Mors v. Peterson

104 N.E. 216, 261 Ill. 532
CourtIllinois Supreme Court
DecidedFebruary 21, 1914
StatusPublished
Cited by24 cases

This text of 104 N.E. 216 (Mors v. Peterson) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mors v. Peterson, 104 N.E. 216, 261 Ill. 532 (Ill. 1914).

Opinion

Mr. Justice Vickers

delivered the opinion of the court:

Sarah Mors and numerous other persons claiming to be heirs and devisees of Elizabeth Spruill filed their bill against Clarissa Peterson and others, as defendants, in the circuit court of Fayette county, for the purpose of setting' aside a deed executed by Mrs. Spruill to Clarissa Peterson on August 23, 1911, conveying to Mrs. Peterson 190 acres of land, estimated to be worth about $50 per acre. The bill alleged fraud, undue influence and want of mental capacity as grounds for the relief sought. Clarissa Peterson filed an answer to the bill, in which she denied all of the charges contained therein upon which complainants predicate their right to relief. The cause was heard upon testimony submitted in open court and a decree was rendered setting aside the deed, to reverse which Mrs. Peterson has prosecuted this appeal.

The errors assigned question the several findings of the court below upon which the decree canceling the deed rests.

Elizabeth Spruill died April 23, 1912, at the age of eighty years. She had been married but her husband had been dead about twenty years. She never had any children. In addition to the real estate conveyed to appellant she had some notes and other personal property. Her business affairs had been managed during her widowhood first by John A. Bingham, who acted as her attorney in fact to loan her money and to look after the leasing and collecting of rents from her real estate. Afterwards, in 1902, the deceased appointed J. J. Brown as her attorney in fact to look after her business affairs generally. Brown continued to represent the deceased until her death. The- business transacted by him for her consisted mainly of making loans of her funds, collecting the interest and receiving rents and paying the same out according to the directions of Mrs. Spruill. The actual leasing of the real estate was done by Mrs. Spruill in person. Brown was occasionally called upon to draw up leases in accordance with contracts previously made by her. The evidence shows that a few years before her death she had a new house built on her farm, and that she personally planned the building and let the contracts for the construction of the house. During the •last ten j^ears of Mrs. Spruill’s life she lived at the home of the appellant, who was her niece. The evidence is that Brown paid appellant for taking care of Mrs. Spruill, first at the rate of $3 per week, but the compensation was increased from time to time as Mrs. Spruill grew more feeble, and during the last three years of her life the compensation was at the rate of $10 per week. About nine years before her death Mrs. Spruill suffered an injury to her hip, which thereafter made it quite difficult for her to walk. The evidence shows that Mrs. Spruill gradually declined, both physically and mentally, after her injury, and that her condition was such that she required, during the last years of her life, constant attendance both day and night, and appellant personally rendered this service to her. The aggregate amount paid appellant for keeping Mrs. Spruill was about $2500. During the last few years of her life her condition was one of helpless dependence on others for the supply of her wants. It was appellant’s duty, under her contract, to minister to Mrs. Spruill’s comfort and necessities, and there is no complaint that she did not fully discharge her duty under her contract. The evidence further shows that appellant not only looked after the personal wants of Mrs. Spruill but she also attended to business affairs for her as well. On March xi, 1912, appellant wrote Brown a letter, in which she demanded pay for taking care of Mrs. Spruill or that Brown turn over the “papers, notes and mortgages, as I have to do all of the business; I will not bother you longer with her affairs; I have paid all of the taxes and other expenses; now I want the money you owe me; if you cannot do the business without trouble you can stop right now.” From this letter and other evidence in the record it is apparent that the appellant was not merely devoting herself to the personal wants of her patient but was actively concerning herself with her affairs generally.

The evidence as to the mental condition of Mrs. Spruill during the last few years of her life is conflicting. It can not be said that the weight of the evidence shows that her mental powers were more impaired than would ordinarily be expected in one of her age and condition of health. The evidence on this point shows that she had the physical and mental weakness that are usually incident to old age. Her mental condition is proper to be considered as strengthening the inference of undue influence which the law draws from an established fiduciary relation. The constant and intimate association of appellant with this feeble and helpless old lady for the last ten years of her life gives rise to an irresistible conclusion that there was trust and confidence on the one hand and influence and domination on the other. While the bill sets out all the circumstances connected with the execution of the deed and alleges undue influence and mental incapacity and prays for a cancellation of the deed, it is not, strictly speaking, a bill, as appellant’s counsel appear to treat it, for the rescission of a contract on the ground of mental incapacity of the party to enter into it. The bill alleges a state of facts which are fully established by the proof, which show that a fiduciary relation existed between these parties; that while such relation existed the deed in question was executed without any adequate consideration; that by said deed appellant acquired title to real estate worth between $9000 and $10,000, and the bill calls on the appellant to rebut the presumption which the law draws from the fiduciary relation established, and show, by clear and convincing proof, that she acted with good faith and did not betray the confidence reposed in her. The decree below canceling this deed is merely an adjudication that appellant has wholly failed to remove the suspicions which necessarily grow out of the nature of the transaction and the relation of the parties.

Courts of equity have refused to set any bounds to the circumstances out of which a fiduciary relation may spring. It not only includes all legal relations, such as guardian and ward, attorney and client, principal and agent, and the like, but it extends to every possible case in which a fiduciary relation exists in fact, and in which thére is confidence reposed on one side and resulting domination and influence on the other. (Beach v. Wilton, 244 Ill. 413.) It-is not necessary that the relation and duties involved be legal. They may be either moral, social, domestic, or merely personal. (Roby v. Colehour, 135 Ill. 300; Walker v. Shepard, 210 id. 100.) When a confidential or fiduciary relation is established between parties, courts of equity scrutinize very closely any transaction or contract between the parties by which the dominant party secures any profit or advantage at the expense of the person under his influence. All transactions between parties in this relation are presumptively fraudulent and void, and before a court of equity will permit such contract to stand, the proof must be clear and convincing and satisfy the conscience of the chancellor that good faith has been exercised and that the confidence reposed in the beneficiary of the contract has not been betrayed by him. Beach v. Wilton, supra, and authorities there cited.

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104 N.E. 216, 261 Ill. 532, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mors-v-peterson-ill-1914.