Causey v. Seaboard Air Line Railway Co.

81 S.E. 917, 166 N.C. 5, 1914 N.C. LEXIS 340
CourtSupreme Court of North Carolina
DecidedMay 20, 1914
StatusPublished
Cited by28 cases

This text of 81 S.E. 917 (Causey v. Seaboard Air Line Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Causey v. Seaboard Air Line Railway Co., 81 S.E. 917, 166 N.C. 5, 1914 N.C. LEXIS 340 (N.C. 1914).

Opinion

AlleN, J.

There was evidence to> support tbe finding by tbe jury that tbe injury in 1903 caused tbe death of tbe intestate, and this is practically conceded by tbe defendant.

It is, however, earnestly insisted that there was no evidence of fraud or undue influence in procuring tbe execution of tbe release set up as a defense.

No presumption of fraud arises from tbe relation of employer and employee, “but it is recognized by tbe courts that tbe employer has great influence in determining tbe conduct of tbe employee, and may use it to bis injury.” King v. R. R., 157 N. C., 63. And “Where there is no coercion -amounting to duress, but a transaction is tbe result of a moral, social, or domestic force exerted upon a party, controlling tbe free action of bis will and preventing any true consent, equity may relieve against tbe transaction on tbe ground of undue influence, even though there may be no invalidity at law. In tbe vast majority of instances undue influence naturally has a field to work upon in tbe condition or circumstances of tbe person influenced which render him peculiarly susceptible and yielding — bis dependent or fiduciary relation towards tbe one exerting tbe influence, bis mental or physical weakness, bis pecuniary necessity, bis ignorance, lack of advice, and tbe like.” Pom. Eq. Jur., vol. 2, sec. 8 51.

The plaintiff relies upon circumstantial evidence to prove fraud and undue influence, and as was said by Justice Brown in the matter of Everett’s Will, 153 N. C., 85 : “Experience has shown that direct proof of undue or fraudulent influence is rarely attainable, but inference from circumstances must determine it.

*9 “Undue influence is generally proved by a number of facts, eact of which standing alone may be of little weight', but taken collectively may satisfy a rational mind of its existence.” •

Let us, then, examine the circumstances connected with the execution of the release. The intestate was in the employment of the defendant when the release was executed, and wished to continue the employment. He was injured on 1 December, 1903, by a blow on the back of the head, and while the jury finds that he had sufficient mental capacity to execute a release, it was in evidence that he had trouble with his head continuously after the injury. He accepted $75 in settlement for an injury which finally resulted in death.

The settlement was made under an agreement to pay him for his lost time (the claim agent of the defendant testifies to this), and he was at that time earning from $90 to $95 a month, and according to the evidence of the plaintiff, lost two and one-half months.

The evidence does not disclose that any one was present when the release was executed, except the claim agent of the defendant, and he made conflicting statements as to his meeting with the intestate, saying: “I met him by appointment. He sent word that he wanted to see me. I did not meet him by appointment. I did not send for him to come and see me. I met him on the hotel porch at Hamlet by accident.”

The conditional release was executed on 27 December, 1903, conditioned to accept $75, if paid within thirty days, under an agreement to pay for lost time, when there was due him then, computing at the rate of $90 per month, $81, and the time he would lose could not then be ascertained, as he had not resumed work.

The sum of $75 was not paid within the thirty days, but the intestate stood by the agreement,' and at the end of two months and seventeen days, while still unable to work, executed a full release for $75, under the same agreement, the defendant says, to pay for lost time, when his wages alone would, at that time, have amounted to $231, not considering damages for mental and physical suffering and for reduced capacity, for which the defendant was liable, if for anything.

*10 We have, then, a full release executed upon tbe payment of less than one-third of the amount agreed to be paid, and when the most important element of damages was not then taken into consideration — mental and physical suffering and reduced capacity.

It was executed by an employee who was, at the time, suffering mentally and physically from his injury, and who wished to retain his place with the defendant, and when no one was with him except the claim agent of the defendant, who made contradictory statements about his meeting with the intestate.

It would seem that one of two conclusions must follow, if the jury accepted this evidence: that the intestate did not have sufficient mind to execute a release, or that he was improperly influenced-.

The jury has adopted the latter solution, and in our opinion there was evidence to support it.

In King v. R. R., 157 N. C., 65, quoting from our own reports and from the Supreme Court of the United States, as to the effect of inadequacy of consideration upon an issue of fraud and undue influence, we said: “In Byers v. Surget, 19 How., 311, the Supreme Court of the United States says: ‘To meet the objection made to the'sale in this case, founded on the inadequacy of the price at which the land was sold, it is insisted that inadequacy of consideration, singly, cannot amount to proof of fraud. This position, however, is scarcely reconcilable with the qualification annexed to it by the courts, namely, unless such inadequacy be so gross as to shock the conscience, for this qualification implies necessarily the affirmation that, if the inadequacy be of a nature so gross as to shock the conscience, it will amount to proof of fraud.’ And again, in Hume v. U. S., 132 U. S., 411, 10 Sup. Ct., 136 (33 L. Ed., 393): ‘It (fraud) may be apparent from the intrinsic nature and subject of the bargain itself, such as no man in his senses, and not under delusion, would make, on the one hand, and as no honest and fair man would accept, on the other.’ Our Court, speaking through Justice Brown, so declares the law in reference to awards and other transactions. In Perry v. Insurance Co., 137 N. C., 406, 49 *11 S. E., 890, be says: ‘WTiere there is a charge of fraud or partiality made against an award, the fact that it is plainly and palpably wrong would be evidence in support of the charge, entitled to greater or less weight according to the extent or effect of the error and the other circumstances of the case. There might be a case of error in an award so plain and gross that a court or jury could arrive only at the conclusion that it was not the result of an impartial exercise of their judgment by the arbitrators. Goddard v. King, 40 Minn., 164, 41 N. W., 659. The settled rule, which is applicable not only to awards, but to other transactions, is that mere inadequacy alone is not sufficient to set aside the award; but if the inadequacy be so gross and palpable' as to shock the moral sense, it is sufficient evidence to be submitted to the jury on the issues relating to fraud and corruption, or partiality and bias.’ 'Where there is inadequacy of consideration, but it is not gross, it may be considered in connection with other evidence upon the issue of fraud, but will not, standing alone, justify setting aside a contract or other paper-writing on the ground of fraud.”

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Bluebook (online)
81 S.E. 917, 166 N.C. 5, 1914 N.C. LEXIS 340, Counsel Stack Legal Research, https://law.counselstack.com/opinion/causey-v-seaboard-air-line-railway-co-nc-1914.