In re the Judicial Settlement of the Estate of Flagg

1 Mills Surr. 77, 27 Misc. 401, 59 N.Y.S. 167
CourtNew York Surrogate's Court
DecidedMay 15, 1899
StatusPublished
Cited by1 cases

This text of 1 Mills Surr. 77 (In re the Judicial Settlement of the Estate of Flagg) is published on Counsel Stack Legal Research, covering New York Surrogate's Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Judicial Settlement of the Estate of Flagg, 1 Mills Surr. 77, 27 Misc. 401, 59 N.Y.S. 167 (N.Y. Super. Ct. 1899).

Opinion

Davie, S.

The only controversy in this proceeding relates to the personal claim of the executor, David Flagg, Jr. He seeks to recover from the estate the amount of a promissory note made by testator, dated July 19, 1893, for $500, payable to the order of the claimant at the demise of the testator, also for services rendered, testator after the date of the note.

The testator died at the town of Elko, September 13, 1897, leaving a last will and testament which was admitted to probate January 3, 1898, by which he bequeathed to the claimant $100, and after several other unimportant bequests directs the rest and residue of his estate to be divided into seven equal shares, one of which he bequeaths to the claimant, one to each of four other sons, one to the daughter, one-half of a share to another [78]*78son, and the remaining one-half share to certain grandchildren. The will empowered the executors to sell the testator’s real estate,. which was accordingly done, and the total amount of the estate, as shown by the accounts filed, is about the sum of $5,000.

We will first consider the claim upon the note. Although the testator was advanced in years and somewhat physically enfeebled at the date of the note, there is no- suggestion from the evidence, direct or inferential, that testator was incompetent to make the same or that its execution was obtained by fraud or undue influence. There is some proof, which will be more particularly hereafter referred to, tending to show that testator was and for many years had been dependent upon the claimant for advice and assistance in his business affairs, and it is urged in opposition to the validity of the note that the legal presumption of constructive fraud ” arises from such relations. While it is undoubtedly true that the presumption prevails where certain relations exist, like guardian and ward, trustee and cestui que trust, imposing upon the claimant the burden of showing affirmatively that all was fair and honest, yet such presumption is not applicable to a case like the one ■under consideration.

“ While the doctrine is without doubt to be extended to many other relations of trust, confidence, or inequality, the trust and confidence, or the superiority on one side and weakness on the other must be proved in each of these cases; the law does not presume them from the fact, for instance, that one party is a grandfather and old and the other a grandson and young, or that one is an employer and the other an employee. The question as to parties so situated is a question of fact dependent upon the circumstances in each case. There is no presumption of inequality either way from these relations merely.” Cowee v. Cornell, 75 N. Y. 100-101.

There being no proof or presumption to the contrary, the is[79]*79sues involved in this contest must he determined on the assumption ¡that this note represents the intelligent and untrammelled desire and intention of the testator.

It is claimed on part of the contestants that the note was executed entirely without consideration — an attempted hub ineffectual testamentary provision — in other words, that it was intended purely as a gift; if such contention is sustained by the evidence, the claimant is not entitled to recover. Pearson v. Pearson, 7 Johns. 26; Harris v. Clark, 3 N. Y. 93; Holmes v. Roper, 141 id. 64.

“ A promissory note is but the promise to pay money in the future, and if made and delivered purely as a gift, is without consideration, and cannot be enforced at law or equity, either against the maker, or against his estate after his. death, except in the hands of a bona fide holder for value, without notice of the want of consideration. Such a note is but a promise to make a gift in the future, and the gift is not completed till the note is paid. It can be revoked any time before payment and dearth will revoke it.” 8 Am. & Eng. Ency. of Law, 1320.

If, however, the note was given for a valuable consideration, it is enforcib-le against the estate. Mere inadequacy of consideration does not constitute a defense. Worth v. Case, 42 N. Y. 362; Earl v. Peck, 64 id. 596; Cowee v. Cornell, 75 id. 91.

In ¡the case of Worth v. Case, above cited, the action was brought to recover against the estate of the maker the amount of a note in the following form:

“ Addison, January 30-th, 1864.
“ I promise to pay my sister, Mary O. Worth, on demand, ten thousand dollars, in consideration of services rendered to me. “ T. B. Worth A

In that case the evidence established the fact that the claimant had rendered certain services for the maker, but it was entirely apparent that the value of such services was far less [80]*80than the amount of the note. The court, in the opinion at page 369, says:

To support a note, or other contract, it is not necessary that the consideration therefor, shall be equal in pecuniary value to the amount of the obligation incurred by the note or contract. It is enough, generally, that no part of the consideration, upon which it was founded, was wanting at the time the obligation was incurred, and that no part of it has subsequently failed. ... If one voluntarily and fairly purchases either real or personal property of another, at a fixed price, and executes his note for the payment of the purchase money, he will not be allowed, when sued thereon, to prove, for the purpose of defeating, or reducing the amount of the recovery on the note, that the property in fact was not worth one-half, or one-quarter or even one-tenth, the amount at which he purchased it.”

This case is cited and the principle therein enunciated in the case of Earl v. Peck, above cited, which was an action upon a note, of which the following is a copy:

“ $10,000. For value received, I promise to pay Mary Earl, for services rendered, ten thousand dollars.
“ Stanford, October 12, 1873.
George Pecic/'’

In the opinion, the court says:

The note is for $10,000, and expresses the consideration to be for services rendered. The plaintiff had been the housekeeper for the defendant, who was a bachelor, for seven or eight years, and the latter was indebted to her for her services in some amount, and the. evidence tended to prove that at some time during the service it was agreed that the amount of compensation should be left to the intestate. Mere inadequacy of consideration, except as a circumstance bearing upon the question of fraud, or undue influence, is not a defense to a note. It is not necessary that the consideration of a note [81]*81shall be equal in pecuniary value to the obligation incurred.”

In the case of Worth v. Case, the court also recognizes the fact that a note given for services to be rendered in the future is based upon a valuable consideration if such services are rendered, for the court, in the opinion at page 310, says, that it might be that the maker of the note desired to stimulate the efforts of the payee in his behalf by means of a pecuniary consideration.

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In re the Judicial Settlement of the Estate of Summons
5 Mills Surr. 148 (New York Surrogate's Court, 1905)

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1 Mills Surr. 77, 27 Misc. 401, 59 N.Y.S. 167, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-judicial-settlement-of-the-estate-of-flagg-nysurct-1899.