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Smart Summary

Factual and Procedural Background

The plaintiffs, children and heirs-at-law of John Witherspoon and his wife Elizabeth, brought a civil action to recover a tract of land known as the "Elk Farm" tract. The dispute arose from an alleged agreement between John Witherspoon and his wife Elizabeth: if Elizabeth would join in conveying the "Calloway tract," which had descended to her from her father, John Witherspoon would purchase and substitute the Elk Farm tract for her. John Witherspoon took title to the Elk Farm land in his own name without mentioning the agreement, which was not in writing. After John’s death, his administrator sold the Elk Farm tract to pay debts, and the plaintiffs sought to assert their claim to the Elk Farm as heirs of Elizabeth, free from their father's debts. The defendants denied the allegations and invoked the Statute of Frauds as a defense.

Legal Issues Presented

  1. Whether John Witherspoon entered into an agreement with his wife Elizabeth that if she conveyed the Calloway tract, she would receive the Elk Farm tract as a substitute and in lieu thereof as her own land.
  2. Whether there was a note or memorandum in writing of the alleged agreement signed by the party to be charged.
  3. Whether the consideration paid for the Calloway land was received by John Witherspoon and used by him to pay for the Elk Farm tract.

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
Smith v. Smith, 60 N.C. 581 Distinction between specific performance of a contract between husband and wife and enforcement of proceeds from sale of wife's land; statute of frauds considerations. The Court distinguished this case from Smith v. Smith, holding that plaintiffs sought not specific performance but to have the land descend to them free of debts, enforcing a constructive trust and recognizing the wife's equitable rights.
German v. Clark, 71 N.C. 419, 423 This precedent was cited but the specific rule or application is not detailed in the opinion. This case was cited among others supporting the Court’s reasoning regarding trusts and equitable rights between spouses.
Dula v. Young, 73 N.C. 69 Not specifically elaborated in the opinion. Cited as part of the body of law supporting the Court's conclusions.
Gulley v. Macy, 81 N.C. 364 Not specifically elaborated in the opinion. Included in the list of authorities supporting the Court's reasoning.
Cunningham v. Bell, 83 N.C. 330 Not specifically elaborated in the opinion. Referenced as precedent consistent with the Court's view.
George v. High, 85 N.C. 101 Not specifically elaborated in the opinion. Part of the cited authorities underpinning the Court’s decision.
Hackett v. Shuford, 86 N.C. 150 Not specifically elaborated in the opinion. Cited as supporting precedent.
Cade v. Davis, 96 N.C. 142 Not specifically elaborated in the opinion. Included among authorities cited.
Brown v. Mitchell, 102 N.C. 373 Not specifically elaborated in the opinion. Referenced in support of the Court’s equitable principles.
Battle v. Mayo, 102 N.C. 439 Not specifically elaborated in the opinion. Part of the cited case law.
Woodruff v. Bowles, 104 N.C. 208 Not specifically elaborated in the opinion. Cited as precedent consistent with the decision.
Osborne v. Wilkes, 108 N.C. 667 Not specifically elaborated in the opinion. Included in the list of supporting cases.
Blake v. Blackley, 109 N.C. 264 Not specifically elaborated in the opinion. Cited as part of the authoritative background.
Faggart v. Bost, 122 N.C. 519 Not specifically elaborated in the opinion. Referenced among the precedents.

Court's Reasoning and Analysis

The Court found that the trial judge's instruction to the jury—that the plaintiffs were not entitled to recover under any circumstances and that any favorable verdict would be set aside—was prejudicial and undermined the jury's role. Despite this adverse charge, the jury found that the agreement between John Witherspoon and his wife Elizabeth existed as alleged. The Court recognized that the legal estate of the husband and the equitable estate of the wife had merged in the plaintiffs, the heirs, so the Elk Farm tract was properly theirs.

The Court held that the money received by John Witherspoon from the sale of the Calloway tract was held in constructive trust for Elizabeth, creating an equitable obligation on his estate. This trust arose from the relationship and agreement between husband and wife, and was enforceable notwithstanding the Statute of Frauds, as the wife was not a volunteer but had parted with valuable consideration. The Court distinguished this case from Smith v. Smith, emphasizing that the plaintiffs sought to enforce their equitable rights to the land descended to them, rather than specific performance of a contract.

