First National Bank of Appleton v. Nennig

285 N.W.2d 614, 92 Wis. 2d 518, 1979 Wisc. LEXIS 2212
CourtWisconsin Supreme Court
DecidedDecember 4, 1979
Docket77-233
StatusPublished
Cited by20 cases

This text of 285 N.W.2d 614 (First National Bank of Appleton v. Nennig) 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
First National Bank of Appleton v. Nennig, 285 N.W.2d 614, 92 Wis. 2d 518, 1979 Wisc. LEXIS 2212 (Wis. 1979).

Opinion

CONNOR T. HANSEN, J.

On March 20, 1975, Leona Nennig sold her 80 acre farm to her second cousin, Norman J. Nennig, defendant-respondent, on a land contract. The farm was sold for $32,000, and the land contract provided for principal payments over 20 years at *521 $1600 per year, plus interest on the declining balance at five and one-half percent per year, and contained an acceleration clause which could be invoked at the instance of the seller.

The First National Bank of Appleton was appointed temporary guardian of Leona Nennig on April 2, 1975, on petition of her brother, Randolph, commenced this action on April 4, 1975, and was appointed guardian on July 28, 1975. The complaint alleges that Leona Nennig was without sufficient mental capacity to enter into the contract, that the contract was the product of undue influence exerted on her by the defendant, and that the defendant violated a confidential relationship existing between the parties in order to secure an unjust pecuniary benefit for himself, so as to require equity to impose a constructive trust on the property for her benefit.

Leona testified that she had three brothers, Harold, Victor and Randolph. She lived and worked on this farm from 1943 until 1975. During this period the farm was owned by her brother Arno and her father, both of whom predeceased her. She had taken care of her mother who died in 1965. Also in the mid-sixties she purchased the farm and endeavored to operate it. She found she was unable to operate it alone, so she sold the cows and equipment at auction and then rented the land on shares.

She lived on the farm alone and in 1968, when the share renters quit, she rented the farm to the defendant, Norman, whom she had known all her life. She testified that Norman had come to her place because he was worried about what she was going to do with the farm. They finally agreed that Norman would rent the 80 acres for $1600 per year and the rent was later increased by $300 per year. In 1970, Norman began renting the barn for $200 per year.

She further tetsified that from 1973 on, Norman asked her to sell the farm to him many times. He said he would *522 give her a good price and told her not to sell the farm to anyone else or talk to anyone about the farm. He told her that her brothers were after the farm and they were going to put her away, but if she sold the farm to him, he would help her and they could not do anything. He would also let her live on the farm. When he came to visit her, he would ask if she had seen anybody and what they talked about. He said these things regularly during the last two years before she sold the farm. She was very upset and nervous by what he said and so could not sleep. And because he told her that her brothers would not help her, she decided to make a will leaving everything to Norman’s children.

Norman supplied her with meat and vegetables. He brought these to her so that he would not have to pay higher rent. He also told her that if she would sell the farm to him, he would give her meat and vegetables for as long as she lived.

She testified she had been an epileptic for 30 years and had seizures. She had been in a hospital three or four times. She lost her driver’s license in 1970. This affected her ability to get around, and she did not see very many people afterwards, including her three brothers. Previously, she had owned a car, did her own shopping and visited friends. After she lost her license, Leona did get into town a few times to play cards with the senior citizens. Usually, Norman and his family got groceries for her, ran errands and took her to church a few times. His children also cut the lawn and shoveled snow. Randy would also take her a few places.

She went to the hospital in March, 1975, and was there one week. Dr. Heinen, her attending physician, advised her to move off the farm and into the city so that she could be with other people. The day after she came home from the hospital, she told Norman that she thought she would sell the farm. She did not care about staying on *523 the farm anymore; she thought that if she stayed, her condition would get worse. Norman told her that he would take her to a lawyer who would take care of everything. They discussed the price and Norman told her he would pay her $400 per acre because he could not afford to pay any more than that, and that was all the farm was worth. Leona did not suggest a price, but thought that it was a little too low. She did not know what land was worth, and had never discussed the value of her land with anyone, but she thought Norman was familiar with the price of land. They talked about it for quite awhile, but did not reach an agreement right away. Norman told her that she would get $82,000 plus interest, and he suggested an interest rate of 5% percent. She did not feel that this was a fair amount of interest, but she later agreed to it because Norman kept telling her what he had done for her and what her brothers would have done if he did not help her out. Norman figured out how much money she would be getting in the future, including social security payments, and told her that would be enough. He also brought up the fact that she was going to leave her property to his daughters. Their conversation lasted all morning and they never came to a conclusion as to whether she was going to sell or not. It was not until she realized that she was going to go back to the hospital and had to get off the farm that she decided to sign the contract.

Later that day or the next day, Norman took her to a lawyer, Wilford Elliott. Norman had talked to Elliott before they arrived, but this was the first time Leona had seen Elliott. Norman had told her that Elliott was a good lawyer. She signed the contract which was prepared in advance, because of all the things that Norman had said to her over the years, such as the fact that she would not have anything to worry about in the future if she sold the farm to him. She also testified Norman *524 told her not to tell people the price for which she sold the farm.

The next day she became unhappy about the contract, and started to do some figuring. She went over what it cost her to live, including expenses for food, clothing and doctor bills, and figured that in a few years she would run out of money. She realized that she would be paid $1600 on the first of April every year, and at the time she signed the contract she thought that she could live on $1600. But after figuring it out, she realized $1600 was too low so she told this to Norman. He told her it cost too much for him to run the farm, and that since the papers were signed, there was nothing her brothers could do.

Before Norman talked to her about selling the farm, Leona thought of selling it to Jack Down, a neighbor. He had talked to her several times and said that anytime she wanted to sell the farm, she should let him know. After the contract for the sale of the farm to Norman had been signed, Down offered her $65,000 for the farm.

Shortly after the contract was signed, she moved into an apartment in town that Norman had gotten for her. The reason she moved is that she thought she had better follow Dr. Heinen’s advice.

On cross-examination Leona testified that she sold the farm and moved to town because Dr.

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Cite This Page — Counsel Stack

Bluebook (online)
285 N.W.2d 614, 92 Wis. 2d 518, 1979 Wisc. LEXIS 2212, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-of-appleton-v-nennig-wis-1979.