This suit is brought to determine the legal effect of a will,
and of a modifying contract in regard to it made by those
interested. As "the whole question in the case is one of fact," the
Court has "given the evidence a very careful examination," and,
without determining the legal effect of the will or the contract,
and proceeding on the real intention of the parties, which were
fair to all interested, and have been acted upon and acquiesced in
by everyone concerned for a long period, and deeming it for the
interest of all concerned and of the community that litigation over
this estate should cease, it makes a decree to effect those
objects.
In equity. The case is stated in the opinion.
MR. JUSTICE LAMAR delivered the opinion of the Court.
This was a suit in equity brought by Mollie N. Albright and
William E. Oyster, by their next friend, David K. Oyster, and David
K. Oyster in his own right, citizens of Missouri, against George
Oyster, Margaret Oyster, Margaretta Oyster, executrix of the last
will and testament of Simon Oyster,
Page 140 U. S. 494
deceased, Simon K. Oyster and Iola E. Oyster, his wife, and John
Albright, husband of Mollie N. Albright, citizens of Pennsylvania.
Its object was to establish the title of the plaintiffs to a large
amount of land situated in Lewis County, Missouri, the legal title
to which was in the defendant George Oyster.
The controversy grows out of a will made by Abraham Oyster, and
a subsequent agreement in writing among the parties to this suit,
who were beneficiaries under the will. The plaintiffs Mollie N.
Albright and William E. Oyster and the defendant Iola E. Oyster are
the children of the plaintiff David K. Oyster.
Abraham Oyster died in Lewis County, Missouri, on the 10th day
of August, 1862, leaving four children,
viz., the
plaintiff David K. Oyster, the defendants Margaret and George
Oyster, and Simon Oyster, since deceased. He left a will dated two
days before his death, and duly probated in the County Court of
Lewis County, Missouri, on the 21st of October, 1862, which was as
follows:
"It is my will that all my real estate, part of which is situate
in Cumberland County, State of Pennsylvania, a part in Pike County,
State of Illinois, and a part in Lewis and Marion Counties, in the
State of Missouri -- Island No. 14, in the Mississippi, opposite
the City of La Grange, is not included in this clause -- be taken
possession of as soon as may be by the executors of this will, and
that all such parts thereof as can shall be leased or rented until
such time as, in the judgment of said executors, it will sell for
fair prices, when they will proceed to sell said real estate to the
best advantage, all of which they are hereby authorized to bargain,
sell, and alien in fee simple, and out of the proceeds of such sale
and rents --"
"1. I hereby give and bequeath to my daughter, Martha Oyster,
ten thousand dollars, ($10,000)."
"2. I give and bequeath to my son George Oyster ten thousand
dollars, ($10,000)."
"3. Of the remainder of the proceeds of the sales and rents
aforesaid, I give and bequeath to my sons, Simon Oyster, George
Oyster, and David K. Oyster, and my daughter, Martha Oyster each an
equal portion; but it is my will that
Page 140 U. S. 495
the portion that falls to my son David K. Oyster my executors
shall so dispose of as that only the interest annually shall be
paid to him; also that the saw mill in the City of La Grange shall,
until such time as my executors shall deem it proper to sell it as
the other real estate, be rented to my son David K. at a fair sum,
or to some other person."
"Also that my executors collect all the debts owing to me, and
out of such collections pay all the expenses of the executorship,
including all fees, etc."
"I do hereby appoint as executors of this will my son George
Oyster and my son-in-law, Charles Oyster, both of the County of
Cumberland and State of Pennsylvania."
"Martha" Oyster mentioned in the will is known as "Margaret"
Oyster throughout these proceedings.
The bill of complaint in this case was filed on the 6th of
September, 1883, and, after setting out the foregoing facts in
somewhat the same order as we have stated them, contained
substantially the following material averments: In consequence of
the executors named in the will not residing in Missouri, they were
disqualified to act under the laws of that state, and on the day
the will was probated, the court appointed David K. Oyster
administrator of the estate of Abraham Oyster, deceased, with the
will annexed, and he duly qualified as such administrator. Simon
Oyster and David K. Oyster were not satisfied with the provisions
of the will, and on the 18th of April, 1866, the former instituted
a suit in the Circuit Court of Lewis County, Missouri, to have it
set aside and declared null and void. While that suit was pending,
Simon Oyster died, leaving a will in which he appointed his wife,
Margaretta, his sole executrix, with full power to settle up his
estate. That will was duly probated in the Orphans' Court of
Dauphin County, Pennsylvania, and the executrix took upon herself
the execution of it.
On the 3d of March, 1868, the legatees under the will then
living, and Margaretta Oyster, executrix, etc., as a sort of
compromise of the suit instituted by Simon Oyster as aforesaid,
entered into an agreement in writing, drawn by George Oyster, by
the terms of which it was provided that, for the purpose of
Page 140 U. S. 496
effecting a speedy settlement of said estate, Margaretta Oyster,
executrix, etc., and David K. Oyster should pay to Margaret and
George Oyster the sum of $5,000 in equal parts of $2,500 to each,
and that, in consideration of certain advances made to Simon,
George, and Margaret Oyster by their father, Abraham, during his
lifetime, and in order to nearly equalize the shares of the several
legatees, the plaintiff David K. Oyster should receive from the
estate (1) 640 acres of unimproved lands in Lewis County, Missouri;
(2) 320 acres of land in Pike County, Illinois; (3) certain
particularly described property in La Grange, Missouri, on which
steam saw mills were built, in consideration of $1,125, and (4)
$5,000. The agreement further provided that in consideration of the
foregoing parts of it being fully complied with, the remainder of
the estate of their ancestor should be divided equally among
George, Margaret, David K., and the heirs of Simon Oyster, and that
except as to the bequests made to Margaret and George Oyster of
$10,000 each and as to so much as related to the saw mill property
at La Grange, the will of Abraham Oyster should be fully executed.
