McLarty v. . Broom

67 N.C. 311
CourtSupreme Court of North Carolina
DecidedJune 5, 1872
StatusPublished

This text of 67 N.C. 311 (McLarty v. . Broom) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McLarty v. . Broom, 67 N.C. 311 (N.C. 1872).

Opinion

Prarson, C. J.

The result of the actings and doings of the defendants in regard to the estate, is very unfortunate for the plaintiff. Instead of receving an equal share with her two sisters of their brother’s bounty, she has'received only his watch and a few other articles, whereas the husband of one of her sisters, in right of his wife, has secured to himself real estate of much value, and the husband of her other sister, in right of his wife, has realized a targe sum out of the ante-war notes due to the testator. The quuestion is, have the plaintiffs a legal or equitable right to complain ot this result, and to demand that an equal division be now made? Or was this inequality of division caused in a manner and under circumstances which puts it out of the power of the Court to grant relief under any known and recoguized principle of law or equity?

The draftsman of the complaint seems not to have fixed in his mind any specific head of equity, on which to rest his case, and was content to state the facts, and demand an account and settlement of the estate upon general principles of equity and fairness,

*317 The first exception to the report is made specific, and puts the right of the plaintiff on two grounds.

1st. The executor was directed by the will to sell at public sale on a credit of at least twelve months, talcing bond and security, with interest from date; and although it suited the convenience of the executor, and of the defendant McMurray, that McMurray’s receipt for his wife’s share of the estate should be taken in place of a note at twelve months credit, in discharge of his bid on the land, and of the defendant Barrett, that he should take the ante-war notes, and give his receipt for the face of the notes in part of his wife’s share. On the supposition, (which may have been innocently entertained) that it could make no difference, whether McMurray gave, a receipt or a note with security at twelve months, and that it could make no difference, that Barrett took all of the ante-war noteg and left a corresponding amount of Confederate. treasury notes, to pass to the lot of his wife’s sister, the feme plaintiff; yet, as by reason of subsequent events, it appears that, “ this supposition ” was not true, and that, in point of fact, it did make a very great difference, to the injury of one of the objects of the testator’s bounty. The defendants cannot, with a good con science, avail themselves of a mistake, as to the fact that, giving a receipt would have the same effect as giving a note, at twelve months, and of a. mistake as to the fact, that a Confederate note was as good as an ante-war note; and that the plaintiffs are entitled to be put in the same condition as if the defendants had not acted under this mistake; that is to say, charge the plaintiffs with the Confederate treasury notes according to the scale, and with the value of the watch and other articles as if she had given a note at twelve months; charge McMuiray with the value of the land and other property, as if he had given a note at twelve months, and charge Barrett as if “ the ante-war notes ” had been divided into three equal parts.

His Honor rejected this view of the case, on the ground “ that the rule,” that is, (as we understand him) the direction *318 to sell at twelve months credit, was departed from with the full concurrence of all the parties concerned, &c.”

The fact is found, that the feme plaintiff was at the time of thesé transactions under the age of 21 years, and that defendant McMurray was her guardian, so, as an inference of law, his Honor ruled, that a guardian who is a party interested in the fund can bind the ward, by his concurrence in a departure from the directions of the will, to sell at twelve months credit; and on a sale made for the purpose of partition, may in behalf of the infant, give a concurrence to an arrangement by which lie, one of the parties to the partition, may give a receipt, instead of a note, at twelve months, for his bids. We do not concur with his Honor in this ruling. A guardian may, in behalf of his ward, give his concurrence to a partition, and it will bind the ward, provided the partition be equal, for the co-tenants may compel partition. Bacon’s. Abridge. Title Guardian and Ward, Head 5.

A guardian may assign dower and it will bind the ward, provided it be equal, otherwise not, for the widow may compel an assignment. Fitzherbert’s Nat. Brev., Writ of Admeasurement of Dower. In our ease there was no necessity for making a sale for the purpose of partition at the tune it was attempted. In November 1864, no prudent man would have converted real estate into Confederate treasury notes; nor would he, without some special occasion, have converted stock, farming utensils, grain, &c., into Confederate treasury notes; as to slaves, it could not make much difference whether they were converted or not, for the probability, amounting almost to certainty, was that in a few months neither slaves or Confederate treasury notes would be of any value. We are led to the conclusion that the executor would not have'made the sale, except for the understanding between him and the defendants, McMurray and Barrett, that they were to buy the property, and that he would take their receipts, instead of notes at twelve months, and so effect a partition. In making this arrangement *319 the interest oi the infant, tenant in common, was overlooked. She did not have a fair chance, and could not bid except by sufferance and a promise to ratify when she arrived at age; so-there was no necessity for this proceeding, and the partition effected by it was unfair and unequal, and the concurrence of the guardian did not bind the ward ; indeed, as the guardian was personally interested in the matter, he cannot insist upon holding the ward bound by this partition, ior, by doing so he abandons the ground that he was acting innocently, under a mistake as to fact, that it made no difference whether he gave a receipt or a note at twelve months, and subjects himself to an imputation of fraud and unfair dealing towards his ward. Where the supposition that a departure from the directions of the will could make no difference turned out to be a mistake, and it was found that it did in fact make a great difference, to the injury of the infant co-tenants, an attempt to retain the advantage of the mistake, and a refusal to redress the wrong, was almost as bad as if the act had been done by design in the first instance.

2. This brings us to the second ground on which the exception is put. Ilis Honor finds, that there is no allegation or proof of fraud and combination injurious to the plaintiff.. There are two kinds of fraud. There is no proof or allegation of actual fraud. This is fixed by the finding of his Honor ; but constructive fraud is an inference of law from the relation of the parties ; as, if a guardian so manages as to acquire the property of his ward during his minority, or soon after he arrives at full age, the law' will presume fraud, and the guardian can only hold the propertej' as security for his advancements; this presumption is made on the ground of public policy, and the transfer is treated as a mere security, and may be avoided, unless the guardian proves that no advantage was taken of the influence acquired by the relation.

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Bluebook (online)
67 N.C. 311, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mclarty-v-broom-nc-1872.