Turner v. Cole

• Decision Date: 06 July 1934
• Citation: 173 A. 613
• Parties: TURNER et al. v. COLE et al.
• Court: New Jersey Court of Chancery

173 A. 613

TURNER et al.

v. COLE et al.

Court of Chancery of New Jersey.

July 6, 1934.

Syllabus by the Court.

1. Proceeds from the sale of real estate of a lunatic and accumulations thereof descend to those heirs of the lunatic who would have received the real estate had it not been converted.

2. Real estate of deceased lunatic, of which he became seized by devise from his mother, descends to those who are of the blood of the mother.

3. The normal state of mind of every person is presumed sane until the contrary is shown, and the burden of proving insanity is on those who allege it.

4. The test of mental capacity to make a deed is whether the grantor possessed sufficient mind to understand, in a reasonable manner, the nature and effect of the act he was engaged in.

5. The findings of a lunacy commission, while not binding on the court, are entitled to great weight.

6. The burden of proving a resulting trust rests on those asserting it, and the evidence upon which a court may go to establish such a trust must not only satisfy the burden of proof, but it must be clear and convincing.

7. In order for a declaration to be admissible as a declaration against interest, it must clearly appear that the statement of the declarant was actually against her interest at the time when it was made.

8. A statement in disparagement of title is admissible if made when the declarant was seized of the particular interest to which the statement relates, but not if made before she was possessed of or after she had parted with such interest.

9. A consideration of $1 in a deed, in itself, is not sufficient to establish fraud, but fraud will be presumed from inadequacy of consideration, standing alone, if the inadequacy be so gross as to satisfy the court that it could have been brought about only by deceit or imposition, provided the circumstances and relations of the parties either lend themselves to such presumption, or are without probative force sufficient to neutralize it.

10. Decedent became seized of lands by devise from his mother and subsequently mortgaged said lands to a half-brother; there was a default in the payment of taxes on the mortgaged premises, but no advantage taken thereof by the mortgagee; thereafter, during the lifetime of the mortgagor, the mortgage was fully paid and satisfied of record—held, that the rights of those who were of the blood of the mother were not defeated by the execution of the mortgage or by reason of the alleged default in payment of taxes.

Suit by John Turner and others against Clarence L. Cole, Sr., and others.

Decree in accordance with opinion.

William M. Clevenger and Thomas R. Clevenger, both of Atlantic City. for complainant Horace D. Turner, and others.

John C. Reed, of Atlantic City, for Mary Turner Lacey, Samuel Smith, and Hamilton Turner.

Thompson & Hanstein, of Atlantic City, for Vincent Jerome Johnson.

Samuel Morris and Edison Hedges, both of Atlantic City, for May Wilson.

W. Lindley Jeffers, of Atlantic City, for administrators.

SOOY, Vice Chancellor.

Joseph R. Johnson was the son of Josiah B. Johnson and Mary Turner Johnson, who was Josiah's second wife. On the death of Josiah, he left him surviving his widow, his son Joseph, and a son Benjamin F. Johnson by the former wife.

Josiah B. Johnson died testate, and by his will devised all of his property, real, person al, or mixed, with a minor exception, to his wife, Mary Turner Johnson, and son, Joseph R. Johnson, the wife and Joseph "to hold and use said property in common until Joseph should attain his majority and then to be equally divided between them, the wife to have and enjoy her portion during her natural life and widowhood, and in case of her death or remarriage, her portion to be divided equilly between the sons and half brothers, Benjamin F. and Joseph R. Johnson."

The property so devised by Josiah consisted of two tracts of land on the east side of Ohio avenue and a tract having a frontage on Atlantic avenue, beginning at the southwest corner of Ohio and Atlantic avenues, 125 feet on Atlantic avenue by 100 feet in depth.

After the death of Josiah, and on January 23, 1894, Joseph R. Johnson, by quitclaim deed, conveyed to his mother, for life, one of the lots on the east side of Ohio avenue, 50 by 150 feet, and the westerly 53 feet of the Atlantic avenue property, and on the same day the mother, by quitclaim deed, conveyed to Joseph her interest in the other lot on the easterly side of Ohio avenue and 75 by 100 feet at the southwest corner of Ohio and Atlantic avenues.

The above conveyances were executed at a time when Joseph was approximately 21 years and 3 months of age; Joseph having been born on October 1, 1872.