And it was further agreed that in consideration of the above
premises, the suit to contest the will brought by Simon Oyster
should be forever abandoned.
In pursuance of that agreement, on the 13th of April, 1868, the
suit instituted by Simon Oyster to have the will set aside was
dismissed. Afterwards, in November, 1869, the lands belonging to
the estate in Missouri were sold at public auction. A few days
before the sale, George, Margaret, Margaretta, executrix, etc., and
David K. Oyster held a consultation at the residence of David K. as
to the best method of carrying out the provisions of the will and
the subsequent agreement, at which time it was fully agreed by all
of them that at the forthcoming sale, David K. should bid in for
the benefit of his children what was then known as the "Home Farm"
of Abraham Oyster, for $12,000, and also 640 acres of land in what
was known as "Oyster Prairie," in Lewis County, in order that they
(his children) might be made to share equally in the distribution
of the estate with the other legatees who had received advancements
from Abraham Oyster during his lifetime.
Page 140 U. S. 497
It was found, however, that David K., being administrator with
the will annexed, was precluded under the laws of Missouri from
bidding at the sale, and accordingly arrangements satisfactory to
all concerned were finally made by which David K. relinquished all
right, title, claim, and interest in and to the property under the
will and the subsequent modifying agreement for the benefit of his
children, and Simon K. Oyster, the son of Margaret, and the
son-in-law of David K., bid in those two last-mentioned pieces of
property -- the former for $12,000, and the latter for $3,200 --
for the benefit of the children of David K.
After a few other tracts of prairie land had been sold at what
seemed to those interested to be unsatisfactory prices, an
understanding was reached among the legatees under the will that
the remainder of the prairie lands should be sold and bought in by
anyone of them without regard to price or location; and, in order
that such property might be equally divided among them, it was
further agreed that three appraisers should be appointed to go with
the county surveyor upon those prairie lands and divide them into
four equal parts. The sale then proceeded to completion, and the
purchasers at the sale received their deeds from David K. as
administrator. Afterwards, in pursuance of the agreement last above
referred to, three appraisers were appointed, who made division of
the prairie lands bought in by the legatees under the will in four
equal parts, as nearly as was possible, according to their value.
Thereupon, by virtue of a mutual agreement between the
beneficiaries under the will, they selected their respective
portions of the lands divided as aforesaid in the following order:
(1) George Oyster, (2) Margaret Oyster, (3) Margaretta Oyster,
executrix, etc., and (4) Simon K. Oyster for the benefit of the
children of David K. Oyster. Accordingly, deeds were made to each
one of them by David K. as administrator, including absolute deeds
to Simon K. of the two first-mentioned properties and the last
division of the prairie land. In making conveyances, the prairie
land property was treated as if it had been bid in at the
administrator's sale. The grantees in those conveyances thereupon
took possession of the property
Page 140 U. S. 498
conveyed to them respectively, and continued to hold it ever
afterwards.
Subsequently, on the 11th of September, 1871, the Circuit Court
of Lewis County, Missouri, appointed one Robinson trustee for the
children of David K. to take the property purchased at the sale and
that set aside by the appraisers for the benefit of those children,
and authorized him to receive said property at the prices at which
it had been bid in by Simon K. as aforesaid. The trustee made
demand therefor of Simon K., but the latter, acting under the
influence of the defendant George Oyster, declined to make such
transfer, and soon thereafter the trustee died without having begun
any proceedings to compel such conveyance.
The deeds to Simon K., although absolute in form and purporting
to have been executed in consideration of $21,000, were taken by
Simon K. with the distinct understanding that he should hold the
property as the trustee for the benefit of the children of David
K., and no consideration whatever was paid by him, all of which
facts were well known to all the beneficiaries of the estate. But
nevertheless, on the 10th day of February, 1881, Simon K., with
full knowledge of all the facts in the premises, and in violation
of the trust reposed in him, in consideration of the sum of five
dollars (which was never paid), conveyed the property deeded to him
as aforesaid to the defendant George Oyster, who also had full
knowledge of all those facts and circumstances relative to said
trust, and who in fact was mainly instrumental in procuring such
conveyance to himself by representing to Simon K., who was then
very sick, that if he should die, it would involve his estate in
much litigation, and that he (George) would indemnify him (Simon
K.) against any loss which he might suffer by reason of such
conveyance.
At the time of the partition and sale aforesaid, the children of
David K. were all minors and unmarried. But subsequently, the
daughter, Iola E., intermarried with said Simon K., and moved to
Pennsylvania. The other daughter married the defendant John
Albright, but both she and her brother, William E., have always
lived with their father, who had been in possession
Page 140 U. S. 499
and enjoyment of the lands so conveyed to Simon K. ever since
that conveyance, with the consent of his children, holding the same
for their benefit.
