Christian Ex Rel. Von Holt v. Waialua Agricultural Co.

31 Haw. 817
CourtHawaii Supreme Court
DecidedApril 18, 1931
DocketNo. 1920.
StatusPublished
Cited by21 cases

This text of 31 Haw. 817 (Christian Ex Rel. Von Holt v. Waialua Agricultural Co.) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Christian Ex Rel. Von Holt v. Waialua Agricultural Co., 31 Haw. 817 (haw 1931).

Opinion

*819 OPINION OP THE COURT BY

BANKS, J.

This is a suit in equity brought by Eliza R. P. Christian, an alleged mental incompetent, by her duly appointed guardian, for the cancellation of a deed of conveyance of a contingent interest in land situated on the Island of Oahu, and for other incidental relief. The circuit judge before whom the case was tried entered a decree canceling the deed so far as it related to the petitioner and as incidental relief decreed that the Waialua Agricultural Company, one of the respondents, pay to the guardian of the petitioner the sum of $540,906.07. The Waialua Agricultural Company brings the case here on appeal from the decree.

The deed in question was executed by the petitioner at Oxford, England, on May 2, 1910, the grantee being James L. Holt, a respondent in the instant case. At that time the petitioner, by virtue of the will of her grandfather, R. W. Holt, long deceased, and by virtue of her being the only surviving child and prospective heir of John Dominis Holt, who was then living, and who under the will of R. W. Holt was given a life estate, was the owner of an estate in remainder in an undivided one-third interest in the lands described in the deed. This interest passed by successive conveyances from grantor to grantee until on July 20, 1921, it came finally to rest in the Waialua Agricultural Company, where it remained unchallenged until May 8, 1928, when the present suit was brought.

On April 10, 1922, John Dominis Holt, the life tenant, *820 died leaving surviving liim as his sole heir at law his daughter, Eliza R. P. Christian. Upon the happening of this event Eliza’s contingent estate in remainder ripened into a vested estate in fee simple. The deed executed by her on May 2,1910, purported to convey to James L. Holt, the grantee, not only the interest which she at that time had but also purported to convey every interest which she might thereafter acquire under the will of R. W. Holt. If this deed was valid and binding on her it divested her of all interest in the property, whether present or prospective, and vested it in her grantee and by subsequent conveyances it became the property of the Waialua Agricultural Company.

The question therefore that lies at the very threshold of the case is whether Eliza Christian, at the time she executed the deed of May 2, 1910, had sufficient mental capacity to make a valid and binding conveyance of her interest in the lands described in the deed. This is a question of fact, upon which much conflicting evidence was taken. The circuit judge made the following findings regarding the petitioner’s mental competency: “Upon the weight of the testimony and the credibility of the witnesses, as herein summarized in connection with the question of competency, the court finds: 1. Eliza (Holt) Christian, petitioner, neither was, nor is, an idiot, a lunatic or utterly imbecile. 2. She was and is, however, a person of undeveloped intellect, incapable of forming a reasoned judgment or understanding, incapable of comprehending her own right to an independent status, the extent or nature of property or of her property interests, the value of money, or the ordinary matters of life essential to a reasonable degree of independent living. ■ 3. She had insufficient ■ mental capacity to comprehend the difference between $100.00 and $1,000.00; between $30,000.00 or $60,000.00 for her individual rights; or to comprehend *821 the difference between payment to her individually, for her sole disposition, of any such sum or sums and payment to her circle of relatives and under their control; or whether $30,000.00 or any sum was for her rights as distinct from the rights of others involved in the deal; or the difference between present payment of income and future payment of principal; or to understand that she had rights distinct and independent of her father or of Annie Kent-well. 4. She could not possibly have comprehended, even with advice worthy of trust, the elements necessary to form an independent judgment or to exercise a reasonable measure of choice or of will relative to the value of cane land, pineapple land, ranch land or any kind of land in any quantity; or of postponed rights therein as opposed to present interests; or even the elementary character of her rights and direct the disposition of what she OAvned. 5. The court is convinced that Eliza did not have the most elementary capacity to understand and judge her rights and protect herself from undue influence and fraud; and that at no time was she an independent actor Avith a knoAAdedge of her rights. 6. In short, she Avas mentally incompetent to execute a conveyance in 1910 or at any other time Avithin the scope of the evidence and the laAV in this case.”

It has long been the rule in this court that “in equity cases, on appeal, Avhile the findings of the circuit judge are given weight and under certain circumstances, especially on pure issues of fact, Avould he allowed to control, the supreme court nevertheless is authorized and has alAvays exercised its right and duty to weigh the evidence and to make its own findings.” Godfrey v. Kidwell, 15 Haw. 526 (1904). See also Cha, Fook v. Lau Piu, 10 Haw. 308 (1896).

In compliance with the duty imposed upon us by law Ave have carefully read the entire transcript of the evi *822 deuce, consisting of some three thousand typewritten pages, bearing upon the petitioner’s mental condition, with the view of determining whether she was incapable of making a valid conveyance of her interest in the lands in question. We have weighed this evidence to the best of our ability and from it have reached the conclusion presently to be stated.

Of course a deed to land executed by a person who is sui juris is presumed to be valid and will not be upset because of the mental incompetency of the grantor unless the incompetency Avas of so marked a degree as to be the equivalent of a lack of capacity to make a binding contract. The highest degree of intelligence is not necessary .to bind the grantor, nor is the lowest degree essential to the avoidance of the deed. Between these extremes lies the fate of the deed. In Black on Rescission and Cancellation, § 262, the following rule is given: “No particular degree of mental capacity is essential to enable one to exécute a valid deed or contract, and no arbitrary standard is or could be established. No very high measure of intelligence“or acumen is required, and on the other hand, a person may be mentally incompetent for business and legal purposes although he is not absolutely an idiot nor totally devoid of reason. The test generally agreed upon is this: A deed or contract cannot be set aside on the ground of insanity if the person had sufficient mental capacity to understand in a reasonable manner the nature of the particular transaction in which he Avas engaged and its consequences and effects upon his rights and interests. It is sometimes said that a person has capacity to make a deed if he has sufficient mind to be capable of transacting ordinary business affairs, or of pursuing his own ordinary business in his usual manner. But this is too loose.

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Bluebook (online)
31 Haw. 817, Counsel Stack Legal Research, https://law.counselstack.com/opinion/christian-ex-rel-von-holt-v-waialua-agricultural-co-haw-1931.