Kennedy's Heirs v. Kennedy's Heirs

2 Ala. 571
CourtSupreme Court of Alabama
DecidedJune 15, 1841
StatusPublished
Cited by78 cases

This text of 2 Ala. 571 (Kennedy's Heirs v. Kennedy's Heirs) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kennedy's Heirs v. Kennedy's Heirs, 2 Ala. 571 (Ala. 1841).

Opinion

COLLIER, C. J.

— In the examination of this cause, we are to inquire, First: does the law arising upon the bill, answer, 'and the demurer embraced by the latter, entitle the complainants to the relief they seek. Second: has the case of the complainants been made out by proof?

First: Where parties have entered into a contract in writing, in the absence of fraud, the law intends, that the writing contains the entire agreement, and consequently, will exclude all parol evidence tending to show, that there were other terms not embraced. [Paysant v. Ware, Barringer, et al., 1 Ala. Rep. N. S. 160.] If, therefore, a party would show, that the contract contains other terms than the writing indicates, it is incumbent on him to lay a foundation for the introduction of such proof. [Prevost v. Gratz, 6 Wheaton’s Rep. 481.] But [589]*589neither the common law, which accords to writings a higher dignity in the scale of evidence, than mere oral statements, nor the statute of frauds and perjuries, inhibit the admission of parol evidence to vary, or totally defeat, a written contract tainted with fraud. [2 Story’s Eq. 55.]

In Sweet v. Jacocks, 6 Paige’s Rep. 355, it appears, that Ja-cocks, acting in behalf of his eight illegitimate children, effected a compromise with their brother and sister of the half blood, by which the latter released to him eight-tenths of certain property, which they inherited through their mother, for the use of the illegitimate children; but the conveyance on it face, was absolute. Both the vice-Chancellor and Chancellor were of opinion, that the beneficial interest in the property released to Jacocks, belonged to the eight children, and that he could not set up their illegitimacy as a defence to their claim. And that, having assumed to act for them, and actually obtained the property under a conveyance, intended for their benefit, he could not be permitted to insist, that they had no interest in that property, and that he held it discharged of the trust. The Chancellor lays it down as a settled principle, that where a person undertakes to act as agent for another, he cannot be permitted to deal in the matter of- that agency upon his own account, and for his own benefit. And, if he takes a conveyance in his own name, of an estate, which he undertakes to obtain for another, he will, in equity, be considered as holding it, in trust for his principal.” [Parkist v. Alexander, 1 Johns. Ch. Rep. 394; Lees v. Nuttall, 8 Cond. Eng. Ch. Rep. 245.] And though the Court in Boyce’s Ex’r. v. Grundy, 3 Peters’ Rep. 219, admitted that, reducing a contract to writing, was, in most cases, an argument against fraud, that it was very inconclusive ; and the doctrine, that a written agreement could not be relieved against, on the ground of false suggestions could not be maintained. Evidence leading to such a conclusion, will not vary the written contract; the allegations of false suggestions and immoral concealment, suppose that the party seeking relief, was entrapped in an agreement, in .which he would not otherwise have entered. “ This is not denying,” say the Court, “ that the agreement in the record was the [590]*590agreement entered into, but insisting, that it was vitiated by fraud, which vitiates every thing.

In Hutchins v. Lee, 1 Atk. Rep. 447, a bill was filed “ to set aside an assignment of a leasehold estate., and all other the estate and effects of the .plaintiff, upon a ' suggestion, that the same was neyer intended as an absolute assignment for the. benefit of the defendant, but made only .to ease the plaintiff of the trouble and care of managing his ow-n concerns at that time, (being then under great infirmities of body and mind,) and subject to a trust for the benefit of the plaintiff, if he should afterwards be in a capacity of taking care of his own affairs.” The assignment was absolute in its terms. The Lord Chancellor held, that, although there cannot be a verbal declaration of a trust, since .the statute of 29 Chas. .2 ; yet, the par-ol evidence is proper in avoidance of a fraud, which the defendant intended to practice on the plaintiff, by attempting -to deprive him of the benefit of his estate. [See also, Watkins v. Stockett, 6 Har. & J. Rep. 435; Story’s Eg. 197, 8, 9, 200.]

It has been said, that the statute being intended to prevent fraud, its original design would be prevented, if it could be used as a cover under which fraud could be successfully consummated ; consequently, it has been often held, that where such a result would follow the. non-execution of a contract, equity would enforce, or set it aside, though its terms were not attested by writing.

In Podmore v. Gunning, 7 Cond. Eng. Ch. Rep. 509, the Vice Chancellor remarked, I have always understood that the Court would interfere to prevent the obtaining an estate by fraud, notwithstanding the statute of frauds. A variety of cases might be put. Suppose a man deputes an attorney to buy an estate for him, and the attorney purchases that estate for himself; the Court would interpose, notwithstanding, the statute of frauds.”

And in Strickland v. Aldridge, 9 Ves. Rep. 518, Lord Eldon said the statute was never permitted to be a cover for fraud upon the private rights of individuals; and though, within the intention, it cannot be said a trust is declared under these circumstances, it is clear a trust would be created upon the principle, on which this Court acts as to fraud. [See Mucklestone [591]*591v. Brown, 6 Ves. Rep. 69; Roberts on frauds, 79, 102; 3 Walker v. Walker, 2 Atk. Rep. 98; Barrow v. Greenough, 3 Ves. Rep. 152 ; Reigal v. Wood & others, 1 Johns. Ch. Rep. 406; Whelan v. Whelan, 3 Cowan’s Rep. 537; Boyd v. McLean, 1 Johns. Ch. Rep. 582; Clinian v. Cook, 1 Sch. & Lef. Rep. 2; 2 Dess. Rep. 14; 2 Story’s Eq. 78, 9, 746.]

In Brown v. Lynch & Lynch, 1 Paige’s Rep. 147, it appears, that the paintiffs were owners of a farm, which, by a fraud upon them, was mortgaged by their brother. The mortgage was foreclosed in Chancery, and the farm advertised for sale by a Master. Before the sale, the defendant agreed with the plaintiffs, to purchase in the farm for their benefit, for which he was to receive a stipulated compensation. The mortgagee in order to favor the plaintiffs, agreed with the defendant that lie might bid off the property at fifteen hundred dollars. The defendant at the sale prevented others from bidding, by representing, that he intended to buy for the plaintiffs. The defendant purchased the farm at the Master’s sale for fifteen hundred and forty dollars — about one thousand dollars below its value. Afterwards the defendant refused to convey the farm to the plaintiffs, or to account to them for its value, although they tendered to him the amount of his bid, with interest, and the sum agreed to be paid for his services. The Vice Chancellor having decided in favor of relief, the defendant appealed to the Court of Chancery. The Chancellor considered it was a gross fraud under the circumstances, for the appellant to hold out to the appellees, that he was bidding off' the property for their benefit, when he .in fact, intended to appropriate it to his own use. If the appellant did, in fact, bid it off fo.r them under the agreement, he held it in trust for them, and had no other interest in it, than that of a mortgagee, to secure the repayment of the purchase money, and the sixty dollars, agreed to be paid him for his trouble. But, if he had no such intention, and did not, in fact, bid off the property in trust for them, he was guilty of a fraud, which this Court will relieve against.” [See Boyd v. McLean, 1 Johns. Chan.

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