Stites v. Stites

60 A. 751, 69 N.J. Eq. 249, 3 Robb. 249, 1905 N.J. Ch. LEXIS 108
CourtNew Jersey Court of Chancery
DecidedApril 25, 1905
StatusPublished

This text of 60 A. 751 (Stites v. Stites) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stites v. Stites, 60 A. 751, 69 N.J. Eq. 249, 3 Robb. 249, 1905 N.J. Ch. LEXIS 108 (N.J. Ct. App. 1905).

Opinion

G-key, Y. C.

The proofs in this case show, without substantial dispute, that the complainant, Captain Edmund Stites, established many years ago an oyster-shipping business at Bivalve, in Cumberland county. He took two of his sons, Edmund Stites, Jr., and Howard Stites, into his business as equal partners with himself, without their paying him anything therefor. In July, 1904, the complainant was eighty-two years of age, in feeble health, nearly blind, could not read a page of writing, could scarcely sign his name, and as he appeared on the witness-stand, was incapable of comprehending the meaning of the usual and ordinary words of a conveyance, and still less their operative force and effect, unless aided by patient and careful explanation. His business capacity is perhaps appreciatively, if not respectfully, expressed by the defendant in his answer, when he described his father as so lacking in business experience and capacity that he never bestowed on the partnership business any more time and attention than would be required of an ordinary hand on the wharf. The defendant, Walden Stites, had for years intimately known his father’s incapacities, both mental and physical, and because of his father’s physical infirmities and lack of business knowledge,, had been employed and paid by his father to perform in his; stead his duty to the firm. He testified on the stand relative to the conduct of the business of a proposed new partnership that “Pop is too old.” It is also plainly td be seen that the defendant had secured the entire confidence of his father, who relied upon his good faith without hesitation or doubt.

. As the business was conducted prior to the making of the disputed bill of sale, on July 11th, 1904, the partners were the father, Captain Edmund Stites, and the two sons, Edmund Stites, Jr., and Howard Stites. The defendant, Walden Stites, [258]*258had no interest in the firm; he was merely an employe. His own testimony defines his anxiety to become the owner of a present interest in the firm when he narrates that on July 8th, 1904, he told his father that when he dropped off, “the rest of the heirs would come in and do me out. I would not have anything to show.” “Oh,” said the father, “that can’t happen; they couldn’t take it away from you after I am gone; I have willed it to you.” •

This was the situation of the parties to each other just before the bill of sale of July 11th, 1904, was procured by the defendant from his father. The incidents of that day are narrated by the defendant himself, in his testimony as follows: The defendant had the paper drawn by a justice of the peace, and had an appointment with Howard Stites that on the afternoon of July 11th, 1904, he should come to Howard’s house, which was next door to their father’s house. At this time the defendant testifies that he had not spoken to his father about the bill of 'sale. The defendant took it with him to Howard’s house, but did not show it to him, and waited there about half an hour, until Edmund Stites, Jr., arrived and went into the father’s house. The defendant then went over to the father’s house and said, “Let’s go and settle this up.” The three of them, the father, Edmund, Jr., and the defendant, then went over to Howard’s house together, into the dining-room. The defendant produced from his pocket a bill of sale, upon someone’s request, and started to read it. The father said, “Let Eddie read it.” Edmund Stites, Jr., then read it carefully as it was written. After that tire defendant asked the father if that was satisfactory; he said it was. It was then passed to Howard, who read it and said, “It suits me.” It was then executed, and Howard returned it to the defendant, who put it in his pocket. After he had put it in his pocket, he said, “Now, Eddie, understand that you pay Pop the one-third of the profits, the same as you always did; I can work, the same as I always did, for Pop is to get the profits, not me; is it all right?” Eddie says, “It is.”

This is the defendant’s own account of the obtaining of the bill of sale in dispute. An examination of -its contents will [259]*259show that it is an absolute transfer to the defendant, for the nominal sum of one dollar, of all the interest of Captain Edmund Stites in his oyster business and its equipment, which it is proven produced to him an annual value of from $800 to $1,000. Nothing in the instrument reserves to him the one-third profits of the business, the sanie as he had always had.

This bill of sale, it is undisputed, was drawn at the dictation of the defendant, by a person selected by him, apparently in the absence of the complainant, and without consultation with him. It was not shown to 'or read or explained to him, or seen by him, until the moment when he was induced by the defendant to execute it. He had not the protection of the advice of counsel upon it, nor even the aid of a disinterested, intelligent business man. The defendant was, of course, intensely interested that his father should presently give him his third of the oyster business. Edmund Stites, Jr., was also desirous of getting the old man out of the firm. Howard Stites, whose capacity the defendant, in his answer, rates as that of an ordinary laborer, is stated by the defendant in his answer to have joined with the other sons to taire from the old man his interest in the business.

In September, 1904, the father demanded from the defendant the return of the bill of sale. The defendant refused him. He then brought a lawyer, Mr. Burt, who told the defendant that he wanted to see the paper because his father wanted to be told exactly what kind of a paper he had executed. The defendant did not show it, but said it was all right, that it was just what it undertook to be, and he meant to keep it. Mr. Burt then asked for a copy, and the defendant said he would send him a copy the next day. This he did not do, but a few days later he called at Mr. Burt’s office with an incomplete paper, which was a suggestion of a copy, saying he was not going-to make a copy; it was too much work. Another demand to see ■the original, or for a copy, was made on the defendant, and a day or two after he sent what purported to be a copy.

The account given by the complainant and by Howard Stites and his wife, touching statements made to the father to induce [260]*260him to sign the paper, vary considerably from that given by the defendant and Edmund Stites, Jr.

Captain Stites, the complainant, as he appeared on the witness-stand, is obviously a very old man, nearly blind, illiterate and ignorant of business methods. He testifies that he was told that the paper did not take effect till after his death, and he would not have signed it otherwise. Howard Stites testifies that on the occasion when the paper was executed it was read to his father by Edmund Stites, Jr., at the-defendant’s request, and that his father, before he signed it, was told by the defendant that it did not take effect until after the father’s death. Mrs. Howard Stites testifies that in passing in and out of the room she heard the part of the conversation in which this assurance was given by the defendant.

The defendant’s counsel, in cross-examining Howard Stites, asked him if he did not have an appointment with his father to come to his house for the purpose of signing this paper. Howard Stites said he had not, that it was the defendant and not he who1 went in for his father and brought him into Howard’s house to execute the paper.

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Bluebook (online)
60 A. 751, 69 N.J. Eq. 249, 3 Robb. 249, 1905 N.J. Ch. LEXIS 108, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stites-v-stites-njch-1905.