Farmers & Merchants Bank v. Daiker

166 Iowa 728
CourtSupreme Court of Iowa
DecidedOctober 6, 1914
StatusPublished
Cited by10 cases

This text of 166 Iowa 728 (Farmers & Merchants Bank v. Daiker) 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
Farmers & Merchants Bank v. Daiker, 166 Iowa 728 (iowa 1914).

Opinion

Weaver, J.

On October 28, 1910, plaintiff obtained a judgment against F. W. Daiker and his mother, Theresa Daiker, in the district court of Carroll county. On the same day execution was issued thereon, and immediately or very soon returned unsatisfied. On October 31, 1910, this action was begun; the plaintiff alleging that, shortly before the entry of said judgment, the defendant Theresa Daiker fraudulently and without consideration conveyed a valuable tract of land owned by her in said county to her son Peter Daiker, and that such conveyance was made by her and received by said grantee with intent to defraud, hinder, and delay the plaintiff in collecting its said debt. Upon these allegations it was prayed that the conveyance be set aside and plaintiff’s judgment be enforced by a sale of the land. Defendants admit the rendition of the judgment, admit the prior conveyance of the land to Peter Daiker, and deny all charges of wrong and fraud made against them in the petition. They further allege that said judgment defendants had appealed from said judgment to the Supreme Court, and had filed a good and sufficient supersedeas bond in said cause, and the bond had been duly approved. Issue having thus been joined, it appears that the ease was continued upon the docket without further action therein for several terms; meanwhile the appeal in the original ease was prosecuted to completion, and the judgment was reversed on the ground that the debt sued upon was not due when that action was begun. It further appears that, after the reversal, further proceedings were had in the district court, where on October 28, 1912, another judgment was rendered against F. W. Daiker and Theresa Daiker for the amount of [731]*731the same alleged debt. Thereafter plaintiff filed in this case what is denominated a supplemental petition, though it is in fact an amendment by which the allegations of the original petition are so changed as to make its reference to a judgment against F. W. Daiker and Theresa Daiker apply to the judgment last rendered instead of to the first. The defendants answer separately.

To ayoid repetition, it may be said that the several defenses present substantially the following alleged facts: The defendants John Daiker and Theresa Daiker, husband and wife, are persons of advanced age, and F. W. Daiker and Peter Daiker are their children. It is claimed that about the time Peter Daiker became of age, and many years before the creation of the debt, which plaintiff seeks to enforce, was contracted, he entered into an agreement with his parents by which he was to have the land in consideration of his undertaking to care for and maintain them during the remainder of their lives. It is further claimed that, acting upon such agreement, Peter took possession, management, and control of said land and for twenty-eight years has continued therein openly and notoriously, thus imparting to plaintiff and the world constructive notice of his rights in the premises, and that the services he has so rendered in consideration of said land is equal to or more than its market value at that date, and that the conveyance made to him was given and received in good faith and in consummation of the agreement in fulfillment of which he has given all the time and labor of his adult years.

The foregoing is a sufficient statement of the issues upon which the merits of the case must turn.

I. Passing the many technical and collateral questions of pleading and practice which have been argued by counsel, we take up the vital inquiry whether the transfer of the land 1. FltAUDULENT conveyances: tack same. to Peter Daiker was either actually or constructively fraudulent. Of the soundness of the iegai proposition on which appellee relies, that a conveyance of all one’s property liable to execution, [732]*732upon consideration that the grantee will maintain the grantor in the future or during life, is at least constructively fraudulent as against creditors, there can be no doubt. It is equally well settled in this and many other states that the term ‘ ' creditors, ’ ’ as used in the statement of the rule, has reference only to existing creditors, and this is true even though a disposition of property, upon promise of future support, be treated as purely voluntary. The subject was discussed and the precedents reviewed by this court in Brundag v. Cheneworth, 101 Iowa, 256, and the conclusion therefrom stated as follows:

(1) A conveyance which is merely voluntary, and when the grantor had no fraudulent view or intent, cannot be impeached by a subsequent creditor. (2) A conveyance actually and intentionally fraudulent as to existing creditors cannot be impeached by subsequent creditors. (3) If a conveyance is actually fraudulent as to existing creditors and merely colorable, or if the property is held in secret trust for the grantor, who is permitted to use it as his own, it will be set aside at the instance of his subsequent creditors. The second rule above laid down is subject to some exceptions, among which may be mentioned eases in which the conveyance is made with the express intent and view of defrauding those who may thereafter become his creditors; cases wherein the grantor makes the conveyance with the express intent of becoming thereafter indebted; cases of voluntary conveyances where the grantor pays existing creditors by contracting other indebtedness in like amount, and wherein subsequent creditors are subrogated to the rights of the creditors, whose debts their means have been used to pay; and cases in which one makes a conveyance to avoid risks or losses liable to result from new business ventures or speculations.

The foregoing quotation states the rule so clearly and unequivocally as to render unnecessary further reference to authorities upon the fundamental proposition that, generally speaking, only existing creditors can successfully avoid a voluntary conveyance, gift, or other disposition of property.

II. Whether the appellee herein is entitled to be classed as an existing creditor depends entirely upon the further [733]*733question whether the rights of Peter Daiker, as against the „ „ . . ing creditors. creditors of his mother, are held to date from the actual making and delivery of her deed to him, or from the time the agreement between them was made and he took possession and control of the land.

Counsel for appellee assume in argument that we must look alone to the deed, and, as this was confessedly made after the creation of the indebtedness which is sought to be enforced against the land, appellee was therefore clearly an existing creditor. To this we are unable to agree. It is shown so clearly as to be beyond fair question that very soon after Peter Daiker reached his majority there was an agreement between him and his parents that he was to have the land in consideration of his undertaking to remain upon it, control and manage it, and support and maintain his parents during the remainder of their lives. It is true that the testimony is somewhat involved and somewhat awkwardly slated, and that, upon examination and cross-examination of the parties, the words “wages” and “rent” are sometimes employed. The parents are of foreign birth, the mother still speaks only in her native tongue, and all of them use words apparently without full and clear comprehension of their exact technical import; yet taking the evidence as a whole, including that given by disinterested witnesses, we can come to but one conclusion, that Peter was to have the land upon the consideration above mentioned.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Grimes Savings Bank v. McHarg
276 N.W. 781 (Supreme Court of Iowa, 1937)
Williams Savings Bank v. Murphy
259 N.W. 467 (Supreme Court of Iowa, 1935)
Cherokee Auto Co. v. Stratton
232 N.W. 646 (Supreme Court of Iowa, 1930)
Crowley v. Brower
207 N.W. 230 (Supreme Court of Iowa, 1926)
Wheeler v. Meyer
206 N.W. 301 (Supreme Court of Iowa, 1925)
Dolan v. Newberry
202 N.W. 545 (Supreme Court of Iowa, 1925)
Harvey v. Phillips
186 N.W. 910 (Supreme Court of Iowa, 1922)
Thode v. Lambert
192 Iowa 495 (Supreme Court of Iowa, 1921)
Mulvaney v. Buckley
190 Iowa 1119 (Supreme Court of Iowa, 1921)
State Bank v. Wolford
178 Iowa 89 (Supreme Court of Iowa, 1916)

Cite This Page — Counsel Stack

Bluebook (online)
166 Iowa 728, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-merchants-bank-v-daiker-iowa-1914.