Price v. Davis

93 S.E.2d 93, 244 N.C. 229, 1956 N.C. LEXIS 391
CourtSupreme Court of North Carolina
DecidedJune 6, 1956
Docket676
StatusPublished
Cited by2 cases

This text of 93 S.E.2d 93 (Price v. Davis) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Price v. Davis, 93 S.E.2d 93, 244 N.C. 229, 1956 N.C. LEXIS 391 (N.C. 1956).

Opinion

Denny, J.

The question posed for determination on this appeal is simply this: Are the written agreements executed by the four daughters of J. W. Price, Sr., referred to hereinabove, enforceable and binding upon the respective parties, and are they estopped from further participation in the estate of J. W. Price, Sr., deceased?

In an opinion rendered by this Court in June 1859 in the case of Cannon v. Nowell, 51 N.C. 436, Ruffin, J. (formerly Chief Justice), said: “Heirs take by positive law when the ancestor dies intestate and the course of descents cannot be altered by words excluding particular heirs, or by any agreement of parties.” The appellants are relying upon this decision for a reversal of the judgment entered below.

The above action was one at law. In December 1859 in the case of McDonald v. McDonald, 58 N.C. 211 (5 Jones Eq.), 75 Am. Dec. 434, in which Colin McDonald, the plaintiff, sought to set aside a written assignment, executed by him in consideration of the sum of $1,000.00, of all his right, title and interest that he had or might have in the property or estate of Margaret McDonald, as her heir or next of kin, to Daniel McDonald. The Court held that Colin McDonald “did not *232 have anything which he could assign or transfer to another, either in law or in equity; but he had a right to make a contract to convey whatever interest he might in the future have in his cousin’s property; and such a contract, when fairly made upon a valuable consideration, the Court of Chancery will enforce whenever the property shall come into his possession.” Mastin v. Marlow, 65 N.C. 696; Watson v. Smith, 110 N.C. 6,14 S.E. 640, 28 Am. St. Rep. 665; Wright v. Brown, 116 N.C. 26, 22 S.E. 313; Taylor v. Smith, 116 N.C. 531, 21 S.E. 202; Brown v. Dail, 117 N.C. 41, 23 S.E. 45; Vick v. Vick, 126 N.C. 123, 35 S.E. 257; Boles v. Caudle, 133 N.C. 528, 45 S.E. 835; Kornegay v. Miller, 137 N.C. 659, 50 S.E. 315, 107 Am. St. Rep. 505.

In the case of Mastin v. Marlow, supra, decided in 1871, this Court held, “The power of an heir expectant to bind himself by contract in regard to what may descend to him by the death of the ancestor is taken to be settled.” . .

In Boles v. Caudle, supra, the Court held that where a contract to convey an interest or expectancy in property is based on a fair consideration, is not procured by undue influence and its enforcement will not be oppressive, if it has been partially performed, its specific performance will be decreed. However, Connor, J., made this salutary statement in commenting upon such contracts: “Contracts for the sale of expectancies and drafts upon the future are not favorites of courts of equity, and will be sustained only when shown by those claiming under them that they are entirely fair and free from any vitiating element. Children should not be encouraged to spend their inheritance in advance, or to speculate upon the death of their fathers. It may be that in these days the evil effects of living upon the future demand a stricter investigation by the courts of contracts of this character. In addition to the evil effect upon the habits and mode of life of the people, such contracts are calculated to weaken the bonds of affection and degrade the most sacred relations of life to a mere pecuniary basis.”

While the case of Cannon v. Nowell, supra, was decided nearly 97 years ago, it has never been followed. In fact, prior to this appeal, in so far as we have been able to find, it has been cited only once and that was in the case of In re Reynolds, 206 N.C. 276, 173 S.E. 789, in which this Court merely referred to the fact that the petitioner contended that the Forsyth judgment and decree in effect changed the infant’s status so as to prevent her participation in the testamentary trust set up by her grandfather and grandmother, and cites Cannon v. Nowell, supra. The only comment the Court made with reference to the Cannon case was as follows: “In 28 A.L.R., p. 433, this case is placed under the minority rule.” The Court did not bottom its decision in the Reynolds case on Cannon v. Nowell, supra.

*233 We think the cases of Allen v. Allen, 213 N.C. 264, 195 S.E. 801, and Coward v. Coward, 216 N.C. 506, 5 S.E. 2d 537, are in accord with the majority rule on this subject.

In 16 Am. Jur., Descent and Distribution, section 152, page 932, et seq., it is said: “The majority rule is that a release by' an heir or distributee, made to the ancestor before the latter’s death, where supported by an advancement to the heir or distributee or other consideration and freely and fairly made, is binding on the heir or distributee. The mere fact that the sum which the prospective heir receives from his ancestor in consideration of his agreement to release the latter’s estate from all claim which he might have as heir against it proves to be of less value than the amount which he would have received as heir, in the absence of such an agreement, will not defeat the effect of the release as a bar to his participation in the distribution or partition of the estate after the ancestor’s death,” citing numerous authorities.

Likewise, in 26 C.J.S., Descent and Distribution, section 62, page 1085, et seq., the majority rule is stated in the following language: “It is held by the weight of authority that the release of an expectant share to an ancestor, fairly and freely made, in consideration of an advancement or for other valuable consideration, ordinarily excludes the heir from participation in the 'ancestor’s estate at his death. It is necessary that the person executing the release was at the time competent to contract, that the release was not obtained by means of fraud or undue influence, and that the instrument or transaction in question be sufficient to constitute a release or a contract creating a bar; and the burden of proving want of consideration for the release is on the party asserting such want. . . . An oral promise by the ancestor to ignore or disregard the release is void and unenforceable where the promise was made after the execution of the release and without a consideration.”

In Allen v. Allen, supra, T. W. Allen and his wife, E. J. Allen, the father and mother of the plaintiff J. W. Allen and the defendants, and grandparents of the plaintiffs other than J. W. Allen, agreed to pool their real estate and to divide it among their children before they died. Deeds were executed to each of the children, but only those executed to their son J. W. Allen and their daughter Hester V. Hendricks were delivered. The deeds executed to the other children were placed in the safe of T. W. Allen and instructions were given to one J. W. Davis, who had access to the safe, to deliver the deeds at the death of the grantors, it being a part of the agreement of division that the grantees in said deeds should not receive their respective shares in the division until after the death of the grantors.

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93 S.E.2d 93, 244 N.C. 229, 1956 N.C. LEXIS 391, Counsel Stack Legal Research, https://law.counselstack.com/opinion/price-v-davis-nc-1956.