Rose v. Durant

44 A.D. 381, 61 N.Y.S. 15
CourtAppellate Division of the Supreme Court of the State of New York
DecidedNovember 15, 1899
StatusPublished
Cited by4 cases

This text of 44 A.D. 381 (Rose v. Durant) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rose v. Durant, 44 A.D. 381, 61 N.Y.S. 15 (N.Y. Ct. App. 1899).

Opinions

O’Brien, J.:

A summary of the facts underlying this controversy is unnecessary in view of the opinion on the former appeal where they are stated. (Frethey v. Durant, 24 App. Div. 58.)

The principal question for determination is, was it proved that a fiduciary relation existed between the plaintiff and the defendant. Upon the former appeal where a judgment dismissing the complaint was reversed, it was held that the testimony then adduced by the-plaintiff justified the conclusion that such a fiduciary relation existed.. At the second trial evidence was introduced by the defendant to-overthrow the plaintiff’s, upon the question of a fiduciary relation, [383]*383by which he sought to establish that such relationship was confined to that property consisting of certificates for bonds and stocks-of the road which stood in the father’s name as trustee for the plaintiff. ■ In support of this contention, great stress is laid upon •the wording of the power of attorney executed and delivered by the plaintiff to the defendant.

The language employed in the power' of attorney, is not limited, to the property which stood in the father’s name as trustee for the plaintiff, and if she is to be believed, as she was by the- trial court, she was led to think from the representations made her that the power constituted the defendant her agent and attorney in respect-to all the property left by the father. As it was prepared and presented to her by the defendant, she is not to be bound by the strict-terms of the instrument, but it is to be construed in the light of what it was represented to her to be. In other words, having executed it without legal advice and on the faith of what was told her, she has a right to have it construed as she was induced to believe-it really was. That she acted on the belief that the power of attorney and the verbal assent which she gave to her brother conferred upon him the exclusive management of the father’s estate and of her interest therein, is evidenced by her entire conduct thereafter. She employed no one else, took no steps to protect her interests, but, confiding in her brother, she left this country for a sojourn in-Europe, and only returned, when, after repeated efforts, she failed to secure any explanation or accounting of the father’s estate from the defendant.

Her failure for a long time to demand an account is now urged as an argument against her, it being contended that if she was entitled to one, she would not have waited so long. It is shown, however, that she made frequent inquiries, and was told that it was inadvisable to stir up matters because"there was a $20,000,000 judgment-which in the event of assets being disclosed, might absorb them all. It is not by this -record made to appear that there ever was such a-judgment, yet the use made of it to stay the plaintiff’s hand is significant and characteristic of all the ■ defendant’s attitude towards her. He had- obtained a power of attorney ; he had secured her assent ter his management of the estate; he had permitted her to depart for Europe with the impression that he would protect her interests; and [384]*384"he was thus enabled to adopt a policy which gave him the means to yun a yacht and to live in luxury, while his mother, to use her .own expression, became dependent upon him ; and his sister, with the exception of the proceeds realized from some securities which were in the father’s name as trustee for her when he. died, has never received any benefit from or explanation concerning the great ¿amount of property which it. was supposed in the family that the ■father possessed.

That the defendant, when the father died, was not a man. of means, and that as the result of his management of the railroad property and lands he became wealthy, are not disputed; nor is any explanation offered other than that the wealth came from dealing with property in which the father was in some way interested. When charged with wrongdoing and unfair dealing in the father’s estate by his sister, the natural instinct of an innocent man would be to court an inquiry and seek the opportunity to vindicate himself. .Here, however, when after repeated refusals to give any explanation nr accounting, the defendant is brought into court, instead of promptly meeting the charges, numberless objections and obstacles are interposed to the effort to secure or wring from him an ¿accounting.

The defendant’s evidence does not outweigh that given by the -plaintiff, although upon some minor particulars as to dates and places, it was shown that the plaintiff’s recollection was not good. Thus as tb when and where the power of attorney was. executed — which.is in one aspect entirely immaterial — the plaintiff’s recollec. fion ' was faulty. But in this there is nothing extraordinary or unusual, for many years have elapsed, and upon such a detail she might very well be mistaken without ■ destroying the force of her testimony as to what actually occurred, or as to what wás said by the defendant as an inducement to obtain her signature to the power of attorney and her assent to his managing the property.

Undoubtedly, if the relation between the defendant and his sister was not fiduciary, he could not be compelled to make a disclosure. Whether such a relation existed was upon conflicting evidence presented for determination to the judge below, and with his conclusion, after an examination of the voluminous record submitted •on this appeal, we do not think we should interfere.

[385]*385Upon the finding that such a fiduciary relationship did exist, the interlocutory judgment for an accounting legally and properly ■followed; but to what extent and for what property can only be determined upon the accounting. Upon the sale of the certificates for the stock and bonds to the Delaware and Hudson Canal Company, there were included certificates which concededly belonged to third parties, and which were in the defendant’s hands for the purpose of effecting the sale. There were also certificates in favor of the mother for which the defendant is accountable to her. There •remain, however, certificates which were made out in the name of the father as agent ” ; but for whom is not made clear. The fact ■that after the father’s death, by direction of the defendant, there was .added to the stubs of the certificates a statement that the agency was for the mother, is not conclusive upon the plaintiff. In addition, there were lands covered by the Rosekrans and Cheney rnort.gages, which, it appears, were subsequently transferred to a certain -timber company. To the extent that these certificates, stocks, bonds, mortgages and lands belonged to the father, the defendant •.should account, and, less the amount paid out for- expenses and a reasonable compensation for services and subject to the rights of ■creditors, the plaintiff is entitled to her one-third share. •

It is insisted that such an action as this could only be brought .against the defendant as administrator, and that the decree of the surrogate upon his accounting as administrator is conclusive on the plaintiff. Both these objections were disposed of on thé former appeal and all we need add to the reasons given for not holding the .surrogate’s decree conclusive is that no such defense is properly pleaded. As the Surrogate’s Court is of limited jurisdiction, it was necessary to allege either the jurisdictional facts or that the decree was duly made and entered in a proceeding in which the surrogate had jurisdiction.

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Related

In re the Accounting of Patchogue Bank
274 A.D. 894 (Appellate Division of the Supreme Court of New York, 1948)
Biddle Purchasing Co. v. Synder
109 A.D. 679 (Appellate Division of the Supreme Court of New York, 1905)
Rose v. Durant
83 N.Y.S. 503 (Appellate Division of the Supreme Court of New York, 1903)

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Bluebook (online)
44 A.D. 381, 61 N.Y.S. 15, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rose-v-durant-nyappdiv-1899.