White v. Starr

47 N.J. Eq. 244
CourtNew Jersey Court of Chancery
DecidedMay 15, 1890
StatusPublished
Cited by3 cases

This text of 47 N.J. Eq. 244 (White v. Starr) 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
White v. Starr, 47 N.J. Eq. 244 (N.J. Ct. App. 1890).

Opinion

The Ordinary.

The orphans court of Camden county, by its decree made on the 1st of March, 1889, refused to admit to probate a paper writing bearing date on the 24th of May, 1884, purporting to be the last will of Jesse W. Starr, deceased.

It is not disputed that the decedent executed the contested writing with all the formalities necessary to the proper making of a will. The insistment is, that at the time of such execution he did not possess testamentary capacity, and, that failing, that his mind was so weakened by age, physical infirmity and trouble, that he became the victim of a fraud perpetrated, or the subject of a dominating and undue influence exerted, by his son-in-law, the appellant, which produced the disputed will.

In their several opinions, the judges of the orphans court con•cluded that the decedent lacked testamentary capacity, and that ■the execution of the will was brought about by fraudulent contrivances.

Jesse W. Starr died on the 26th day of February, a. d. 1886, when about seventy-seven years of age. In early life he became a mechanic of considerable skill. He was positive in character, self-reliant, intelligent and industrious. By close application to his business he succeeded in amassing a considerable fortune and in establishing at Camden one of the largest and most prosperous iron works in the country, costing, probably, $1,000,000. For nearly twenty years, until the close of 1868, his younger brother, .John F. Starr, was his partner. Then he determined to associate [246]*246his son Benjamin, one of the respondents, and his son-in-law, Benjamin F. Archer, the father of the respondent George FI Archer, with him in business; consequently the partnership with-his brother was dissolved, and he bought his brother’s interest in the iron works. A new firm was then formed, consisting of' ■himself and the son and son-in-law last named. In this partnership he supplied the entire capital.

In 1874 his son Jesse W. Starr, Jr., the remaining respondent, also without capital, was taken into the firm.

At the close of 1874 Benjamin Starr and Archer were dropped' from the firm, and the son Jesse continued in the business with his father to the 1st of January, A. D. *1877. Then Benjamin Starr was again made a partner and retained in the firm until the following August and then again dropped. From August 1st, A. d. 1877, to August 10th, 1878, the decedent and his son Jesse-carried on the works. At the last of those dates the business was bankrupt, and application was made to the United States district court to have it so adjudged. The liabilities ran through the last two or three firms, so that Mr. Starr and both his sons were-involved in the bankruptcy proceedings. The liabilities of the firm of which Benjamin F. Archer was a member — probably more than half as much as the amount of the liabilities at the-bankruptcy — had been principally paid by subsequent firms and the decedent individually, so that that firm was not included in the bankruptcy. Early in 1879 a composition with the creditors was effected, by which it was agreed that upon the payment of seventy per cent, of their several debts, which amounted in the-aggregate to more than $600,000, the debts should be discharged. The seventy per cent, was to be paid in four installments — one of ten per cent., payable in one year; one of fifteen per cent., payable in two years; one of twenty per cent., payable in three years,, and one of twenty-five per cent., payable in four years. By agreement, the decedent was to give his individual notes, and, to secure their payment, his mortgage upon substantially his entire-estate, and also to submit the control of the iron works to a manager to be.appointed and supervised by a committee of the creditors. The mortgage was to be given to the Camden Safe Deposit [247]*247and Trust Company, as trustee, and, as portions of the estate could be sold with the consent of the committee of creditors, the trust company was to release the portion sold from the mortgage, and the proceeds of sale were to be devoted to the payment of the installment notes. The notes and mortgages were given in pursuance of this agreement, and the iron works passed into the control of the creditors. During the times that the sons, Benjamin and Jesse, and the son-in-law, Archer, were connected with the business, they drew large sums of money from it for their private use. Archer drew upwards of $136,000; Benjamin Starr drew more than $184,000, and Jesse, Jr., drew over $80,000, and at the same time the decedent gave his daughter Elizabeth, wife of the appellant, about $8,000. When the works were again put in operation, John E. Starr became manager for the creditors, and so successfully conducted the business that the first payment under the composition was duly made. Then, in March, 1881, John F. Starr retired from the management, and, at the decedent’s solicitation, the creditors put the respondent Jesse W. Starr, Jr., in his place. Under this new management, within eight months, some $75,000 were lost, and it became necessary to dismiss the manager. After that the creditors’ committee, through their agent, operated the works until January, A. D. 1883, when work was entirely suspended.

Upon the dismissal of the respondent Jesse W. Starr, Jr., from the management, in November, 1881, it became apparent, because of the new loss, that the iron works could not be saved, and that the last installments to be paid to the creditors could not be met, and that the property must be entirely lost unless some new arrangement could be made with the creditors. If the last installment was not paid or some settlement made, the creditors would be entitled to the full payment of their claims instead of the payment of the remainder of- seventy per cent, of them, and, the composition agreement being broken, the personal liability of Benjamin and Jesse, Jr., would revive.

At this juncture of affairs, the decedent, by writing signed by him, authorized his son-in-law, the appellant, to negotiate a sale of the iron works for an amount sufficient to pay a first mort[248]*248gage thereon of $100,000, and the unpaid composition notes and manager’s expenses, upon terms to be approved by the creditors’ committee. And, at the same time, Jesse W. Starr, Jr., wrote to the appellant offering his assistance in such negotiations, and promising that, if a sale should be effected, he would make no claim for some $26,000 that he had advanced to assist in the payment of the second series of composition notes. In the following March (1882) the decedent executed a formal power of attorney, by which he clothed the appellant with authority to deal for him with the creditors, and to agree for a sale of his estate or any part of it, and to take the proceeds of sale and apply them to the payment of the decedent’s debts. Under the authority thus given, the appellant sold some of the real estate for sufficient money to pay the whole, or a large portion, of the third series of composition notes.

During the year 1882 the decedent’s homestead was sold under foreclosure of a mortgage, and it was thought that he would be turned out of it. He had resided there for many years, and was so much attached to the place that disastrous consequences of an eviction from it, to his health, were feared. Some informality in the advertisement of sale enabled the appellant to have the sale set aside. Before a resale could be managed he procured one Edward H.

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Cite This Page — Counsel Stack

Bluebook (online)
47 N.J. Eq. 244, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-v-starr-njch-1890.