Soon after the defendant George Oyster got the legal title to
the lands in question, he instituted a suit in ejectment against
David K., which, under a stipulation between the parties to that
suit, resulted in a judgment of ouster against David K. on the 30th
of April, 1883. At the same time, the plaintiff in that suit agreed
not to cause execution to issue on his judgment before the 1st of
May, 1884, in order that the plaintiffs in this suit might have
time to file this bill to test their equitable rights to the
property in dispute.
The bill further stated that the reason the plaintiff Mollie N.
Albright appeared by her next friend and her husband, John
Albright, was made a defendant was because they did not live
together, and he refused to join as a co-plaintiff with her, and
that the reason Iola E. Oyster was not made a co-plaintiff was
because she was under the influence and control of her husband,
Simon K., who refused to join as a co-plaintiff in this suit.
The prayer of the bill was for an injunction to restrain the
defendant George Oyster from causing execution to issue on the
aforesaid judgment in the ejectment proceedings, and for a decree
directing him to convey the property in dispute to the plaintiffs
and the defendant Iola E. Oyster, on the ground that the conveyance
of the property to Simon K. Oyster was made in trust for their use
and benefit, that it had been fully paid for out of David K.
Oyster's distributive share of the estate of his father, and that
the defendant George Oyster acquired the property with knowledge of
the trust, and parted with no value therefor, and for other and
further relief, etc.
George Oyster filed an answer to the bill, and the main issues
in the case arise out of the bill and that answer. It was in
substance as follows: it admitted all the averments contained in
the bill up to and including the making of the agreement of March
3, 1868, modifying the terms of the will, and averred in relation
to that matter that the respondent
Page 140 U. S. 500
had never refused to be bound by that agreement, but that
plaintiff David K. had persistently ignored the obligations which
that instrument imposed upon him, although he had been quite
willing to accept the benefits which it conferred. It further
admitted the main facts in relation to the sale of the property by
the administrator to be substantially as stated in the bill, but
averred that the real agreement entered into by the legatees under
the will with respect to the purchase of certain of the lands by
the legatees and their subsequent partition was this, that the
share of each legatee, as ascertained by the partition proceedings
mentioned in the bill, should be paid for by each one,
respectively, and the prices therefor should be treated as assets
of the estate, to be disposed of by the administrator in the proper
execution of the will and the modifying contract.
The answer then averred that at the sale property to the value
of $4,920 was sold to strangers, and the remainder of it was bid in
by the four legatees or by some one in their interest under the
agreement; that, the sale having been concluded, the four legatees
under the will met and mutually agreed upon the division that
should be made of the property bid in by them, whereby $3,500 worth
of lands fell to each, respondent, Margaret, and Margaretta,
executrix, etc., and $6,000 worth to them jointly (none of which is
in dispute), and all the remainder of the property, that in
dispute, was apportioned to David K. for $21,800; that all of that
property was to be accounted for by them respectively, according to
its amount and value; that as the property apportioned to David K.
was more than his share under the will and the modifying agreement,
it was agreed that the title to that property should remain in the
estate until paid for by him, and he be chargeable with the
purchase money; that the deeds were made in pursuance of that
agreement or understanding; that respondent, Margaret, and
Margaretta, executrix, etc., each paid to the administrator the
price of the lands allotted to them respectively, but that the
purchase price of the land conveyed by Simon K. was not paid by
him, by David K., or by anyone else; that David K., as
administrator, was chargeable with
Page 140 U. S. 501
the purchase price of the land conveyed to Simon K., and with
$4,920 purchase money of land sold to strangers, and with other
property which came into his hands, the precise amount of which was
unknown to respondent, and that David K., in making the conveyances
to Simon K. without payment of the purchase price, acted in
violation of his official duty, and the conveyance thus operated to
invest Simon K. with the title to the property thus conveyed,
subject to the encumbrance for purchase money, and to constitute
him a trustee of said property for the legatees under the will for
their respective shares in the estate of the testator remaining
unsatisfied,
viz., to respondent, $4,975; to Margaret,
$2,887, and to Margaretta, executrix, etc., $5,230.
It was denied that the "home farm" and the 640 acres of prairie
lands, or either of them, was bid in for the benefit of the
children of David K., or that Simon K. ever held said lands upon
any trust whatever for said children. It was then averred that the
alleged trust in Simon K. was void under the Missouri statute of
frauds because it was not in writing. Further answering, respondent
admitted that Simon K. never paid any consideration for the
property in dispute, and averred that neither did the plaintiffs,
who claim to be his
cestuis que trustent, ever pay any
consideration therefor, and that plaintiffs should be estopped from
averring the consideration in the deed to Simon K. to have been
other than that stated in the deed. The conveyance of Simon K. to
respondent was admitted, but it was denied that any unfair means
were adopted by respondent as an inducement to that conveyance. And
it was further averred that the conveyance was taken by respondent
not for his sole use and benefit, as alleged in the bill, but in
trust for the benefit of the legatees under the will, as the only
means of securing the amounts due from David K. to the other
legatees, David K. and his sureties on his official bond being
wholly insolvent; that all acts done by respondent since he secured
the title to the property were likewise in the execution of said
trust, and that respondent is still claiming to hold the property
in trust as aforesaid.
