NEALE V. NEALES, 76 U. S. 1 (1869)

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U.S. Supreme Court

Neale v. Neales, 76 U.S. 9 Wall. 1 1 (1869)

Neale v. Neales

76 U.S. (9 Wall.) 1


1. In the absence of obligatory rules of court to the contrary, a court of equity, after a cause has been heard and a case for relief made out, but not the case disclosed by the bill, has power to allow an amendment of the pleadings on terms that the party not in fault has no reasonable ground to object to.

2. And this amendment will be allowed on a bill for specific performance, where the subject matter and general purpose of both bills is the same, and the contract, consideration, promise, and acts of part performance stated in the amended bill are stated with sufficient precision and are supported by proofs, taken under the original bill which entitle the complainants to the relief which they seek.

3. Equity protects a parol gift of land equally with a parol agreement to sell it if accompanied by possession and the donee, induced by the promise to give it, has made valuable improvements on the property. And this

is particularly true where the donor stipulates that the expenditure shall be made, and by doing this makes it the consideration or condition of the gift.

4. The principle applied in the case of an antenuptial parol promise by a father to give to a lady about to marry his son (an improvident person) a lot of ground, she promising at the time to lay out her own money in building a house upon it for the benefit of herself and family, and where possession was delivered and the house was so built, but the father refused to convey the lot.

5. In case of an alleged contract, by a father of this kind, reasonable certainty as to the fact and terms of it is all that equity requires.

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6. The breach of such a contract is not to be compensated by damages, nor is the purpose of the contract so answered. It is a case for specific performance.

Benjamin Neale and wife filed a bill in the court just named against John E. Neale, father of the said Benjamin, stating that, he, the father, was in 1858 owner of lots Nos. 16 and 18 in Washington; that at the time mentioned, he, the son, one of the complainants, was seeking the hand of Mary Hamilton, the other complainant, and his now wife, in marriage; that this intended marriage met with the approval and encouragement of the father, who, in promotion thereof, and as an inducement thereto, promised and agreed that if said marriage should be consummated, he would, in consideration thereof, convey one or a part of one of the lots owned by him to his son, and Mary, his intended wife, or to one of them, in fee, to the end that with money then belonging to, or expected to belong to the intended wife, they might erect thereon a dwelling house for their habitation and home; that confiding in the promise so made, and influenced thereby and partly in consideration thereof, the said Benjamin and Mary did intermarry in September, 1858; that at or immediately after the marriage, the said father, mindful of the promise he had made and with reference thereto, declared that he had given to his daughter-in-law, Mary, a lot in Washington on which to erect a dwelling house for herself; that shortly after the marriage, and in part performance of his agreement, he put his son and daughter, the complainants, in possession of the unimproved part of lot No. 18, that they accepted the possession and, with the consent of the father, erected thereon, with money belonging to the said Mary, and which was her separate estate, a dwelling house, at the cost of $5,000; that the said Mary consented to this application of the money belonging to her cheerfully, because it was understood between herself and her husband that the said ground, with the house, was to be conveyed to her and her heirs, or in trust for her and their use; that after the house was erected,

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the complainants, Mary and Benjamin, took possession of it with the knowledge and full approval of the father, who lived next door and had been cognizant of the erection, and in part superintended it, and with his knowledge and approval rented it to a Mrs. Degges; that the daughter-in-law received and applied the rents to her own uses, and that during the erection of said house and after its completion, the father often avowed his intention to execute and deliver a deed of the lot and premises to his daughter-in-law in accordance with his promise.

The bill further stated that in 1861, whilst the said husband and wife, complainants in the case, were temporarily absent from the City of Washington, the father, without their consent, took possession of the house, and had continued to occupy it ever since, against the wishes of the complainants; that even since taking possession of the house in the manner mentioned, he, the father, had promised to execute a deed for the property to his daughter-in-law, but had, when applied to, refused to make such deed; and the bill charged that the dwelling house and ground belonged in equity to said daughter-in-law, and that she was entitled to a conveyance thereof from the father, and to an account of the rents and profits thereof since he took possession of the same, and prayed that he might be accordingly ordered to convey to the complainant, Mary, and her heirs, or to someone in trust for her and their benefit, the said parcel of ground and premises, and to render an account of the rents during his occupancy.

The father, in his answer, admitted that in 1858 he was possessed as owner of the lots, and that the complainant, Benjamin, was his son, but denied that he was desirous that his son should be married to the said Mary and settled in life and promised to convey to the said Benjamin and Mary, or either of them, the lot if such marriage should be consummated, or that in consideration of any such promise on his part such marriage did take place, or that in part performance of such promise, he put the complainants in possession of such lot, or that confiding in such promise the

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complainants did enter upon and take possession thereof and proceed to erect a dwelling house thereon, as was alleged in the bill. He admitted that a dwelling house worth about $5,000 was erected by the complainant Benjamin on the ground; that he knew that the house was erected by the said Benjamin, who, after its completion, held the same until 1861; and he admitted that in July, 1861, during the absence of the complainants, he took possession of the house which had been abandoned by its tenant, and had since occupied it with his family.

