Opinion
6 Div. 400.
May 22, 1952. Rehearing Denied June 26, 1952.
Appeal from the Circuit Court of Jefferson County, Gardner F. Goodwyn, Jr., J.
Robert Giles, Ray Giles, Albert Boutwell and Wm. S. Halsey, Jr., all of Birmingham, for appellant.
There is a presumption of fraud, duress or undue influence arising from gross inadequacy of consideration, and where facts are pleaded and proved equity will grant relief. Finklea v. Perryman, 239 Ala. 450, 195 So. 551; Black v. Campbell, 217 Ala. 134, 115 So. 19. Transactions between husband and wife as here involved should be closely scrutinized, and upon the appearance of the slightest circumstance of suspicion the court should require of husband satisfactory proof that transaction was voluntary and well understood by wife. Manfredo v. Manfredo, 191 Ala. 322, 68 So. 157; McCollough v. McCollough, 237 Ala. 77, 185 So. 417. Mental and physical coercion is undue influence when exerted upon wife by husband to obtain conveyance, and she may invoke equity jurisdiction for cancellation. Ray v. Ray, 238 Ala. 269, 189 So. 895; Smith v. Smith, 243 Ala. 488, 10 So.2d 664. Deeds of separation are enforceable only if based on sufficient consideration, and are fair and reasonable and do not result from fraud or coercion. Kirkland v. Kirkland, 236 Ala. 120, 181 So. 96. The facts alleged disclose fraud or duress and are sufficient without setting up all evidentiary detail. Williams v. Williams, 238 Ala. 637, 193 So. 167; Best v. Best, 247 Ala. 627, 25 So.2d 723; Schwab v. Carter, 226 Ala. 173, 145 So. 450; Weaver v. Pool, 249 Ala. 644, 32 So.2d 765. Where fraud is perpetrated upon respondent to intimidate her and thereby prevent her making a defense to a simulated charge of adultery, it is extraneous to the proceeding, or extrinsic, and will support a bill in the nature of a bill of review. Miller v. Miller, 234 Ala. 453, 175 So. 284; Mudd v. Lanier, 247 Ala. 363, 24 So.2d 550. A contract made under duress is voidable. Royal v. Goss, 154 Ala. 117, 45 So. 231.
Norman K. Brown, Bessemer, for appellee.
An attorney has authority to bind his client in any action or proceeding, by any agreement in relation to such cause, made in writing, or by entry to be made on minutes of the court. Code 1940, Tit. 46, § 46. Bill to set aside judgment valid on its face, based on meritorious defense which defendant failed to present because of alleged fraud, accident or mistake, must show diligence on complainant's part and negative negligence in failing to present defense. McWilliams v. Martin, 237 Ala. 624, 188 So. 677; Leath v. Lister, 233 Ala. 595, 173 So. 59; Boothe v. Shaw, 214 Ala. 320, 107 So. 814. Fraud is not to be presumed when parties do not stand in fiduciary relations, and will not be imputed when facts and circumstances from which it is supposed to arise are fairly and reasonably consistent with honesty of intention. 1 Story Eq.Jur., § 190; Farrell v. Farrell, 243 Ala. 389, 10 So.2d 153. Husband and wife do not stand in fiduciary relationship in divorce proceedings, one against the other. Farrell v. Farrell, supra; Black's Law Dict. 2d Ed. 394.
The bill in this case, filed October 26, 1951, alleges the following in substance:
The parties were married November 16, 1920, and lived together as man and wife until September 14, 1951. Five children were born to them, the youngest being now above 20 years of age. At the time of their marriage neither party was possessed of any substantial estate, but by their joint efforts, to which complainant contributed materially until the failure of her health a short time prior to their separation, they accumulated varied properties and enterprises of a value in excess of $300,000, all of which respondent now owns, and from which he derives an annual income in excess of $40,000. Prior to the separation, complainant owned in her own right certain described real property, operated and known as Fox Tourist Court, valued in excess of $100,000, which, prior to failure of her health, she conducted and derived an annual income of approximately $12,000, which income she turned over to respondent.
In December, 1950, complainant's health began to fail; she was confined for a time in a hospital, and in May, 1951, on advice of her physician, she made a trip to Oregon, where she remained until August 15, 1951. Upon her return she learned that respondent had instituted suit against her on August 14th. Respondent entered upon and continued a course of threats and threatening conduct calculated to cause complainant grave apprehension that she would suffer death or great bodily harm at his hands. From this course of conduct exhibited toward her complainant was in actual fear of death or bodily harm at the hands of respondent, and she became convinced therefrom and verily believed that respondent would take her life and the lives of their children unless complainant promptly acceded to his demands for an uncontested divorce in his then pending suit, for a compromise of his obligation for alimony, for property settlement and for a conveyance to him of the property described as Fox Tourist Court for a consideration of $10,000. That respondent's threats that he would kill the children and complainant, unless his said demands were met, were made in the presence of various persons who subsequently communicated them to complainant. That such threats operated to produce in complainant's mind a conviction that it was necessary for her to accede to respondent's said demands in order to assure the safety of herself and her children. That as a result of such coercion complainant was induced to execute said settlement agreement by which she was to receive the sum of $10,000 in lieu of alimony and as consideration for a conveyance by complainant to respondent of her property; and that she was further induced to sign an answer and waiver in said divorce suit, whereby respondent obtained a decree of divorce and effectuation of said settlement agreement. It is further alleged that no ground in fact existed for the decree of divorce obtained by respondent; that the testimony submitted by respondent in support of his spurious allegations was false, pretended and perjured, and that complainant was prevented from making a proper defense by respondent's continuing and unremitting pressure, coercion and duress.
