Swayze v. Swayze

37 N.J. Eq. 180
CourtNew Jersey Court of Chancery
DecidedMay 15, 1883
StatusPublished

This text of 37 N.J. Eq. 180 (Swayze v. Swayze) 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
Swayze v. Swayze, 37 N.J. Eq. 180 (N.J. Ct. App. 1883).

Opinion

Bied, Y. C.

For many years prior to the year 1871, the complainant had resided in Trenton, and was largely engaged as a dealer in real [181]*181estate and in personal securities. In the year 1871, he was the owner of a large amount of real estate. In the summer of that year his health became impaired, and at length his mind was seriously affected. He was quite incapable of transacting business. His wife then requested a brother of the complainant, who was living an.d doing business at Newton, to tajie charge of the business of complainant. The complainant executed to his brother a power of attorney, creating him,” as he says in this bill, “ attorney in fact, to dispose of and manage all your [his] orator’s business in such way as he might think proper.” This paper bears date December 16th, 1871. In about two months thereafter the complainant was taken to an insane asylum in Philadelphia, where he remained for about three months. On December 15th, 1871, he and his wife executed a deed of conveyance, including all his real estate, to Jacob L. Swayze, and delivered it to him. Thus, by virtue of the power of attorney and the said deed, Jacob L. had the absolute possession and control of all the real and personal estate of his brother. Able and experienced counsel were advised with. This course was taken in the interest of complainant The immediate cause of this transfer was perhaps not so much the mental prostration of complainant as his great financial embarrassment. Creditors would not be delayed. The large means of complainant should be utilized. To do this, while complainant w-as in such distress, a third person was. called in. Jacob L., the brother, undertook this task. He became not only an attorney in fact, but trustee for complainant and his ■creditors. The creditors had a right to demand of him a faithful administration of his trust until they were paid, and complainant had a right to all the balance, less costs and reasonable commissions.

On February 15th, 1872, complainant was taken to the asylum, and remained there until June 10th of the same year, when he returned to his home and family in Trenton. In his bill he says, •“ in a short space of time he was restored to perfect health and strength, both of mind and body.” This allegation deserves attention in the consideration of this cause. It was made more [182]*182than two years before th.e bill was filed, which, being an injunction bill was sworn to by complainant. His then restored condition becomes quite significant in view of the next allegation, which is, that soon after he returned home, “ he spoke to his brother, Jacob L. Swayze, about his business, but his said brother-did not give him any satisfaction, but continued to manage your orator’s estate the same as he had done while your orator was of infirm mind and body, and to treat it as if it was his own estate.” At the very outset, then, Jacob, the trustee, assumed a hostile attitude. The complainant also .says that he frequently urged his brother to a settlement but that he was always refused. This makes it plain that as soon as the complainant was restored to-his right mind, notwithstanding Jacob was trustee and must account as such, the confidence which the law presumes to exist was-severed, and they stood towards each other as strangers. It cannot be that, after these occurrences, Alpheus any longer leaned upon or confided in his brother. And the evidence fully corroborates this. These observations ought not to be overlooked, in considering the case made by the supplemental bill.

The estate of complainant which had not been used in the payment of his debts, remained in the hands of Jacob. The disposition of this balance aggravated the differences between these brothers and precipitated this litigation.

In the year 1874, the complainant opened a store in Newark,, and attempted business on his own account. During that year these brothers had a serious dispute respecting the property of Alpheus and the management of -it by Jacob, and they separated in great anger. Jacob immediately brought suit against Alpheuson a note for $2,000, given, by Alpheus to Jacob in November,, 1871. Alpheus filed a plea to the declaration in that action, and then presented hi's bill in this court and obtained an injunction restraining the further prosecution of that action at law. That an opportunity might be had for a settlement, counsel for complainant extended the time for filing answer. Jacob promised the counsel of Alpheus that he would furnish to him a statement showing how the accounts stood. After weeks of delay, I [183]*183think such statement was furnished, but it has not been produced, nor is it known what it contained.

After the commencement of these legal proceedings I infer, from complainant’s testimony, that he and Jacob had a meeting in Newark, and at Dover, and at Hope, with a view of settling their differences. The one at Hope was at the house of an uncle, who says the effort continued through portions of two days. This was in June, 1877, more than a year after complainant had opened a store at that place, and had been carrying on business on a large scale. On the 19th of August of that year (1877) he went to Newton to visit his brother Jacob. He met there his wife and children, his sister, Mrs. Apgar, and his father. He remained over until the 22d. While at Jacob’s, at this time, a settlement was effected. The complainant says he does not think that he and Jacob were engaged in the effort to settle-'over two hours. The result of their interview was reduced to writing. All of that instrument, except the statement of the account, is a follows, viz.: ,

“ Agreement this 21st day of August, 1877, between Alpheus Swayze, of Hope, in the county of Warren, and state of New Jersey, and Jacob L. Swayze, of Newton, in the county of Sussex, and state of New Jersey, witnessed, that the said parties have this day made a settlement of all matters and things arising out of the undertaking and trust wherein the said Jacob Swayze took charge of the business of the said Alpheus Swayze, and- sold bis property and paid bis debts, by virtue of a certain agreement between the parties hereto, and a certain power of attorney, executed by the said Alpheus Swayze to the said Jacob L. Swayze, both bearing date December 16th, 1871, and that they find due to the said Jacob L. Swayze from the said Alpheus Swayze, the sum of §3,207.22, in the foregoing and attached statement of accounts; and the said Alpheus Swayze, for and in consideration of the premises mentioned aforesaid and connected with the trust, doth hereby covenant, promise and agree to pay to the said Jacob L. Swayze the said sum of §3,207.22, with interest from the 1st day of September, 1877, and to secure the payment of the said sum of money, doth hereby ratify and confirm the assignment of two certain policies of life insurance in the Mutual Life Insurance Company of New York, the one on the life of himself and the other on the life of his father, Israel Swayze.”

It was executed in duplicate. One copy was taken by complainant. The father of Jacob and Alpheus, their wives and [184]*184sister, Mrs. Apgar, the subscribing witness, were all present at the execution. The next morning, Alpheus went to the bank in Newton, of which his brother was president, expressed satisfaction with the settlement to the cashier, procured a loan of money on a note endorsed by Jacob and returned to his home and place of business at Hope. Alpheus says he placed this paper in his safe and did not see it until after Jacob’s death.

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Cite This Page — Counsel Stack

Bluebook (online)
37 N.J. Eq. 180, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swayze-v-swayze-njch-1883.