Pfau v. Witcover

139 F.2d 588, 1943 U.S. App. LEXIS 2352
CourtCourt of Appeals for the Fourth Circuit
DecidedDecember 27, 1943
DocketNo. 5150
StatusPublished
Cited by4 cases

This text of 139 F.2d 588 (Pfau v. Witcover) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pfau v. Witcover, 139 F.2d 588, 1943 U.S. App. LEXIS 2352 (4th Cir. 1943).

Opinion

SOPER, Circuit Judge.

This suit, based on diverse citizenship, was brought to secure the cancelation of a [589]*589deed to a lot of ground and the building thereon in Darlington, South Carolina, and for an accounting for rents and profits. The plaintiff, one of the executors of the estate of If. W. Witcover, deceased, charged that a deed made by the deceased on August 29, 1936, a few weeks before his ■death, conveying the property to his brother, D. D. Witcover, was executed without consideration as the result of undue influence when the grantor was without sufficient mental capacity to execute a valid contract. The defendants were the grantee, who was also an executor under the will, and another co-executor who refused to join in the complaint but was joined as party defendant and admitted the allegations of the complaint. Subsequently a sister of the deceased was joined as party defendant when the grantee in the deed, which on its face conveyed an absolute title, set up the defense that the deed was in fact made pursuant to a trust agreement under which the property, subject to the encumbrances thereon, was to be held for 'her benefit.

The grantor died on October 1, 1936 leaving practically all of his property of the approximate value of $70,000 in trust for the benefit of his three children. The property covered by the deed was then rented for much less than $100 per month and was subject to a mortgage so that the value of the interest passing in trust for the sister’s benefit, while apparently more than the jurisdictional amount of $3,000, was substantially less than $10,000. No valuable consideration for the conveyance passed to the grantor.

The evidence on which the deed was attacked stressed the enfeebled condition of the grantor at the time of its execution. In 1934, because of loss of health, he had resigned the position of secretary-general of the Supreme Council of the Scottish Rite Masons of the Southern Jurisdiction with an office in Washington. He then went to live with his sister in Darlington, remaining with her and under her care until his death. The sister’s husband, and the grantee in the deed, resided in the same house. A married daughter, the eldest of his three children, remained in Washington. Letters written by the sister to the daughter at or about the time of the execution of the deed tended to show that the grantor was then in bad mental and physical condition and unable to leave the house. The testimony of the defendants indicated that the deed was executed in his brother’s place of business at some distance from his residence, and that he walked from his home for the purpose. Upon this evidence the special referee, to whom the case was referred, found that at the time of the execution of the deed the grantor was incapacitated and unable to understand the nature of his act. This conclusion found some support in medical testimony based on hypothetical questions.

The District Judge reached the opposite conclusion upon all the testimony. He found that the grantor had been generous with his family for years. He had made monthly advances to his sisters and had invested considerable sums of money in the business of his brother-in-law. In' fact, the grantor arranged with his brother and his brother-in-law to take the title to certain property, including that covered by the deed in suit, out of the brother-in-law’s name and to put it in the name of a corporation and later in the name of the grantor in order to save it for his sister, and for this purpose he advanced substantial sums of money. The judge reached the conclusion that the same purpose actuated the transfer of the property in dispute and -that the grantee in the deed accepted it with the understanding that he would hold it for his sister’s benefit. The grantee and a number of other witnesses testified in detail as to the execution of the deed in the brother’s store after the testator had held the deed in his possession for several days. They testified that while he was in bad physical condition, his mind was clear, and he understood what he was about. The judge carefully examined the letters written by the sister to the daughter of the grantor and concluded that they did not show that at all times during the period in question he was incompetent, but that at times his mental capacity was bad and at other times good. Acknowledging that the case was not free from difficulty, the judge was unable to find that the persons who testified as to the execution of the deed were guilty of perjury; and he held that the deed was executed in the manner and for the purpose depicted by the defense. Holding that the gift of a small part of the testator’s estate to his sister at the end of his life . was a natural benefaction, the judge said:

“There is ample evidence that H. W. Witcover had been accustomed to make con[590]*590siderable gifts to his sister and had assisted in furnishing her support besides endeavoring to save some of her husband’s property. If the deed had declared the trust, the motive to contribute to his sister based upon natural family affection, would have been ample consideration to support the deed, and the testimony in this case undoubtedly places it in the class of a conveyance with a trust attached and although the deed does not recite the trust the beneficiary under the state of the present pleadings and testimony is in a position to require D. D. Witcover to carry out the terms of the trust as related by him in the event that he should fail to so carry them out or should fail or refuse to make a declaration and should attempt to use the property for other purposes. I think there is ample evidence to sustain the fact that a trust was intended, provided of course it is found that H. W. Witcover had sufficient mental capacity and was not unduly influenced.”
“* * * When he gave up his position as secretary general with the Scottish Rite order he did not continue to live in Washington or make his home with the daughter, nor did he return to his old home in Savannah, Georgia. But instead and entirely of his own volition and presumably led by affection for his sister and brother he went to Darlington and there made his home with Mrs. Lumiansky. He contributed to the upkeep of the household and in view of the fact that he was making no provision in his will for her it would indeed seem rather remarkable that he would make no gift or provision for her future since he had.always been so extremely solicitous for her well-being and support in the past. The one piece of property that had been rescued from her husband’s business stood in his name. Certainly no one can suggest that H. W. Witcover rescued this property in order to make some money out of it or repay himself for the losses and contributions that he had made. The only reasonable deductions, therefore, seem to be that he had rescued it to help his sister and in his closing days realizing that this property stood in his name and that he had made no provision for her in his will, it would appear to be the natural act of a brother well endowed with worldly goods, who bore a deep and abiding affection for a sister who was less fortunate and whose husband had been unsuccessful in business ventures. And the manner of the gift would seem to be even more natural. Because of the fact that his sister’s husband had not shown business acumen, he did not turn the property over to Mr.

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Bluebook (online)
139 F.2d 588, 1943 U.S. App. LEXIS 2352, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pfau-v-witcover-ca4-1943.