First Minneapolis Trust Co. v. Lancaster Corp.

240 N.W. 459, 185 Minn. 121, 1931 Minn. LEXIS 859
CourtSupreme Court of Minnesota
DecidedDecember 31, 1931
DocketNo. 28,672.
StatusPublished
Cited by8 cases

This text of 240 N.W. 459 (First Minneapolis Trust Co. v. Lancaster Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Minneapolis Trust Co. v. Lancaster Corp., 240 N.W. 459, 185 Minn. 121, 1931 Minn. LEXIS 859 (Mich. 1931).

Opinion

Wilson, C. J.

Defendant appealed from a judgment in an action of forcible entry and detainer,

On March 8, 1920, Douglas A. Fiske, being the OAvner in fee, leased certain premises in Minneapolis to William C. Redlin for 100 years. The lessee’s interest in the lease,' through mesne conveyances, has been acquired by defendant.

On September 1, 1923, Douglas A. Fiske and his Avife signed and acknowledged in form a deed of trust conveying the lessor’s interest in the premises to Douglas A. Fiske and Wells-Dickey- Trust Company as joint trustees, under the terms of which trust Mrs. Fiske was to receive an annual income of $12,000 during her life. The rights of other beneficiaries under the trust are not uoav important. The deed.Avas executed by Wells-Dickey Trust Company on October 12, 1923. On October 10, 1923, Mr. and Mrs. Fiske were divorced.

Subsequently Wells-Dickey Trust Company consolidated Avith the Minneapolis Trust Company. Minneapolis Trust Company later *123 consolidated with another financial institution into First Minneapolis Trust Company. Mr. Fiske died in January, 1928.

Rents maturing under the lease July 1, 1930, October 1, 1930, and January 1, 1931, were not paid. There was also a default in payment of taxes maturing May 31 and October 31, 1930.

On January 23, 1931, plaintiff First Minneapolis Trust Company as such trustee executed to William C. Redlin a second lease on the same premises for a term of 100 years from July 1, 1930. This lease was made subject to the prior lease and contained in form an assignment to the lessee of the right to enforce the payment" of delinquent rent and taxes as provided in the former lease.

Thereafter plaintiff trustee and said Redlin joined in serving a 60-day notice, provided in the first lease, to terminate the first lease on account of said defaults. There were no results. This action followed, and plaintiff prevailed.

Misjoinder of parties plaintiff. Plaintiff trustee and William C. Redlin prosecuted this action jointly. Redlin held the second lease, Avhich seems to be a “concurrent” lease, meaning that the owner of the reversion under the earlier lease gave him the second lease before the termination of the first and by its terms transferred to him the unpaid delinquent rents and the rights to enforce the same. This also gave Redlin the right to claim the benefit of the covenants of the first lease and the poAver to give notice to terminate. We are of the opinion that since defendant did not raise the question of misjoinder of parties plaintiff by demurrer or an-SAver the question Avas Avaived. G. S. 1923 (2 Mason, 1927) § 9252.

G. S. 1923 (2 Mason, 1927) § 8621, provides:

“No contract between husband and Avife relative to the real estate of either, or any interest therein, * * * shall be valid.”

Defendant asserts that the deed of trust Avas void because in violation of the foregoing statute.

Of course one spouse cannot convey real estate directly to the other. Defendant’s argument rests upon the fact that the deed is dated and acknoAvledged by husband and wife on September 1, 1923, a time before they Avere divorced. It is also said that as a *124 bargain only tbe husband and wife were involved. The argument which rather assumes a delivery on that date is not persuasive.

The deed of trust recites:'

“That in consideration of the sum of One ($1.00) dollar paid to the parties of the first part by the parties of the second part, the receipt of which is hereby acknowledged, and of the acceptance by the second parties of the Trust created hereunder, and second parties’ agreement to act as Trustees hereunder, the said parties of the first part do hereby grant, bargain, sell and convey to the parties of the second part and their successors, Forever,” etc.

The sixth finding of fact is as follows:

“That said trust deed was executed and acknowledged by the said Alice V. Fiske and the said Douglas A. Fiske on the first day of September, 1923, but the same was not executed or acknowledged by the Wells-Dickey Trust Company until the 12th day of October, 1923, when the said trust deed was executed and acknowledged by the said Wells-Dickey Trust Company and the originals thereof were then delivered by said Wells-Dickey Trust Company.”

The quoted language indicates that the agreement of Wells-Dickey Trust Company to act as trustee was one of the considerations for the execution and delivery of the conveyance. We cannot assume otherwise. It may be that one or both of the parties would not have created the trust unless this trust company would so serve.

In the interval the divorce was granted. The parties made a stipulation now in the record and printed in appellant’s reply brief. This stipulation .made financial provision for Mrs. Fiske in case she showed herself entitled to a divorce, and the court found the provision to be reasonable and fair. This stipulation provided for this trust. It is dated September 25, 1923, and it recites:

“The parties hereto agree to forthwith sign and acknowledge in duplicate a Trust Deed, a copy of which is hereto attached and marked Exhibit “A,” and deliver the same to Ell Torrance of Minneapolis, Minnesota, to be held by him in escrow, and, in the event of the plaintiff procuring a Decree of Absolute Divorce as asked *125 for by her in said action, then, in such event, the said Ell Torrance is to deliver such duplicate copies to the Wells-Dickey Trust Company for execution by it as one of the" Trustees, and shall then deliver one of the duplicate originals of such Trust Deed to the plaintiff and to the defendant respectively.

“In the event, however, that a Decree of Absolute Divorce is not granted by the Court, and entered in said action, then, in such event, but not otherwise, the said Ell Torrance is to destroy both of the originals of said Trust Deed, and such Trust Deed shall in such event be void and of no effect whatsoever.”

We may assume that the parties performed their agreement. We cannot account for the date of the deed and the date of their acknowledgment being September 1, 1923, and the stipulation 24 days later calling for them to “forthwith sign and acknowledge.” But that is not controlling. Obviously it was not the intention of the parties that this deed would become effective unless Wells-Dickey Trust Company executed it and unless an absolute divorce was granted. Defendant’s brief says that it is presumed that a deed is delivered on its date; but here the records refute such presumption. The stipulation provides that if an absolute divorce was not granted the deed was to be destroyed. Such possible consequence must refute the claim of delivery as to anyone.

The deposit with Ell Torrance was in escrow. It was to be held until the consummation of the specific conditions, that is, until the happening of the two contingencies; until such contingencies do happen the title does not pass under a deed so held. That is why it is put in escrow. If title passed when the deed was delivered in escrow, the deed might just as well be delivered to the grantee.

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Cite This Page — Counsel Stack

Bluebook (online)
240 N.W. 459, 185 Minn. 121, 1931 Minn. LEXIS 859, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-minneapolis-trust-co-v-lancaster-corp-minn-1931.