Estate of Cochrane

108 N.W.2d 529, 13 Wis. 2d 398, 1961 Wisc. LEXIS 447
CourtWisconsin Supreme Court
DecidedApril 4, 1961
StatusPublished
Cited by6 cases

This text of 108 N.W.2d 529 (Estate of Cochrane) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Cochrane, 108 N.W.2d 529, 13 Wis. 2d 398, 1961 Wisc. LEXIS 447 (Wis. 1961).

Opinion

*401 Brown, J.

It appears that by the agreement in 1940 Cochrane promised and agreed to transfer to Miss Kurz, by his will, all the right, title, and interest which Cochrane may have at the time of his death in and to all property real, personal, or mixed, and, by his actual last will and testament, he breached the agreement.

Appellant now does not urge several propositions which he presented to the trial court. We will pass only on the contentions which he submits here.

His first proposition is that in 1936 Cochrane and Miss Kurz made a contract partly for the benefit of a third party, Alexander MacKenzie, and the 1940 agreement is void and of no effect because it alters the terms of the 1936 agreement. The administrator submits that parties executing a contract partly for the benefit of a third party cannot rescind the contract without the consent of the third-party beneficiary, which in this case was not obtained. The rule of law is not as appellant asserts it to be. The leading case in this state is Tweeddale v. Tweeddale (1903), 116 Wis. 517, 93 N. W. 440, cited by appellant, and that decision has been uniformly followed. Tweeddale, indeed, holds that contracting parties whose contract has provided benefits to a third party may not revoke such benefits without the consent of the third-party beneficiary. But Tweeddale does not say that the contracting parties are forbidden to modify their obligations as between themselves so long as they do not interfere with the established rights of the third party. The holding of the supreme court was (p. 526):

“. . . that the liability being once created by the acts of the immediate parties to the transaction and the operation of the law thereon, neither one nor both of such parties can thereafter change the situation as regards the third person without his consent.” (Our italics.)

The attempted modification in the Tweeddale Case was to cancel the mortgage in which a third party had acquired *402 a beneficial interest and the third party brought the action to enforce his mortgage rights. He had not consented to the satisfaction of the mortgage and we held, page 527, “that the satisfaction of the mortgage by Mary Tweeddale is void as regards such debt.” (Our italics.) Tweeddale goes no further than to protect the third party’s rights established by the original agreement. Other cases cited by the appellant conform to the Tweeddale holding as In re Bratt (1950), 257 Wis. 447, 43 N. W. (2d) 817, and Micek v. Wamka (1917), 165 Wis. 97, 161 N. W. 367. In the latter, at page 102, we said:

“Any attempt by the defendants and the purchaser, Wilson, to rescind the contract, or their refusal to carry it out for any reason whatever, cannot affect the rights of the plaintiffs (Our italics.)

In all the Wisconsin cases called to our attention where this court has discussed the inviolability of the original contract, the third-party beneficiary has been attempting to preserve the rights given him by contract and those are the rights which we have protected. We do not find that we have ever attempted to say, as appellant wishes us to, that the contracting parties may not by agreement do as they please in altering the original terms so long as they do not alter the beneficiary’s rights without his consent. We conclude that the contracting parties have that right of modification as between themselves as in other contracts. MacKenzie's rights established by the 1936 contract were left untouched by the 1940 modification. Cochrane and Miss Kurz were competent to change their obligations toward each other since the change did not- alter the rights of MacKenzie.

Next, appellant asserts that the 1940 agreement required Miss Kurz to get back from Alexander MacKenzie for Mr. Cochrane the one-third interest which MacKenzie had ob *403 tained by the 1936 agreement, and Miss Kurz has not performed that requirement, wherefore Cochrane was not obligated to leave a will giving her all his estate. Inspection of the 1940 agreement shows no such duty to be performed by Miss Kurz. Respecting reconveyance to Cochrane, the agreement specifically provides that she is to reconvey to him the property which she acquired by the 1936 agreement, and this she did by executing the 1940 agreement.

Next, appellant submits that there was testimony relating to transactions with Cochrane, now deceased, which was not admissible in evidence. Consequently, appellant asserts, there was not sufficient competent, credible evidence to support the findings of the trial court. The evidence referred to is the testimony of Martin Paulsen, who testified at length concerning the agreements of 1936 and 1940, at which Paulsen was present when those documents were negotiated and executed, and he testified also concerning the will of Cochrane executed simultaneously with the agreement of February 19, 1940. Paulsen drew the will contemplated by the 1940 agreement which will, itself, referred to the agreement. Appellant’s objection is that there was a confidential relationship between the testator and the lawyer who drew it, Paulsen, and the communications between them are privileged. We do not decide whether the communications were privileged under the circumstances in which the will was drawn because, even if these objections are well taken, they do not affect the result here. Any possible relationship of attorney and client between Mr. Cochrane and Mr. Paulsen pertained only to the drafting of the will. In every other respect during the negotiation of the 1940 agreement Mr. Paulsen was Miss Kurz’s attorney. The communications pertinent to the 1940 will and that will, itself, are irrelevant to the present controversy. The 1936 agreement, as admitted *404 by appellant, was a valid contract between Cochrane and Miss Kurz entered into upon good consideration. Her 1940 re-conveyance of rights given to her by the 1936 agreement was consideration for the promise contained in Cochrane’s 1940 agreement to leave to her his entire estate. It is immaterial whether Cochrane executed the will which he had agreed to make. Paulsen’s testimony concerning the negotiation, drafting, and execution of that will is equally immaterial. On this question it makes no difference whether Cochrane failed to make such a will or whether he made it and then revoked it. The important thing is that upon his death he did not transfer by last will all his property to Miss Kurz as he had contracted to do. His failure to do so was a breach of his agreement. The trial court needed no more in order to determine that Cochrane had made a valid contract by the agreement of 1940 and that he had breached the obligation imposed on him by that contract.

Appellant submits that, if Miss Kurz may recover at all upon this claim, her recovery is limited to the 1940 value of the two-third’s interest she surrendered as her consideration for such contract.

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Cite This Page — Counsel Stack

Bluebook (online)
108 N.W.2d 529, 13 Wis. 2d 398, 1961 Wisc. LEXIS 447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-cochrane-wis-1961.