Commercial Merchants National Bank & Trust Co. v. Kloth

196 N.E. 214, 360 Ill. 294, 1935 Ill. LEXIS 717
CourtIllinois Supreme Court
DecidedApril 12, 1935
DocketNo. 22661. Reversed and remanded.
StatusPublished
Cited by17 cases

This text of 196 N.E. 214 (Commercial Merchants National Bank & Trust Co. v. Kloth) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commercial Merchants National Bank & Trust Co. v. Kloth, 196 N.E. 214, 360 Ill. 294, 1935 Ill. LEXIS 717 (Ill. 1935).

Opinion

Mr. Justice Herrick

delivered the opinion of the court:

The Commercial Merchants National Bank and Trust Company, a corporation, as conservator of Jennie Brainard, an incompetent person, filed a bill, subsequently amended, in the circuit court of Peoria county to set aside a conveyance of certain land and the transfer of certain personal property consisting of notes, mortgages and securities from Jennie Brainard to Frank Kloth, for the re-delivery of the personal property so transferred, and to set aside a conveyance by Frank Kloth to Grace Kloth, on the ground of the mental incompetency of Jennie Brainard and because Frank Kloth and Grace Kloth exercised undue influence over her when they occupied toward her a fiduciary relationship. The matter was referred to a master in chancery, who heard the evidence and made a report recommending that the bill as amended be dismissed for want of equity. Objections to the master’s report, which were overruled, stood as exceptions before the chancellor. The exceptions were overruled and the bill as amended was dismissed for want of equity. From that decree this appeal was prosecuted.

The death of Jennie Brainard was suggested, and other persons were made parties to the suit upon a motion made in this court.

Jennie Brainard was the widow of Charles D. Brainard, a business man and president of the Central Electric Company of Peoria. He died in 1924, and left to his widow, with other property, the homestead at 903 Jackson street, Peoria. She thereafter acquired certain notes, mortgages and stock, much of which is the subject of this suit. Before and after her husband’s death different persons took care of the house, prepared the meals and performed household labor for her. Mrs. Brainard had a daughter and grandchildren and was on friendly terms with all of them, although she in the later years, without cause, so far as the record discloses, became distrustful of them. A grandson, from the time he was two years of age, lived at the Brainard home until he was twenty-two years of age, when he married and in 1928 moved from the Brainard home. After her husband!s death Mrs. Brainard ate her evening meal at a restaurant about a mile distant from her home, from which she went and returned by automobile or in a taxicab. Frank Kloth, one of the appellees, was a taxicab driver and for a period of time drove Mrs. Brainard to and from the restaurant and took her to other places. In October, 1930, he and his wife took up their residence with Mrs. Brainard and remained there until a conservator was appointed for her, in February, 1931.

On March 10, 1930, an officer of a bank in Peoria where Mrs. Brainard kept her securities delivered to her a mortgage executed by Rollin T. and Clara E. Martin for $5000, with $500 paid thereon, an assignment of the mortgage and an abstract of title to the property mortgaged; mortgage papers of William H. Harrison for $3000, an assignment of the mortgage and an abstract of title to the property encumbered; a mortgage of Margaret T. and D. E. Smith for $2300, with $100 paid thereon, with the accompanying papers, and Mrs. Brainard gave a receipt for all of these securities, which she then owned. Frank Kloth was present. Thereafter the title, by assignment or. transfer of these securities, was in Kloth or his attorney and by one or the other sold and the proceeds received by the one making the sale. Fifty-six shares of stock in the Keystone Steel and Wire Company previously owned by Mrs. Brainard were sold by Kloth’s attorney and he received the proceeds either for himself or Kloth.

On April 29, 1930, Mrs. Brainard by a warranty deed, for a stated consideration of one dollar and other valuable consideration, conveyed and warranted to Frank Kloth the homestead heretofore mentioned. The deed contained the following provision: “subject to the right of the grantor herein to the possession, use and enjoyment of said premises for and during her life, which right is hereby reserved.” The actual consideration was $3500. By quitclaim deed bearing date of November 3, 1930, Kloth conveyed the same premises to his wife, Grace Kloth.

Twenty-four witnesses for the appellants testified upon the question of the mental capacity of Mrs. Brainard at and for some considerable time immediately prior tó the transfers to Frank Kloth of the real estate, mortgages and stock heretofore mentioned. Among the witnesses were a daughter, two grandsons, a son-in-law, her physician, former employees, neighbors, persons at places where she traded, employees of the restaurant where she ate, and others who met her in other relationships. Without setting forth the testimony of each witness separately, it was adduced from the entire evidence on behalf of appellants that Mrs. Brainard was at the time of the trial eighty-five years of age, frail and in poor health. She had arteriosclerosis of the senile type, valvular organic heart trouble, and in July, 1931, had a stroke of cerebral apoplexy. There were occasions when she was unable to talk and she suffered a loss of memory. She had been treated by a physician for a period of fifteen years and for the four years previous to the trial he had averaged seeing her once a week, sometimes less frequently but in other weeks more frequently. She was subject to falling without warning and had three or four accidents from that cause. She required, assistance in walking. One or two witnesses stated that at times she was stubborn. All of the witnesses except one who testified upon the subject said that she had not been accustomed to transact business except of a very simple nature and that she had very little business ability. The physician admitted that she paid his bills, and one witness thought that about the time of her husband’s death she had considerable business ability but that thereafter she became forgetful. Her husband paid the grocery bills in his lifetime and Mrs. Brainard’s clothing was selected for her by others. She was a vice-president of the Central Electric Company and owned one share of its stock, but she held the position merely in accordance with her husband’s will and did nothing in connection with the business of the company. In conversation she would not continue on the same subject but would suddenly change to another topic. She repeated conversations she previously had, and would forget that she had seen or been with persons she had met or visited even on the previous day, and occasionally would not know persons with whom she was well' acquainted. She did not in a bank recognize her grandson, who was very close to her, although she looked directly at him. She would forget that she had in her possession papers which were at the time in her safety deposit box. She would forget that she had ordered merchandise by the time it was delivered to her home. She frequently dropped her money and miscalculated her change in paying bills for merchandise and for meals at the restaurant. She would forget that she owed money for work performed for her; would refuse to take medicine prescribed for her; became easily angered; distrusted her relatives and thought they were trying to obtain her money, although they knew nothing of her business affairs and were not confided in by her. Among specific instances of facts which were variant from normal conduct, it was related that on one occasion she kicked a man seated beside her in the restaurant because she did not wish him to sit beside her. On one occasion she became confused about a date, thinking it was near New Year’s day- though it was not near that time of the year.

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Bluebook (online)
196 N.E. 214, 360 Ill. 294, 1935 Ill. LEXIS 717, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commercial-merchants-national-bank-trust-co-v-kloth-ill-1935.