Opinion
Submitted May 20th, 1947.
Decided September 12th, 1947.
1. There was a valid gift causa mortis of the two mortgages here in question from deceased to complainants.
2. In order to overcome the presumption that a person's intentions correspond with his acts, mistake must be proved. Although mistake may be proved by circumstantial evidence, it should not be inferred from circumstances which may be explained with equal reasonableness on a contrary hypothesis.
On appeal from a decree of the Court of Chancery advised by Vice-Chancellor Bigelow, who filed the following opinion (unreported).
"The question is whether the defendants have proved that the late Mrs. Ella L.W. Smith of Suffern, New York, made a mistake in connection with two mortgages which she owned. On June 1st, 1943, she executed and acknowledged an assignment of one to the complainant Lydia R. Buchman, and an assignment of the other mortgage to the complainant Mae Tempel. The assignments she sealed in two envelopes addressed to the assignees and on one envelope, wrote:
"`Enclosed papers to be mailed to Lydia R. Buchman upon death of
Ella L.W. Smith.'
"On the other envelope, she wrote the same direction, but substituted the name of Mrs. Tempel.
"September of the following year Mrs. Smith was suffering from a heart ailment which caused her death before the end of the month. She was confined to her bed a great deal of the time, but was up occasionally. She was aware of the serious nature of her condition. About the 12th or 13th of the month, her husband, the defendant, Emmett V.B. Smith, had a talk with Mrs. Smith about the mortgages. He told her that if she died they would become part of her estate and that he would not dispose of them as she had planned. `My wife just smiled. She made no reply, and she said, "I guess I had better put the papers in bank."' The next Sunday, September 17th, Mrs. Smith handed to her niece, Miss Dorothy Smith, an envelope addressed to the Suffern National Bank and asked her to deliver it. Miss Smith did so the following morning. In the envelope were the two sealed envelopes containing the assignments. There were also in the outer envelope some money, an old check book and a list of household effects. The cashier immediately wrote Mrs. Smith:
"`We acknowledge receipt of envelope which you sent us with Dorothy Smith this morning. We opened a new checking account with the $360.00 cash and $36.85, total $396.85. The two envelopes have been placed in safekeeping and upon your death will be mailed as instructed. The stubs of your old check books are returned together with two pages of listed household dishes, etc. We believe these papers were not meant for us.'
"The cashier gave the letter to Miss Smith to take to her aunt, as well as a blank signature card for the checking account. After Mrs. Smith's death, the letter was found among other papers and documents in a bag in her bedroom. In the same place was a signature card filled in, but dated September 15th, and a piece of paper on which Mrs. Smith had written:
"`Sept. 15, 1944 National Bank of Suffern, N Y
Please give the following to Bearer. Thank you. New book in name of Ella L.W. Smith, with enclosed credited on it. Also key for a small the smallest you have deposit box and enclose these papers in it. Thanks.
ELLA L.W. SMITH 56 Park Place Suffern, N Y
Here is signature for Bank Book, Ella L.W. Smith. Also one one for Safety Box.'
"Ten days later, September 29th, 1944, Mrs. Smith died.
"Defendant argues that Mrs. Smith intended to have the assignments put in a safe deposit box which she meant to rent, and that she did not intend to deliver them to the bank as an agent either of herself or of the assignees. Defendant surmises that Mrs. Smith thought she was putting in the envelope which she addressed to the bank the note quoted above, but by mistake, in its stead, put into the envelope the list of dishes.
"The presumption is that a person's intentions correspond with his acts. Mistake must be proved. And while it may be proved by circumstantial evidence, it should not be inferred from circumstances which may be explained with equal reasonableness on a contrary hypothesis. It is possible Mrs. Smith wanted, on September 17th, the assignments to be placed in her safe deposit box for delivery by her administrator. It is just as likely that she had changed her mind and decided to entrust them to the bank for delivery. Then the cashier's letter informed her that the bank had the assignments and would make delivery. To this she made no objection. No mistake has been proved.
"There was a valid gift causa mortis. Meyers v. Meyers, 99 N.J. Eq. 560; Grymes v. Hone, 49 N.Y. 17; Williams v. Guile, 117 N.Y. 343; 22 N.E. Rep. 1071; Ridden v. Thrall, 125 N.Y. 572; 26 N.E. Rep. 627.
"Decree for complainants."
Mr. Richard H. Cashion, for the complainants-respondents.
Mr. Milton T. Lasher, for the defendant-appellant.
The decree appealed from will be affirmed, for the reasons expressed in the opinion of Vice-Chancellor Bigelow, filed in the Court of Chancery.
For affirmance — THE CHIEF-JUSTICE, BODINE, DONGES, HEHER, COLIE, WACHENFELD, EASTWOOD, BURLING, WELLS, DILL, FREUND, McGEEHAN, McLEAN, JJ. 13.
For reversal — None.