Without going more into detail, it is sufficient to say that
Page 140 U. S. 502
any and all other material averments in the bill charging the
respondent with any illegal practices or any wrong were
specifically denied by him, as was also the averment that
respondent was holding the property in trust for the children of
David K., and it was prayed that the bill be dismissed.
Margaret Oyster and Margaretta Oyster, executrix, etc., filed
separate demurrers to the bill on the ground that it did not allege
that those defendants had any interest in the lands mentioned in
the bill adverse to plaintiffs, or that those defendants did in any
way controvert or deny, or had in any way controverted or denied,
the rights of plaintiffs to the relief demanded, or that those
defendants were in any way interested or concerned in the granting
or refusal of the relief demanded, and because no case was stated
which entitled plaintiffs to any discovery or relief against those
defendants.
Iola E. Oyster filed a disclaimer, and Simon K. filed a plea
that the trust alleged to have been in him was not in writing, and
was therefore void under the laws of Missouri.
The plaintiffs filed exceptions to that part of the answer of
George Oyster which set up the statute of Missouri to defeat the
trust, and also to the plea of Simon K. Oyster setting up the same
defense, on the grounds (1) that the facts alleged in the bill took
the case out of the operation of the statute; (2) that there had
been a part performance which took the case out of the operation of
the statute, and (3) because the alleged trust was a resulting
trust.
On the 31st of January, 1884, the court entered an order
overruling the demurrers of Margaret and Margaretta Oyster,
sustaining the exceptions to the plea of Simon K., and the first
exception to the answer of George Oyster, overruling the other
exceptions to the answer, and giving the defendant Simon K. leave
to answer in twenty days. The opinion of the court on these points,
delivered by Judge Treat, is found in 19 F. 849.
On the 4th of February, 1884, the plaintiffs filed a reply to
the answer of George Oyster, and on the 18th of the same month
Simon K. Oyster filed an answer to the bill in which he admitted
many of the facts alleged in the bill -- among
Page 140 U. S. 503
others, that he never paid any of the consideration named in the
deed to him, and averred that it was never expected of him that he
should pay it, but, on the contrary, it was understood that David
K. should pay it. He further admitted that he conveyed the property
in dispute to the defendant George Oyster, but denied that he
violated any trust in so doing, and further denied any confederacy
or any intention on his part to commit any wrongful acts in the
transaction, or to violate any trust reposed in him.
Replication was also filed to this answer, and, the case being
thus at issue, a considerable amount of testimony was taken. The
case was heard upon the pleadings and proofs and arguments of
counsel, and on the 1st of December, 1884, the circuit court
entered a decree dismissing the bill of complainant, without
prejudice to any rights that the parties might have in the final
administration of the trusts which were found to have devolved on
the defendant George Oyster by the deed from Simon K. and the
aforesaid contract of March 3, 1868, modifying the will of Abraham
Oyster, deceased. The opinion of the court, delivered by Judge
Treat, is found in 22 F. 628. An appeal from that decree brings the
case here.
The theory upon which this suit is prosecuted is that the
complainants are the owners in equity of the real estate described
in the bill, the consideration for it having been paid by the
distributive share of the complainant David K. Oyster in his
father's estate; that part of the property described was bid off at
the sale in 1869 by Simon K. Oyster for the benefit of the children
of David K., and the remainder, which was the one-fourth part of
the lands in Oyster prairie set apart as the share of David K., was
bid off at the sale by the heirs; that all that property was deeded
to Simon K. as trustee for David K. and his children, the
conveyance not proceeding directly to the beneficiaries, because,
under the law of Missouri, David K., being administrator of the
estate, could not convey to himself individually, and his children
at that time were minors, and that the conveyance of the property
by Simon K. to the defendant George Oyster was charged with those
trusts. The real defense of George Oyster is that David K. Oyster
was in
Page 140 U. S. 504
arrears to the estate in a large sum, and for that reason his
share in the estate of their father was conveyed to Simon K., as
trustee, charged with that sum, and that he himself now holds the
property by conveyance from Simon K., charged with the lien of
himself, Margaret, and Margaretta, executrix of Simon, deceased,
for the unpaid portion of the purchase price from David K. The
court below found that the evidence did not sustain complainant's
theory of the case, and accordingly dismissed the bill without
prejudice to the rights of the parties in the final administration
of the trust devolved upon George Oyster by the deed to him from
Simon K., and under the contract of March 3, 1868, amendatory of
the will of Abraham Oyster.
As the whole question in the case is one of fact, we have given
the evidence a very careful examination. Certain facts are
undisputed or are clearly proven. Abraham Oyster died testate in
Missouri in 1862, leaving a large amount of property in that state,
in Illinois, and in Pennsylvania. He left four children surviving
him -- Margaret, Simon, George, and David K. A few years before his
death, he had made certain advancements to Margaret, George, and
Simon, but had advanced nothing to David K. By his will he made
further preferences in favor of George and Margaret, bequeathing to
them $10,000 apiece, and then dividing the remainder of the estate
equally among the four children. The clause in the will relating to
the share of David K. was worded somewhat peculiarly, as
follows:
"It is my will that the portion that falls to my son David K.
Oyster my executors shall so dispose of as that only the interest
annually shall be paid to him."
