Northern Trust Co. v. Swartz

141 N.E. 433, 309 Ill. 586
CourtIllinois Supreme Court
DecidedDecember 6, 1923
Docket15366
StatusPublished
Cited by15 cases

This text of 141 N.E. 433 (Northern Trust Co. v. Swartz) 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
Northern Trust Co. v. Swartz, 141 N.E. 433, 309 Ill. 586 (Ill. 1923).

Opinions

Mr. Chief Justice Farmer

delivered the opinion of the court:

Complainants, the Northern Trust Company, administrator of the estate of Mary E. Swartz, and Julia E. Elughes and Edwin J. Fort, filed their bill in chancery against defendants, John E. Swartz, Cora A. Swartz, and John E. Swartz as administrator de bonis non with the will annexed of the estate of Thomas B. Swartz, to set aside certain gifts of personal property claimed by John E. and Cora A. Swartz, his wife, to have been made to them by Mary E. Swartz during her lifetime. The bill alleged the gifts were claimed by defendants by virtue of letters and correspondence written by Mrs. Swartz in her lifetime, which letters complainants averred were insufficient to vest title in defendants or either of them. The bill further alleged that Mrs. Swartz at the time she wrote the alleged letters was mentally incompetent to dispose of her property, which fact was known to defendants. Answers were filed denying the gifts were not complete gifts, and denying Mrs. Swartz was insane or mentally incompetent to dispose of her property. The cause was heard by the chancellor, who entered a decree setting aside the gifts on the ground that Mrs. Swartz" was mentally incompetent to make valid disposition of the property, but the chancellor made no finding on the question whether, if she had been mentally competent to dispose of her property, the gifts were completed and valid gifts. Defendants appealed to the Appellate Court for the First District, and that court reversed the decree of the circuit court of Cook county and remanded the cause, with directions to dismiss the bill for want of equity. The Appellate Court held the evidence as to the mental incapacity of Mrs. Swartz to dispose of her property was insufficient to sustain the decree, and also held that the gifts were completed and valid gifts. On petition of the complainants this court granted a writ of certiorari and the cause is here for review. We will refer to the parties as complainants and defendants.

Some facts necessary to an understanding of the case are: Thomas B. Swartz was the husband of Mary F. Swartz. He was a doctor, and for several years, in addition to his medical practice, was associated with his brother, defendant John E. Swartz, in the conduct and management, as owners, of the business of the Phospho-Albumen Company. The testimony tends to show the two brothers were very devoted to each other and their wives were very intimate and friendly. Dr. and Mrs. Swartz had two children, both daughters. In December, 1903, the daughters, then eighteen and fifteen years, respectively, lost their lives in the Iroquois Theatre fire. At the same time a sister of Mrs. Swartz lost her life also. Dr. Swartz died February 1, 1916, and by his will bequeathed the property in question, except three $1000 bonds, hereafter referred to, to his wife, provided she survived him and did not die from the same accident causing his death within one year after the date of his death. In case she did not survive him, or if she died from the same accident causing his death within one year from the date of his death, after payment of his wife’s debts and funeral expenses he authorized his wife’s sister, Julia F. Hughes, to take from his house any furniture or bric-a-brac she desired, and all the rest and residue of his estate he gave to his brother, John. If his wife survived him she was appointed executrix without bond. In case she did not survive him John was named as executor. The will was admitted to probate and Mrs. Swartz was appointed executrix. After her husband’s death Mrs. Swartz continued to reside by herself in the apartment which had been occupied by herself and husband, until the early part of June, 1916. She collected the amount due on a life insurance policy of her husband, and with the money purchased two Chicago City Railway bonds of $1000 each and one Swift & Co. bond of $1000. On May 26 she deposited with John and his wife the property she had received from her husband as well as what she had bought with the life insurance money, and at the time made the following memorandum:

“May 26. — I, Mary F. Swartz, place in the hands of my brother, John E. Swartz, and wife, the estate of my deceased husband, Thomas B. Swartz, for use in his business if so desired and safe keeping.”

The property deposited, and which is the subject of this litigation, consisted of twelve $1000 bonds and some cash.' About the first of June her brother, complainant Edwin J. Fort, who resides in Brooklyn, New York, came to see Mrs. Swartz, and on June 2 she wrote John Swartz she was going home with her brother for the summer and gave him directions about the management of her apartment while she was gone. She asked John to send her $25 in addition to what he had given her the night before, asked him to pay her rent and collect $20 due her from a Mr. Gustin, and enclosed an order to Gustin to pay the money to John. After going to Brooklyn with her brother she wrote John and Cora several letters, and July 19 wrote the letter hereafter set out in full to Cora, giving her the three bonds she had purchased with her husband’s life insurance money. July 24 she wrote the letter hereafter set out to John, giving to his wife, Cora, three other bonds described and the remainder of her property to John.

Two questions are raised by the assignment of errors: (1) Whether the letters of Mary F. Swartz to defendants were sufficient to pass title to defendants to the property; (2) . whether the proof was sufficient to establish the mental incapacity of Mrs. Swartz when the alleged gifts were made. The trial court made no finding on the first question, but found in its decree that Mrs. Swartz did not possess sufficient mental capacity to make a valid disposition of her property. The Appellate Court reversed the decree and held

the evidence was sufficient to vest the title to the property by gift in defendants from Mrs. Swartz in her lifetime, and that the evidence did not support the decree that she was mentally incapable of making a valid disposition of her property.

It will be borne in mind that when the cash, bonds and other papers of Mrs. Swartz were placed by her in the custody of John Swartz they were placed there “for use in his business if so desired and safe keeping.” This was the statement in writing of Mrs. Swartz under date of May 26, 1916. In the early part of the following June she went with her brother, Edwin J. Fort, tó his home in Brooklyn, New York, and never again returned to Chicago. Two letters she wrote the defendants while in New York form the most material evidence from which the dispute arises whether title to the property passed to defendants as a gift inter vivos. One of the two letters referred to was dated July 19, 1916, and is as follows:

“My Dear Sister Cora — I send you this note for the reason that after careful and deliberate consideration I desire that the three one thousand dollar bonds, — two Chicago City Railway and one Swift, — which I own and which were bought with the life insurance which came to me at the death of my husband, the late Thomas B. Swartz, from the National Union, etc., be transferred to you, Cora E. Swartz, to have and to hold in fee simple forever. This policy was made payable direct to me, Mary F. Swartz, his wife, and so it seems to me is not a part of his estate but belongs to me.

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Bluebook (online)
141 N.E. 433, 309 Ill. 586, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northern-trust-co-v-swartz-ill-1923.