Public-domain · open source
OpenJurist

49 Md. 470

Smith v. Davis

Court of Appeals of Maryland

Decided July 23, 1878

Court of Appeals of Maryland · decided 1878-07-23

<p>Deeds—Fraud and Fraudulent Representations—Statement of Consideration in Deeds—Estoppel—Where Deed is impeached for Fraud in the Consideration, parol evidence admissible to prove real consideration—Guardian and Ward—Settlement of Accounts—Onus Probandi—Guardian generally bound to prove settlement just and fair— Under what circumstances the burden of proof in such eases is shifted to the Ward.</p> <p>Peter L. Davis was appointed guardian to Geo. W. Smith, a minor, and by the second guardian’s account it appeared that the said Peter was indebted to the said George about ¡jjjlíOO. Afterwards the ward requested his guardian to purchase for him a certain farm, and to apply whatever part of the said $1700 might be necessary to the payment thereof. The guardian made the desired purchase for his ward, and the deed conveying the said farm to the guardian stated the consideration at $1200. Afterwards the guardian conveyed the said farm to his ward, the deed conveying the same stating the consideration at $1700. After the ward had been in possession of the farm for several years, and had become of age, and had a settlement with the guardian, having executed to him a release, he filed a bill of complaint alleging that in the settlement with his guardian he had been deceived and defrauded by his guardian, and prayed that the release then executed might be cancelled and set aside, and that the guardian might be required to pay over to him the balance due, which he alleged to be $500, the same being the difference between the amount paid by his guardian for the farm purchased as aforesaid, and the amount which the said guardian had charged his ward therefor. The defendant denied all the charges of fraud and deceit and averred that though by lapse of time his memory failed to recall the precise amount paid by him for said farm, nevertheless that amount was carefully and accurately ascertained, and that the complainant paid that amount therefor and no more ; that the amount paid by the defendant, for the said farm was paid by satisfying outstanding liens against the farm in the hands of its then owner, and the amount of said liens so paid by him was carefully ascertained and charged in his account against his ward, and the insertion of 81700 in the deed from him to his ward as the consideration was done at the suggestion of his attorney, because that amount corresponded with his indebtedness to his ward at the time of final settlement, and not because it was the amount actually paid by him for the said farm. That all those facts were known to the complainant at the time of the settlement, and the release was executed by him voluntarily and with full knowledge of these facts. To the evidence offered on the part of the defendant in proof of the facts set forth in the answer exceptions were filed by the complainant, on the ground that the considerations stated on the face of the deeds were conclusive, and could not be contradicted by parol evidence, and that such evidence was therefore incompetent and inadmissible. Held :</p> <p>1st. That the bill of complaint in this case charged that by false and fraudulent representations made by the appellee with respect to the cost of the land the complainant was induced to pay, and did pay, in the settlement of the guardian’s account, the sum of $500 in excess of the amount payable under their contract; that the questions of fact to be determined were,—1st. How much did the appellee actually pay for the land ? and 2nd. How much was the real consideration paid therefor by the appellant; that in determining these questions the parties were not concluded by the amounts of consideration money stated in the deeds.</p> <p>2nd. That the deeds were altogether collateral to the subject-matter of inquiry, were introduced as evidence only, and the parties were not estopped to show the real truth of the transaction by other evidence outside of the deeds.</p> <p>3rd. That this was a case where a deed was impeached for fraud, and the party to whom the fraud was imputed might show the actual consideration, provided it be of the same kind as that stated in the deed, differing only in amount.</p> <p>4th. That as a general rule it is incumbent upon the guardian to prove that the settlement with his ward is just and correct, but where the ward has for several years been emancipated from the influence and control of his former guardian, and where, owing to lapse of time, the vouchers and papers furnishing the elements that enter into the settlement have been lost or mislaid, and where the settlement appears to have been carefully made, and understood by the ward, and no objection was made thereto, but the guardian was voluntarily released by the ward, it would be inequitable to require the guardian to recast the account and show that the settlement was in all ■ respects free from error.</p>

Good law ✅— No negative treatment on recordhow we know

Decided 1878-07-23

How this case has been cited

Cited by 4 later decisions — most recently January 1985

4 state decisions

20187818801890190019101920193019401950196019701980decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

View the full empirical analysis of this case →

Bab/tol, O. J ,

¶1delivered the opinion of the Court.