We need not stop here to consider the legal effect of that
clause, but the evidence clearly shows that until a very recent
period, the understanding of all the legatees was that it conveyed
to David K. only a life estate in the share coming to him, with a
remainder over to his children. The foregoing facts are thus stated
in the forefront of the opinion because upon them hinges much that
is to follow. As is usual when there has been an unequal division
of an estate among the children of the testator, those receiving
the
Page 140 U. S. 505
smaller shares were dissatisfied with the will. Accordingly, we
find Simon Oyster bringing a suit to set the will aside and have it
declared null and void. Before that suit was terminated, Simon
Oyster died, leaving a will by which he appointed his widow (who
was also named Margaret, and who is the "Margaretta" throughout
these proceedings -- so called because she was small of stature,
and to distinguish her from the other Margaret) executrix of his
estate. Throughout the subsequent transactions relating to the
estate of Abraham Oyster, Margaretta represented the share that
fell to Simon. To all intents and purposes, she was treated by the
other legatees as the legal representative of Simon, and has been
so treated by them up to this time.
The unequal distribution of the estate of Abraham Oyster by his
will, and the suit of Simon to set it aside, brought about the
agreement in writing of March 3, 1868, amendatory of the will. The
object of that agreement was to place the children of Abraham
Oyster on a comparatively equal footing respecting the estate, and
to compromise the suit of Simon, for the understanding of the
parties was that that suit did not abate by his death. That
agreement is as averred in complainant's bill, but to make its
terms fully understood, it may be necessary to advert to certain
facts brought out by the evidence. As already stated, Abraham
Oyster, in his lifetime, had made advancements to Margaret, Simon,
and George, but had never advanced anything to David K. Those
advancements appear to have been made in the year 1858 or 1859.
Accordingly, the first consideration moving in the agreement was to
place David K. on a comparatively equal footing with his brothers
and sister. The agreement therefore provided that Margaret,
Margaretta, executrix, and George should quitclaim their interests
to David K. in the following property belonging to the estate: (1)
six hundred and forty acres of unimproved land in Lewis County,
Missouri (known as a portion of the "Oyster Prairie" lands in the
subsequent proceedings), and (2) three hundred and twenty acres of
land in Pike County, Illinois. Certain particularly described
property in La Grange, Missouri, known as the "saw mill" property,
was to be sold
Page 140 U. S. 506
to David K. for $1,125, and he was to receive further the sum of
$5,000 out of the estate. In consideration of this equalization of
the shares in the estate, Margaret and George still retained a
slight advantage over the other two heirs. True, they relinquished
the bequests of $10,000 made to each of them by the will of their
father, but it was part of the agreement that they were each to
receive from David K. and Margaretta, executrix, etc., $2,500, or
$1,250 apiece from each of them. By the terms of the agreement, the
will as thus modified was to be carried out -- that is, the other
property of the estate was to be sold, and the proceeds divided
equally among the four legatees.
Regarding subsequent events in the distribution of the estate
there is some dispute, but we think the evidence, fairly and
reasonably considered, warrants us in finding the following: as
before stated, George Oyster was one of the executors of his
father's will. In the management and settling up of his father's
estate in Illinois and Pennsylvania, he had full and absolute
control. He was the leading spirit of the family, and, in the
matter of the estate, whatever was said or done by him was
acquiesced in by his sister Margaret and his sister-in-law
Margaretta. He conceived the idea, either originally or after
taking the advice of counsel, that the agreement of March 3, 1868,
was not valid and binding upon the parties to it for the reason
that Margaretta, as executrix, had no power to make any agreement
or conveyance that would be binding upon minor heirs. Accordingly,
while the subsequent proceedings in the settlement of the estate
were carried out on the basis of the equality of interests
represented by the contract of March 3, 1868, the proceedings
authorized by that contract were not adhered to. No quitclaim deeds
were made to David K. for the 320 acres of land in Illinois or the
640 acres in Lewis County, Missouri, nor did David K. receive the
$5,000 from the estate, according to the terms of the contract. But
an oral agreement was reached at some time after the date of the
contract and prior to the 15th of November, 1869, the precise date
not being readily ascertainable, nor is it material, by which the
interest of David K. in
Page 140 U. S. 507
the estate in Illinois and Pennsylvania was to be concentrated
in what was known as the "Home Farm" of Abraham Oyster (at that
time and since, the residence of David K.), and at the forthcoming
sale on said 15th of November, 1869, David K. was to bid it in for
$12,000. The other property mentioned in the agreement to March 3,
1868, that was to go to David K. was also to be bid in by him at
that sale. This arrangement was made because it was believed by the
beneficiaries under the will that David K.'s share of the estate
could not be paid to him in money under the clause of the will
above quoted, but might be put into real estate for his benefit
during his lifetime, with a remainder over to his children, and for
the further reason that it was doubted if any conveyance could be
made to David K. by the other legatees that would bind the minor
heirs of David K. and of Simon, especially by Margaretta, as
executrix. This theory harmonizes best with all the testimony in
the case, and is borne out by a letter of George Oyster to David
K., dated at his Pennsylvania home, June 11, 1868, wherein, after
referring to the condition of affairs in relation to the estate,
and particularly to the manner in which he understood the
distribution should be made by David K. in the settlement of it, he
says:
"Simon having brought an action to test the validity of Father's
will, His executrix is a legal party to the articles of Agreement
we have entered into, having made his objection in said suit a part
of the consideration upon which our agreement was based whereby his
executrix represents all the interest that Simon has or may have
had to any and all interest arising to Simon of Father's estate, in
the property contained or embraced in said agreement."
