Geiger v. Merle

• Decision Date: 17 June 1935
• Docket Number: No. 22670.,22670.
• Citation: 196 N.E. 497,360 Ill. 497
• Parties: GEIGER v. MERLE et al.
• Court: Illinois Supreme Court

360 Ill. 497

196 N.E. 497

GEIGER

v.MERLE et al.

No. 22670.

Supreme Court of Illinois.

April 17, 1935.

As Modified on Denial of Rehearing June 17, 1935.

Suit by Sarah J. Merle against Henry J. Merle and others. On complainant's death, Madelene Geiger, as administratrix, was substituted as complainant. From an adverse decree, defendants appeal.

Reversed and remanded, with directions.

FARTHING and SHAW, JJ., dissenting.Appeal from Circuit Court, Cook County; Hugo M. Friend, judge.

Cutting, Moore & Sidley and Brown, Fox & Blumberg, all of Chicago (Charles S. Cutting and Charles Le Roy Brown, both of Chicago, of counsel), for appellants.

Helmer, Moulton, Whitman & Holton, of Chicago (Roland D. Whitman and Herbert R. Tews, both of Chicago, of counsel), for appellee.

PER CURIAM.

On March 7, 1922, Sarah J. Merle filed in the circuit court of Cook county a bill of complaint against Henry J. Merle, William F. Merle, Jr., Bertha Boyle, Maud Henn, Annie Roach, Mary Loss, Rosina Merle, Cecelia Merle, and the Standard Trust & Savings Bank, a corporation, and Charles S. Castle, as trustees. More than four years later the bill was amended. It alleged generally that Sarah Jane Merle, formerly Sarah J. McNeff, but divorced from her first husband, was on February 14, 1917 lawfully married to William F. Merle and lived with him thereafter as his wife until his death on January 28, 1921. Merle died testate, leaving him surviving Sarah J. Merle, his widow, and the eight above named children by a former marriage, all of whom at the time of their father's second marriage were of age. Sarah J. Merle had three children by her first marriage. One was of age and two were minors at the time of her second marriage.

The amended bill alleged that on February 14, 1917, William F. Merle and Sarah J. McNeff signed a pretended antenuptial agreement, and on the same date joined with the eight children of Merle, and the trustees therein named, in a pretended trust agreement. The antenuptial agreement recited that both of the parties thereto were familiar with their respective properties and wealth, and provided that each should hold and control his or her individual property separate and apart from that of the other without the interference of either. Upon the death of the husband his widow would receive $50,000, which should be in full payment of all sums payable to her under the provisions of the trust agreement, which was therein and thereby confirmed, and be in full payment, release, satisfaction, and discharge of all her rights of dower, homestead, widow's award, and all other rights, interests, claims, or allowances to or against the estate of her intended husband. The trust agreement was executed by the parties to the antenuptial agreement, the children of Merle and the trustees. It was an agreement, in conjunction with the antenuptial agreement, to confirm the property rights of the parties to the antenuptial agreement and to establish the rights of the children of Merle in his estate after his decease. Merle agreed to convey to the first named of the trustees all of certain property described in the instrument. Sarah J. McNeff was to receive $50,000, to be paid her under the terms of the antenuptial agreement, to be in lieu of dower and all other interests in the estate of Merle. The eight children of Merle were to receive the remainder of the estate within the time prescribed by the trust agreement. Contemporaneously with that agreement Merle executed a deed conveying to the first named trustee the real estate described in the trust agreement. He also executed an instrument called ‘William F. Merle's property declaration,’ consisting of four pages, itemizing his property, each of which pages was signed on the margin by Sarah J. McNeff. Sarah J. McNeff made a similar property declaration. All of these instruments, together with the will and a codicil of Merle, were attached to and made parts of the amended bill. Various enterprises in which it was alleged Merle was interested were mentioned in the amended bill, and it was asserted therein that his wealth was in excess of $1,500,000 at the time of the execution of the antenuptial and trust agreements and the marriage of the parties. All of Merle's real and personal estate was in this state, except certain described land in Arkansas. Sarah J. McNeff owned real estate worth about $4,000 and personal property and cash of the value of about $4,100. Merle's will, dated February 16, 1917, and a codicil dated May 22, 1918, were admitted to record in the probate court of Cook county. The Standard Trust & Savings Bank qualified as executor. The widow renounced all claim to the benefit of any jointure and the provisions of the will and codicil made in her favor, and elected to take her dower in the estate as provided by law. It was alleged that the testator had standing in his name at the time of his death no real estate except two cemetery lots of the value of about $1,000, personal property inventoried at $9,547, and cash on deposit $5,185.76, certain accounts receivable, promissory notes, secured and unsecured, a judgment, certificates of club membership, miscellaneous assets of the apparent face value of $45, and warehouse receipts for twenty-five barrels of whisky. The total value of the personal property and assets considered good does not exceed $35,754.16, and there are claims filed in the probate court in excess of $113,000 over $90,000 of which have already been allowed.

