White v. White

• Decision Date: 07 May 1963
• Citation: 190 N.E.2d 102,346 Mass. 76
• Parties: Beatrice WHITE v. Joseph Eric WHITE et al.
• Court: United States State Supreme Judicial Court of Massachusetts Supreme Court

Page 102

190 N.E.2d 102

346 Mass. 76

Beatrice WHITE v. Joseph Eric WHITE et al.

Supreme Judicial Court of Massachusetts, Essex.

Argued March 7, 1963.

Decided May 7, 1963.

C. Henry Glovsky, Beverly, for defendant Joseph Eric White.

Bertram W. Allen, Manchester, for plaintiff.

Before WILKINS, C. J., and SPALDING, WHITTEMORE, CUTTER and KIRK, JJ.

KIRK, Justice.

The defendant, Joseph E. White, only son of the widow plaintiff, appeals from a decree ordering the retransfer to the mother of certain certificates of stock which the mother as sole owner had transferred to her son and herself as 'joint tenants with right of survivorship.' Hazel White, wife of Joseph, was also named as a party defendant. The case was referred to a master. The defendants' exceptions to his report were overruled, their motion to recommit was denied, and the report was confirmed by interlocutory decrees, from which the defendants have appealed. Hazel White has not attempted to prosecute these appeals, nor did she join in Joseph's appeal from the trial decree.

We summarize the facts found by the master. The mother, although well educated, was without any business experience. She did not know how to write a check. During her husband's lifetime the family checking account was in his name. The modest savings accounts and coperative bank shares were in the names of her husband and herself jointly. The certificates of stock here in issue were in their joint names with right of survivorship. She had relied completely upon her husband in all financial matters. Upon the death of her husband on December 25, 1959, the funeral director suggested joint ownership of the stock with her son 'to avoid probate expense.' There was no attorney for the husband's estate. On January 8, 1960, in response to the advice of her son, the stock certificates were indorsed by her in blank and turned over to him for transfer to their joint names. When the son presented the indorsed certificates to the president of the local bank for forwarding to the transfer agents, the president telephoned the mother to verify her signature and to inquire if she wished joint ownership with her son. The mother replied in the affirmative. A joint checking account was opened for the deposit of dividend checks. All dividend checks have been deposited in this account. The son has made no withdrawals. At the time of the transfer and for several months thereafter the son did not understand the legal effect of the joint ownership of stock and intended that his mother during her lifetime should have the right to dispose of the stock any time she wished. He did not then know that his mother could not use the stock without his signature. The mother at that time and until November, 1960, believed that she would enjoy as of right all the benefits of the shares including the right to dispose of them at any time as she should choose including disposition by will. Although the mother was familiar with the words 'joint tenant with right of survivorship' neither she nor her son was aware of their legal significance. The mother wished to set up a trust consisting of some of the shares of stock for her greatgrandchildren. An unsatisfactory experience with a lawyer introduced to her by her son finally led the mother to consult a lawyer of her own choosing. In November, 1960, she learned from him that she could not create the trust and could not dispose of the stock by will because the stock would pass upon her death to her son. Numerous requests thereafter for the return of the stock were met with refusals by her son who by that time had become aware that his acquiescence was necessary for any transfer. The mother had no friends in Beverly where she lived. She did not want to go anywhere. Her son was her sole advisor; she asked him to 'take care of everything.' She relied upon his advice. No consideration passed from the son to his mother for the transfer of her stock to their joint names. No fraud or duress was practised by the son in obtaining the transfer.

The master concluded that the son bore a fiduciary relationship to his mother and had committed a breach of duty as a fiduciary; that there was a 'mutual mistake of fact as to what they were intending to do'; and that the son held the stock in trust for the benefit of his mother.

1. The master properly admitted in evidence testimony by the mother that in the spring of 1960 she had informed the attorney selected by her son, in the latter's presence, that she wished to establish by will a trust made up of some of the shares of stock for the benefit of her great-grandchildren. The statement, and the apparent silence of her son in response thereto, tended to show the original and the continued state of mind of both parties relative to the transfer of the stock.

2. There is no merit to the appeals from the interlocutory decrees. The findings of the master were clear and complete, and were not inconsistent, contradictory or plainly wrong. The summaries of the evidence (there having been full compliance with the second...