¶2The appellee was, on the 28th day of January, 1862, appointed by the Orphans’ Court of V^orcester County guardian of the appellant, then a minor, in the sixteenth year of his age.

¶3By the second guardian account passed on the 17th day of January, 1865, it appears the guardian was indebted to his ward $1703.13, less the sum of $81.36 which had been expended out of the principal, in excess of the profits of the estate, leaving a balance due of $1621.77, with interest thereon from October 22nd, 1864.

¶4The appellant and his elder brother, William L. Smith, each owned a farm contiguous to each other, which had heen allotted to them in the division- of their deceased father’s real estate. ' William L. Smith being largely indebted, several judgments were rendered against him, between the 21st of April and the 16th of May, 1865, and writs of fieri facias were issued thereon, which were levied upon his farm and chattels. The appellant, then being about nineteen years of age, desired to become the owner of his brother’s farm, on which was the family homestead and where the' remains of their parents were buried. In

¶5*485May, 1865, this farm was purchased for him by the appellee, and he was then placed in possession thereof. He came of age in June, 1867, and on the 9th day of May, 1868, the farm was conveyed to him by the appellee and his wife. A settlement was then made between him and his guardian, and a release executed by him to the latter. At the settlement, he was found to be indebted to the appellee in the sum of $287.00 for which he gave his single bill. A suit was instituted by the appellee against the appellant upon the single bill, and on the 30th October, 1873, a judgment was recovered thereon, which was paid.

¶6On the 24th day of October, 1874, the appellant filed the bill of complaint in this case, alleging that in the settlement made on the 9th day of May, 1868, he was deceived and defrauded by the appellee, and praying that the release then executed by him may be cancelled and set aside, and that the appellee may be required to pay the sum of money or balance due him which the bill alleges is $500, with interest from May 17th, 1865.

¶7According to the averments in the bill of complaint, the alleged fraud charged against the appellee consisted in this, that the appellee agreed to buy the land of William L. Smith for the appellant, and to convey it to him at the same price it cost; hut the bill alleges that the appellee purchased it for the sum of $1200, and that he falsely stated to the appellant it had cost $1700, and in the settlement of the guardian account the sum of $1700 was exacted and received from the appellant as the purchase money for the land.

¶8The defendant denies all the charges of fraud and fraudulent misrepresentation, and avers that by reason of the great lapse of time he is unable to state with precision how much the land cost him; but that the actual cost of the land was ascertained, and the appellant, in the settlement, paid that amount and no more. That the price of the land was ascertained by E. K. Wilson, Esquire, an at*486torney selected for that purpose, who drew the deed and release. The answer avers that the settlement was fairly made; and that the release was freely and voluntarily executed by the appellant, wTith a full understanding of all matters of account existing between them, which were embraced in the settlement.

¶9The deed from William L. Smith to the appellee, dated May 17, 1865, purports to have been made for the consideration of $1200. The deed from the appellee and wife to the appéllant dated May 9th, 1868, states the consideration therefor as $1700.

¶10The proof on the part of the appellee shows that at the time the former deed was executed, there existed judgments and executions against William L. Smith, which were paid by the appellee, and which constituted the actual cost or price paid by him for the land.

¶11With respect to the deed of May 9th, 1868," the proof on the part of the appellee shows that the consideration of $1700, stated therein, was inserted at the suggestion of Mr. Wilson, as that amount nearly corresponded with the apparent balance due on the guardian account, but did not express the real consideration, or price paid by the appellant for the land. That this was ascertained by calculating the amount of liens thereon, which had been paid and satisfied by the appellee.

¶12To this proof exceptions have been filed by the appellant, on the ground that the same is incompetent and inadmissible. He insists that the considerations stated on the face of the deeds are conclusive, and cannot be contradicted by parol evidence.

¶13Upon the validity of these exceptions the case of the appellant mainly depends.