"The minor or other children of Simon are all represented By
Simon's executrix, and when you, as administrator of Father's
estate, proceed under an order of sale from the court in pursuance
of Father will, you are the proper party to sell and make all the
titles for all the property belonging to said estate and after
having done so and received the proceeds arising from such sale,
and you make or are ready to make distribution of the same that
Simon's executrix, on receiving
Page 140 U. S. 508
his share or interest arising therefrom, that her release to you
will be all that will be necessary to forever exclude any and all
heirs of Simon from any further claim. Such is certainly the law
here, she having her letters testamentary issued here. Now the only
question that presents itself to my mind is whether the laws of
your state will recognize acts legally done by her here as of the
same force and effect there; if not, then her signature and
acknowledgment to the agreement can be of no value, and the whole
agreement become void, as it was at the intention of any of the
parties to it at the time of making it that it should be confined
in its effect to the property in this state, and in regard to the
farm on which you live, you will best make title to some other
person who will return the title to you, or have title through an
order of the court. I am of the Opinion that Simon's executrix
would not be vested with power to join us in making title to you
for property there that would exclude the minor children from
claiming thereafter. I hold that the power to become a competent
party to the agreement by which real estate is disposed of arose
from Simon's own act in filing exceptions to the manner in which
Father disposed of his property in which he was interested in the
final distribution, and that in the balance of the property she is
not legally qualified to do anything more then receive the share
due Simon and release the executors and administrators
therefrom."
"In making or having title made to the farm, you should have it
made so that the trust vested in the executors by father can be
discharged and all your interest in the moneys arising from the
sales of real estate can be invested in that property in pursuance
of the will; otherwise the interest arising out of this property
here would have to continue in the possession of the executor as
trustee, which is not desirable. I wish it so arranged that your
share shall be vested in that farm and the trust closed in it."
The sale of the property was made by David K. as administrator,
as advertised, on the 15th of November, 1869. For the purpose of
making plain the facts connected with that sale, we will divide the
lands sold into eight parcels, following
Page 140 U. S. 509
in this respect the division made by counsel for appellees,
viz.: (1) lands sold to strangers; (2) certain property in
La Grange; (3) the saw mill property in La Grange; (4) the 640-acre
tract in Lewis County, Missouri, which, under the contract of March
3, 1868, was to be quitclaimed to David K.; (5) the "home farm;"
(6) about 40 acres five or six miles southeast of La Grange, known
as the "Durgin Creek Property;" (7) about 45 acres of land near La
Grange, or, as it is frequently designated, "the tract back of
town;" and (8) prairie lands and timber lands, unimproved,
aggregating about 2,200 acres. It may be well to state here also
that the property in dispute comprises parcels 3, 4, 5, 6, and 7,
and the one-fourth part of parcel 8.
It was found, however, that under the laws of Missouri, David K.
could not bid in any property at the sale, because he was the
administrator of the property to be sold. Without going into the
details of the transactions on the day of the sale or referring
particularly to all of the evidence upon which our judgment is
based, it is sufficient to say that in our opinion, the evidence,
fairly and reasonably considered, shows that Simon K. Oyster was
selected and mutually agreed upon by all parties in interest to
represent the share of David K. in the bidding in of the property
which had been selected for that share. Under that arrangement,
Simon K. bid in parcels 3, 4, 5, 6, and 7, as above designated.
Parcel 4 was bid in at $5 per acre -- $3,200 -- but in reality it
matters nothing what the price of it was, for it was purely a
pro forma proceeding for the purpose of ultimately passing
the title to it to David K.'s share, in pursuance of the agreement
for the equalization of the shares that was at that time being
carried out in apparent good faith. That parcel, as was also parcel
3, was bid in by Simon K. as trustee for the share of David K., to
effectuate the same purpose as was originally intended to be
accomplished by quitclaim deeds which were contemplated by the
agreement of March 3, 1868, and this proceeding was adopted in
preference to quitclaim deeds from the other legatees as being
safer and in accordance with the law as the parties then understood
it, as already stated. We say, therefore,
Page 140 U. S. 510
that according to our view of the evidence, parcel 4 was to be
conveyed to David K. to assist in making his share of the estate
equal to those of the other legatees, and that in that view of the
case the price bid for the land was immaterial, inasmuch as that
tract of land was regarded as being fully paid for by David K.'s
share.
Parcel 3 was to be paid for at the price stated in the agreement
of March 3, 1868, to-wit, $1,125, and in the final settlement of
the estate that sum was to be charged against the share of David
K.
Parcel 2 was bid in for the benefit of George, Margaret, and
Margaretta, executrix, etc., and was to be accounted for by them at
$6,000. To equalize David K.'s share with that transaction, it was
to receive parcels 6 and 7. Parcel 6, known as the "Durgin Creek
Property," was valued at $10 per acre, or $400, and parcel 7 at $35
per acre, or $1,575 -- $1,975 for both tracts, or practically equal
to one-third of the value of parcel 2.
Parcel 1, as we have stated, represents land sold to various
persons other than the legatees. The amount realized from the sale
of those parcels was $4,920. It was found, however, during the
progress of the sale, that the land was not bringing what the heirs
thought it ought to bring. Accordingly it was arranged that any
tract which should not sell for about its full value should be bid
in by one or the other of the heirs, it mattered not which, for the
benefit of all, and that at the conclusion of the sale, the lands
thus bought in should be divided into four parcels as nearly equal
in value as could be ascertained.
