Stepp v. Frampton
Stepp v. Frampton
Opinion of the Court
Opinion by
John Stepp, plaintiff, resided at Tarentum; he had married twice, and by his first wife had a grown-up family of children, who had left home, married and were in business for themselves. By the second wife, he had two children, ten and twelve years of age, these with their mother constituting the family. Stepp, in the spring of 1891, was about seventy-five years of age; he was the owner of a considerable estate of personalty, an improved farm in Armstrong county, a valuable hotel property in Tarentum, and the property in which he lived. At this time, defendant made his acquaintance; he called at the house ostensibly for the purpose of selling him a cabinet organ; no sale was made, because Stepp was then the owner of one. But
The consideration for these assignments was partly paid to Frampton by Stepp, by assigning to him mortgages aggregating $12,000 on a hotel property in Tarentum. So far as we have thus narrated the facts, they are undisputed. Within fifteen days after the assignment of the mortgages, plaintiff filed this bill averring the assignment was obtained from him by false and fraudulent representations on part of Frampton, and praying it be canceled and the securities be redelivered to him. Defendant denied all the material averments of the bill and alleged that an agreement had been entered into between him and Stepp to develop the oil and gas territory, and the whole transaction was for the purpose of raising money to pay the expenses of the development. The case was referred to J. M. Stoner, Esq., as master to find facts, state his conclusions of law, and suggest decree. Much evidence was taken, some of it of a contradictory character. The master finds, however: 1. That the leaseholds of the oil and gas territory had no market value. That John Stepp was seventy-five years old, and had for two years previous been very infirm physically and mentally. 3. That the relation between Stepp and Frampton at the date of the assignment of the mortgages was of a confidential character.
His conclusion from all the testimony is, that the assignments were procured by fraud and undue influence practised by Frampton, and he therefore suggests a decree that they be canceled, and the securities redelivered to Stepp. His report was confirmed by the court below, and decree made accordingly, and now defendant appeals, assigning for error the master’s findings of fact and conclusions of law.
There was abundant evidence to warrant the master in find
And that is the principle announced by this court in Hetrick’s Appeal, 58 Pa. 477. The gross inequality of the bargain here startles the mind; when this is followed by evidence of physical and mental infirmity on part of the loser, and of a confidential relation between him and the gainer, the burden is on the latter to satisfy the chancellor that all was fair, open, voluntary and well understood. In this, as the master has found, defendant wholly failed. What we have said disposes of all appellant’s assignments of error. The decree is affirmed and appeal dismissed.
Reference
- Full Case Name
- John Stepp v. Alvin W. Frampton
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- 20 cases
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- Syllabus
- Contract — Fraud—Undue influence — Evidence—Burden of proof. When the relation existing between contracting parties appears to be of such a character as to render it certain that they do not deal on equal terms, but that on the one side, from overmastering influence, or on the other side, from weakness, dependence, or trust justifiably reposed, unfair advantage is rendered probable, then the transaction is presumed void, and it is incumbent upon the party in whom such confidence is reposed' to show affirmatively that no deception was used, and that all was fair, open, voluntary and well understood. On a bill in equity to secure the cancelation of the assignment of mortgages, it appeared that the plaintiff was a man seventy-five years of age, mentally and physically infirm. He had been an industrious farmer, and had all his life abstained from speculative operations. The defendant was a young man about thirty-five years of age and until about two years before the bill was filed had been an entire stranger to plaintiff. He ingratiated himself into such intimacy with the plaintiff that the latter consulted him in matters of the most confidential character, such as how to distribute his property among the members of his family, and made him an executor of his will, giving him large powers. The will was written by the defendant and under his advice. Subsequently plaintiff guaranteed notes on which defendant secured the money, and he gave an oil lease upon his farm to defendant. Shortly after the execution of this lease defendant assigned to plaintiff at various times interests in the lease and in other leases, and took from him an assignment of the mortgages in controversy in payment. The master and the court below found that the leases had no value; that plaintiff was mentally and physically infirm, and that the relation between him and defendant at the date of the assignment of the mortgages was of a confidential character. A decree was entered in favor of plaintiff. Held, that the evidence was sufficient to sustain the decree and that it should be affirmed.