Because the Elk Farm tract was sold by the administrator to pay debts, but the sale was not yet confirmed and was made without prejudice to the plaintiffs’ claim, the Court declared that the plaintiffs were entitled to the land free from the debts of their father’s estate.

Holding and Implications

The judgment of the Superior Court was reversed and the case remanded.

The Court held that the plaintiffs, as heirs of Elizabeth Witherspoon, are entitled to the Elk Farm tract free from the claims of their father’s creditors. This ruling enforces an implied trust arising from the agreement between husband and wife and protects the equitable rights of the wife’s heirs against the debts of the husband’s estate. The decision does not establish new precedent but applies established principles of constructive trust and equitable relief in the context of spousal property agreements and the Statute of Frauds.

SARAH H. DULA AND ANOTHER v. ZEPHANIAH YOUNG AND C. W. CLARK, ADM'RS., c.

It is prejudicial to the rights of the plaintiffs, for the presiding Judge on the trial below, to charge the jury that "the plaintiffs are not entitled to recover in any event, and if the issues were found in their favor, he would set aside the verdict," and afterwards to submit the issues to be passed upon by the jury to "say how the matter was."

Where there was an agreement between a husband and wife that if the wife would join him in a conveyance of a certain tract of land descended to the wife from her father, she should have another tract in lieu of the one so conveyed: Held, that when the husband received the money for the land conveyed as before set out, he held it upon trust for his wife, and that his estate became responsible therefor.

Held further, that the heirs at law of the wife are entitled to the land agreed to be substituted for that of the wife, free from the incumbrance of the husband's debts.

The plaintiffs, children and heirs-at-law of John Witherspoon, the intestate of the defendant, Clark, and his wife Elizabeth, allege (451) that in 1842, their ancestor John was seized, in right of his wife, of a tract of land, known as the "Calloway tract," which he sold, and in order to obtain the consent of his wife to the sale, agreed, if she would sign the deed conveying the Calloway tract, that he would purchase for her the Elk Farm tract, which should be substituted for the other, which had descended to her from her father. John Witherspoon took the deed in his own name, not mentioning or in any manner attending to the agreement with his wife, which was not reduced to writing. Upon his death, his administrator, the defendant Clarke, sold the Elk Farm tract, with his other real estate, to pay debts, and Young, the other defendant in this action, became the purchaser. The plaintiffs demand that this agreement between their father and mother should be set up; and that the Elk Farm tract should be declared to be their property, as heirs of their mother, and not subject to the payment of their father's debts.

The defendants deny the material allegations of the plaintiffs' complaint, and rely upon the Statute of Frauds to prevent their recovery.

On the trial the following issues were submitted to the jury:

1. Did John Witherspoon enter into an agreement with his wife, Elizabeth, that if she would convey the Calloway tract of land, and join him in a deed therefor to Prudence Calloway, the heir-at-law of William Howard, that she should have the Elk Farm tract, (the same sought to be recovered in this action,) as a substitute and in lieu thereof, as her own land?

2. If such agreement was made, was there any note or memorandum in writing of the same signed by the party to be charged therewith?

3. Was the consideration paid for the Calloway land to John Witherspoon, and used by him in the payment of the Elk Farm tract?

There was evidence tending to prove that the contract of the sale of the Calloway land by John Witherspoon and his purchase of the (452) Elk Farm land was at the same time. The dates of the deeds were as follows: the deed of the Elk Farm land is dated in February, 1841; the deed given by himself and wife for the Calloway tract is dated in 1848, a suit concerning the latter pending between those dates.

It was conceded by plaintiffs that there was no evidence of any contract in writing, and the jury might find that issue for defendants.

After the evidence had been submitted and the argument closed, the Court informed the jury that the plaintiffs were not entitled to recover in any event; and if the issues were found for the plaintiffs, he would set aside the verdict. Afterwards his Honor said to the jury, that they could take the issues and pass upon them, and say how the matter was. Thereupon the jury returned a verdict finding the first issue in favor of the plaintiffs and the second and third in favor of the defendants.

