Engen v. Union State Bank

236 N.W. 741, 121 Neb. 257, 1931 Neb. LEXIS 140
CourtNebraska Supreme Court
DecidedMay 22, 1931
DocketNo. 26236
StatusPublished
Cited by28 cases

This text of 236 N.W. 741 (Engen v. Union State Bank) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Engen v. Union State Bank, 236 N.W. 741, 121 Neb. 257, 1931 Neb. LEXIS 140 (Neb. 1931).

Opinion

Rose, J.

This action was begun by Knute C. Engen to cancel two deeds, each for 80 acres of land in Hamilton county. Both deeds were executed by plaintiff’s father, Christian Knud-, son, sometimes called “Christian Engen.” In one of the deeds Anna S. Brown, a niece of grantor, and her husband were named as grantees, and in the other deed Bertha M. Megrue, another niece of grantor, and her husband were named as grantees. Fraud in procuring the deeds was the ground of equitable relief sought by plaintiff. Grantees in each deed transferred their title to the Union State Bank of Harvard and the latter deeded both tracts to its president, Theodore Griess, who afterward procured from the First Trust Company of Lincoln two loans, securing one loan by a mortgage for $4,500 on the 80-acre tract deeded by Knudson to the Browns and the other loan by a mortgage for $5,000 on the 80-acre tract deeded by Knudson to the Megrues. Knudson died intestate, leaving surviving him his wife, Mari Tollefsen Todok, and his son, Knute C. Engen, plaintiff. The defendants named in the petition were Union State Bank of Harvard, Leroy A. Megrue and Bertha M. Megrue, his wife, Robert E. Brown and Anna S. Brown, his wife, and H. G. Thomas, administrator of the estate of Christian Knudson, deceased, Theodore Griess, First Trust Company of Lincoln and Mari Tollefsen Todok.

The fraud charged by plaintiff and the alleged invalidity of the deeds were put in issue by formal pleadings of grantees and mortgagee. Mari Tollefsen Todok, widow of Knudson, presented an answer, likewise attacking the deeds and mortgages as fraudulent and void. She also filed a cross-petition alleging that the land described in the deeds was the homestead of herself and her husband at the time of the latter’s death and praying for a decree establishing her homestead rights and her title to an undivided one-half interest in the real estate.

The validity of the deeds and the mortgages and the [260]*260existence of the widow’s homestead were well defined issues on which the parties to the litigation went to trial in the district court.

• Knudson and wife were natives of Norway. Neither of them ever became a naturalized citizen of the United States. The wife was never in this country. After their ■marriage they lived in Norway for a time. Knudson left his native land in 1868 and never returned. He settled on the land in controversy in 1878, where he continuously •resided until his death, August 6, 1923. Plaintiff, the son, ■left his home and mother in Norway in 1893, when he was 23 years of age, and joined his father in Nebraska. A year later he permanently left his father’s residence. After 1887 the father and mother of Knudson resided with him in his home on the land described in the petition, the date of his father’s death being January 31, 1900, and that of the mother April 8, 1906. Knudson lost his sight. His nieces and their husbands cared for him and in consideration for their services and care he executed the deeds in controversy, July 17, 1923.

• Upon a trial of the cause the district court found that the charges of fraud in the procuring of the deeds executed by Knudson were unfounded but entered a decree canceling them on the ground that they purported to convey the homestead of Knudson and wife by means' of an instrument in which the wife did not join, thus violating the statute containing the following provision:

“The homestead of a married person cannot be conveyed or incumbered unless the instrument by which it is conveyed or incumbered is executed, and acknowledged by both husband and wife.” Comp. St. 1929, sec. 40-104.

From the decree of the district court, the First Trust Company of Lincoln and Van E. Peterson, receiver of the Union State Bank of Harvard, appealed to the state supreme court. The latter, upon a trial de novo, found that Knudson had never been naturalized as a citizen of the United States-; that he acquired the land as a resident [261]*261alien; that he was a subjéct of Norway at the time he executed the deeds; that he had a legal.right to make the conveyances under the existing treaty between the United States and Norway, notwithstanding the statutes of Nebraska and the failure of his wife to join him as a grantor. .The judgment below was accordingly reversed, with instructions to the district court to enter a decree dismissing the petition of plaintiff and the cross-petition of Mari Tollefsen Todok and adjudging the deeds and mortgages valid .and enforceable. Engen v. Union State Bank, 118 Neb. 105.

■ Upon application of Mari Tollefsen Todok and plaintiff, the supreme court of the United States issued a writ of ■certiorari to the supreme court of Nebraska to certify and transmit for the purposes of review the proceedings and •judgment in Engen v. Union State Bank, 118 Neb. 105. See Todok v. Union State Bank, 280 U. S. 546. That part of the treaty involved contains the following provision:

“The subjects, of the contracting parties in the respective states may freely dispose of their goods and effects, either by testament, donation or otherwise, in favor of such persons as they think proper.” 8 U. S. St. at Large, p. 64, art. VI.

• The original instrument was written in French. The 'term “goods and effects” is a translation of the words “fonds et Mens.” In the French text, which controls the interpretation, the word “Mens” includes real estate. Both courts so held, but the supreme court of the United States xuled that the treaty, thus construed, did not override the law of Nebraska as to the disposition of homestead property, acquired by Knudson subject to the restrictions of the homestead law of the state, reversed the judgment of the state supreme court and remanded the cause for further proceedings not inconsistent with the opinion containing those rulings. Todok v. Union State Bank, 281 U. S. 449.

In view of the opinion of the supreme court of the •United States, is- the state supreme court still at liberty, [262]*262in the further proceedings ordered, to determine the question as to the right and authority of Knudson, under the law of Nebraska, to dispose of the lands in controversy independently of his alien, nonresident wife? This question was ably argued by counsel on both sides after the cause reappeared in the supreme court of the state. Though the district court held that the deeds executed by Knudson were void under the homestead law of Nebraska, the supreme court of the state did not directly pass on that question, but based its decision on the sole ground that the treaty, notwithstanding any Nebraska statute, gave Knudson, an alien, the right to dispose of his land in favor of such persons as he thought proper. If his individual right to do so was not inhibited by the homestead law of the state, that question is still open for determination, unless it was foreclosed by the opinion of the supreme court of the United States.

The appeal from the district court presented a federal question and also a different question depending entirely on state law. The determining factors involved in the two questions were not mingled in the sense that the adjudication of the federal question necessarily determined the question arising under the state law. The writ of certiorari called for the record for the purpose of determining the federal question only.

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Cite This Page — Counsel Stack

Bluebook (online)
236 N.W. 741, 121 Neb. 257, 1931 Neb. LEXIS 140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/engen-v-union-state-bank-neb-1931.