The father denied further "that, after taking possession he promised, as alleged, to convey the ground, or that he so promised at any time," but admitted

"that after the marriage of complainants and in 1859, when the complainant, Benjamin, was about to receive certain moneys belonging to his wife from her guardian, he, the respondent, knowing that the habits of the complainant Benjamin were intemperate, and wishing to secure to his said wife and children the said moneys, and satisfied that the same would be in jeopardy if paid over to complainant Benjamin and by him used in business, consented, on the application of complainant Benjamin, to give him lot No. 16 in said square, provided he would allow the respondent, or his wife's guardian, to build with the said moneys a dwelling house thereon, and provided that the said moneys should not be paid into the hands of the complainant Benjamin, but should, for the said purpose, be applied and disbursed by the respondent or by the said guardian; that the complainant Benjamin agreed to these terms, provided the said described part of lot 18, instead of lot 16, was given, and to this change that the respondent assented, subject to the terms and conditions aforesaid; that under this agreement, the dwelling house was begun, but that the said conditions were wholly violated by the complainant Benjamin, who, without the knowledge or approbation of the respondent, received the said moneys from his wife's said guardian and used the same in his own business or otherwise, contrary to the agreement, disposed of same."

That the erection of the house having progressed as far as the first story, his son informed

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him that he, the son, would be disgraced and ruined if the work was stopped, and that he was without means to proceed further; that he, the father, then borrowed from one Mrs. Sears $2,008, for which he gave his note, in which his son joined, and that the note was secured by a deed of trust upon said described portion of lot 18, that this loan was paid over by him (the father) to the son, with the express agreement that it should be devoted to the erection of said dwelling house, and should not be otherwise disposed of; but that the agreement was violated, and the money used by the son in his business. That this debt was one of those due when the son failed in business, and was paid by him, the father, and the father averred that he never intended to give any part of lot 18 save upon the terms and conditions aforesaid, and that upon the violation thereof, he considered himself absolved from his said promise, and more especially so as his son was largely beyond the value of the house indebted to him.

The testimony, which was marked by some temper, was contradictory and conflicting, but the weight of it showed that the father did encourage the marriage of his son with Miss Hamilton, his now wife, one of the complainants. That he did promise to give the lot in question to her as a bridal present at the time and in furtherance of said marriage, it being understood that a dwelling house was to be built on it with her money. And that with the father's consent, and upon the faith of the promise made by him, a house was erected on the lot with the wife's money. That the house was, after its erection, rented out by the complainants as their property, with the consent of the father, and that the rents thereof were received by them and applied to the use of the wife, with like consent, down to a certain time when the tenants, becoming alarmed at the threatened invasion of the capital by the rebel army, abandoned the house, and when the possession of the father took place, his son and daughter-in-law being at the time in Maryland, from which state the latter originally came.

That the allegation of debt from the son to the father was not made out.

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The father, however, set up and endeavored to show that a part of the money expended in the erection of the said dwelling house was not the money of his daughter-in-law, but was, in reality, advanced by himself.

The evidence on this point showed that, the son having received from his wife's trustee enough to build the house, did not use it all in this way; but put about $2,000 of it into his business; that early in 1861 he failed, and made an assignment of his entire stock and effects, amounting to about $23,000, to his father, the appellant, upon secret trusts. The father testified that he himself paid the $2,008 borrowed from Mrs. Sears, from his own private funds; but the son testified, and in this he seemed to be supported by documentary and other evidence, that in making the assignment to his father, he made it subject to the prior payment of certain confidential debts, among which plainly was this one of $2,008, for which the lot was mortgaged to Mrs. Sears; and that it was paid out of the proceeds of the stock and effects assigned.

The cause being at issue and set down for hearing, was heard in the first instance upon the original bill, answer, and testimony taken thereunder, by the Supreme Court of the District of Columbia, and after it had been heard, and the proceedings had been read and considered, the said court, of its own motion, and without assigning any reason for their action,

"ordered that the complainants have leave to amend their bill filed in the cause on payment of costs, the amendment to be filed on or before the 15th of November, 1866."

The case was accordingly heard on an amended bill, which, instead of alleging that the father had promised to give the son or his wife the lot, alleged that he promised to give the lot to the wife, it being understood that she would allow her money to be expended in building upon it a dwelling house for herself and her heirs. On the amended pleadings, and on substantially the original evidence, the case was heard again, and a decree made that the father should make a deed to a trustee of the house and lot, for the sole use and benefit of his son's wife, freed from liability for the

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son's debts, or those of any other husband; and that he should account for the rents since the filing of the bill. From that decree the case was now here on appeal.

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