Calbreath v. Borchert

81 N.W.2d 433, 248 Iowa 491, 1957 Iowa Sup. LEXIS 427
CourtSupreme Court of Iowa
DecidedMarch 5, 1957
Docket49124
StatusPublished
Cited by10 cases

This text of 81 N.W.2d 433 (Calbreath v. Borchert) 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
Calbreath v. Borchert, 81 N.W.2d 433, 248 Iowa 491, 1957 Iowa Sup. LEXIS 427 (iowa 1957).

Opinion

Hays, J.

This being an equitable proceeding the same is here heard de novo, and, while the findings of the trial court are given weight, they do not, as in a law action, have the force and effect of a verdict and are not conclusive on appeal. After a careful consideration of the record we are unable to agree with the trial court as to the facts or the conclusion reached.

The case involves a sale of two business properties in the town of Lineville, Iowa. The particular property at issue here was owned by the defendants, Borcherts, who are residents of, and in business at, Lineville. The other property was owned by one E. E. Stacy, a resident of Princeton, Missouri. Calbreath, plaintiff herein, is a resident of Chillicothe, Missouri. In 1954 the plaintiff obtained an agreement from Stacy that Stacy would sell his property for $3500 cash, with possession to be given September 1. Plaintiff then made an agreement with Borchert that Borchert would pay $3000 in cash and a deed to his property for the Stacy property. Both deeds and cash were to be deposited with one R. C. Anderson, cashier of the bank at Line-ville. Whether the Stacy deed was to be blank as to the grantee is not clear, but it is conceded by all parties that the Borchert deed was to be blank as to the grantee and was to be delivered to Anderson for Calbreath. At the same time Calbreath arranged with Anderson that when the deeds were delivered to him at the bank, he, Anderson, was to pay Stacy $500, which, with the Borchert $3000 would be the amount Stacy was to receive. To insure this $500 payment, Calbreath’s account was credited with $500 and for which Calbreath gave the bank his note. At this stage of the proceedings there had been no contact between Stacy *493 and Borchert, each having dealt solely with Calbreath, and neither knew of the Calbreath-Anderson arrangement as to the $500 payment.

Sometime about the middle of August Stacy left his executed deed with Anderson. Later, but before time for final settlement, Stacy came to the bank and wanted a down payment of $500, which Anderson gave him, paying it with his personal cheek. On August 31 the Borcherts delivered their deed, executed in blank as to the grantee and acknowledged before Anderson, to Anderson to be delivered to Calbreath. They also left their check for $2500, payable to Stacy. On September 1 Stacy came to the bank for his $3500. Anderson called Borchert to the bank, where he first learned Stacy was not getting the building but wanted $3500 cash. At this time Borchert gave Stacy his check for $500 marked “balance on property” and received the Stacy deed. That evening Mrs. Borchert had a conference with Anderson at his home at which time he told her she could get back their deed if she called at the bank. On September 2 she went to the bank and Anderson gave her the deed, which she destroyed. She testified Anderson told her “he couldn’t see why we should have to give a deed of the property away when we had already paid what Stacy was asking for the building.” Thereafter it appears that Calbreath’s $500 was charged back against his account. None of the above proceedings of August 31 to September 2 was known to Calbreath until sometime later. The Borcherts are now in possession of, and hold the record title to, both properties.

Plaintiff commenced this action in which he asks a mandatory injunction requiring the defendants, Borcherts, to execute and deliver to him their deed, blank as to the grantee, for the property in question. The petition states he has been at all times and is now able and willing to reimburse defendants for the additional $500 paid by them, less an accounting of taxes, insurance, interest and rentals since September 1, 1954. Defendants’ answer asserts a failure of consideration, and by cross-petition they ask damages on account of plaintiff’s interference with their possession of their property. The trial court dismissed plaintiff’s petition. Plaintiff appeals.

*494 Defendants contend a mandatory injunction prayed for by plaintiff is a relief unknown to the law. While we do not fully agree as to this contention, it is of no importance. General equitable relief was prayed and the rule is that under such a prayer it is the pleadings and proof that determine the relief, even though it be inconsistent with the specific relief prayed for. Newman v. French, 138 Iowa 482, 116 N.W. 468, 18 L. R. A., N. S., 218, 128 Am. St. Rep. 212; McAnulty v. Peisen, 208 Iowa 625, 226 N.W. 144; Utterback v. Stewart, 224 Iowa 1135, 277 N.W. 735.

Appellant presents but one proposition: That this was a completed transaction and that the title to the Borchert real estate vested in him at the time the deed was delivered to the agent, R. C. Anderson.

The law is well settled that delivery of a deed to a third party is sufficient to pass the title if made for, and on behalf of, the grantee to one not acting solely as grantor’s agent with express or implied instructions to the depositary to deliver the deed to the grantee. Criswell v. Criswell, 138 Iowa 607, 116 N.W. 713; McKemey v. Ketchum, 188 Iowa 1081, 175 N.W. 325; In re Estate of Andrews, 245 Iowa 819, 64 N.W.2d 261; 26 C. J. S., Deeds, sections 43(b) and 53. It is equally well established that where a delivery has been properly made to a third person for grantee, it cannot be defeated by the loss or destruction of the deed while in the hands of the third person, or by the grantor’s change of intention or mere repossession of the deed. Blaney v. Hanks, 14 Iowa 400; Matheson v. Matheson, 139 Iowa 511, 117 N.W. 755, 18 L. R. A., N. S., 1167; Wilder v. Conlon, 239 Iowa 187, 30 N.W.2d 764; 26 C. J. S., Deeds, sections 42(b), 43(c), 172, 173 and 174.

It is conceded by the Boreherts and by Anderson that the duly executed deed to the Borchert property was delivered to Anderson to be given to Calbreath. It is nowhere claimed that Anderson was acting as the Boreherts’ agent, at least at the time the deed was given to Anderson. While no apparent restrictions or conditions were attached to this delivery to Anderson, we think it fair to assume it was conditioned upon the delivery of the Stacy deed to the Boreherts. This they received on September 1.

*495 The defendants contend there was a failure of consideration, i.e., availability of the Stacy deed at the time they delivered their deed and made their required $3000 payment; that they were forced to pay an additional $500 to obtain it, and hence the condition of the delivery of the deed to Anderson for Cal-breath had not been met. We think a fair appraisal of the record belies such a situation.

The facts heretofore set forth are not in dispute. The crux of the case centers around the $500 payment made by Anderson. The fact that ultimately it was paid by Borchert, as all agree was done, is not determinative. Anderson first testified that Calbreath left the $500 for him to pay Stacy and this he said he did. It is clear $500 was paid to Stacy prior to August 31. Anderson then became, to say the least, a very evasive witness. With reference to the $500 payment he states:

“Q. You stated before that it was Calbreath’s $500 that was paid to Stacy. What does your refreshment show to you now! A.

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Bluebook (online)
81 N.W.2d 433, 248 Iowa 491, 1957 Iowa Sup. LEXIS 427, Counsel Stack Legal Research, https://law.counselstack.com/opinion/calbreath-v-borchert-iowa-1957.