Pye v. Jenkins

20 F. Cas. 95, 4 D.C. 541, 4 Cranch 541

This text of 20 F. Cas. 95 (Pye v. Jenkins) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pye v. Jenkins, 20 F. Cas. 95, 4 D.C. 541, 4 Cranch 541 (circtddc 1835).

Opinion

Cranch, C. J.,

to be considered in the vacation, who, on the 9th of July, 1835, filed the following opinion.

The answers having denied all restraint and undue influence, and having averred that the deed was made with a full knowledge of the nature and extent of the rights of the grantor; and these averments, being responsive to the allegations of the bill, are evidence for the defendants; and as there is no contradictory evidence, it is conclusive on that point.

The case of the complainants, therefore, rests wholly upon the invalidity of the deed by reason of the relative situation and circumstances of the parties at the time of the transaction.

It is the simple case of a deed of gift from a young daughter to a wealthy father, conveying all her property and leaving herself entirely destitute. Her estate was a reversion expectant upon the [545]*545death of her father, who was tenant by the curtesy. She was, therefore, not only in a situation to be operated upon by parental influence, but in that of an expectant heir dealing for a reversion and parting with it for an inadequate consideration.

There are many cases decided upon the principle that the party contracting was not perfectly free to act, and the other party has availed himself of his power or influence; and in such cases it has not been deemed necessary that there should have been actual fraud or imposition ; but, from the relative situation of the parties, a court of equity will suppose that the party was not free to act, and will set aside the contract, as not having been made with his full and free assent. Among the relations, which a court of equity looks upon with a suspicious eye, are those of guardian and ward; parent and child; trustee and cesíui que trust; tutor and pupil; attorney and client; master and servant; and the cases of expectant heirs and reversioners. In all these eases, the court requires the party seeking to avail himself of the contract, to show that it -was fairly made, for full and valuable consideration, and with full knowledge, by the party sought to be bound by it, of all the circumstances, and of all his rights; and in some of these cases, the mere relation of the parties is sufficient to vacate the contract.

In Morse v. Royal, 12 Ves. 371, the Lord Chancellor said, “ The authorities connected with this case are not many, and the principles are perfectly clear. One class of cases is that of contracts that may be avoided, as being contrary to the policy of the law, which are interdicted for the wisest reasons. Of that kind are a deed of gift obtained by an attorney while engaged in the business of the author of that gift; a deed by an heir, when of age, to his guardian ; purchases of reversions from young heirs when of age.” “ To that class of cases I shall add the case of a trustee selling to himself. Without any consideration of fraud, or looking beyond the relation of the parties, that contract is void.” “ In all these instances there is no necessity for evidence; the contract is interdicted by the policy of the law.” I have no difficulty in saying I should not have regretted to have found that the rule extended even to such a case as this. Finding that there is so much difficulty in supporting a purchase by a trustee from the cestui que trust, that the transaction ought to be guarded with that-necessary degree of jealousy running so near the verge, it might better be embraced under the policy of the law.”

In Wright v. Proud, 13 Ves. 137, the principle of “ the rule of guardian and ward,” say the plaintiff’s counsel “ has been carried so far that a conveyance to a brother by an orphan living with him as one of his family, though no particular fraud appeared, [546]*546was set aside upon the ground of the relation enabling him to exert an undue influence ; ” and they cited the case of Griffin v. De Venille, 3 Wood, App. 16; S. C. 1 Gwillim’s Bac. Ab. 109; 3 P. Williams, 131, Mr. Cox’s note.

In Osmond v. Fitzroy, 3 P. Williams, 131, the court said, “ young heirs, even when of age, are under the care of a court of equity.” In that case a voluntary bond by an heir twenty-seven years old, was set aside.

In the case of the Duke of Hamilton et ux. v. Lord Mohun, 1 P. Williams, 118, the Lord Chancellor said, that “ this was within the common case of equity’s relieving an heir against any private agreement with his father, upon the marriage of the heir ; as where the father covenants to settle an estate on the marriage, and the heir privately agrees to pay back so much out of it to the father ; the heir is under the awe of his parent, in such case and not supposed to act freely; for which reason courts of equity relieve against such private agreements.”

In Hatch v. Hatch, 9 Ves. 292, 297, the Lord Chancellor said, If the court does not watch these transactions with a jealousy almost invincible, in a great majority of cases it will lend its assistance to fraud.”

In Cray v. Mansfield, 1 Vez. 381, the Master of the Bolls says, “ But there is another proper head of equity for the consideration of this court which will always hold a very strict hand over all deeds, purchases, and conveyances, obtained from young gentlemen soon after coming of age, by persons presuming too much on the confidence reposed in them, and drawing them in to execute the deeds.”

In Hylton v. Hylton, 2 Vez. 548, the Lord Chancellor said, Where a man acts as guardian, or trustee in the nature of guardian, for an infant, the court is extremely watchful to prevent that person’s taking any advantage immediately upon his ward or cestui que trust coming of age, and at the time of settling accounts, or delivering up the trust, because an undue advantage may be taken. It would give an opportunity, either by flattery or force, by good usage unfairly meant, or by bad usage imposed, to take such advantage ; and therefore the principle of the court is of the same nature with relief in this court on the head of public utility, as in bonds obtained from young heirs, and rewards given to an attorney pending a cause; and marriage brocage bonds. All depends on public utility; and therefore the court will not suffer it, though perhaps in a particular instance there may not be actual unfairness. Upon that ground I went in the case cited; in which I have added at the end of my note taken at .the hearing of the cause ‘ to be absolutely set aside; being [547]*547between a guardian and his ward just come of age, and on reason of public utility.’ ”

.. In Waller v. Armistead’s Administrator, 2 Leigh, 14, the deed was by a ward of full age to his guardian.

The Court of Appeals in Virginia, said, “ So many undue advantages may be taken in such cases, by means of the influence which may in various ways be exercised by the guardian, that the law, on a principle of public policy, vacates all such conveyances without proof of any actual fraud whatever.”

In Kerby v. Taylor, 6 Johns. Ch. Rep. 249, the ward had given a release to her guardian, six months after she came of age. Chancellor Kent says, “ It,” (the release,) “ is not necessarily to have been presumed to have been obtained by undue influence, like bonds from young heirs, or gifts and conveyances, and lucrative bargains from wards.”

In Revett v. Harvey,

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Related

Jenkins v. Pye
37 U.S. 241 (Supreme Court, 1838)
Kirby v. Taylor
6 Johns. Ch. 242 (New York Court of Chancery, 1822)

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Bluebook (online)
20 F. Cas. 95, 4 D.C. 541, 4 Cranch 541, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pye-v-jenkins-circtddc-1835.