Anderson v. Engwall

167 Iowa 457
CourtSupreme Court of Iowa
DecidedNovember 27, 1914
StatusPublished

This text of 167 Iowa 457 (Anderson v. Engwall) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. Engwall, 167 Iowa 457 (iowa 1914).

Opinion

Preston, J.

1. Judgments : liens upon real Gdtd.tt • SJtlS" faction. The property in controversy consists of three acres in the town of Altoona, Polk county, and is referred to in the record as the city property. Plaintiff purchased the property of one L. E. Sampson, and paid for . . * it. The defendant had a judgment against Sampson, and caused an execution to issue and be'levied upon the three acres in controversy. Sampson owned the city property at the time the defendant obtained judgment against him. Sampson owned farm land near Altoona, which had been conveyed by him to one Hextell in trust prior to the date upon which defendant obtained his judgment. Plaintiff was then claiming that the judgment was not a lien upon the land because of the trust deed. Plaintiff does not deny that defendant’s judgment was at one time a lien upon the property she purchased, but says it is not now a lien, because, as she alleges, that one Hextell was chosen by Sampson trustee for certain lands and property of said Samp[459]*459son, and that said trustee did, in fact, pay to the defendant’s attorney the amount of the judgment, interest, attorney’s fees, and costs, and that defendant applied some of the money to the payment of costs, and applied the balance on other claims, and released from the lien of said judgment the other lands of Sampson, knowing at the time of said release that plaintiff had purchased the premises and paid therefor.

The claim of the defendant is that on April 9, 1913, the date when this controversy arose, in addition to his judgment he had an open account against Sampson, consisting of a note of about $125, not yet due, and an open running account of about $11, making a total of $136; that on April 9, 1913, Hextell made a payment to defendant of about $127, which payment was made upon the express understanding and agreement between defendant and Hextell that the same was to be used, first, in paying the costs of $10.65 due on the judgment, and the balance was to be applied towards the payment of the open account, and that no part of said sum was to be used in paying off the judgment, except the item of $10.65 costs; that by reason of said agreement defendant was not bound or obligated to apply any of the money so paid upon said judgment, except the item of costs before stated, and that the said judgment and the lien created against said city property should be in no way affected by said transaction.

Prior to the time this controversy arose, Sampson was a man of considerable property, owning farm lands in Polk county, city property in Des Moines and Altoona, besides owning considerable real estate outside of Iowa. On and prior to June 20,1912, Mr. Sampson was heavily indebted to numerous creditors, one of whom was the defendant, and on that date Sampson deeded a part of his real estate to Mr. Hextell, who agreed to act as trustee for the property deeded to him, agreeing to sell it, pay off the incumbrances, and pay the proceeds to certain parties named in a trust agreement executed by some of the larger creditors, Sampson, and Hextell. The three acres of land in controversy was not conveyed to the [460]*460trustee, but was still held by Sampson until sold by Mm to plaintiff March 27, 1913. It appears that Sampson also had personal property, and it is not shown that this was turned over to Hextell, the trustee. Defendant’s judgment was rendered July 31, 1912, some two or three weeks after the trust deed yas executed. The defendant at no time agreed to the trust arrangement and did not participate in any of the meetings of the creditors. The trust arrangement was not under any statute, and it is insisted by defendant that it was not in effect a general assignment for the benefit of all creditors.

The three-acre tract in controversy sold for $900, and was worth more than defendant’s judgment. The evidence is undisputed that on April 9,1913, Mr. Hextell came to defendant and told him that he would pay $127.94, which was about the amount of the judgment, with interest and costs, provided defendant would satisfy said judgment in full and, in addition thereto, execute a quitclaim deed, quitclaiming and releasing any and all right that defendant might have in the farm property which had been conveyed to and was held in trust by Hextell. Defendant told Hextell that he would accept the same in full satisfaction of the judgment, or that Hextell could go to the clerk and pay it there and satisfy the judgment, but refused to execute a quitclaim deed covering the farm property. Defendant knew that his judgment was a lien against the three acres in question, and informed Mr. Hextell that so far as the judgment was coneerned.it was absolutely secure because of this lien. Hextell was also informed by defendant that he was contemplating making an effort to collect the open account by instituting an attachment ease, and expected to attach the farm property held by Hextell under the trust deed or garnishee the trustee.

After the defendant refused to execute a quitclaim deed, Hextell agreed to pay defendant the amount of the check which he had prepared and brought with him, and that defendant might apply all of said sum on his open account against Sampson, except that $10.65 of said money should be used in [461]*461paying the costs on the judgment, provided defendant would execute a quitclaim deed covering the farm land. Defendant accepted that proposition and accepted the money and executed a quitclaim deed covering the farm land, paid the costs of the judgment, amounting to $10.65, and the balance, $117.29, was applied upon the open account, according to the agreement. The check, as first presented, contained an indorsement that it was to satisfy the judgment; but when defendant refused to accept it in that manner a new check was made, without such indorsement. Hextell insisted that the costs in the judgment, amounting to $10.65, should be paid, and this was finally assented to by defendant. Thereafter the owner of the property in controversy refused to pay the judgment, and execution was taken out and a levy made on such property, when this action was brought.

The situation, then, on April 9, 1913, when the payment was made by Hextell to defendant, was that the city property stood in the name of Sampson, against whom defendant had v judgment. The city property was never conveyed to any trustee. Defendant was not consulted about the trust agreement until after it was made, and he at no time thereafter signed the trust agreement, nor did he ever consent to it. At the time defendant obtained his judgment he had the open account against Sampson outstanding and unsecured, and at the date of the judgment Sampson had standing in his own name certain real estate, including the three-acre piece in Altoona, so that the judgment became a valid lien against the city property on that date, July 31, 1912. As before stated, Sampson sold the property to plaintiff after the judgment was obtained.

It seems that prior to April 9, 1913, Mr. Hextell, the trustee, had contracted to sell the Polk county farm land, but the purchaser was insisting that a quiclaim deed be procured by Hextell from the defendant. In fact, the purchaser wanted Hextell to obtain quitclaim deeds from all Sampson’s creditors, and he had obtained quitclaim deeds from other creditors [462]*462of Sampson. As stated, after some negotiations, the agreement was made on April 9th between defendant and Hextell that defendant would execute a quitclaim deed as to the farm land if he were paid the amount of the check and it was applied according to the agreement.

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167 Iowa 457, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-engwall-iowa-1914.