The conveyances between the mother and son were evidently made with the intention of carrying out the terms of the will of the father, Josiah B. Johnson.

On February 24, 1894, Joseph, by deed of special warranty, conveyed to his mother, Mary Turner Johnson, all of his light, title, and interest in all of the property which he took by virtue of the will of his father and which Mary Turner Johnson had quitclaimed by deed of January 23, 1894, and also including the farm in Galloway township, of which property Joseph became seized by deed from the executors of his father's estate and a quitclaim deed from Benjamin F. Johnson.

On July 25, 1900, Joseph conveyed to his mother other lands of which he was then seized and of which he had become possessed other than through the will of his father.

In addition to the real estate of which the mother of Joseph became seized by virtue of the conveyances above recited, she was the owner of other properties which she had purchased and of which she had become such owner through others than her son.

The mother died on the 25th day of November, 1900, testate, and by her last will and testament devised all of her real estate holdings to her son, Joseph, absolutely.

After the death of the mother, and on the 2d day of January, 1901, Joseph purchasel from his half-brother, Benjamin F. John, the one-quarter interest of Benjamin in the Ohio avenue property and the Ohio and Atlantic avenues property, which one quarter interest Benjamin had inherited from his father, as above recited.

On April 5, 1901, Joseph was adjudicated a lunatic, and at the time of his adjudication and prior thereto had been committed to the New Jersey State Insane Asylum.

The Atlantic Safe Deposit & Trust Company was appointed guardian of the person and estate of Joseph and continued as such up until the time of its merger with the Guarantee Trust Company, which company continued as guardian.

During the continuation of the guardianship, most, if not all, of the real estate of which Joseph was seized and possessed was sold, and it is admitted that so much of the property or securities held by the guardian of Joseph, which represent the proceeds from the sale of the real estate of the lunatic, and accumulations thereof since his death, descends to those heirs of the lunatic who would have received the real estate had it not been converted. See 2 Comp. St. 1910, p. 2788, § 9. Joseph never regained his sanity, and died on February 23, 1933, testate. A caveat was filed against the probate of Joseph's will, and such proceedings were had thereon that probate was refused in the orphans' court of Atlantic county, which refusal was affirmed in the Prerogative Court. In re Johnson's Will, 115 N. J. Eq. 219, 171 A. 307.

Joseph left him surviving, as next of kin, on his father's side of the family, a son and daughter of Benjamin F. Johnson, and, on his mother's side of the family, thirteen relatives of equal degree, first cousins.

These first cousins of the mother's blood, either as complainants or defendants, allege that, as such, under the laws of descent, they inherit all of the lands of which Joseph was seized at the time of his death, of which he became seized by virtue of the will of his mother, and concede that real estate other than that devised by his mother descends to the niece and nephew, Vincent Jerome Johnson and May Wilson, defendants herein.

The defendants Vincent Jerome Johnson and May Wilson admit that under 2 Comp. St. 1910, p. 1919, § 5, and 2 C. S., Cum. Supp. 1924, p. 939, § 6 (section 57—6), under ordinary circumstances, the real estate which Joseph obtained by the will of his mother would descend to his heirs at law who are of the blood of his mother, and that so much of the assets in the possession of the guardian of Joseph as represent the investment of moneys received from the sale of such real estate would likewise descend to his heirs who are of the blood of his mother, but they allege that the conveyance by Joseph to his mother of February 24, 1894, as well as that of July 1900, did not vest the mother with the property therein described because, they say, "Joseph Johnson was mentally incompetent and that there was a relationship of trust and confidence existing as between Joseph and his mother, so that he was entirely under her control and influence, as a result of which she caused him to make the conveyances referred to, for her own benefit, without any consideration and without independent advice to him, as a result of which he was entirely deprived of his property and that, therefore, she became the trustee of said property for the benefit of the said Joseph B. Johnson."

This defense is raised by the answer and affirmative defenses set forth therein, and is averred in the counterclaim under which defendants pray that the deed of February 24,₍ 1894, and July 2, 1900, be construed to make the mother the trustee for Joseph, "and that it should be adjudged and decreed that Mary Turner Johnson had no interest in the premises so involved in this litigation."

By an amendment to the answer, it is alleged that Joseph R. Johnson, after becoming vested, according to the record, with the entire title to premises situate on Ohio avenue and Ohio and Atlantic...