Turpin & Ogden. By her will Turpin was made executor. He quali•fied, and, in 1878, having fully administered her estate, was discharged as executor. In this connection it may be stated that Mrs. Bozeman told Turpin that he was. not remembered in her will, because “ Jimmie had or would do so in his,” she observing, at the time, that he had been a good friend to the family. This is stated by Turpin, in his deposition, and there is no reason to doubt the truth of his statement.
On the lltli of May, 1874 Ealston, being about twenty-six years of ago and then competent to dispose of his property, ■and having an estate yielding him an annual income of about $15,000, made, at Macon, Georgia, and without suggestion by
On the 15th .of December, 1879, Balston,. then nearly thirty-two years of age, made, at the city of New York, a second will, revoking' all other wills, and devising to Turpin, “in trust for his children, 'William 0. Turpin, Frank M. Turpin, George' B. Turpin, Lizzie Turpin and Walter H. Turpin,” .the building at the corner of. Cherry- and Third Streets, in Macon, known as Balston Hall;- together with the adjoining lots, 66, 68 and 70,' subject only to such liens and incumbrances as might be created thereon during his lifetime. This property is variously estimated to have, been worth between $40,000 and $50,000/ and constituted, at that time, according to the weight of the' evidence, less than one half in value of his estate. He then devised to “Ida Blanchard, by which'name she is now known,/ and whose original name was Sarah or Sally J. -Harten, formerly of Philadelphia, Pa.,” four stores in Macon, and all.the watches and jewelry of which he should die possessed.. To' his aunt Mrs. Smith, during her natural life,-and at her death to her children in fee.simple, -he bequeathed his undivided one
It is here necessary to state that the plaintiff, under the name of Ida Blanchard, went to Macon in 1869, and lived continuously in houses of public prostitution. While prosecuting that mode of life, young Ralston made her acquaintance, and for several years, without intermission, and much to the grief of relatives and friends, held improper relations with her. They often quarrelled and had drunken broils with each other in different places of bad repute where they met. During her residence in Macon, Turpin used every effort to induce Ralston to abandon the reckless and immoral life he was leading, and to cease the use of strong drink. But his efforts and warnings were unattended with success, except for brief intervals. No change occurred in the relations of Ralston and the plaintiff while in Macon. She states that he intended to marry her as far back as 1816. In the fall of 1879 they went to New York; and on the 23d of January, 1880, within less than three weeks ■after the will of 1879 was made, they were married. The fact of their marriage was not known in Macon until some months ' afterwards. In April, 1880, they removed to Stamford, Conn. In the summer of that year, Turpin, while at Saratoga Springs, received information of the marriage, and that they were living nTStamford. He went to the latter place in August, 1880, to ascertain if such were the fact, and, if it were, to inform Ralston that his marriage had, by the laws of Georgia, revoked the will made in favor of Turpin’s children, and to suggest the propriety, if he still desired to- do something for them, of making a formal deed for their benefit. There is some conflict between the statements of the plaintiff and Turpin as to wrhat occurred at Stamford. But it is evident that nothing was said or done by Turpin, on that occasion, calculated to infiaence
In the year 1881, Turpin, having been advised, by counsel that the former deeds for the benefit of his children were defective, in that their clauses, or some of them, were of a testamentary character, enclosed another deed for Ealston to execute, which the latter did on the 19th of April, 1881; the plaintiff executing on the same day a separate writing ratifying and confirming that deed, and renouncing, and conveying to the trustee for the uses therein named all her right of dower and other interests in thé property conveyed: This deed conveyed to Turpin in trust for his children named in those instruments the same property as that described in the will of 1879, and in-the deeds of August 26, 1880, and August 28, 1880.
We must examine each of the principal grounds upon which .the plaintiff bases her claim for . relief, for, if, as contended, Ealston was in such condition, mentally and' physically, when /the deeds of 1880 and 1881 were executed, that he could- not .or did not comprehend the nature of the transactions,-or if their execution was obtained.by means of undue influence exercised over him by Turpin, in either case,' the plaintiff -would be entitled to relief. It- would be granted upon the •■principle laid down in Harding v. Handy, 11 Wheat. 103 , 125, 'which was a suit by-heirs at law to set aside conveyances .obtained from their ancestor. Chief Justice ■ Marshall there said: “ If these deeds were obtained by the exercise of undue influence overa man whose mind had-ceased, to be the safe ■guide of his actions, it is against conscience for him who has obtained them to derive, any advantage from, them. It is' the ■peculiar province of' a court of conscience to set them aside.” Allore v. Jewell, 94 U. S. 506 , 511. On the contrary, if it does not appear that he was incapable, by reason of physical or ■mental debility, of exercising a discriminating judgment in respect to the disposition of his property, or was driven to .'make .the gifts in question against his own wishes,, and under ■some influence that he was unable, no matter from what cause, -to resist, the relief asked .must be denied'. “ The undue influence for which a will or deed will be annulled,” this court .said in Conley v. Nailor, 118 U. S. 127 , 134, “must be such as •that the party making it has no free will, but stands in vin-culisV
In a case of conflicting proof, as here, it. is a circumstance ■not without weight, that the plaintiff, who, moré than' any one else, was cognizant of the grantor’s condition during the .éntiré period in question, makes no averment in the original bill.ofthe husband’s.want of capacity to dispose, of his prop
