McCracken v. McBee

131 S.W. 450, 96 Ark. 251, 1910 Ark. LEXIS 29
CourtSupreme Court of Arkansas
DecidedOctober 17, 1910
StatusPublished
Cited by14 cases

This text of 131 S.W. 450 (McCracken v. McBee) 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
McCracken v. McBee, 131 S.W. 450, 96 Ark. 251, 1910 Ark. LEXIS 29 (Ark. 1910).

Opinion

Wood, J.

i. Cancellation of instruments is one of the well-recognized grounds of equity jurisdiction. It operates indirectly to establish or protect primary rights. It is often granted as ancillary and “preliminary to the final relief by which a party’s primary right, estate or interest is established and enforced.” It is a remedy which belongs exclusively to the equity jurisdiction, and is exercised in order to remove the obstacle which stands in the way of the enjoyment of one’s right, interest or estate. “The occasions giving rise to the jurisdiction are mistake, fraud and other instances where enforcing instruments or agreements would be inequitable or unjust. A doubt was formerly entertained as to whether a court of equity ought to exercise its jurisdiction to order instruments absolutely void at law, and not merely voidable, to be delivered up and cancelled, since the legal remedy of a party was adequate and complete, and no case was presented for equitable interference, but it is now well settled that jurisdiction will be exercised in such cases except where the invalidity of the instrument is apparent on its face.” Pomeroy, Eq. Jur., § § 170-2, 1377. But, while the chancery court had jurisdiction of the subject-matter of the cancellation of the deeds and bill of sale, it had no jurisdiction over the 'settlement of the guardian while that was still pending in the probate court. The bill of sale on its face was evidence of the settlement of appellant with appellee. But it was not the settlement itself. Unattacked for fraud or mistake, it would have to be taken as conclusive evidence of the settlement. Hence appellee could go into chancery to have the bill of sale cancelled. Such relief was only ancillary to the settlement itself, and, the bill of sale being out of the way, the question of settlement still remained in the probate court. The chancery court therefore did not err in refusing to entertain the question of accounting, leaving that matter for final determination by the probate court. This is not a complaint to surcharge and falsify a confirmed settlement in the probate court for fraud. As to the accounting, it is sought to take it out of the probate court before that court has finally disposed of it. That can not be done. Coppedge v. Weaver, 90 Ark. 444; Turner v. Rogers, 49 Ark. 51; Hankins v. Layne, 48 Ark. 544; Dyer v. Jacoway, 42 Ark. 186.

2. The next question is, did the court err in setting aside the bill of sale? Says Professor Bispham: “Cancelling an executed conveyance is the exertion of a most extraordinary power in courts of equity, and when asked for on any ground it will not be granted unless the ground for its exercise most clearly appears.” Bisp., Eq. Prin., § 475. The evidence to overcome the “written memorial must be clear, unequivocal and decisive.” Carnall v. Wilson, 14 Ark. 167; Rector v. Collins, 46 Ark. 167; McGuigan v. Gaines, 71 Ark. 614; Goerke v. Rodgers, 75 Ark. 72.

Appellee alleges and contends that the mistake he made in signing the instruments was caused by the misrepresentation and concealments of appellant and his misplaced confidence in her. In other words, he charges appellant with actual fraud, and seeks relief solely on that ground. The evidence fails to convince us that appellee is the victim of misplaced confidence. He says he trusted the appellant as a boy would trust his mother, and hence signed the papers without reading them and without understanding them, and thought that he was only signing a deed to the land, as that was what appellant represented. In the light of all the other evidence, we are of the opinion that there was no misrepresentation and no concealment upon the part of appellant. Nor did appellee execute the instruments through any misapprehension caused by appellant, or because of any trust and confidence reposed in her. His own letters and the testimony of his own brother show that before the instrument was executed he had begun to distrust appellant, and that he was determined, when he made the settlement with her, “to get all that was coming to him.” He assured his brother of that fact, and there is no doubt from all the testimony in the record that when he made the settlement with appellant and when he executed the instrument evidencing such settlement he was dealing with her at arm’s length. Appellee was of age, had received excellent advantages of education, and the record does not disclose any evidence of mental imbecility on his part, but rather the opposite. The law is that “a settlement of a guardian with his ward shortly after the latter’s majority will be closely scrutinized. The burden of proving good faith rests upon the guardian. To sustain a private settlement, the guardian must show that he fully and clearly disclosed the condition of the ward’s estate at the time of the settlement, that he exercised no undue influence, and that the settlement is fair and equitable.” 21 'Cyc. 169. The conduct of appellant in dealing with appellee measures fully to the required standards. There is a general finding by the court that appellee executed the bill of sale to appellant “without understanding his rights and without full knowledge of the facts pertaining thereto.” The evidence does not warrant the finding that appellee signed the bill of sale without full knowledge of the facts pertaining thereto. The testimony of appellant is .certainly entitled to as much credit as that of the appellee. Appellant testifies (and her testimony is corroborated) that appellee did understand that the settlement was to be a full settlement, and that she explained everything thoroughly pertaining to the McBee estates.

