Brooks, Inc. v. Brooks

201 N.W.2d 128, 86 S.D. 676, 1972 S.D. LEXIS 161
CourtSouth Dakota Supreme Court
DecidedOctober 3, 1972
DocketFile 10875
StatusPublished
Cited by9 cases

This text of 201 N.W.2d 128 (Brooks, Inc. v. Brooks) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brooks, Inc. v. Brooks, 201 N.W.2d 128, 86 S.D. 676, 1972 S.D. LEXIS 161 (S.D. 1972).

Opinions

WOLLMAN, Judge.

This is an appeal from a judgment of the circuit court of Minnehaha County dismissing plaintiff's action to reform a deed and to enforce an agreement for the sale of certain real property.

Sometime during the 1920's, Daniel F. Brooks and David A. Brooks, brothers, began to operate a farm machinery business as equal partners in Sioux Falls, South Dakota. In 1940, the two brothers purchased from the Connecticut General Life Insurance Company 160 acres of real property in Minnehaha County, South Dakota. Title to the property was conveyed by special warranty deed to "Daniel F. Brooks and David A. Brooks, as joint tenants with right of survivorship.” Thereafter during the 1940's the two brothers purchased as tenants in common approximately 240 additional acres of real estate in Minnehaha County, nearly all of [678]*678which was contiguous to the property here in dispute, together with certain real property in Potter County, South Dakota, and in Wibaux County, Montana.

The farm machinery business was discontinued by the brothers in 1952, but they retained all of their real estate holdings for the remainder of their lives. They managed equally and divided equally the profits from their machinery business and land holdings during their lifetimes, including the land in question.

David A. Brooks died on February 9, 1963 at the age of 82. A Sioux Falls bank acted as the executor of his estate and as the trustee of two trusts created by his last will and testament. Included in the probate of David's estate was a one-half interest in all of the real estate acquired by the brothers during their lives, including the 160 acres in question. This one-half interest in the realty was distributed to the two trusts, one of which was established for the benefit of David's widow, Mary Brooks, and the other for the benefit of David's four surviving children.

After the death of Mary Brooks in 1967, the four children succeeded to all of the one-half interest in the real estate which had been included in David's estate. The four children formed a corporation, Brooks, Inc., plaintiff and appellant herein, to hold their interest in the real estate.

Daniel F. Brooks died on June 17, 1969 at the age of 91. During the six-year period from David's death in 1963 until his own death in 1969, Daniel F. Brooks maintained and acknowledged that all of the real estate in which he and his brother had an interest was owned one-half by himself and one-half by the estate of his deceased brother David. Daniel at no time claimed sole ownership of the disputed property as a surviving joint tenant. He attempted on several occasions to sell his one-half interest in all of the South Dakota real estate, including the disputed property, to David's beneficiaries, the holders of the other one-half interest.

After Daniel's death in 1969, his widow, Elma I. Brooks, signed, as the successor in interest to Daniel F. Brooks in the real es-[679]*679tote holdings, a "Real Estate Buy and Sell Agreement" agreeing to sell her interest therein to plaintiff. It was in conjunction with this transaction that it was first discovered by the parties that legal title to the 160 acres here in question had been conveyed to Daniel F. Brooks and David A. Brooks as joint tenants and not as tenants in common. As a result, Elma I. Brooks refused to convey her interest in the real estate and this lawsuit followed.

There is a presumption that a written instrument was carefully prepared and executed, that the parties knew and understood its contents, that it is clear, that it truly embodies and expresses the intention of the parties, and that it speaks the final and entire agreement or contract of the parties. 76 C.J.S. Reformation of Instruments § 82(a), p. 447; 45 Am.Jur., Reformation of Instruments, § 112, p. 649. The fact that a deed was taken in joint tenancy establishes a presumption that the property was in fact held in joint tenancy. King v. King, 107 Cal.App.2d 257, 236 P.2d 912. A party seeking reformation of a written instrument must prove his case by clear, unequivocal and convincing evidence. Craig v. National Farmers Union Automobile and Casualty Co., 76 S.D. 349, 78 N.W.2d 464; Clark v. Bergen, 75 S.D. 48, 59 N.W.2d 250; Bedford v. Catholic Order of Foresters, 73 S.D. 511, 44 N.W.2d 781; 76 C.J.S. Reformation of Instruments § 82(b) p. 449.

SDCL 21-11-1 provides that:

"When through fraud or mutual mistake of the parties, or a mistake of one party which the other at the time knew or suspected, a written contract does not truly ■express the intention of the parties, it may be revised on the application of a party aggrieved so as to express that intention, so far as it can be done without prejudice to rights acquired by third persons, in good faith and for value."

SDCL 21-11-3 provides that:

"In revising a written instrument, the court may inquire what the instrument was intended to mean, and'. [680]*680what were intended to be its legal consequences, and is not confined to the inquiry what the language of the instrument was intended to be."

We believe that all of the facts and circumstances relating to the manner in which the Brooks brothers were conducting their business at the time the land in question was acquired, their subsequent business dealings with each other with reference to the land, and the conduct of Daniel F. Brooks with respect to the land after the death of David A. Brooks, lead to the conclusion that the brothers intended that they hold title to the land in question as tenants in common and not as joint tenants. Thus we think that reformation is a proper remedy in this case to conform the deed to reflect the true intention of the parties. Essington v. Buchele, 79 S.D. 544, 115 N.W.2d 129; Garber v. Haskins, 84 S.D. 459, 172 N.W.2d 721; Clark v. Bergen, 75 S.D. 48, 59 N.W.2d 250.

Some of these facts and circumstances have already been set forth. Specifically, the evidence showed that the partnership between the brothers during the early years consisted solely of the farm machinery business, the profits from which were divided equally between the brothers. This partnership activity was later expanded to encompass the ownership and management of real property with the acquisition of the land in question and with the later purchase of additional real estate in South Dakota and in Montana. After the farm implement business was discontinued in 1952, the partnership continued to retain its real estate holdings, including the land in question. From their first association in business together in the 1920's until the death of David A. Brooks in 1963, all business interests involving Daniel and David were conducted through their partnership and they were equal partners in every business undertaking.

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Brooks, Inc. v. Brooks
201 N.W.2d 128 (South Dakota Supreme Court, 1972)

Cite This Page — Counsel Stack

Bluebook (online)
201 N.W.2d 128, 86 S.D. 676, 1972 S.D. LEXIS 161, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brooks-inc-v-brooks-sd-1972.