Gambold v. MacLean

126 Misc. 820, 215 N.Y.S. 607, 1926 N.Y. Misc. LEXIS 955
CourtNew York Supreme Court
DecidedApril 3, 1926
StatusPublished

This text of 126 Misc. 820 (Gambold v. MacLean) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gambold v. MacLean, 126 Misc. 820, 215 N.Y.S. 607, 1926 N.Y. Misc. LEXIS 955 (N.Y. Super. Ct. 1926).

Opinion

Dike, J.

This is a new and, it is to be hoped, final phase of a long-drawn-out family litigation which has been prosecuted for years in our courts. The real property which is the subject of the present controversy has, in the meanwhile, by reason of its desirable locality, become greatly enhanced in value and in income-deriving power. Death has very greatly changed the personnel of those prosecuting and defending in this lengthy litigation. There were two brothers and two sisters interested, as grandchildren, in the subject-matter of this litigation, the estate of their grandfather, John Healy. Charles S. Lamphear died on the 1st day of February, 1922. The plaintiff herein and his wife, Jennie Gambold, were named in his will as executor and executrix. Jennie Gambold, however, renounced her appointment as executrix, and the plaintiff herein, Fred A. Gambold, duly qualified as executor and is now so acting and, in reality and actually, is the interested party in the outcome of this litigation. The four grandchildren of said John Healy, deceased, namely, Amos S. Lamphear, Ella L. F. Nicholson, Katherine L. MacLean and Charles S. Lamphear, were vested and seized, as tenants in common, of an undivided one-quarter share each in two parcels of property in the county of Kings. The activities and peculiar personal characteristics of Charles S. Lamphear, in his lifetime, are of interest, it seems to me, in this litigation. The evidence would clearly indicate his roving disposition, his disinclination to remain with the family in the East, and his enthusiasm for adventure which took him into the mining regions of the West. He was a miner. He was engaged in developing a claim for a number of years before his death. The evidence clearly shows the characteristic expectation of unbounded success [822]*822in his developments, the results, however, showing that such feelings were the triumph of hope over experience. To. obtain funds on a previous occasion he at one time mortgaged his interest for $25,000. Such money proving inadequate, he again sought the East to secure, if possible, further advances upon his interest in his grandfather’s estate. It was upon this visit to the East that he conferred with the Realty Associates, with a view to raising the loan, and the sum of $7,500 was discussed. His family, or some of them, discouraged his “ peddling ” his interest in that way or in the public market, and conferences were held, so that, on the 17th day of September, 1912, Charles S. Lamphear executed and delivered to Amos S. Lamphear and Katherine L. MacLean a deed of assignment of all his right, title and interest in and to his one-quarter undivided interest in the estate of his grandfather, John Healy. This is the crux of the case. The plaintiff urges that the transfer under this document was in trust upon an agreement for the benefit of Charles S. Lamphear, made by said Amos S. Lamphear and Katherine L. MacLean to pay Charles S. Lamphear fov. said deed or assignment the sum of $2,000 in cash and in addition thereto to take care of him during his lifetime. by creating for him a trust for his benefit to pay or secure to him the equivalent of at least four per cent per annum on the value of his said one-fourth share or interest, or the invested equivalent thereof. In any event, $2,000 was paid to Charles, who almost immediately left for the West, obviously to sink such sum in the vain pursuit of riches by way of his mine, and, upon such funds being exhausted, returned to the East in order to see what further sum or . sums he might obtain. The real problem here is as indicated: Was this deed of assignment above mentioned, dated September 17, 1912, an absolute deed which eliminated Charles completely and finally from any interest in his grandfather’s estate, or is there anything in the evidence herein which shows in fact that a trust, as claimed by the plaintiff, by that very document and the facts surrounding its execution,. was established for plaintiff’s testator, Charles? At the outset we have the question of the close and intimate relationship existing between brother and sisters, and, as is so frequently the case, we find that dealings between such relatives take on an informal character, and confidence in kin often disarms one from the customary caution characteristic of business deals. I cannot presume here that this brother and sister, dealing with Charles, were desirous of making money out of their rather eccentric brother, nor can I conclude that Charles, who was so keen on his mine to get the money to develop it, would permit his brother and sister to have his property at a price so greatly under [823]*823the bid of the Realty Associates, unless there was some thought in his mind of a subsequent advantage that might accrue to him. The absolute deed, I can readily understand, was a natural document, under the circumstances, made by Charles’ brother and sister, to protect themselves in relation to the property, the care and development of which was under their direction or was their responsibility. We find the phrase to trust to their honor,” which would clearly imply something beyond the face of the document. From letters and from testimony in former actions and much of the atmosphere of the case before me, I find the persistent reiteration of the “ four per cent ” arrangement, or the suggestion in some form of an interest in this property and the income from it by Charles subsequent to his signing the so-called deed of September. It is perfectly true that upon its face this is an absolute unconditional transfer of Charles’ interest to the grantees, as indicated. We find Amos corroborating this Exhibit 3 and again we find the recurring four per cent interest of Charles acknowledged, a brotherly gesture which, however, confirms the thought of subsequent acts by brother and sister for the benefit of Charles and their taking into consideration his interest up to four per cent in the income. Thus, in a letter from Amos to his sister we find: I believe I can borrow $2,000 from the Peoples Trust Company to pay off Charlie, take over his interest in our name, and then Mr. Hodgskin says after he is done, we can write him a letter stating that we have purchased his interest without any comeback as value in full, but feel that after mother’s death occurring we do not wish to take it entirely away from him; that after her death whatever is to be paid off and which he is liable for, shall be done, and the balance placed out for him through the Peoples Trust Company on a four per cent basis during the term of his life.” Surely, these words give a character to the document unmistakable — this document that plaintiff claims indicates from the circumstances surrounding it a trust established for the benefit of Charles S. Lamphear and which the defendants claim is an absolute deed. This letter would indicate that Amos, who was the active manager of the property, was, with commendable brotherly care, providing, or at least planning, for his somewhat prodigal relative by this four per cent provision. (Exhibit 2.) The proposed but never executed deed of trust prepared by Hodgskin is confirmation most eloquent. It would seem to me clear that the ties of blood were eloquent to convince Charles that he should deal with his brother and sisters in relation to the property rather than with strangers. The confidence engendered by such a relationship may not be said to have been rashly imposed. This very element of relationship gives peculiar power and force to the conten[824]*824tian that there was a trust. A long line of cases uphold the duty of the court to study with care the particular circumstances where a close relationship of the parties is disclosed. One of the late cases is that of

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Cite This Page — Counsel Stack

Bluebook (online)
126 Misc. 820, 215 N.Y.S. 607, 1926 N.Y. Misc. LEXIS 955, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gambold-v-maclean-nysupct-1926.