Hayes v. Kershow

1 Sand. Ch. 258, 1844 N.Y. LEXIS 458, 1844 N.Y. Misc. LEXIS 38
New York Court of Chancery·Decided January 31, 1844·Published·Cited by 1 cases

Opinion

The Assistant Vice-Chancellor.

The defendant interposes no objection to completing his contract of purchase, provided he can receive a perfect title.

This depends .upon the effect of the instruments executed by Thomas and James Swords to Mrs. Anderson and James Davidson, on the 11th day of December, 1807. If the covenant of the Messrs. Swords’ was binding and irrevocable by them, the , subsequent release of the trustees was unavailing to discharge it. And if by the true construction of those instruments, they are to be deemed as constituting but one deed, and that a conveyance in prcesenti; the subsequent purchasers from Mrs. Anderson are charged with notice of the rights of her grandchildren, and their title is subject to those rights.

First. As to the force of the instrument as a mere covenant for a future conveyance ; the counsel did not press its validity, and it qqnnot be maintained. It was a voluntary covenant, [261] without valuable consideration, in favor of the children which might be born of the then infant nephew and niece of the covenantors.

In the exercise of the discretion which courts of equity still have in decreeing the specific performance of agreements, they uniformly decline to enforce voluntary covenants.

Lord Eldon, in Ellison v. Ellison, (6 Ves. 662,) thus expresses the difference between such a contract when executed and when executory. “I take the distinction to be, that if you want the assistance of the court to constitute you cestui que trust, and the instrument is voluntary, you shall not have that assistance for the purpose of constituting you cestui que trust; as upon a covenant to transfer stock, (fee.; if it rests in covenant, and is purely voluntary, this court will not execute that voluntary covenant; but if the party has completely transferred stocks, &c., though it is voluntary, yet the legal conveyance being effectually made, the equitable interest will be enforced by this court.”

He repeated and enforced the distinction in Pulvertoft v. Pulvertoft, (18 Ves. 99;) and it has been acted upon frequently since, in the English Court of Chancery.(a)

Chancellor Kent approved of this rule in Bunn v. Winthrop, (1 J. C. R. 329,) and in Minturn v. Seymour, (4 id. 497,) and Chancellor Walworth adopted it in Acker v. Phœnix, (4 Paige’s R. 305.) And see 1 Story’s Eq. 414, § 433. 2 id. 250, § 987.

Covenants and agreements founded upon a good consideration, or as oftentimes expressed, on a meritorious consideration, are however upheld and enforced specifically in this court. And it has been a mooted question whether collateral consanguinity, as that of a brother, nephew, niece, (fee., was not a meritorious consideration. I think it is now settled upon authority that it is not.

In Edwards v. Jones, (1 M. & C. 226,) the voluntary donee was a niece of the party attempting to make the transfer. Lord [262] Chancellor Cottenham, affirming the decree of the Vice Chancellor, held that the niece was a volunteer, and that the court would not aid her to carry the gift into effect. In Meek v. Kettlewell, (1 Hare’s R. 464. S. C. 6 Lond. Jur. R. 550,) Vice Chancellor Wigram held the same of an attempted transfer to the husband of the daughter of the party making it; and his decision was affirmed by the Chancellor, (Lord Lyndhurst,) on the 6th December, 1843, 7 Lond. Jur. Rep. 1120.(a) Both of these learned judges approve of the decision in Edwards v. Jones.(b)

The case of Buford’s Heirs v. M‘Kee, (1 Dana, 107,) in the court of appeals in Kentucky, is directly in point. The defendants took the land by devise, from one who in his lifetime had executed a covenant to Buford, (who was his nephew,) to convey the same land to B. at the covenantor’s death. On a bill by B.’s heirs for the specific performance of the agreement, it was refused by the court, on the ground that the covenant was voluntary, and that the relationship between the parties did not constitute a meritorious consideration.

In the case before me, there was no moral obligation to provide for a wife or children, or a parent; and there was therefore no such good or meritorious consideration, as will induce this court to decree the performance of the covenant in the sealed instrument in question.

Second. It is argued on the part of the defendant, that the two deeds executed by the Messrs. Swords on the 11th of December, 1807, are in effect but one instrument, and are to be construed together. And that when thus construed, they vested the whole title in Davidson and Mrs. Anderson, in trust for Mrs. A. during her life, with remainder to her two children named, for their lives and the life of the survivor of them, with a contingent remainder to their children in fee, failing which the estate was to revert to the grantors.

[263] (After stating the contents of these instruments, the court proceeded ;)

I entertain no doubt but that the instruments are to be construed together, and in the same manner as if their provisions were contained in one deed. Their effect when thus construed has occasioned me some perplexity.

The intention of the grantors is perfectly plain. They designed, out of love and affection for their sister and her offspring, to bestow upon her and them the property in question. In case her two children should leave no issue, the estate was to revert to the grantors. In no other event, and for no other purpose, except to prevent its being transmitted to strangers to their blood, did the grantors intend to reserve any interest to themselves.

I cannot imagine that the covenant in the second deed was designed to hold out to the children of their nephew and niece a mere empty and delusive hope that they were to be the ultimate owners of the estate. Yet such was its obvious effect, if it has no force except as an executory covenant. As such, it left the intention of the grantors, as exhibited by the two deeds, to be defeated at will by their oxvn heirs or devisees ; and thus the reasonable expectations of their sister’s grand-children, on which they might have formed matrimonial connections, and made their whole plans for life, would be subjected to the volition of strangers in blood and in affection, and a volition to be exercised, too, under the sway of an interest adverse to that of the grand-children.

No one can read the two deeds without being convinced, that the Messrs. Swords intended to do all in their power, by those instruments, to vest the estate in Mrs, Anderson and her lineal descendants.

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Hayes v. Kershow, 1 Sand. Ch. 258, 1844 N.Y. LEXIS 458, 1844 N.Y. Misc. LEXIS 38 (N.Y. 1844).

1 Sand. Ch. 258 (Hayes v. Kershow) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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