Meginnes v. McChesney

179 Iowa 563
CourtSupreme Court of Iowa
DecidedNovember 24, 1916
StatusPublished
Cited by23 cases

This text of 179 Iowa 563 (Meginnes v. McChesney) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Meginnes v. McChesney, 179 Iowa 563 (iowa 1916).

Opinions

Ladd, J.

l. evidence: preHonsi-uiraua1-il" consxdcraI. D. L. Houser died in Los Angeles, California, July 17, 1913, when neiu'ty years of age, leaving him surviviug a gon an¿ two daughters. On June 24th prior to his death, he gave claimant a prom[567]*567issory note for $5,000, payable six months after date, with interest at the rate of 6 per cent per annum. Claim for the amount due thereon was filed October 1st of the same year, and trial thereof had in November, 1914. The defenses interposed were that the note was obtained by undue influence exerted by the payee, and was without consideration. Decedent ceased to do business about 1902, and his wife died in 1904. In March, 1908, while in Jacksonville, Florida, he employed claimant, who was a nurse, to care for him, as he was nearly blind, and suffering from other infirmities; and she continued as nurse, ‘companion and secretary until his death, throughout the entire time receiving $50 per month and expenses, for her services. Prior to death, he became totally blind, suffered from a rupture, hemorrhoids and neuritis, and frequently lost control of his organs of excretion. He was unable to dress himself after May, 1910, and required attention day and night. That claimant proved entirely trustworthy and rendered most efficient service, this record bears indubitable evidence. Being blind, he depended on her for practically everything. She wrote letters for and read to him, accompanied him on his daily walks, and waited on him generally, as she was employed to do. All his property was at Iowa City, consisting of houses, which were rented, some bank stock, a certificate of deposit and a note. His son looked after renting the houses until the last year, and after that, this was done by a bank. His letters concerning these matters were dictated to her, and she signed his name thereto, adding “per C. E. M.” His income, including a pension, was about $200 per month, which he obtained through the bank at Iowa City, and she cashed the drafts, received and paid from the proceeds his expenses, handing to him an amount necessary for personal items. Some of the witnesses testified that he relied entirely on her, and followed her directions implicitly. On the other hand, there was evidence [568]*568tending to slum that he controlled all his business affairs, and that she acted merely as his amanuensis. The record fairly raised the issue as to whether, in their relations, she exercised a dominating influence over him. The mere proof of some relationships warrants the inference that the stronger or superior party obtaining a benefit or advantage succeeded in doing so through the other’s confidence, and the burden is cast on the other to establish the fair-, ness and equity of the transaction. These are where the relations are such as that one person is put in the power of the other, and the laAV raises the presumption that any deal betAveen them is through the dictation of the one in a situation to exercise dominion over the other. Illustrations thereof are: (1) Trustee and cestui que trust, dealing in reference to the trust fund; (2) attorney and client, in respect to the matter wherein the relationship exists; (3) guardian and Avard, immediately after the ward arrives at age; (4) when one is the general agent of another, and has entire management, so as to be, in effect, as much his guardian as the regularly appointed guardian of an infant. The list need not be completed. Presumptions so arising are rebuttable, hoAvever. Other relationships depend on additional proof of facts and circumstances from AAdiich the existence of special confidence of one person in another is shown to be reposed to such an extent as that control by the latter is to be inferred. This may happen through relationship of blood, business, friendship or association in which the parties repose special trust and confidence in each other, and are in positions to have and exercise influence over each other. Curtis v. Armagast, 158 IoWa 507, 520. The rule is well stated in Cowee v. Cornell, 75 N. Y. 91, 99:

“It may be stated as universally true that fraud vitiates all contracts, but as a general thing it is not presumed but must be proAred by the party seeking to relieve himself from [569]*569an obligation on that ground. Whenever, however, the relations between the contracting parties appear to be of such a character as to render it certain that they do not deal on terms of equality, but that, either on the one side from superior knowledge of the matter derived from a fiduciary relation, or from overmastering influence, or, on the other, from weakness, dependence, or trust justifiably reposed, unfair advantage in a transaction is rendered probable, there the burden is shifted, the transaction is presumed void, and it is incumbent upon the stronger party to show affirmatively that no deception was practiced, no undue influence was used, and that all was fair, open, voluntary, and well understood.”

See Zimmerman v. Bitner, (Md.) 28 Atl. 820; Dawson v. National Life Ins. Co., 176 Iowa 362.

„ „ a rSiT relation ■ eurXtamis in-' ferrea. The existence of a fiduciary relation is n0* *)e inferred from the relation of master and servant alone. Nichols v. McCarthy, 53 Conn. 299 (55 Am. R. 105). Indeed, Hie employee is in a position exacting obedience rather than domination. Nor will it he inferred from friendship, though that is often an important consideration, and undoubtedly furnishes a vantage ground; for one is not likely to expect a friend to deceive him into a bad bargain. As against a friend, no shield is worn nor sword drawn in defense. Friendship tends to disarm. Hypocrisy is not so common in that relation, however, as to have led the courts to declare deals between friends open to suspicion on this ground alone. Wells v. Houston, (Tex.) 69 S. W. 183; Seward v. Seward, (Kan.) 53 Pac. 63. The evidence was such that it was for the jury to say whether decedent was under the dominion or paramount influence of plaintiff. As persons are presumed to act on their own initiative, the burden was on defendants to prove by a preponderance of evidence that decedent was so under claimant’s influence. If he [570]*570was not, then the note was presumed to have Been given for a valid consideration, and this must have been overcome by the defendants. In re Chismore’s Estate, 175 Iowa 495. If he -was under such dominion or influence, then the burden was on plaintiff to prove that the note was not executed in consequence of any undue influence of claimant.

s. bills and - notes : consideración: presumption: act "of'maker-As bearing thereon, all the circumstances of its execution, for what given, the 7 nature and amount of the consideration, 7 may be shown; and, until proven by a preponderance of the evidence to have been the voluntary act of decedent, no presumption that it was given for a valuable consideration obtains. If not his voluntary act, the promissory note was not his, and therefore this conclusion is not in conflict with Section 3060-a24, Supplement to the Code, 1913, declaring that “every negotiable instrument is deemed prima facie

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179 Iowa 563, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meginnes-v-mcchesney-iowa-1916.