Lamb v. Perry

86 S.E. 179, 169 N.C. 436, 1915 N.C. LEXIS 237
Supreme Court of North Carolina·Decided September 15, 1915·Published·Cited by 21 cases

Opinion

Walker, J.,

after stating tbe case: Tbe court having held tbat there was no evidence to sustain either cause of action, tbe one as to mental incapacity or tbe other as to undue influence, wbicb is another and milder name for fraud, we must apply tbe familiar rule in cases of nonsuit, and construe tbe evidence most favorably for tbe plaintiff, and every fact essential to tbe cause of action wbicb it tends to prove must be taken to be established, as tbe jury, if the case bad been submitted to them, might have found tbe facts to be as alleged by tbe plaintiff and contrary to tbe contention and proof of tbe defendant. Brittain v. Westhall, 135 N. C., 492; Morton v. Lumber Co., 152 N. C., 54; Trust Co. v. Bank, 166 N. C., 112; Christman v. Hilliard, 161 N. C., 4. And this rule applies in favor of tbe defendant where a verdict is substantially directed. Forsyth v. Oil Mill Co., 167 N. C., 179. Where tbe evidence is conflicting tbe case is one for tbe jury to settle tbe contradictions and find tbe facts. Alexander v. Statesville, 165 N. C., 527; Forsyth v. Oil Mill Co., supra. It was suggested tbat tbe court was unduly impressed by tbe plaintiff’s own testimony, wbicb was thought to indicate tbe possession by him of full mental capacity and an absence of undue influence; but if tbat be so it was not regular for tbe court to isolate any particular part of tbe evidence and decide tbe case upon it alone, but tbe whole of tbe evidence must be considered, as it is eminently tbe province of tbe jury, and not of tbe judge, to pass upon its weight and to determine its probative force, and, for this purpose, to make tbe selection between tbat wbicb is credible and tbat wbicb is not. Tbe defendant’s testimony is only considered in order to ascertain if any of it tends to prove tbe plaintiff’s case, and it is not at all permissible for tbe court to say on wbicb side tbe evidence preponderates, or to decide against one party or the other according to its own conviction of what is the truth. This is precisely what our statute forbids to be done. Guano Co. v. Mercantile Co., 168 N. C., 223.

With these rules kept steadily in view, it seems to be plain tbat there was error in tbe 'judgment below.

We have recently considered tbe law as to tbe mental capacity required for tbe valid execution of a deed, and tbe undue influence of [443] fraud sufficient for the rescission or cancellation of a contract. Hodges v. Wilson, 165 N. C., 323; Sprinkle v. Wellborn, 140 N. C., 163; Cameron v. Power Co., 138 N. C., 365.

We take tbe law to be settled that the mere fact that a man is of weak understanding, or is below the average of mankind in intellectual capacity, is not of itself an adequate ground to defeat the enforcement of an executory contract, or to set aside an executed agreement or conveyance. But where mental weakness is accompanied by other inequitable incidents — such as undue influence, great ignorance and want of. advice, or inadequacy of consideration — equity will interfere and grant either affirmative or defensive relief. This is the rule that is stated in Fetter on Equity, p. 143, and Eaton on Equity, p. 316. Lord Hard-wiclse said in Earl of Chesterfield v. Janssen, 2 Vesey, Sr., 125: “A third kind of fraud is that which may be presumed from the circumstances and conditions of the parties contracting; and this goes further than the rule of law, which is that it (fraud) must be proved, and not presumed; but it is wisely established in this Court to prevent taking surreptitious advantage of the weakness or necessity of another, which knowingly to do is equally against conscience as to take advantage of his ignorance.”

Bispham on Equity (5 Ed.), sec. 230, refers to the subject in this way: “Whatever be the cause of the mental weakness — whether it arises from permanent injury to the mind, or temporary illness, or excessive old age — it will be enough to make the court scrutinize the contract with a jealous eye; and any unfairness or overreaching will be promptly redressed. As has been said by the Supreme Court of the United States, ‘Wherever there is great weakness of mind in a person executing a conveyance of land, arising from age, sickness, or any other cause, though not amounting to an absolute disqualification, and the consideration given for the property is grossly inadequate, a court of equity will, upon proper and seasonable application of the injured party or his representatives or heirs, interfere and set the conveyance aside.’ ‘The result of the decisions,’ says an English chancery judge, in a modern case, ‘is that where a purchase is made from a poor and ignorant man at a considerable undervalue, the vendor having no independent advice, a court of equity will set the transaction aside.’ A mere latent suspicion of unfairness, however, will not be enough. On the other hand, it need scarcely be remarked that the mere circumstance of old age or physical feebleness will not render a transaction fraudulent, if, in point of fact, the party is intelligent and capable.” See Allore v. Jewell, 94 U. S., 511; Griffith v. Godey, 113 U. S., 95, and Bispham on Equity (6 Ed.), sec. 230 (p. 333), note 4, where the cases are collected. The mental capacity required for the valid execution of a deed is the ability to understand the nature of the act in which the party is engaged and its [444] scope and effect, or its nature and consequences — not that be should be able to act wisely or discreetly, nor to drive a good bargain, but that he should be in such possession of his faculties as to enable him to know at least what he is doing and to contract understandingly. There is no particular formula to be used in such cases, as said by the Court in Morris v. Osborne, 104 N. C., 609, but the law in this respect should be explained to the jury with reference to the special and peculiar facts of the case being tried, and under the guidance of such general principles .as'have been settled and declared by the courts.

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Lamb v. Perry, 86 S.E. 179, 169 N.C. 436, 1915 N.C. LEXIS 237 (N.C. 1915).

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