First National Bank of Mankato v. Wilson

47 N.W.2d 764, 234 Minn. 160, 1951 Minn. LEXIS 691
CourtSupreme Court of Minnesota
DecidedMay 4, 1951
Docket35,502
StatusPublished
Cited by29 cases

This text of 47 N.W.2d 764 (First National Bank of Mankato v. Wilson) 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 National Bank of Mankato v. Wilson, 47 N.W.2d 764, 234 Minn. 160, 1951 Minn. LEXIS 691 (Mich. 1951).

Opinion

Magney, Justice.

In an action to set aside conveyances of real property as a fraud on the rights of a judgment creditor, defendants prevailed. Plaintiff appeals from the judgment entered.

Defendants, Lester A. Wilson and Fern M. Wilson, are husband and wife. On August 19, 1949, a judgment was entered in the municipal court of Mankato in favor of plaintiff against defendant Lester A. Wilson and another in the sum of $779.30. It was based on a claim which accrued prior to the conveyances above mentioned. On August 24, 1949, the judgment was docketed in the office of the clerk of the district court of Blue Earth county.

On March 25,1948, defendants as joint tenants became the owners of a home and lot known as 114 Fraser street, Mankato. They occupied it as their homestead until they leased the premises to one Paul Boeger for one year from October 1,1948. Defendants, at the time of leasing, sold to Boeger a kitchen table and chairs, a kitchen cabinet and a bed, and left in the house two stoves, some rugs, and walnut shelves. A small table and chairs, a lawn mower, rake, and shovel, together with winter clothing, were stored in the attic.

Shortly after October 1, 1948, Wilson and his family left in a trailer house for Texas, where he had a road job. They returned in the latter part of February 1949. When they left for Texas, it was their intention to stay there only temporarily; and it was not their intention to abandon their Fraser street property as a homestead. Toward the latter part of April, they spoke to the tenants about giving up possession prior to the expiration of their lease on October 1. The tenants said they could not do that, as they could not find any other place to live. Defendants were unable to rent a *162 place, so in May they purchased the premises known as 615 North Second street on a contract for deed. Defendant Lester A. Wilson testified: .

“* * * we didn’t really buy the place, we took it over just for the time being because we couldn’t rent a place.”

They lived in the trailer house in the back yard of these premises while the house was being fixed up and cleaned and then moved into it. In the latter part of September, they moved back into their house on Fraser street and have lived there continuously since that time. The Fraser street property had homestead classification for tax purposes in 1918, but not in 1919. The North Second street property had homestead classification in 1918 and 1919. On July 19, 1919, defendants, through a third party, executed a deed conveying the Fraser street premises back to defendant Fern M. Wilson. On July 26, 1919, defendants filed in the office of the register of deeds a notice of homestead claim in the Fraser street premises.

On October 19, 1919, the sheriff levied upon the interest of defendant Lester A. Wilson in and to the Fraser street premises. The court found that the deeds from defendants through a third party back to defendant Fern M. Wilson were in no respect fraudulent conveyances as to plaintiff. It further found that defendants acquired homestead rights in and to the Fraser street property on March 25, 1918, and that they had never at any time abandoned their homestead rights and the exemption from levy thereunder. The court held that plaintiff’s judgment was not a lien upon the interest of the defendant Lester A. Wilson in and to the Fraser street property; that the interest of defendant Lester A. Wilson was exempt as homestead from the lien of plaintiff’s judgment against him; and that the levy of execution be set aside and declared null and void and of no effect as against the premises. Plaintiff appeals from the judgment entered. It contends that the court’s finding that the Wilsons never abandoned their homestead rights in the property transferred is not sustained by the evidence.

*163 While this action is one to set aside a fraudulent conveyance of real property between husband and wife, the parties have properly recognized that the important legal issue involved in this appeal is one of homestead rights. The judgment docketed with the clerk of the district court of Blue Earth county on August 24, 1949, became a lien upon all nonhomestead property then or thereafter owned by Lester A. Wilson in the county. M. S. A. 548.09. Since a homestead is, with few exceptions, exempt from the claims of creditors (§ 510.01), and since by statute (§ 510.07) a debtor may convey a homestead without subjecting it or the proceeds from the sale thereof for one year to any judgment or debt from which it was exempt in his hands, a conveyance of the homestead cannot be set aside by creditors as fraudulent, even though the debtor conveying the property intends thereby to defraud his creditors. Morrison v. Abbott, 27 Minn. 116, 6 N. W. 455; Cysewski v. Steingraber, 222 Minn. 221, 24 N. W. (2d) 266; Sisco v. Paulson, 232 Minn. 250, 45 N. W. (2d) 385. The right to sell and convey the homestead is absolute, and the purpose of the transfer is immaterial, as is the amount of the consideration paid. Morrison v. Abbott and Sisco v. Paulson, supra.

It is apparent, therefore, that the conveyances challenged by plaintiff may not be set aside as fraudulent if the property so conveyed was the homestead of defendants on July 19, 1949, when they jointly conveyed the property in question through a third party to defendant Fern M. Wilson as sole owner.

Defendants had homestead rights in the property here in question when they moved out on October 1, 1948. The important questions are whether they thereafter abandoned the property as their homestead, and, if so, whether they failed to reestablish it prior to July 19, 1949.

M. S. A. 510.07 provides in material part:

a* * * if he [the owner] shall cease to occupy such homestead for more than six consecutive months he shall be deemed to have abandoned the same unless, within such period, he shall file with the register of deeds of the county in which it is situated a notice, * * * claiming the same as his homestead.”

*164 It will be observed from the statement of facts that defendants removed from and ceased to actually occupy the premises in question as a dwelling place from October 1, 1948, until the latter part of September 1949, practically a year, during which time the premises were leased to tenants. They failed to file the notice required by § 510.07 until nine months after they ceased occupancy, and they did not actually reoccupy the premises until more than a month after plaintiff’s judgment was docketed.

Upon the facts of the case, we would be reluctant to reverse the finding of the court that defendants at no time abandoned their claim of homestead rights to the premises and the exemption of levy thereunder, and that their acts were consistent with their claim of homestead rights. However, in our opinion, the plain language of § 510.07, the legislative history of that section, and the numerous cases interpreting it, preclude us from upholding the decision of the trial court. It is defendants’ contention that this statutory provision merely creates a presumption of abandonment, which may be rebutted by proof of intention not to abandon.

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Bluebook (online)
47 N.W.2d 764, 234 Minn. 160, 1951 Minn. LEXIS 691, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-of-mankato-v-wilson-minn-1951.