If he executed the deeds of 1880 without knowing what he was doing, he would, naturally, at some subsequent time, have expressed dissatisfaction with what he had done, and taken steps to have them set aside. But no expression of dissatisfaction was ever made by him. On the contrary, upon receiving the deed of 1881, accompanied by the request that he would execute it, he promptly complied with that request, and returned the deed duly acknowledged by himself and wife to Turpin. His correspondence with the latter during 1880 and 1881 furnishes persuasive, if not conclusive, evidence that he had accurate knowledge of the condition of his property and its management by Turpin & Ogden, under the direction of Turpin, and was in the enjoyment of good health. On July 28,1880, within less than a month before making the first deed of gift, he wrote to Turpin from Stamford, Connecticut, stating, among other things, that he was' “ enjoying good health.” On April 18, 1881, the day preceding the last deed of gift, he wrote from the same place to Turpin, “ my health is splendid, but Ida has been ill all winter and is so still.” The body of each of these letters is in the handwriting of the complainant. They are inconsistent with her present contention that,, not only at the time, but both before and after, the deeds of gift were executed, her husband’s mind and body had been so wrecked by dissipation that he did not intelligently comprehend what he did, or possess sufficient will to resist the impor-tunities or persuasion of others. To these considerations we may add the significant fact that in no one of the letters that passed between Turpin and the plaintiff, after the latter left Macon, is there any intimation th£[i she disapproved of the
It remains to consider whether the deeds of gift were the result of undue influence exercised by Turpin over Ralston.: In discussing this question counsel for the plaintiff call attention to § 2666 of the Code of Georgia, which provides that “a gift by any person just arrived at majority, or otherwise peculiarly subject to be affected by such influences, to his parent, guardian, trustee, attorney, or other person standing in a similar relationship of confidence, shall be scrutinized with great jealousy, and upon-the slightest evidence of persuasion or influence towards this object, shall be déclared void, at the instance of the donor, or his legal representative, at any time, within five years after the making of such gift.” We do not perceive that this provision has any direct bearing upon this case. There was here no gift by the ward just after he arrived at his majority. 'If the deeds in question had been made immediately upon Ralston’s arriving at full age, or shortly after he came into possession of his estate, they would, in view of the then recent relation of guardian and ward, have been more difficult to sustain. Still they would have been sustained if it had appeared that they were freely and voluntarily made, upon full knowledge of the facts, without .misrepresentation, or suppression of material facts by the guardian. In Hylton v. Hylton, 2 Ves. Sen. 547, 549, Lord Chancellor Hardwicke said: “ Undoubtedly, if after the ward or cestui que trust comes of age, and after actually put into possession of the estate, he thinks fit, when sui juris, and at liberty, tó grant that or any-other reasonable grant by way of reward for care and trouble, when done with eyes open, the court could never set that aside; but the court guards against doing it at the very time of accounting and delivering up the estate, as the terms; for the court will not suffer them to make that the terms of doing their duty.” In the case before us more than eleven years elapsed after Ralston attained full age, and after Turpin finally settled his accounts as guardian, before the first of" the deeds of gift was-made.
In respect to that settlement it may be observed that by
But it is contended that the relations subsequently existing between them were such as are described in § 3177 of the Georgia Code, which declares that' “any relations shall be deemed confidential arising from nature or created by law, or resulting from contracts, where one party is so situated as to exercise á controlling influence over the will, conduct and interest of another; or where, from similar relations of mutual confidence the law requires the utmost good faith, such as partners, principal»and agent, etc.” Undoubtedly, the relation of principal and agent existed between Ealston and Turpin after the relation of guardian and ward had been severed, and up to the death of Ealston. The section of the Georgia Code quoted is an expression of a general rule that has always governed courts of equity. The agent is bound to act with absolute good faith toward the principal in respect to every matter entrusted to his care and management. In accepting a gift from his principal he is under an obligation to withhold no information in his possession respecting the subject of the gift, or the condition of the estate in his hands, which good faith requires to be disclosed, or that may reasonably influence the judgment of the principal in making the gift. All transactions between them whereby the agent derives advantages beyond
Ye do not intend to qualify or weaken, m any degree, these salutary doctrines. Their recognition, however, does not determine the present case, unless it be held that a principal cannot, under any circumstances whatever, make a valid gift to his agent of property committed to the latter’s care or management. No such doctrine has ever been established, nor could it be, without impairing the natural right of an owner to make such disposition of his property as he may think -would best subserve his interest and comfort or gratify his feelings. That Turpin held such relations, personal and otherwise, to young Ralston, as would enable him to exercise great influence over the latter in respect to the mode in which his property should be managed for purposes of revenue; that Ralston trusted Turpin’s judgment as to matters of business more than the judgment of any other man; and that he had an abiding con
Upon a careful examination of the record, we concur with the court below in holding that the plaintiff has failed to show that the deeds of 1880 and 1881 were obtained by undue influence. On the contrary, it appears, by the great preponderance of evidence, (to state the case made by the defendants in no stronger language,) that, although their execution may have been induced, not unnaturally, by feelings of friendship for, and gratitude to, the defendant Turpin, the grantor acted upon his own- independent, deliberate judgment, with full
In respect to the allegation-that Turpin suppressed facts, touching the condition of Ralston’s estate, as affected by the •claim of Mrs. Smith, it is sufficient to say that it is not sustained .by the proof.
Other facts than those we. have mentioned, are disclosed by the record, and other questions were discussed at the bar, but as they do not, in our judgment; materially affect the decision of the case, we need not specially refer to them.
Decree -affirmed.
Cases cited
- Harding v. Wheaton 11 Wheat. 103 p. 670
- Allore v. Jewell 94 U. S. 506 p. 670
- Conley v. Nailor 118 U. S. 127 p. 670, p. 671