¶14The Circuit Court overruled these exceptions, for reasons which we think are entirely satisfactory. In support of the exceptions the appellant relies on Bladen vs. Wells, 30 Md., 577. In that case the deed conveyed a *487parcel of land containing about 230 acres (less 40 acres) for the consideration of $1300. The grantor instituted a suit in chancery to recover on an alleged parol agreement to the effect that if the land exceeded 140 acres the purchaser agreed to pay $10 in gold, or $20 in currency, at the vendor’s option, per acre, for each acre above 130.

¶15The parol evidence was held to be inadmissible. The Court said, where the deed expresses the amount of the consideration money as the price of the land thereby conveyed, the grantor will not be allowed to aver that it is not the true contract of the parties in this particular ; nor will a parol contract be admitted to vary the deed in this respect. ’ ’

¶16The Court referred with approval to Howes vs. Barker, 3 Johns. R., 506, also cited by the appellant. In that case it was held that the vendee could not maintain an action of assumpsit, to recover back part of the purchase money paid for land, upon an alleged parol agreement inconsistent with the terms of the contract evidenced by the deed. These decisions rest upon the familiar and well established rule, that where the contract of sale has been executed, by the delivery of a deed, the deed furnishes the best evidence of the contract, and the parties to the instrument will not be allowed, by parol evidence, to contradict or vary its terms where fraud is not alleged, or to set up a parol agreement of sale different from that expressed in the deed. Those cases are in no respect analogous to the present. Here the appellant seeks to avoid the effect of the release, and to recover money alleged to be due from the appellee, on the ground that the latter contracted to buy a farm for him, and to charge him no more than the price actually paid for it by the appellee; and the bill alleges that by false and fraudulent representations made by the appellee, with respect to the cost of the land, the complainant was induced to pay, and did pay, in the settlement of the guardian account, the sum of $500, in ex*488cess of the amount payable under his contract. The questions of fact to he determined are first, how much did the appellee actually pay for the land ; and secondly, how much was the real consideration paid therefor by the appellant?

¶17In determining these questions the parties are not concluded by the amounts of consideration money stated in the deeds. The deeds are altogether collateral to the subject-matter of inquiry. They are introduced as evidence only, and the parties are not estopped to show the real truth of the transaction by other evidence outside of the deeds. Carpenter vs. Buller, 8 Mees. & W., 212.

¶18But especially is this so in the present case. Here the ground-of the suit is the alleged fraud of the appellee. To sustain the charge of fraud the deeds are offered in evidence, and the statement therein of the amount of consideration is relied on to establish the charge. In such case it is clear that to repel the charge of fraud the appellee is equitably entitled to prove the actual cost of the land to him, and the real consideration paid therefor by the appellant. It is well settled that where a deed is impeached for fraud, the party to whom the fraud is imputed may show the actual consideration paid, provided it he of the same kind as that stated in the deed, differing only in amount. Betts vs. Union Bank, 1 H. & G., 189; Cole vs. Albers, et al., 1 Gill, 412; Wolf vs. Hauver, 1 Gill, 84; Carr and Wife vs. Hobbs, 11 Md., 285; Cunningham vs. Dwyer, 23 Md., 219; Bladen vs. Wells, 30 Md., 578.

¶19There is no reason why this rule should not apply to the case before us. It would be most inequitable to deny to the appellee the right of repelling the charge of fraud by evidence showing the real nature of the transaction, and the elements that entered into the settlement of the 9th of May, 1868.

¶20The evidence offered by the appellee being admissible, the next question to be considered is as to the facts established by the testimony. And first as to the burden of *489proof. It has been argued by appellant’s counsel, that the subject-matter of investigation being a settlement made by a guardian with his ward, a short time after the latter attained majority, “ the onus of proof is on the appellee, to show every thing requisite to make the settlement valid and binding.” This is no doubt the general rule; it is so stated in Hill on Trustees, 526 m, who cites a great number of cases in Note 2; all of which we have examined. We refer also to Hylton vs. Hylton, 2 Ves., 547; Hatch vs. Hatch, 9 Ves., 292; Kilbee vs. Sneyd, 2 Molloy’s R., 230; Walker vs. Symonds, 3 Swanst., 69; Solkeld vs. Vernon, 1 Eden, 67 m; Wedderburn vs. Wedderburn, 2 Keene’s R., 722; where the subject has been fully considered. As said by Ch. J., Tilghmabt in Elliott vs. Elliott, 5 Binney, 8; and in Say’s Ext vs. Barnes, 4 S. & R., 114; “ The law looks witli a jealous eye on settlements made by infants soon after their arrival at age, and before they are fully acquainted with their affairs.” And in Wallcer vs Symonds, 3 Swanst., 69, Lord Eldon adverts to the protection which the Court extends to infants, fora reasonable period after their coming of age, until they had acquired all the information which they might have had, if of adult years.

