Neely v. Merchants Trust Co. of Red Bank

113 F.2d 953, 1940 U.S. App. LEXIS 3541
Court of Appeals for the Third Circuit·Decided June 29, 1940·No. No. 7282·Published·Cited by 1 cases

Opinion

BIGGS, Circuit Judge.

The appellant, Frank Tennyson Neely, alleged in his hill of complaint and offered proof that he and Eliza A. S. Calef entered into an oral contract whereby, in consideration of services- and financial aid rendered and to be rendered by the appellant to her, she would make a last will and testament naming 'the -appellant as her residuary legatee and devisee. Mrs. Calef died without leaving a will admissible to probate and the appellant now seeks specific performance1 of the alleged oral contract and also that a trust be impressed upon all of Mrs. Calef’s property for his benefit. The appellees are the heirs at law of Mrs. Calef and her administrator and ancillary administrator. The District Court found, first, that the appellant failed to prove existence of the alleged contract, and, second, assuming the existence of a contract, the appellant had failed to carry out his obligations thereunder.

A brief recapitulation of ■ the facts is necessary. Mrs. Calef died at her summer home, “Bagdad”, in Seabright, New Jersey, when she was seventy-nine years of age. She left a substantial estate, the greater part of which she had inherited from her brother. At the time she met the appellant, the inheritance referred to had not come into her possession and she was in financial difficulties. She employed the appellant to help her conduct her affairs and to serve as her financial agent. Upon Mrs. Calef’s 'death the appellant produced a copy of what he alleged to be her last will and testament and attempted to secure probate of it befor'e the Prerogative Court of New Jersey. Probate was denied, the court pointing out that if a will is proved to have been within the testator’s possession and upon death cannot be found, it will be presumed that it was destroyed by the testator with the intention of revoking it. The appellant claimed that though the will had been in his possession, he had lost it. The Prerogative Court did not credit this statement. In re Calef’s Will, 109 N.J.Eq. 181, 156 A. 475, affirmed 111 N.J.Eq. 355, 162 A. 579, certiorari denied Neely v. Stacy, 288 U.S. 606, 53 S.Ct. 397, 77 L.Ed. 981. Following denial of certiorari, the suit at. bar was commenced.

Was the learned District Judge in error in holding that the appellant had not sustained the heavy burden placed upon him under circumstances such as those at bar of showing by clear and convincing proof the existence of the contract referred to and the appellant’s performance thereunder? As was stated by the Court of Errors and Appeals by Justice Fort in Cooper v. Colson, 66 N.J.Eq. 328, 58 A. 337, 339, 105 Am.St.Rep. 660, 1 Ann.Cas. 997: “Most scrupulous care should be exercised by the courts in this class of cases,, and especially where one of the alleged contracting parties is dead. An allegation of an agreement to convey is easily made,, and casual conversation or jocular remarks of intent to devise or convey at death can readily be turned into serious import. * * * such power should be exercised upon the most clear proof * * * of the contract to devise. * * * ” See also Lings v. Urquhart, 106 N.J.Eq. 506, 151 A. 391, affirmed 109 N.J.Eq. 131, 156 A. 377; Vreeland v. Vreeland, 53 N.J.Eq. 387, 32 A. 3. Applying the doctrines of the decided cases, we conclude as did the learned District Judge that the appellant failed to sustain that burden of proof necessary to prove the existence of the contract between himself and Mrs. Calef. We shall not dilate upon the proof offered by the respective parties. It is sufficient to state that the appellant’s conduct at the time of Mrs. Calef’s last illness was not that of an individual who deemed that his rights were protected under a valid and existing contract. While Mrs. Calef was upon her death bed, he endeavored to procure her to make a will in his favor, leaving her entire estate to him, and excluding from her bounty all other persons despité the fact that the paper which he offered for probate as Mrs. Calef’s will before the Prerogative Court contained many specific bequests. There is evidence that despite Mrs. Calef’s semi-conscious condition, her dressmaker, Miss Fahrner, in the appellant’s presence, tried to induce her trained nurse to guide the dying woman’s hand to sign a will in his favor. Such evidence weighs heavily against the appellant.

Assuming, however, that there was a specific contract between the appellant and Mrs. Calef in the terms for [955] which the appellant contends, none the less his performance under that contract was not such as would entitle him to relief. We reach the conclusion as did the court below that such services as the appellant rendered for Mrs. Calef were rendered in reliance upon her generosity and certain present and definite benefits, and for this reason the appellant is within the rule enunciated by Vice Chancellor Ingersoll who made it clear in Danenhauer v. Danenhauer, 105 N.J.Eq. 449, 148 A. 390, 391, quoting Chancellor McGill in Vreeland v. Vreeland, supra, that while equity would specifically enforce a parol agreement to make a will at the instance of a complainant who has completely performed it upon his part, such a remedy “ ‘ * * * is afforded upon the ground that it will work a fraud upon him who, induced by the agreement, has in good faith so performed it as to irretrievably change the situation of the parties to his disadvantage, to permit the other party to refuse fulfillment upon his part.’ ” It cannot be successfully contended that the appellant has met this test. Moreover, the conduct of the appellant immediately preceding and following Mrs. Calef’s death was in breach of the duties placed upon him by the alleged contract. During Mrs. Calef’s last illness the appellant closed out brokerage accounts which he carried in his name but in which Mrs. Calef had an interest, and deposited at least $50,000 to his own personal account. Upon Mrs. Calef’s death the appellant went to Cuba, arriving with $50,-000 in cash, carried on his person in a money belt. He also had with him Mrs. Calef’s jewelry. We entertain little doubt that the $50,000 referred to consisted largely of moneys belonging to Mrs, Calef’s estate. Such conduct speaks for itself.

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Neely v. Merchants Trust Co. of Red Bank, 113 F.2d 953, 1940 U.S. App. LEXIS 3541 (3d Cir. 1940).

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