Lance v. Bonnell

43 A. 288, 58 N.J. Eq. 259, 13 Dickinson 259, 1899 N.J. Ch. LEXIS 98
CourtNew Jersey Court of Chancery
DecidedMay 4, 1899
StatusPublished
Cited by1 cases

This text of 43 A. 288 (Lance v. Bonnell) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lance v. Bonnell, 43 A. 288, 58 N.J. Eq. 259, 13 Dickinson 259, 1899 N.J. Ch. LEXIS 98 (N.J. Ct. App. 1899).

Opinion

Grey, V. C.

There is a reference in each case, in the pleadings of the ex- ■ ecutors of Lance, to a conveyance to Bonnell in his lifetime, of a tract known as the “Gould and ’Pringle” lot, but neither the pleadings nor the proofs show any connection between this incident and the transactions touching the life insurance policies or the “Gould tract,” the proceeds from which are claimed to have discharged all the indebtedness of the Lances to Bonnell, and -thus to have released the policies. This “Gould and Pringle” lot was first dealt ;with by an agreement dated October 7th, 1869, between William L. Lance, Sr., and Samuel Bonnell, Jr. [266]*266The former agreed to convey the lot in question to-the latter inconsideration of $7,500 advanced to Lance by Bonnell. Lance,, it was agreed, should “ have the same reconveyed to him at any time upon payment of amount of moneys so advanced as' above.” Bonnell was given by the contract, until he was fully repaid his advances, the privilege of purchasing one-half the-property for $6,000. Bonnell made the advance of the $7,500. On October 21st, 1869, Lance conveyed the entirety of the “Gould and Pringle” lot to Bonnell by deed of that date. There is no evidence whatever that the specific advance of the $7,500, the payment of which was by the agreement to entitleLaiice to a reconveyance, was ever paid by him to Bonnell. A deed is offered dated February 9th, 1874, made by SamuelBonnell and wife to George B. Bonnell, conveying the “Gould and Pringle” lot. This deed appears to have been delivered on-March 25th, 1876, for a letter of that date from Samuel Bonnell to George Bonnell mentions that “I send you a deed,” &c., “ which I desire you to hold in trust for Mary S. Bonnell and Mrs. Lance, they to have one-half interest in the property,” &o.. George accepted the trust and Samuel gave to William L. Lance, Sr., a memorandum of the same trust, dated July 5th, 1876, with an appended declaration by George Bonnell of his acceptance.. This declaration was assented to by William L. Lance, Sr., the-royalties from the tract were for years divided under it, and the rights of Bonnell and of Lance in this particular piece of land and its profits appear to have been adjusted between William L. Lance, Sr., and Samuel Bonnell, Jr., in their lifetime, in the year 1876, upon a basis which they and those who came after them accepted without question until the suits presently under consideration were begun in 1896. The “Gould and Pringle” property presents no side which involves any dispute between-the parties. The transactions concerning it were not involved' in the general account of the parties, but were in their origin limited to the advance by Bonnell of the $7,500 to Lance. It is extremely probable, though there is no definite proof of the-fact, that this advance was adjusted by the trust settlement securing to Mrs. Bonnell and to Mrs. Lance, to each, one-half' [267]*267of the property. Mr. Bonnell, in his letter of July 5th, 1876,. produced by the Lances, does say that the consideration money was paid by Mrs. Bonnell and Mrs. Lance, and there is-some other testimony which hints at this mode of settlement. My impression is that this was effected by a novation or re-arrangement of payments, whereby Mrs. Bonnell paid Mr.Bonnell his advance of $7,500, or obtained him to discharge-Lance from that indebtedness as consideration for her half of the property, and Mrs. Lance procured her husband to allow her to receive by the declaration of trust the benefit of the other half. Whatever was in fact the ground of the trust settlement,, it was final and undisputed. It had no relation whatever to the general business transactions of Lance and Bonnell, and was totally disassociated from the life insurance policies so far as-William L. Lance, Sr., or Samuel Bonnell, Jr., dealt with them or either of them. There was some testimony which was claimed to show that Mrs. Bonnell obtained the funds wherewith to pay the premiums on the policies after Bonnell’s death, from iheroyalties paid her by the trustees of this “Gould and Pringle” lot. The proof failed to establish the fact, but in- my view, if it were indisputably shown, it would be of no significance-because Mrs. Bonnell was in her own right entitled to the royalties paid her from the “ Gould and Pringle ” lot, and William-L. Lance, Jr., and all the Lances who claim under him appear to have accepted that situation for years without question, and' she might use the royalty money as she chose.

The statement of the right of the executors of Lance to-relief by having the two policies decreed to be paid to them is based upon the claim that the policies were put in Bonnell’s name, not upon considerations which moved from him, or which were undertaken and satisfied by him solely, but that he held them as collateral security for the payment of the general* indebtedness of William L. Lance to him, upon an understanding and agreement that whenever that indebtedness should be discharged, Bonnell’s interest in them ceased, and the policies should be returned to Lance; and the further contention that the transactions incident to the taking title to the “ Gould property ” by [268]*268Bonnell, the profits from the workings of the mines and sales of coal and of lots therefrom; and finally, the proceeds of the sale of the residue of the premises by Bonnell more than reimbursed him for all the indebtedness which the Lances owed to him, and thus released the two policies from any further pledge to Bonnell.

It is to be noted, touching this claim, that BonnelPs title to both the policies was by the written contract, by Lance’s consent or action, made absolute, in the origin of each transaction. Not a suggestion appears anywhere upon the application for the Mutual Benefit policy, or the assignment of the Penn Mutual, which hints at a pledge, or that indicates that Mr. Bonnell’s right was any other than what by the written contracts it is shown to be, an absolute ownership. If a title so supported is impugned, the burden of proof to overthrow it must be carried by the party alleging it to be qualified and not absolute. Vreeland v. Bramhall, 1 Stew. Eq. 85; Winters v. Earl, 7 Dick. Ch. Rep. 52, 588.

There is no attempt in this case to show any other written coutract or memorandum expressive of any agreement between Bonnell and Lance, whereby the former declared any trust or recognized 'that Lance had any interest in the policies. The ■effort of the complainants is to show facts which it is claimed justify an inference that the policies were held as collateral only, and not absolutely! The first policy which came to Bonnell was the Mutual Benefit in 1869. Mr. Bonnell held this policy from 1869 until his death in 1885, and the Penn Mutual policy from 1872 to 1885. William L. Lance, Sr., under whom the ■complainants claim title to these policies, was in close business relations with Mr. Bonnell until February 29th, 1878, when the latter finally sold the residue of the “Gould property” to the Lehigh and Wilkesbarre Coal Company. Great numbers of letters passed between Bonnell and the Lances, many conversations are shown, and their business relations must have been intimate, and towards the latter part of the time, say from 1874 to 1878, not always friendly, for differences had then arisen, and each was seeking to assert his own rights, yet neither letter [269]*269nor conversation has been shown which justifies the acceptance of the theory that these policies were held by Bonnell in pledge.

The most plausible proof which the complainants offer, is-certain entries in Mr.

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Bluebook (online)
43 A. 288, 58 N.J. Eq. 259, 13 Dickinson 259, 1899 N.J. Ch. LEXIS 98, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lance-v-bonnell-njch-1899.