Dioptron Co. v. Dimmitt

62 N.W.2d 749, 245 Iowa 450, 1954 Iowa Sup. LEXIS 369
CourtSupreme Court of Iowa
DecidedFebruary 9, 1954
Docket48394
StatusPublished
Cited by8 cases

This text of 62 N.W.2d 749 (Dioptron Co. v. Dimmitt) 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
Dioptron Co. v. Dimmitt, 62 N.W.2d 749, 245 Iowa 450, 1954 Iowa Sup. LEXIS 369 (iowa 1954).

Opinion

Wennerstrum, J.

— Plaintiff originally brought an action on an account against Jesse O. Dimmitt, a claimed nonresident of *452 Wapello County. In a later amendment the plaintiff joined L. Marie Dimmitt, wife of Jesse G. Dimmitt as a defendant, and also a claimed nonresident, and attached an interest in certain real estate. In this amendment it was asked that a conveyance from Jesse G. Dimmitt to L. Marie Dimmitt be set aside as it was claimed it was a voluntary Seed and had been executed for the purpose of fraudulently defeating plaintiff as a creditor of Jesse G. Dimmitt. Mrs. Dimmitt filed a motion to transfer the issues raised by the claim of a fraudulent conveyance to the equity court for .trial.. This motion was sustained and the trial court heard the equitable issues. At the conclusion of the plaintiff’s evidence the trial court sustained the motion of the defendant ■L. Marie Dimmitt to dismiss plaintiff’s amendment to the petition. The plaintiff has appealed. ■

The real property here involved is a residence property in Ottumwa, Iówa. A one-half interest therein was inherited by Jesse G. Dimmitt and his three brothers from their father subject to a life estate of Maggie I. Dimmitt, their mother. The remaining "undivided one-half interest was owned by Maggie I. Dimmitt who died intestate on July 18, 1950. On August 10, 1950, the three brothers entered into-a contract .with Jesse G. Dimmitt wherein he agreed to buy the interest of the other heirs ,for $3500. Settlement with the three brothers was consummated by, Jesse G. Dimmitt in connection with the final distribution of their mother’s estate. On September 9, 1950, Jesse G. Dimmitt executed an assignment of the previously mentioned contract to his wife “in consideration,of love and affection and one dollar.” It is maintained L. Marie Dimmitt did not pay her husband the dollar referred, to in the assignment. On March 7, 1951, Jesse G. Dimmitt.received from his brothers a deed covering their interest in the property here involved. Thereafter Dimmitt executed a warranty deed to his wife dated March 10, 1951, and placed it of record on the same day. The consideration noted in this deed was “One Dollar and other valuable consideration.”

Jesse G. Dimmitt during June and July of 1950 entered into some type of sales arrangement with the plaintiff and obtained from it a number of flytraps, thereby incurring the claimed indebtedness. On May 26, 1951, plaintiff filed a suit against the *453 defendant Jesse G. Dimmitt on its account and by the amendment previously referred to joined L. Marie Dimmitt as party defendant, therein claiming the deed dated March 10,' 1951, was a voluntary conveyance and was without consideration. The plaintiff attached the equitable interest of Jesse G. Dimmitt in the real property here involved. The two defendants filed an answer demanding a jury trial ón the ‘ account. The only matters here involved pertain to the issues raised by the equitable action.

Prior to her" death Maggie Dimmitt, the mother, was advanced image and required'considerable care. It is the claim of L. Marie Dimmitt that in consideration of the promise of Jesse G. Dimmitt to transfer to her all his share in the estate of Maggie Dimmitt she agreed to and did care for Maggie Dimmitt in her home. The- record discloses that L. Marie Dimmitt rendered services in connection with the care of Maggie I. Dimmitt from July 1947 to May 1950. It is also disclosed a guardian was appointed for Maggie Dimmitt on August 9, 1948, and on September 4, 1948, the guardian was authorized to employ L. Marie Dimmitt ■and Jesse G. Dimmitt to continue to.provide care for Maggie Dimmitt. This agreement was terminated on May 1, 1950, and on or about that time they received notice to leave the home of Maggie Dimmitt. It. was also shown the guardian, paid to the Dimmitts a total of $4600 for these services. It should be here noted that prior to the guardianship and in June 1948 Maggie Dimmitt entered into a contract with Jesse G. Dimmitt wherein she conveyed to him title to a property other than the one here involved and further agreed to pay her-expense in the home residence and also agreed to pay'Li Marie Dimmitt $10 per week. This contract was set aside by agreement about the time the guardianship proceeding was instituted.

During the trial L. Marie Dimmitt was called ás a witness for the plaintiff. In the cross-examination of her, defendants’ counsel sought to elicit the nature 'of the contract and arrangement at the time of the beginning of the care of Maggie Dimmitt by L. Marie Dimmitt as bearing upon the consideration for the conveyance to her. Objections were made by the plaintiff on the grounds the testimony sought to be given, and'which was later *454 testified to, was not proper cross-examination. Other issues are involved and will be commented upon later in the opinion.

The plaintiff asserts as grounds for reversal (1) that its attachment lien was sufficient to support an equitable action by it as a creditor, (2) that the conveyance by Jesse G-. Dimmitt to L. Marie Dimmitt was a voluntary conveyance and is presumed fraudulent as against existing creditors, (3) that there was no competent evidence in the record that there was any good and sufficient valuable consideration to support the deed to L. Marie Dimmitt as against the claims of the plaintiff as an existing creditor, and (4) that the defendant L. Marie Dimmitt failed to sustain the burden upon her to show Jesse G. Dimmitt retained sufficient property in his own name to pay existing creditors.

I. Plaintiff’s attachment lien on the real property justified the bringing of and supports the equitable action brought by it, a creditor, to establish a lien on land claimed to have been fraudulently conveyed. Our statute so provides. Section 639.38, 1950 Code, is as follows:

“Lien acquired — action to determine interest. The plaintiff shall, from the time such property is taken possession of by the officer, have a lien on the interest of the defendant therein, and may, either before or after he obtains judgment in the action in which the attachment issued, commence action by equitable proceedings to ascertain the nature and extent of such interest and to enforce the lien.”

And in Somers v. Spaulding, 229 Iowa 432, 435, 294 N.W. 610, 611, 133 A. L. R. 1300, we quoted from Mickel v. Walraven, 92 Iowa 423, 60 N.W. 633, as follows: “ * * Before he could institute his action to subject the land to the payment of his claim, he must have had a lien upon it either by attachment or judgment [citing cases].’ ”

And at page 439 of 229 Iowa, page 613 of 294 N.W., it is further stated: “There is a dispute among the authorities on this question, whether a judgment is the exclusive method of accruing a right to set aside a conveyance as fraudulent. In discussing such conflict it is stated in 24 American Jurisprudence 309, as follows, ‘The trend of the recent decisions, however, is in favor *455 of the view that where a valid lien, has been obtained by attachment, a bill in equity to set aside- a fraudulent conveyance may be maintained without a judgment.’ This trend of the recent decisions is in accord with repeated pronouncements of this court.”

We hold plaintiff’s procedure was proper.

II.

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Bluebook (online)
62 N.W.2d 749, 245 Iowa 450, 1954 Iowa Sup. LEXIS 369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dioptron-co-v-dimmitt-iowa-1954.