Appellant filed suit in equity against appellee, in the nature of a bill of review seeking to vacate a decree of divorce which gave effect to a separation agreement entered into between the parties. Demurrer was sustained to the bill, and complainant appealed.
Such a decree has two features: one, the divorce, and, two, the separation agreement. If either feature furnishes ground to vacate it, the effect ought to apply to the decree in all its features.
As to the divorce, it is thought that collusion is sufficiently alleged to that end and, therefore, to vacate the decree in all respects. We think that collusion is not shown by the allegations of the bill. The parties made a separation agreement, and appellant signed an answer denying the allegations of the bill alleging grounds for divorce, and also signed a waiver of further notice. Thereupon, on the same day, the court rendered the decree giving effect to the agreement. The bill does not allege that there was not sufficient evidence to support the decree; nor that there was an express or implied agreement that the truth be suppressed or that grounds for divorce be simulated, or that false testimony be procured. Bacon v. Bacon, 233 Ala. 482, 172 So. 632, 109 A.L.R. 830. The theory of collusion as affecting a decree was considered and analyzed in the Bacon case. See, Johnson v. Johnson, 182 Ala. 376, 62 So. 706; Ex parte Kay, 215 Ala. 569, 112 So. 147; Powell v. Powell, 80 Ala. 595, 1 So. 549; 27 C.J.S., Divorce, § 169, pages 812, 813. The bill is wholly insufficient to show such collusion as will operate to vacate the decree.
The second feature of the decree is that which gives effect to the separation agreement. The decree as a whole evidently resulted from that agreement. No active defense was interposed by reason of it. If it was obtained by duress or fraud, that infirmity should go to the decree as a whole, all being done at the same time and a part of the same transaction. Russell v. Russell, 247 Ala. 284, 285, 24 So.2d 124; Mudd v. Lanier, 247 Ala. 363, 24 So.2d 550; Stephens v. Stephens, 253 Ala. 315, 45 So.2d 153.
It is generally noted that such contracts must be fair, reasonable and just, free from fraud, duress or other coercion. Kirkland v. Kirkland, 236 Ala. 120, 181 So. 96; Rash v. Bogart, 226 Ala. 284, 146 So. 814; 42 C.J.S., Husband and Wife, § 593, page 170. The burden under such circumstances is controlled by principles which apply to other contracts between husband and wife, and affected by whether confidential relations have been severed. 42 C.J.S., Husband and Wife, § 593, pages 170, 173; Ray v. Ray, 238 Ala. 269, 189 So. 895.
The duress relied on is based on threats of personal violence and of death to herself and children. There were five children: all of whom were grown and perhaps able to take care of themselves if necessary. Duress is recognized as a ground upon which to support a bill to vacate a decree procured by it, 27 C.J.S., Divorce, § 169, page 812; 19 Corpus Juris 167, note 40; Johnson v. Johnson, supra, or a contract, Royal v. Goss, 154 Ala. 117, 45 So. 231; Hartford Fire Ins. Co. v. Kirkpatrick, 111 Ala. 456, 20 So. 651; Ray v. Ray, supra; Smith v. Smith, 243 Ala. 488, 10 So.2d 664. We think the bill is sufficient to withstand demurrer in so far as such attack is made. The elements of duress are defined in Hartford Fire Ins. Co. v. Kirkpatrick, supra; Lehman, Durr Co. v. Shackleford, 50 Ala. 437, 439; Embry v. Adams, 191 Ala. 291, 68 So. 20, L.R.A.1915D, 1118; Rice v. Henderson-Boyd Lumber Co., 197 Ala. 579, 73 So. 70; 17 C.J.S., Contracts, §§ 168, 172, pages 526, 527, 531.
Inadequacy of consideration is not of itself a ground to vacate a deed of conveyance. Stephenson v. Atlas Coal Co., 147 Ala. 432, 41 So. 301; McKee v. West, 141 Ala. 531, 37 So. 740; Houston v. Blackmon, 66 Ala. 559, 562; Judge v. Wilkins, 19 Ala. 765. But it is a material circumstance on the question of duress as alleged in the bill. Black v. Campbell, 217 Ala. 134, 115 So. 19; Finklea v. Perryman, 239 Ala. 450, 195 So. 551.
Although an attorney signed the contract with appellant, the bill does not show what connection he had with the transaction otherwise. He approved it as it states. But there is no allegation in the bill with respect to that. We think the detail of circumstances set up in the bill leading to the decree, including allegations of threats of physical harm and the fear thereby engendered, is sufficient to authorize a full investigation of the method of obtaining the decree, and to determine the truth of the allegations and the nature and effect of such threats as were made. The threats declared insufficient in the Johnson case, supra, furnish no precedent for present purposes.
A decree will be here rendered reversing that of the circuit court, in equity, and overruling the demurrer to the bill, and remanding the cause. Defendant is allowed thirty days in which to answer the bill.
Reversed, rendered and remanded.
LIVINGSTON, C. J., and SIMPSON and GOODWYN, JJ., concur.