McGrath v. McGrath

Hammond, J., delivered the opinion of the Court. This should be the final round between a divorced couple in the running settlement of differences that have arisen since their estrangement. The wife appeals from a decree on a bill of the husband that (a) annulled, and expunged from the land records, an assignment .to her from him of his one-half interest as purchaser of real property under a contract, and (b) made him a trustee of that one-half interest for their equal benefit. The couple were married in 1922.

He is a lawyer who had practiced in Prince George’s County and the District of Columbia. She acted as his secretary for much of his professional life. They had accumulated several parcels of real estate which they held jointly — the home in Seat Pleasant in which they lived, a farm in upper New York, and an office building in Capitol Heights. In 1946 the husband and another man bought, under contract, with time payments, a parcel of ground known as the “ball park.” Each owned a half.

In August of 1949 disagreements arose between husband and wife, and his health deteriorated so that his doctor advised him to give up the practice of law and take a rest cure on the New York farm. The couple agreed to disagree and arranged a division of property. The wife was deeded the home property, and the husband the New York farm, with appropriate releases of dower. Apparently nothing was then said about the ball park property.

The husband went to New York and the wife remained in Maryland and took charge of the law office. The deeds were prepared by the wife and sent to the husband in New York; he signed them and returned them to Prince George’s County, where they were notarized by one Albert Goldstein, a druggist whose place of business was across the street from the law office. In November, 1949, the husband came back to Maryland to resume the practice of law and a discussion took place as to the office building and the ball park lot. He says title to the building was supposed to have been transferred to him under the agreement of ⁴⁴⁵ August, 1949.

She says that it was not but that she was willing for him to have it if he assigned to her his half interest in the ball park property. She says further that he agreed to this and that on November 22, 1949, the necessary papers were signed, acknowledged and delivered by him, including an assignment to her outright of the ball park property. The husband told the chancellor that his wife, who was quite competent to do so, always drew deeds and assignments for him and that he then checked them before they were used. He testified that after he had signed the assignment, under seal, but before he had acknowledged or delivered it, he realized that, as drawn, it gave his wife his entire interest rather than a half of his half, as he wished and intended, and for this reason he put it in his desk, until he could give it further thought.

Soon after, the couple were reconciled, and lived together as husband and wife until 1954. They restored all their properties, except the ball park lot, to joint ownership. He says that he did not think any more about the assignment until they were about to separate again — this time for good — • when his wife told him that the property belonged to her. He then found out that the assignment was witnessed by her sister, purportedly acknowledged before Mr. Goldstein (described by the chancellor as “the rather accommodating notary”, and one with “apparent unlimited accommodation in these matters”) and recorded among the land records of Prince George’s County.

The monthly payments due under the contract of sale were made from funds of the husband or from funds in a joint account from the time it was signed until 1954. After the final separation, the wife made the payments. In early 1956 the couple were divorced and shortly after, the bill of the husband to void the purported assignment and have him declared trustee for both of them was filed and heard. The chancellor found that the