The amended bill charged that the eight children of William F. Merle, some time between July, 1914, and October, 1916, unlawfully conspired and agreed to prevent the marriage of Sarah J. McNeff and William F. Merle, or to persuade their father to convey to them practically all of his real estate and personal property for the purpose of defrauding Sarah J. Merle of dower, homestead, and widow's award, and that Merle joined in the conspiracy and agreed to make such distribution of his property, which it was understood among the conspirators would not be enforced against Merle; that some of the property purported to have been disposed of by him Merle retained in his possession. It was his purpose, as the result of the conspiracy with his children, to leave no estate at his death. The amended bill further alleged that Sarah J. Merle (then McNeff) signed the instruments mentioned on the date of her marriage to Merle without knowing their contents. It was alleged that the property declaration of Merle was not a full, fair, or truthful disclosure of the nature, character, or extent of his property or income at the time of the signing of the antenuptial agreement.

In the prayer of the amended bill Sarah J. Merle offered to do equity, and prayed that the transfers, assignments, and conveyances pretended to be evidenced by the trust agreement and the deed to the trustee, so far as the widow was concerned as affecting her dower and statutory thirds, be declared fraudulent and null and void, and that statutory thirds be assigned and set off to her as provided by statute, and general equity relief was prayed.

After a general and special demurrer was overruled, an answer was filed to the amended bill by all of the defendants denying most of its allegations but admitting the execution of the various instruments mentioned in and made parts of the amended bill. Sarah J. Merle died on November 30, 1931, and Madelene Geiger, her daughter, who was the administratrix of her estate, filed a bill of revivor and a supplemental bill, which the defendants in the original suit answered, denying her right to have the cause stand revived or her right to have equitable relief. Becauseof the consolidation of the Standard Trust & Savings Bank, trustee in the trust agreement mentioned, with the Central Republic Trust Company, the latter bank was made a party to the suit. The entire matter was referred to a master in chancery, who took depositions, heard evidence, and made a report finding that the equities were with the original complainant and that the suit was properly continued by her administratrix. A decree was entered by the chancellor in accordance with the master's findings, holding that the antenuptial and trust agreements and the conveyance accompanying the trust agreement were null and void; that gifts or pretended gifts of Merle to his children were fraudulent and void; that the value of the estate of Merle at the time of his death greatly exceeded the sum of $693,323.73 (a valuation determined by the United States government for federal tax purposes in 1917); that Sarah J. Merle was in the first instance and at the time of her husband's death, and the present complainant-appellee, Madelene Geiger, as administratrix of her mother's estate, is, entitled to one-third of the personal property described in the trust agreement, to one-third of certain described securities pretendedly given to Henry J. Merle, to one-third of certain specified shares of the capital stock in certain corporations previously onwed by Merle and transferred to William F. Merle, Jr., to one-third of the income from or income value of the real estate described in the trust agreement from March 8, 1922, the date of filing the original bill, to November 30, 1931, the date of the death of Sarah J. Merle, and to damages for wrongfully withholding the income from or income value of such real estate; and that the cause be referred to a master in chancery to take an accounting in accordance with the findings. From that decree appellants have prosecuted this appeal.

William F. Merle was a Chicago business man, whose principal attention was given to the business of the A. H. Andrews Company, manufacturers of and dealers in furnitureand fixtures. He was interested in a number of enterprises and had accumulated a large amount of real and personal property. Sarah J. McNeff was a trained nurse and supported her three children by that work. She was living apart from...