The plaintiffs then asked for a new trial on the third issue, because the Court had intimated how the jury should find the first which motion was refused The plaintiffs then requested that the Court would declare the rights of the plaintiffs on the facts admitted and the finding of the jury. The Court refused, intimating that the plaintiffs were entitled to no relief of any sort. Plaintiffs appealed.

SETTLE, J.

We do not think that the plaintiffs have had fair measure. After the evidence had all been submitted and argued to the jury, the Court told the jury "that the plaintiffs were not entitled to recover in any event, and if the issues were found for the plaintiffs he would set aside the verdict." Afterwards the Court said, "the jury can take the issues and pass upon them and say how the matter was."

This manner of submitting the issues was calculated to throw the jury off their guard and to prejudice the rights of the plaintiffs.

(453) Why consider the evidence with that care and attention which properly belongs to all jury trials, if their findings are to have no weight with the Court, but are to be set aside in any event?

But even under this unfavorable charge, the jury have found that "that John Witherspoon did enter into an agreement with his wife Elizabeth, that if she would convey the Calloway tract of land, and join him in a deed therefor to Prudence Calloway, the heir-at-law of William Howard, that she should have the Elk Farm tract (the same now in suit) as a substitute and in lieu thereof, as her own land."

And now John Witherspoon and his wife Elizabeth both being dead, the Elk Farm has descended to the plaintiffs in this action, who are the heirs-at-law of both the said John and the said Elizabeth.

By act of law the legal estate of the father and the equitable estate of the mother have united in their children and heirs-at-law, so that the lands are now just where they would have been had everything been done which ought to have been done; that is, if the Elk Farm had been settled upon the wife in lieu of her Calloway lands. When John Witherspoon received the money for the Calloway lands, he held it upon trust for his wife, and his estate became responsible to her for that amount.

This was a constructive or implied trust, such as is raised between persons who are brought together into a relation implying confidence, and is embraced by the statute of frauds. The authorities cited on the argument by Mr. Smith, and many other cases, show that the Courts will enforce parol agreements between the husband and wife, especially when the wife is not a mere volunteer. The demand of Elizabeth Witherspoon did not rest upon the moral duty or voluntary bounty of her husband, but having parted with her own lands, she was entitled to say, I have paid valuable consideration, there has been the (454) utmost good faith on my part, and, like any other creditor, I must have money or property sufficient to pay my debt.

The case most relied upon by the defendants' counsel to defeat this view is Smith v. Smith, 60 N.C. 581; but the plaintiffs here are not seeking to have a specific performance, as in that case, so as to be met by the statute of frauds, but the law having cast the descent upon them, in Confederate phrase, they only "wish to be let alone."

While it was held in Smith v. Smith, that the wife was not entitled to a specific performance of the contract between herself and husband, yet the Court says, "We think the wife is entitled under the contract to the proceeds of her land which was sold in consequence of it, subject to the interest which her husband, as such, had in the land, * * * So far as it entitles her to the money for which her land was sold, the contract must be considered in this Court as having been executed at the time when the price of the land was received by her husband."

The pleadings show that the Elk Farm has been sold upon the petition of the defendant Clarke, the administrator of John Witherspoon, to pay debts, and that the sale has been reported to Court, but that it has not been confirmed, "and that the order of sale was made without prejudice to the plaintiffs' claim."

We declare our opinion to be, that the plaintiffs are entitled to the lands in controversy, free from the demands of Clark, the administrator, and all who claim under him.

Let this be certified, to the end that the Superior Court may proceed according to law.

Judgment reversed and case remanded.

PER CURIAM. Judgment reversed.

German v. Clark, 71 N.C. 419, 423; Dula v. Young, 73 N.C. 69; Gulley v. Macy, 81 N.C. 364; Cunningham v. Bell, 83 N.C. 330; George v. High, 85 N.C. 101; Hackett v. Shuford, 86 N.C. 150; Cade v. Davis, 96 N.C. 142; Brown v. Mitchell, 102 N.C. 373; Battle v. Mayo, 102 N.C. 439; Woodruff v. Bowles, 104 N.C. 208; Osborne v. Wilkes, 108 N.C. 667; Blake v. Blackley, 109 N.C. 264; Faggart v. Bost, 122 N.C. 519.

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DULA v. YOUNG
(Jan 1, 1874)