That arrangement was carried out; the remainder of the lands,
aggregating about 2,200 acres (parcel 8), were bought in
promiscuously by the heirs, and they were afterwards divided into
four equal parts, according to their value, by three appraisers and
a surveyor appointed by the heirs. One of those parts was selected
by Margaret, another by Margaretta, executrix, a third by George,
and the fourth was left for the share of David K. Deeds were made
by David K., as administrator, to Margaret, Margaretta, and George
for their
Page 140 U. S. 511
respective parts of those lands. The other part, allotted to the
share of David K., was included in the deed from David K., as
administrator, to Simon K., trustee for David K.'s share. Thus the
sale and division of the lands belonging to the estate were
completed. We have said that we would not refer particularly to all
of the evidence in the case bearing upon this sale and division of
the property. One part of it we desire to speak of,
viz.,
a letter from George Oyster, dated at La Grange, Missouri, November
20, 1869 (five days after the sale), addressed to his daughter
Annette at their home in Pennsylvania. In this letter, he speaks
particularly of the transactions relating to the sale and division
of the property, saying, among other things, the following:
"On Monday last was the sale. We went to Monticello and
commenced selling about 11 o'clock. The farm at the river was sold
first, or rather knocked down at $12,000. There was no stranger bid
on it. We sold near $5,000 worth of Lands all below what they are
worth, 3 pieces of 80 acres each brought $14.75 & 15$ per acre,
I have since Been told were worth 18 to 20$ per acre. I think the
Balance was knocked down at prices running from 4$ to 13.50. There
was 2,300 Acres sold beside what David had selected which sold at
$5 per acre (640 acres) and 400 acres we sold strangers, we have
this morning agreed on the balance of the property unsold, we have
agreed to divide the prairie and timber lands equally by having 3
men to divide it for us, and the property at the river. David gets
the farm at $12,000 and 45 acres of land at 35$ per acre and 40
acres timber land 8 miles from La Grange at $10 per acre, and
Margaret, Simon's wife and me take the town property at $6,000 and
we pay David $200 for his share of some shops on the lots. The
arrangement is satisfactory to all of us, and I think will change
this estate from a sinking fund to supporting itself."
This letter, written about the time the transactions to which it
refers occurred, is of vastly more value as evidence than the
statements of witnesses as to the same occurrences, made many years
afterwards, when differences had arisen and their minds were more
or less prejudiced in favor of their own interests.
Page 140 U. S. 512
Moreover, it is in entire accord with the evidence introduced by
David K., many of whose witnesses had been familiar with the
transactions concerning which they testified and were apparently
representative men in the community where those transactions
occurred. Some of them had purchased land at the sale in November,
1869, and most of them had been at that sale and saw what was
taking place. Nor is their evidence contradicted materially by
Margaret Oyster, one of the defendants herein, who, though not
remembering very many things connected with the transaction very
definitely, testified that she "always thought David should have
the
home farm,'" and that on the way home from the sale, she
heard David say he wanted that farm for his children. Indeed, the
general effect of the testimony in support of the conclusion at
which we have arrived on this point is not shaken by any evidence
in the record, either oral or documentary, and George Oyster
himself, unconsciously, perhaps, corroborates it in his
testimony.
Upon this branch of the case, therefore, we say that our
conclusion is in accordance with complainant's theory of the case.
We think there can be no reasonable doubt but that parcels 3, 4, 5,
6, and 7, as above designated, were bought in at the sale by Simon
K Oyster, as trustee for the share of David K.; that parcel 4 went
to David K.'s share of the estate toward equalizing that share with
the shares of the other heirs who had received advancements for
more than that amount a few years before the death of Abraham
Oyster, and was therefore fully paid for; that parcels 5 and 6 went
to David K.'s share, while parcel 2 went to Margaret, Margaretta,
executrix, and George, thus practically equalizing the shares in
those transactions; that parcels 3 and 5 were bought in for the
benefit of David K.'s share -- the former at $1,125 and the latter
at $12,000 -- and that parcel 8 was equally divided among the heirs
according to its value. With respect, then, to parcels 4, 6, 7, and
the one-fourth part of parcel 8, we think the evidence shows that
they have been fully paid for by David K.'s interest in the estate
of his father, in accordance with the will and the subsequent
modifying agreements; that
Page 140 U. S. 513
Simon K. took a deed for them as trustee for the interest of
David K., and that the transfer of those tracts from Simon K. to
George was charged with the same trust.
