Botna Valley State Bank v. Greig

180 N.W. 301, 190 Iowa 155
CourtSupreme Court of Iowa
DecidedDecember 14, 1920
StatusPublished
Cited by4 cases

This text of 180 N.W. 301 (Botna Valley State Bank v. Greig) 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
Botna Valley State Bank v. Greig, 180 N.W. 301, 190 Iowa 155 (iowa 1920).

Opinion

Stevens, J.

í ekaot- non-error in refusing ported fraud. — The intervener alleged in his petition that he purchased the corn, with the land upon which it was grown, from Olive H. and A. H. Greig, on September 2, 1914, for an adefiliate consideration, before the levy of the writ Up0B com, and without notice thereof, Plaintiff, answering the petition of intervention, alleged that the pretended contract of purchase by the intervener was fraudulent, and for the express purpose of aiding the defendant A. H. Greig to defraud his creditors. After the former appeal and reversal, the intervener amended his petition in intervention, alleging that, on August 13th, the defendant A. H. Greig conveyed the farm upon which the corn in question was grown, without reserving same, to Olive H. Greig, his wife. In answer to this amendment, plaintiff alleged that said conveyance was voluntary, wholly without consideration, and for the purpose of hindering and delaying the creditors of A. M. Greig.

[157]*157The court submitted the question as to whether the corn was mature on August 13th, the date on which said conveyance was made, and also as to whether the corn was mature on September 2d, but did not submit either of the issues of fraud set up in the answer of plaintiff to the original petition in intervention, and an amendment thereto. The court did, however, instruct the jury that, unless the corn was, on the dates above named, so far matured that it no longer drew sustenance from the soil, it passed with the deed from A. M. Greig to his wife, and that, if it still drew sustenance from the soil on September 2d, it remained as a part of the real estate, notice to plaintiff was unnecessary, and intervener would be entitled to receive the proceeds of the corn which had, by agreement, been sold, and the proceeds deposited to await the outcome of this litigation.

The court further instructed the jury that, as the written contract between the defendant A. M. Greig and his wife and the intervener was not acknowledged and recorded, as required by Code Section 2906, it was invalid, as against the creditors of A. M. Greig without notice thereof at the time of the levy of the writ. No exceptions were taken by either party to any of the instructions given, and so far, therefore, as they submitted the issues to the jury, they must be treated as stating the law of the case. Neither did either party request instructions of the court. Appellant did, however, except to the failure and neglect of the court to submit the issues of fraud hereinbefore stated. These exceptions present the principal questions for review.

I. No direct evidence was offered upon the subject, but the facts and circumstances were sufficient to raise an inference that the conveyance of the farm by A. M. Greig to his wife, Olive M., was without consideration, and that he was at the time practically bankrupt. Whether the failure of the court to submit this issue to the jury was prejudicial to appellant depends upon the further question whether the evidence was sufficient to require the submission to the jury of the issue of fraud in the transaction between Olive M. and A. M. Greig and intervener.

The court peremptorily charged the jury that as, at the time the writ was levied, the written contract between the above-named parties was not acknowledged or recorded in the [158]*158office of the county recorder, it was immaterial whether it was entered into in good faith and without consideration, as it was, under Section 2906, supra, invalid, as against the creditors of Greig. It appears from the evidence that this contract was executed some time during the forenoon of September 2d, and that the writ was levied upon the corn on the afternoon of the same day. In reality, the only question of fact submitted to the jury w<as whether the corn covered by the attachment had, by ceasing to draw sustenance from the soil on August 13th, and again on September 2d, become personal property. So far as appears from the record, plaintiff, at the time the writ was levied, had such notice of the conveyance to Olive M. Greig of the premises upon which the corn was grown as was imparted by the record of the deed. This instrument prima facie conveyed title, and counsel for appellant practically concede that the crop was then drawing sustenance from the soil, and that, if the conveyance was valid, title to the corn passed to the purchaser. This being true, the transaction between the Greigs and intervener does not come within the provisions of Section 2906 of the Code. Plaintiff was not one of Olive M. Greig’s creditors; and, unless the transaction which she had with intervener was for the purpose of assisting to defraud the creditors of her husband, of which purpose intervener either had such knowledge or notice of such facts as should have put him upon inquiry, the contract was valid, and in all respects binding. Tenold v. Klimesh, 160 Iowa 410; Atkinson v. McNider, 130 Iowa 281; Witham v. Blood, 124 Iowa 695; Jones v. Hetherington, 45 Iowa 681; Lyons & Dickey v. Hamilton, 69 Iowa 47; Richards v. Schreiber C. & W. Co., 98 Iowa 422. It is not enough for an attaching creditor to show merely that the seller intended by the sale to hinder and delay creditors, but it must also be shown that the purchaser participated therein, or had knowledge of such facts as should have put him upon notice of the fraudulent purpose and intention of the seller.

While the law, as thus stated, is not referred to in the brief of counsel, their contention impliedly recognizes these principles. Upon the former appeal, after a careful review thereof, the court held that there was sufficient evidence of fraud in the [159]*159transaction between the Greigs and intervener to require submission of that issue to the jury.

The facts upon the second trial are different in several material respects from the facts as set out in our former opinion. It is true that the contract between the Greigs and intervener recites that the only incumbrance upon the farm is a mortgage of $17,000. So far as appears from the record, this statement was true at the time the contract was written. After the parties had come to terms, intervener and A. M. Greig went to Hastings, where Maria Greig lived, and paid a second mortgage of $4,500 held by her. This was on the same day, but before the contract was executed.

The contract before us specifically refers to the crop of corn in controversy. Further, the record discloses, without conflict, that the consideration expressed in the contract was about the fair market value of the land. It is true that the contract recites>that the consideration over and above the $17,000 mortgage was to be paid in cash, and that the only cash in fact paid was the mortgage held by Maria Greig. On the same day, intervener conveyed a livery barn and stock owed by him in Malvern to Olive M. Greig, in lieu of cash for the balance of the purchase price. The parties had a right to treat this property as cash, in making their contract, and the fact that they did so is no evidence of fraud. The payment to Maria Greig was by two checks signed by intervener, one of which, for $1,500, was made payable to A. M. Greig. No reason therefor is shown in the record, but it appears therefrom that the check Was indorsed by A. M. Greig and left with his mother, who later also indorsed her name on the back thereof, before payment. The evidence does not show that A. M. Greig received any part of this money.

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180 N.W. 301, 190 Iowa 155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/botna-valley-state-bank-v-greig-iowa-1920.