Appellee testified that he did not know, at the time he signed the bill of sale, that the life insurance was payable to him and his sisters, but the testimony of appellant shows that as early as 1903 he knew that the insurance was payable to him and his sisters, Myrtle and Maude, and his own testimony shows that after he was of age, and in February or March before he signed the bill of sale, he signed one of the insurance coupons which showed on its face that he was a beneficiary in the policy. lie testified that he did not know that the bill of sale included his interest in the life insurance policy, but again he is contradicted by appellant, who says that she told him that she “was going to insert it in the bill of sale,” and “what the personal property consisted of, which was notes, accounts, and money and Equitable life insurance policy.” The decided preponderance of the evidence is against him on the facts. The record, however, does disclose that both appellee and appellant were ignorant of the law giving to appellee the right, if he elected, to take his interest in the life insurance, notwithstanding the testator had disposed of it in his will and .had given most of it to appellant. Conceding that appellant as guardian should have known the law in this respect and should have imparted that knowledge to appellee, still it does not follow that the bill of sale should have been cancelled under the facts of this record.

It clearly appears that in a settlement with appellant appellee would have to accept the provisions of the will as to the disposition of his insurance money, or else repudiate the will and reimburse appellant the amount she has lost by reason of such repudiation. The language of the will is unmistakable. The testator disposed of the insurance money of appellee, giving most of it to appellant and making other- provisions for appellee in the will. Its language is such as to require an election on the part of appellee. “The doctrine,” says this court in Fitzhugh v. Hubbard, 41 Ark.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bonnell v. Smith
908 S.W.2d 74 (Supreme Court of Arkansas, 1995)
American Insurance v. Mountain Home School District No. 9
780 S.W.2d 557 (Supreme Court of Arkansas, 1989)
Crittenden County v. Williford
675 S.W.2d 631 (Supreme Court of Arkansas, 1984)
Hilburn v. First State Bank of Springdale
535 S.W.2d 810 (Supreme Court of Arkansas, 1976)
Kirkham v. Malone
336 S.W.2d 46 (Supreme Court of Arkansas, 1960)
Schirmer v. Cockrill
269 S.W.2d 300 (Supreme Court of Arkansas, 1954)
First Methodist Episcopal Church v. Hull
280 N.W. 531 (Supreme Court of Iowa, 1938)
Myers v. Hobbs
115 S.W.2d 880 (Supreme Court of Arkansas, 1938)
Gregg Corp. v. Burdine
129 So. 868 (Supreme Court of Florida, 1930)
Swim v. Brewster
9 S.W.2d 560 (Supreme Court of Arkansas, 1928)
Phillips v. Phillips
220 S.W. 52 (Supreme Court of Arkansas, 1920)
Hall Bros. v. Moore
219 S.W. 328 (Supreme Court of Arkansas, 1920)
McLain v. Brewington
211 S.W. 174 (Supreme Court of Arkansas, 1919)

Cite This Page — Counsel Stack

Bluebook (online)
131 S.W. 450, 96 Ark. 251, 1910 Ark. LEXIS 29, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccracken-v-mcbee-ark-1910.