With respect to parcels 3 and 5 -- that is, the "saw mill
property" and the "home farm" -- we are equally clear that they
were bid off by Simon K. Oyster for the benefit of the share of
David K., were deeded to him as such, and were conveyed by him to
the defendant George Oyster charged with that trust. The only
difficulty on this point is as to whether the consideration for
those two pieces of property was fully aid by the interest of David
K. in his father's estate.
As already stated, those two pieces of property were to be paid
for at $1, 125 and $12,000, or $13,125. Under the agreement
modifying the will, however, David K. was to receive $5,000 cash
from the estate, and also 320 acres of land in Illinois. He never
received either of those items, but their value was intended to be
concentrated in the "home farm." It is shown by the evidence that
the title to 160 acres of the 320 in Illinois failed through some
delinquent tax proceedings, and that George Oyster, as executor,
sold the other 160 acres, receiving therefor, it seems, the sum of
$1,800. Thus, at least $6,800 was paid on parcels 3 and 5 by the
equalization proceedings, leaving but $6,325 due to the estate for
those two pieces of property. This sum represents an asset of the
estate of Abraham Oyster, deceased. In the administration of his
executorship in Illinois and Pennsylvania, George Oyster received a
considerable amount of money, the exact amount not being
ascertainable from the present record, because he does not appear
to have made a final settlement of his executorship. That sum also
represents an asset of the estate. Likewise the amount received by
David K. from the sale of the personalty of the estate represents
an asset.
At the sale on November 15, 1869, certain lands (parcel 1) were
sold to strangers for $4,920. According to the evidence herein,
that sum was paid to George Oyster, and is therefore chargeable
against him as an asset of the estate. These assets are the portion
of the estate which, under the will and the modifying agreements,
was to be equally divided among the four
Page 140 U. S. 514
legatees. Again, running, through the long period of years since
the death of Abraham Oyster, considerable money has been paid out
for taxes, etc., both by George Oyster and David K., on property
belonging to the estate. We are not able from the present record to
ascertain the exact amounts paid by each.
There should therefore be an accounting between George Oyster
and David K. before there can be any exact settlement of the estate
as to them.
As respects Margaret Oyster and Margaretta, executrix, etc., we
are of the opinion that, as against David K.'s share in the estate,
they have no claim whatever. Although made defendants in this suit,
they did not defend, except to file a demurrer, which was
overruled, and they never answered. They have had their day in
court as regards David K. Oyster and his share of the estate, and
any claim which either or both could have asserted against him
cannot now be prosecuted.
It will be observed that we have not seen fit to determine the
legal effect of the will of Abraham Oyster or the modifying
contract of March 3, 1868. We have proceeded, rather, on the real
intention of the parties, as manifested by that agreement and the
subsequent oral agreements shown by the evidence to have existed.
Those agreements when made were fair to all interested, and having
been acted upon and acquiesced in by everyone concerned for a long
period, ought to the taken as the basis of the final
settlement.
It is certainly for the interest of all concerned that
litigation over this estate should cease. Nearly thirty years have
elapsed since the death of Abraham Oyster, and nearly the whole of
that period has been spent in litigation by his children over the
property disposed of by his will. Animosities have been engendered
by these proceedings, and a total estrangement now exists between
the brothers George and David K. Moreover, the title to a large
amount of valuable property has been in dispute all that time. The
interests of the community, no less than the interests of the
parties, require that there should be an end of litigation
respecting it.
Page 140 U. S. 515
The decree of the court below is reversed, with directions
to enter a decree enjoining the defendant George Oyster from
further prosecution of his suit in ejectment, and decreeing that he
convey to David K., for the term of his natural life, with
remainder over to his children, parcels 4, 6, 7, and the one-fourth
part of parcel 8, freed from all claim, lien, or encumbrance
whatsoever, and that he also convey in like manner the "saw mill"
property in La Grange and the "home farm," subject to any claim
which may be found due him from David K.'s share in the estate upon
a final accounting to be had of the matters between them. There
should be a reference to a master to ascertain the exact amount due
the estate from the administratorship of David K. and the
executorship of George Oyster; also the amounts of taxes, etc.,
paid by both of them, and the $1,250, due from David K. to George,
under the modifying agreements, should also be taken into
consideration, to the end that a full and final settlement between
them may be effected, and it is so ordered.
No. 134, between same parties, is supplementary to No. 133. The
case is this: after the decree of December 1, 1884, in No. 133 was
entered in the circuit court, to-wit, April 15, 1885, the
complainants filed a new bill containing substantially the same
allegations with respect to the resulting trust in George Oyster as
did the bill in No. 133, with certain others relating to an
accounting, and, seeking to enforce that same trust, the bill
prayed for an accounting with respect to the matters in difference
between them, and for a decree for the conveyance of the lands in
dispute to the complainants, subject to whatever lien might be
found to exist, if any, for any balance which might be found due
the estate from David K. Oyster on such accounting.
To so much of the bill as sought an enforcement of the resulting
trust George Oyster filed a plea in bar, setting up the former
adjudication in No. 133. At the argument on this plea, the case was
treated as if a demurrer had been filed to it, and it was held, MR.
JUSTICE BREWER (then circuit judge) delivering the opinion,
that
Page 140 U. S. 516
the plea was good, and the bill was dismissed. 28 F. 909. From
that decree of dismissal this appeal was prosecuted.
We are entirely convinced that the decree of the court below in
this case was correct. The merits of the questions relating to the
resulting trust in George Oyster were adjudicated by the circuit
court in No. 133 against the complainants, and so long as that
decree remained unreversed they were concluded by it. Those
questions were
res adjudicata in that court. As the
question of accounting was subsidiary to and dependent upon the
establishment of that resulting trust, it was proper to dismiss the
bill as to that feature of the case also.
It may be proper to add in this connection that the disposition
made by us of No. 133, above set forth, practically gives the
complainants all they seek in this supplementary case, and, as it
is clear that the real issues involved in this case are the same as
in No. 133, the decree herein is
Affirmed.