Karoley v. Reid

269 S.W.2d 322, 223 Ark. 737, 1954 Ark. LEXIS 742
CourtSupreme Court of Arkansas
DecidedMay 31, 1954
Docket5-438
StatusPublished
Cited by11 cases

This text of 269 S.W.2d 322 (Karoley v. Reid) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Karoley v. Reid, 269 S.W.2d 322, 223 Ark. 737, 1954 Ark. LEXIS 742 (Ark. 1954).

Opinions

Minor W. Millwee, Justice.

Appellant, Mary E. Karoley, instituted this suit against appellee, John D. Reid, for specific performance of a contract. Trial resulted in a dismissal of the complaint and denial of the relief sought on the ground that the alleged contract was without consideration and void. Although appellee offered no proof and the testimony was not as fully developed as it might have been, there is no controversy about the following facts which may be gleaned from the'plead-. ings and- the evidence offered by appellant.

Appellant and appellee began living together in the state of Ohio in October, 1940, at which time appellant was legally married to Jack Karoley. This illegal cohabitation continued in Ohio until 1950 when the parties moved to Little Rock, Arkansas, where a home was purchased and title thereto taken in the names of “ John D. Reid and Mary E. Reid, his wife.” The illicit relationship continued in Little Rock until September, 1951, when the parties separated and appellant moved to Hot Springs, Arkansas, where she obtained a divorce from Jack Karoley in October, 1951. At appellee’s suggestion it was agreed that the parties permanently sever their illicit relationship, and on November 13, 1951, they executed and appellee duly acknowledged the following instrument :

“AGREEMENT

“THIS AGREEMENT made and entered into this 13th day of November, 1951, by and between John D. Reid of Little Rock, Arkansas, hereinafter known as party of the first part and Mary E. Karoley of Hot Springs, Arkansas, hereinafter known as party of the second part, WITNESSETH:
“WHEREAS, party of the first part and party of the second part are now joint owners of real estate located in Little Rock, Arkansas, and personal property, also located in Little Rock, Arkansas:
“NOW IN CONSIDERATION of party of the second part relinquishing all of her right, title and interest unto said real estate and personal property and in further consideration of love and affection, party of the first part hereby agrees to pay and party of the second part hereby agrees to accept in lieu of all her interest to the above mentioned property, the sum of Two Hundred and Fifty Dollars ($250.00) payable each and every month by party of the first part to party of the second part for the rest of her natural life: and
“WHEREAS, party of the second part is now in ill health and under treatment by Dr. Ludolf Bollmeier of Hot Springs, Arkansas, party of the first part hereby agrees to pay, in addition to the $250.00 per month for life, all of the charges made by the above mentioned Ludolf Bollmeier and any other medical expense incurred during the duration of her present illness: and
“WHEREAS, party of the second part hereby agrees to execute a deed to the above described real estate at any time desired by party of tbe first part after the signing of this instrument: and
“WHEREAS, the exact future address of the party of the second part is unknown at this time, until further notice by party of the second part to party of the first part, it is mutually agreed that the above mentioned $250.00 per month shall be payable on the first of each month, the first payment to be due on the 1st day of the month after the signing of this agreement and continue for the life of party of the second part: and
“WHEREAS, it is mutually agreed by and between the parties hereto that should party of the first part die prior to the death of party of the second part, party of the second part shall be paid a lump sum of Ten Thousand Dollars ($10,000.00), net to her, from the estate of party of the first part: and
“WHEREAS, it is mutually agreed by and between all parties hereto that should party of the second part marry prior to the termination of this agreement, her marriage shall act as an automatic termination and this agreement shall have no more force and effect.
“WITNESS our hands and seals this 13th day of November, 1951.”

Following the execution of the contract, appellant executed a deed conveying her interest in the Little Rock property to appellee who made the monthly payments of $250 as provided in the contract until September, 1952, when he refused to make further payments.

Appellee filed a cross-complaint in which he alleged that the continued illicit relationship and execution of the contract were induced by the fraudulent misrepresentations and threats of appellant. There was no proof of such allegations and they were stoutly denied by the appellant, who testified that the separation of the parties and terms of the written contract were suggested and dictated by appellee. Her testimony was corroborated and it was further shown that she was mentally and physically ill at the time and that appellee paid the fees of the attorney who drafted the contract and represented appellant in the divorce suit. Appellant also testified that the property mentioned in the contract cost $22,500, and that the parties owned an equity therein of about $10,000, and that the personal property included certain “first editions” which belonged to her personally. It is also undisputed that the parties held themselves out as husband and wife to their friends, associates and the public generally throughout the eleven-year period of cohabitation.

The controlling issue on this appeal is whether there was sufficient consideration to support the contract of the parties. The able chancellor concluded that the contract was based solely on the illicit relationship which made it without consideration. The authorities generally are in agreement on the proposition that contracts in consideration of the commencement or future continuance of illicit relations between the parties are illegal and void as being against public policy and morality. 17 C. J. S., Contracts, § 266a. However, there is considerable division of authority on the question of the validity of contracts in consideration of past illicit relations. Some courts hold such contracts void or lacking in consideration while others hold them valid and founded on a good consideration. 12 Am. Jur., Contracts, § 176; 17 C. J. S., Contracts, § 266b. We find it unnecessary to a determination of the present controversy to choose between these conflicting views. There is another well recognized rule which we do approve as applicable and decisive of the present issue. This rule is to the effect that past illicit relations between the parties to a contract will not invalidate it, if it is otherwise supported by valuable consideration. Williston on Contracts, § 1745; Corbin on Contracts, § 1476; 17 C. J. S., Contracts, § 266b.

While none of our own cases are precisely in point on the question under consideration, a somewhat analogous situation was presented in Mitchell v. Fish, 97 Ark. 444, 134 S. W. 940, 36 L. R. A., N. S., 838. In that case plaintiff left her husband and illegally cohabited with the defendant in the state of Washington for about 10 years during which time they accumulated certain property through their joint efforts. They sold the property under an agreement to divide the proceeds, and she signed the deed as his wife.

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Bluebook (online)
269 S.W.2d 322, 223 Ark. 737, 1954 Ark. LEXIS 742, Counsel Stack Legal Research, https://law.counselstack.com/opinion/karoley-v-reid-ark-1954.