Beerman v. Beerman

279 N.W. 449, 225 Iowa 48
CourtSupreme Court of Iowa
DecidedMay 10, 1938
DocketNo. 44155.
StatusPublished
Cited by6 cases

This text of 279 N.W. 449 (Beerman v. Beerman) 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
Beerman v. Beerman, 279 N.W. 449, 225 Iowa 48 (iowa 1938).

Opinion

Richards, J.

— This suit originated on August 15,1930, when plaintiff filed a petition in equity for the partitioning of a tract of 240 acres situated in section 16, township 88, range 26, in Hamilton county. Among the allegations in the petition were the following: That defendant Frank A. Beerman was owner of an undivided one-eighth share of said real estate; that on July 27, 1925, he executed to defendant First National Bank of Webster City a mortgage on his said share, and that the mortgage was a subsisting lien, held and owned by defendants W. A. Miller et al., as trustees of the waived assets of said bank. Original notice of the suit was served on appellant and other defendants. On November 7, 1930, defendant Frank A. Beerman filed a separate answer to the petition, admitting he owned a one-eighth share, but denying that the defendant trustees owned or held any mortgage which was a subsisting lien thereon. On November 20, 1930, the cause came on for trial, and a decree was entered in favor of plaintiff against all the defendants, including appellant, establishing the ownership of an undivided one-eighth share by Frank A. Beerman, and decreeing that the land be partitioned by sale, free and clear of any mortgage the bank or trustees might have or claim to have against the share of Frank A. Beerman, but that whatever such mortgage lien there might be upon said share should be a lien upon a one-eighth portion of the net proceeds of the sale of the land. The decree also provided that the case be continued for determination of the question, raised by the answer of defendant Frank A. Beerman to plaintiff’s petition, as to whether or not defendant bank or trustees held a mortgage on his interests. On September 21, 1935, appellant W. A. Miller, the then sole trustee, filed in the partition action a pleading designated as an answer, joinder, and counterclaim. Therein he alleged that Frank A. Beerman made the mortgage to the bank to secure a note; that by inadvertence and mutual mistake made in the drafting of the mort *50 gage the real estate was described therein as being in range 25, whereas it was intended by the parties to the mortgage to describe the land as being in range 26, west of the 5th P. M., Hamilton County, Iowa; that said note and mortgage were transferred to appellant as trustee of the waived assets of the bank following its closing. The prayer was that the mortgage “be reformed, by correcting the description of the real estate covered thereby to Range 26 in order to effect the true intention of the parties thereto,” and be decreed to be a lien. Upon the trial of these issues the district court held against the trustee, and he has appealed.

The appeal presents for our consideration the issues involved in appellant’s above-mentioned pleading, designated as an answer, joinder, and counterclaim. To that pleading answers were filed by the guardian ad litem of Frank A. Beerman, and later by himself, containing general denials and affirmative defenses, including payment, novation, and conditional delivery. These last-mentioned defenses have not been proven. Another defense, that appellant’s cause of action for reformation was barred by the statute of limitations and by laches, sustained by the trial court, requires discussion.

If there was a mutual mistake, it was made in July 1925. Appellant’s pleading seeking reformation was filed in September 1935. The original notice thereof was not served upon Frank A. Beerman until December 1935. If we reckon from the happening of the alleged mutual mistake, immediately after which happening it Avas within appellant’s rights to institute a suit, it is evident that appellant’s proceedings for reformation were not begun within the limited period of five years prescribed by subsection 5 of section 11007, Code 1935. But appellant makes objection to such manner of computing the five-year period, basing his objection on the claim that the period within which he could bring his action did not commence to run from the time the alleged mistake was made, but from the discovery of the 'mistake, on account of the provisions found in section 11010, Code 1935. It is important to note, however, that it is a part of appellant’s proposition that there was no duty or burden upon him to show when he discovered the mistake, in order to avail himself of the proAdsions of said section 11010, Avhich reads:

“11010. Fraud — mistake—trespass. In actions for relief *51 on the ground of fraud or mistake, and those for trespass to property, the cause of action shall not be deemed to have accrued until the fraud, mistake, or trespass complained of shall have been discovered by the party aggrieved.”

Directing attention to the question of the soundness of appellant’s proposition that the running of the statute was extended for his cause of action, without proof by him of the date of his discovery of the mistake, an examination of section 11010 reveals that it is a 'composite of successive enactments. The corresponding section in the Revision of 1860 reads as follows:

“Sec. 2741. (1660.) In actions for relief on the ground of fraud as above contemplated, the cause of action will not be deemed to have accrued until the discovery of the fraud by the party aggrieved.”

This statute had reference solely to certain actions for relief on the ground of fraud. In chapter 167 of the Acts of the 13th General Assembly this section 2741 of the Revision was repealed, and the following enacted in lieu thereof:

“Sec. 9. (Sec. 2741.) In actions for relief on the ground of fraud, and in actions for trespass to property, the cause of action shall not be deemed to have accrued until the fraud or trespass complained of shall have been discovered by the party aggrieved. ’ ’

While this statute added actions for trespass to property, it is to be noted that the word “mistake” had not yet appeared in the process of evolution of the present section 11010, and in Higgins v. Mendenhall, 51 Iowa 135, 50 N. W. 539, it was held that the legislation enacted by the 13th General Assembly did not affect the running of the statute of limitations upon a cause of action for relief on the ground of a mistake, though undiscovered by the party aggrieved. But in Code of 1873 we find an enlargement of the scope of the previous statute, that is, the word “mistake” was incorporated, the section in Code of 1873 reading as follows:

‘ ‘ See. 2530. In actions for relief on the ground of fraud or mistake, and in actions for trespass to property, the cause of action shall not be deemed to have accrued until the fraud, *52 mistake, or trespass complained of shall have been discovered by the party aggrieved.”

Before the word “mistake” was put into section 2530, Code 1873, the old law, as has been above noted, by reason of the generality of its terms, at the end of a fixed period barred any canse of action in which relief was sought on the ground of mistake. The old law contained no provision for relieving the misfortune of an aggrieved party by whom the mistake had not been discovered before the fixed period had run. The new statute, section 2530, Code 1873, changed the law. The change accomplished the deliverance of litigants, seeking relief on the ground of mistake, from the harshness of an undiscriminating application of the statute of limitations.

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Bluebook (online)
279 N.W. 449, 225 Iowa 48, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beerman-v-beerman-iowa-1938.