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Smart Summary

Factual and Procedural Background

Emory S. Reynolds, deceased and the defendant's testator, was a childless widower and a close friend of the plaintiff, Frank B. Newell. Around March 1, 1918, Reynolds was seriously ill with pneumonia and expected to die. During this illness, he gave Newell a diamond ring by delivering it to him, intending to transfer its title. Reynolds recovered and lived for more than four years after the illness. The dispute centers on whether the ring was given as a valid gift inter vivos or as a gift causa mortis, which would be revoked by Reynolds' recovery. The case comes on appeal from the Supreme Court of Broome County.

Legal Issues Presented

  1. Whether the transfer of the diamond ring to the plaintiff constituted a valid gift inter vivos or a gift causa mortis.
  2. If the gift was causa mortis, whether Reynolds' recovery revoked the gift.
  3. Whether the evidence supports the trial court's finding that a gift inter vivos was intended despite the donor's apprehension of death at the time of the gift.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Curtiss v. Barrus, 38 Hun 165 Recovery of donor revokes gift causa mortis per se. Supported the principle that Reynolds' recovery revoked a gift causa mortis.
Grymes v. Hone, 49 N.Y. 17, 20 Recovery from illness revokes gift causa mortis. Reinforced the rule that a gift causa mortis is revoked upon donor’s recovery.
Williams v. Guile, 117 N.Y. 343, 348 Recovery revokes gift causa mortis. Confirmed the revocation rule applied to the facts.
Basket v. Hassell, 107 U.S. 602 Recovery revokes gift causa mortis. Federal precedent cited to support revocation on recovery.
Ridden v. Thrall, 125 N.Y. 572, 579-580 Recovery revokes gift causa mortis. Further New York precedent reinforcing the revocation upon recovery.
28 Corpus Juris, p. 622 Distinction between gift inter vivos and gift causa mortis based on donor's intent for immediate, irrevocable transfer. Guided the court in determining the nature of the gift by focusing on donor’s intent rather than mere expectation of death.
Hatcher v. Buford, 60 Ark. 169; 27 L.R.A. 507 Absolute gift inter vivos may be made by a donor aware of imminent death. Supported the proposition that a donor’s expectation of death does not preclude an inter vivos gift.

Court's Reasoning and Analysis

The court began by rejecting the characterization of the ring transfer as a gift causa mortis because the donor, Reynolds, recovered from his illness, which under established law automatically revokes such a gift. The court then considered whether the gift was instead an inter vivos gift. It acknowledged that a gift inter vivos can be made even if the donor is under the apprehension of imminent death, provided the donor intends an immediate, irrevocable transfer of title regardless of survival.

The court examined the evidence, including testimony from a nurse and other witnesses, indicating Reynolds intended for Newell to have the ring outright and unconditionally. Despite Reynolds’ subsequent possession and use of the ring after recovery, statements by Reynolds showed he regarded Newell as the true owner and considered himself merely a bailee. The court found that the presumption against an inter vivos gift was overcome by the evidence and that the trial court's finding of an inter vivos gift was supported.

Thus, the court concluded that title to the ring passed to Newell at the time of delivery during Reynolds’ illness, and Reynolds’ recovery did not revoke the gift.

Holding and Implications

The court's final decision was to affirm the judgment of the trial court, holding that the diamond ring was a valid gift inter vivos to the plaintiff.

The direct effect of this decision is that the plaintiff retains ownership of the ring. The court disapproved certain findings requested by the defendant but did not set any new legal precedent beyond affirming existing principles concerning gifts inter vivos and causa mortis. No broader legal implications were discussed.

FRANK B. NEWELL, Respondent, v. THE NATIONAL BANK OF NORWICH, as Executor, etc., of EMORY S. REYNOLDS, Deceased, Appellant.

