England v. England

51 N.W.2d 437, 243 Iowa 274, 1952 Iowa Sup. LEXIS 403
CourtSupreme Court of Iowa
DecidedFebruary 5, 1952
Docket47982
StatusPublished
Cited by15 cases

This text of 51 N.W.2d 437 (England v. England) 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
England v. England, 51 N.W.2d 437, 243 Iowa 274, 1952 Iowa Sup. LEXIS 403 (iowa 1952).

Opinion

Garfield, J.

For convenience we refer to Walter W. England as if he were sole defendant. Other defendants are his wife and three mortgage holders.

*276 In July 1931 plaintiff, Joseph England, then sixty-eight, owned' 520 acres of heavily mortgaged farm land. Like many large owners of mortgaged land about that time he .was in financial difficulties. On July 30, 1931, he deeded to his son Sam 120 acres mortgaged for $15,000. In 1932 Sam deeded this land to the mortgagee for $600. This 120 acres is not involved here.

Also on July 30, 1931, plaintiff deeded to his son Walter, then twenty-nine, 360 acres for an express consideration of $5000 for labor. The 360 acres was mortgaged for about $24,000. In 1933, 160 of the 360 acres was deeded to the holder of the mortgage thereon in satisfaction of it. This 160 acres is also not here involved. But the remaining 200 acres deeded to defendant is part of- the land in controversy. The rest of the 520 acres owned by plaintiff before July 30, 1931, was his homestead forty acres which he continued to own. Plaintiff seeks to recover rent for this “forty” in this action. The trial court allowed him $1000 rent, which plaintiff asserts is not enough.

One hundred twenty of the 200 acres defendant retained was in 1931 subject to a mortgage for $4000, and 80 of it, together with the homestead forty, were mortgaged to a federal land bank for something less than $8000. Defendant paid the $4000 mortgage in 1937 and had reduced the land bank mortgage to about $4200 at the time of trial in August 1950.

When plaintiff deeded the 360 acres to defendant in 1931 he also transferred to him about 150 to 200 hogs, 14 cows and some calves, 50 sheep, 10 horses and some farm machinery.

Since 1931 defendant has acquired from third parties 560 acres additional land with a mortgage on 320 acres of it for $25,-000. Plaintiff had nothing to do with these purchases.

Plaintiff’s petition, filed December -27, 1949, alleges he and defendant each own an undivided half of the entire 760 acres held in defendant’s name, 300 cattle, 300 hogs and certain farm machinery, asks sale thereof, division of the proceeds and an accounting. An amendment to petition filed five months later asserts the making of the deed and transfer to defendant of 400 head of livestock and farm machinery in 1931 and states it was then verbally agreed defendant would hold the land and livestock in his name for the benefit of both plaintiff and defendant and *277 they would become equal partners in operating the land. Kent of the homestead forty is also claimed.

Another amendment to petition, filed the day before trial commenced, alleges defendant intended not to perform the above verbal agreement when made but to defraud plaintiff by not accounting for the proceeds of the land and livestock. It prays a trust be established in plaintiff’s favor against the land and personalty for his share thereof.

Defendant’s answer admits the deed and transfer to him of some livestock and machinery, denies there was any verbal agreement or fraud, alleges payment of rent of the homestead forty and that the action is barred by laches.

After trial the court held neither a partnership nor fraud was proven and the only relief due plaintiff was $1000 rent of the homestead forty. All costs' were taxed to defendant. Plaintiff has appealed. We affirm the trial court.

I. It clearly appears plaintiff deeded the 360 acres to defendant and the 120 acres to Sam in an attempt to prevent his creditors from resorting thereto. Plaintiff frankly testifies, on direct examination, the reason he made the deed to defendant' was the “loan companies had quite a hold on me. They were going to foreclose on some of it and I wanted to save something. In them days they took it all.” On cross-examination, he says, “The reason that was deeded was to avoid foreclosure and deficiency judgments and to salvage what little I could by all that was legal.” There is much similar testimony.

As a rule, subject to certain exceptions, equity will not aid such a transferor but will leave the parties where it finds them.. The maxim “he who comes into equity must come with clean hands” governs. Shaw v. Addison, 239 Iowa 377, 397, 398, 28 N.W.2d 816, 826, 827, and citations; Willis v. Robertson, 321 Iowa 380, 384, 385, 96 N.W. 900. See also Restatement, Trusts, section 63, and comment b.

•However, since defendant does not argue this proposition we base our decision upon other grounds which are urged.

II. Plaintiff relies upon the rule that where one obtains title to property by fraud, abuse of confidence, unconscionable conduct or questionable means, so he cannot equitably retain the *278 property, which really belongs to another, equity will construct a trust upon it in favor of the one in good conscience entitled to it. See Rance v. Gaddis, 226 Iowa 531, 541, 542, 284 N.W. 468, and citations; annotation 159 A. L. R. 997, and earlier annotations therein cited; Restatement, Trusts, section 44, and comment b; 54 Am. Jur., Trusts, section 218; 65 C. J., Trusts, section 215.

We assume, as defendant apparently does, without so holding-, the rule relied upon has application here notwithstanding plaintiff’s purpose in transferring the land and personalty to defendant was that stated in Division I hereof.

In any event, plaintiff is entitled to no relief in his main case against defendant, holder of the legal title, unless the oral agreement asserted by plaintiff is proven by clear, satisfactory and convincing evidence. Thompson v. Thompson, 240 Iowa 1162, 1172, 1173, 39 N.W.2d 132, 138, 139, and citations; Copeland v. Voge, 237 Iowa 102, 107, 20 N.W.2d 2, 5; Rance v. Gaddis, supra, 226 Iowa 531, 544, 284 N.W. 468; Willis v. Robertson, supra, 121 Iowa 380, 383, 96 N.W. 900. See also Shaw v. Addison, supra, 239 Iowa 377, 384, 28 N.W.2d 816, 820.

Of course we are justified in giving weight to the findings of the trial court, especially since the credibility of witnesses and defendant’s good faith are largely involved. Hilliard v. Hilliard, 240 Iowa 1394, 1398, 39 N.W.2d 624, 626; Thompson v. Thompson, supra, 240 Iowa 1162, 1171, 39 N.W.2d 132, 137, and citations; Hatheway v. Hanson, 230 Iowa 386, 396, 297 N.W. 824, 828.

We are agreed plaintiff has not established his main case by the requisite proof. Testimony for him consists largely of conclusions and opinions of interested witnesses, defendant’s brothers or sisters or their spouses, who would probably benefit from a decree for plaintiff, eighty-six at time of trial. Much of the evidence is hearsay or conclusions therefrom. The disinterested witnesses do not aid plaintiff. Of the five persons with personal knowledge as to the claimed oral agreement, two, plaintiff’s wife and Attorney Smith, who prepared the 1931 deeds, are dead.

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Bluebook (online)
51 N.W.2d 437, 243 Iowa 274, 1952 Iowa Sup. LEXIS 403, Counsel Stack Legal Research, https://law.counselstack.com/opinion/england-v-england-iowa-1952.