Rosenberg v. Callam

55 N.E.2d 420, 37 Ohio Law. Abs. 9, 1942 Ohio App. LEXIS 858
CourtOhio Court of Appeals
DecidedMay 25, 1942
DocketNo. 6111
StatusPublished
Cited by2 cases

This text of 55 N.E.2d 420 (Rosenberg v. Callam) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rosenberg v. Callam, 55 N.E.2d 420, 37 Ohio Law. Abs. 9, 1942 Ohio App. LEXIS 858 (Ohio Ct. App. 1942).

Opinion

OPINION

By ROSS, J.

This is an appeal on questions of law and fact from a decree of the common pleas court of Hamilton county, wherein that court ordered specific performance of a contract entered into by the plaintiff and defendants requiring that such defendants transfer to the plaintiff their one-half interest in an estate; such one-half interest amounting to approximately thirteen thousand dollars; the consideration for such agreement being the sum of Five Hundred Dollars, paid by the plaintiff some two years previous to the death of the intestate.

In June, 1933, the defendants, two sisters, were in need of money. An advertisement of the plaintiff appearing in a New York newspaper came to their attention. Frances M. Callam, one of the sisters, interviewed the plaintiff and applied for a loan of Two Hundred Dollars. The plaintiff stated that such a loan could be arranged if the sisters would assign to the plaintiff an interest in the estate of their cousin, Martha C. Smith, as collateral for the repayment of the loan. Frances M. Callam conferred with her sister as to this proposition of the plaintiff and the whole matter was dropped for about one year. In- the following June, 1934, the matter was again taken up by one of the sisters with the plaintiff, who stated after a discussion with his partner he had decided to withdraw the first offer and proposed to loan the defendants Five Hundred Dollars upon a one-half interest of the defendants in the estate of their cousin being pledged to secure the repayment of the loan. Again, the matter was deferred for a conference by thei sisters.

Leila B. Callam testifies:

“I went home and saw my sister, and we were going to be put out of the place we were living in, and there was nothing to do but go back the next day and borrow the money.”

Upon the following day, Leila B. Callam said to the plaintiff:

“If the money we inherit from Miss Smith is much more than this five hundred dollars, you will do the right thing, Mr. Rosenberg?” and the plaintiff stated: “Yes,Miss Callam, I will do the right thing.”

About a year after the transaction was closed, a further conversation between the plaintiff and Leila B. Callam occurred, in which [11]*11'Leila said: “If there is any way in which I could manage to get a thousand dollars together and brought it to you, would you give us back our papers?” To which the plaintiff replied: “Have you the cash, Miss Callam?” On being informed she did not have the money at that time the plaintiff added: “When you have a thousand dollars, come to me and we will talk .business.”

Frances M. Callam testified she liad been seriously ill for some time previous to the date on which final arrangements were made and that at the time of the interview “I was so sick I couldn’t say any thing.” And, again, in response to a question of her attorney, asking about her illness at that time, Frances stated: “In the first place, I was hungry and I could hardly stand. We had not eaten for a week and we were out at this place and it was the most — I don’t know if anybody has ever been hungry or not, but I know I was.” She further stated she had been ill for two or three months.

The plaintiff had been given the sources from which he could obtain full information as to the character, location, and value of the possessions of Martha C. Smith. He made a full and careful investigation of these holdings. It is apparent that such investigation caused the plaintiff to conclude that the interest of the sisters would be approximately the .amount which now develops is (their interest in the estate.

The substantial character of the holdings and possessions of Martha C. Smith made this information easily accessible and comparatively accurate. Martha C. Smith was at the time the transaction was closed with the sisters incurably insane and confined to an institution under guardianship. She was then intestate. It does not appear that the defendants were so thoroughly advised. At one time during the negotiations one of the sisters stated, she would like to talk the matter over further with her sister, to which the plaintiff replied: “It isn’t a question of talking £0 anybody. It is, take it or leave it.”

When the papers consummating the transaction were presented to the defendants, they were in the form of an absolute transfer and assignment of a one-half interest of the sisters in the estate of Martha C. Smith. The contract covers two pages, legal cap size, closely typewritten, and accompanied by an affidavit, which, after stating the nature of the defendants’ interest, that defendants have not otherwise disposed of such interest, and that there are no outstanding judgments against them, concludes with the following paragraph:

“That we make this affidavit for the purpose of inducing the said Joseph L. Rosenberg to purchase the said interest, knowing full well that he relies solely and exclusively upon the statements herein contained in inducing him to part with valuable consideration for the purchase of said interest.”

An examination of the contract conveying the interests of the defendants to Rosenberg discloses that it leaves nothing for the defendants now to do. It is a complete sale of the one-half interest of the defendants in the estate of Martha C. Smith. It embodies a power of attorney, authorizing Rosenberg to do everything necessary to consummate the transfer of such interests to himself. There is noth'ing in the contract as drawn requiring specific performance.

It is only because in some cases contracts which amount to com[12]*12pleted sales, unenforceable in law, may be considered mere executory promises by a chancellor that the relief of specific performance must be considered.

The basic question involved is whether or not this instrument framed in the circumstances noted constitutes a basis for equitable relief.

It has been universally held that assignments of future interests in estate not yet determined are contrary to public policy and unenforceable at law. The law applicable to this situation is found in Hite v Hite, et al., Exrs., 120 Oh St, 253. The syllabus in that case is:

“1. An assignment by an heir apparent or presumptive of his expectancy in the estate of an ancestor is invalid and unenforceable in an action at law, because such a contract lacks one of the essential elements of a valid contract, to-wit, a lawful, subject-matter.
“2. Such a contract is contrary to the policy of our laws and not favored by our courts, because of the danger that one party is defenseless and exposed to the demands of the other under the pressure of necessity.
“3. After the death of the ancestor and the inheritance has become absolute and definable a court of equity will entertain jurisdiction of a suit to enforce performance of the contract and will decree performance if it is shown that no fraud or imposition has been practiced and that thé contract was not made under pressure of necessity and that it is supported by an adequate consideration.”

We are cited to cases in which equity has intervened to do justice, where the law fails of a remedy.' That the facts recited here even remotely suggest the existence of such a predicate for the exercise of the extraordinary power of the chancellor is beyond the realm of reason or justice.

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Cite This Page — Counsel Stack

Bluebook (online)
55 N.E.2d 420, 37 Ohio Law. Abs. 9, 1942 Ohio App. LEXIS 858, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rosenberg-v-callam-ohioctapp-1942.