COCHRANE, P.J.:

Emory S. Reynolds, the defendant's testator, was a childless widower. For many years he had been an intimate friend of plaintiff. About March 1, 1918, he was seriously ill with pneumonia and expected to die. He sent for the plaintiff and gave him a diamond ring the title to which is the question to be determined herein. He caused the ring to be delivered to plaintiff. The circumstances are described as follows by a nurse in attendance: "He told Mr. Newell why he sent for him that morning. He had everything seen to and was ready to go. Had all his affairs seen to with the exception of handing over the ring to him. He was ready to go, or ready to die, and that his other business was all straightened up." Mr. Reynolds recovered from his illness and lived more than four years thereafter.

Viewed as a gift causa mortis the gift cannot be sustained because it is well established that the recovery to health of the donor works per se a revocation of the gift. ( Curtiss v. Barrus, 38 Hun, 165; Grymes v. Hone, 49 N.Y. 17, 20; Williams v. Guile, 117 id. 343, 348; Basket v. Hassell, 107 U.S. 602; Ridden v. Thrall, 125 N.Y. 572, 579, 580.)

The trial court has found that there was a gift inter vivos. Such a gift may exist although at the time of making it the donor was under the apprehension of death. In 28 Corpus Juris (p. 622) the rule is stated as follows: "The test whether the gift is one inter vivos or one causa mortis is not the mere fact that the donor is in extremis, and expects to die, and does die of that illness, but whether he intended the gift to take effect in proesenti, irrevocably and unconditionally, whether he lives or dies." In Hatcher v. Buford ( 60 Ark. 169; 27 L.R.A. 507) it is said: "But it must not be forgotten that an absolute gift — one inter vivos — may be made by one upon his deathbed, and who is aware of the near approach of death from his then ailment. Thornton, Gifts Advancements (§ 21, p. 24) and authorities cited." There can be no doubt that the expectation of death is frequently the inducement for a gift inter vivos.

The question then is does the evidence sustain the finding that a gift inter vivos was intended. We approach that question with the rule in mind that the presumption is otherwise and that the burden is on the plaintiff to establish such a gift. We have already alluded to the testimony of the nurse. There is also some testimony given by her tending to show that the testator wanted the plaintiff to have the ring regardless of whether the testator lived or died. It clearly appears that after the restoration of the testator to health plaintiff did not want to wear the ring and was willing to return it to the testator for his use as long as he lived. He so expressed himself orally and by letter. The testator was equally insistent that plaintiff should retain the ring. Finally several months after he got well the testator summoned a witness to the office of plaintiff and speaking to this witness in the presence of the plaintiff said: "Frank [plaintiff] wants me to wear this ring, but I don't think I should do it. I gave him that ring and I want him to have it, but he insists upon my wearing it now that I am able to be around again. Under only one consideration will I agree to wear it and I want it thoroughly understood that this ring belongs to Frank and when I die I want it understood that it belongs to him and that he shall have it." Thereafter the testator had the ring in his possession and wore it until his death. Other witnesses testify to substantially the same statement at different times by the testator. The transaction in the office of the plaintiff is insufficient to constitute a gift to him by the testator because it left the donor in possession of the property, but we think it reflects the mental attitude of the testator at the time when during his illness he delivered the ring to the plaintiff. He had no near relatives. The most of his property at that time had been willed to charitable purposes as the evidence discloses. His business and social relations with plaintiff were very intimate. The circumstances surrounding the transaction and his attitude thereafter and subsequent declarations indicate quite clearly that when during his illness he gave the ring to the plaintiff he did so irrespective of whether he lived or died, although at the time he was apprehensive of death. If that was his purpose, absolute title then vested in the plaintiff and the subsequent possession and use thereof by the testator was that merely of a bailee. We think the findings of the trial court are fairly sustained by the evidence.

The judgment should be affirmed, with costs.

Judgment unanimously affirmed, with costs. The court disapproves the eighth and thirteenth findings contained in the defendant's requests for findings.

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NEWELL v. NATIONAL BANK OF NORWICH
(Nov 12, 1925)