¶21The rule above stated is based on considerations of public policy, to prevent fraud and imposition by guardians upon their wards, during their minority, or soon after their minority has ended ; while the influence of the guardian and the subjection of the ward may be supposed still to continue.

¶22But the rule which imposes the burden on the guardian to furnish the data, and to prove that the settlement with his former ward was in all respects just and correct, has no application to this case, for several reasons.

¶23In the first place, it appears from the proof that owing to the lapse of time the vouchers and papers showing the elements that entered into the settlement have been lost or mislaid, which circumstance has been considered in all *490the cases as a sufficient reason for exempting the guardian from the obligation to furnish evidence to establish the correctness of the settlement. In the next place, the proof shows that the ward had been virtually emancipated from the government and control of his guardian as early as May, 1865, when he was about nineteen years of age. At that time he went into the possession of the farm purchased for him by the appellee. When he was nearly twenty-two years of age, the.settlement was made and his release executed. The state of his account with his former guardian was very simple, and perfectly understood by him.

¶24To carry out the contract between them, with respect to the farm, it was simply necessary to ascertain the amount of liens thereon which had been paid by the appellee, and which determined the cost thereof to the latter, and the price to be paid therefor by the appellant. For this purpose the parties had the assistance of an able attorney, by whom the estimate was made and the deed and release prepared. There remained other matters of account to be settled between them, consisting of charges for board bills paid by the appellee, for articles furnished to the appellant, and articles'purchased for him at the constable’s sale of his brother’s chattels on the farm.

¶25This account, it appears by the proof, was completed and settled by the parties on the 9th day of May, 1868, at the house of the appellee.

¶26At this settlement three witnesses were present, Elisha H. Davis, and Peter L. Davis, Jr., sons of the appellee, and Henry A. Smyth, Esq., a justice of the peace, before whom the deed of that date was acknowledged, and who was the attesting witness to the release, and to the single bill for $281, then given by the appellant, before referred to. Henry A. Smyth, Esq. is dead ; but the other two witnesses testify to the deliberation and care with which the settlement was made ; Elisha assisted in making the calcula*491tions, states some of the items which were taken into the account, and both these witnesses state that Squire Smyth went over the calculations, and found no mistake in them. Books of account and papers were produced and examined, which have since been mislaid, or lost.

(Decided 23rd July, 1878.)

¶27Under these circumstances it would he inequitable to hold the appellee bound to recast the account, or to impose on him the burden of proving that the settlement was in all respects free from error. Especially after the lapse of more than six years after the settlement was made.

¶28In disposing of the case we do not consider it necessary to enter into a statement of the several items of account between the parties, as disclosed by the evidence. It would be impossible now, with the imperfect data before us, to state the account with any degree of accuracy. The counsel on each side have attempted this, hut their statements are in many respects speculative and conjectural, and of course differ widely in their results. This is not strange when wo consider that many of the papers and memoranda have been lost; one of the witnesses to the transaction is dead, and the memory of those who survive, after the lapse of eight years, has naturally become dim and imperfect. We may add, that after a careful examination of the testimony, we have not discovered any material error in the settlement. This appears to have been carefully and deliberately made, and the release was executed voluntarily, when the appellant was of full age, and acquainted with his affairs.

¶29Under these circumstances, the onus of proof is on the appellant to show some mistake or error in the settlement, or that some fraud had been practised on him by his guardian. This has not been shown by the evidence, and the decree of the Circuit Court will therefore he affirmed.

¶30Decree affirmed.

/49/md/470 · .json · Public domain