Herron v. Herron

32 N.W. 407, 71 Iowa 428
CourtSupreme Court of Iowa
DecidedMarch 16, 1887
StatusPublished
Cited by8 cases

This text of 32 N.W. 407 (Herron v. Herron) 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
Herron v. Herron, 32 N.W. 407, 71 Iowa 428 (iowa 1887).

Opinion

Reed, J.

Plaintiff is the father, and defendant the widow, of John Herron, who died intestate and without issue in April, 1882. At the time of his death, the said John Herron held the title to the real estate in question. Some months after his death, plaintiff’, who lived in Ireland, executed a power of attorney, by which he appointed Michael Herron, his son, who also lived in Ireland, his attorney in fact, and empowered him to collect and receive for him any property or interest which had accrued to him, under the laws of Iowa, in the estate of deceased, and to dispose of and give conveyance of the same. Michael came to this country, and entered into a negotiation with defendant, which resulted in the sale to her of his father’s interest in all of the real estate of which John died seized, for the consideration of $1,500, which was paid at the time, and executed to her the conveyance which plaintiff seeks in this action to have canceled and set aside. The allegations of fraud in the petition, which are relied on, are that defendant concealed from- Michael the true condition of the estate, and the amount of property of which her husband had died' seized, and falsely -represented that the value of the property did not exceed $3,000, whereas its value was much greater than that, and procured relations and acquaintances of his residing in the vicinity, on whom he had a right to rely for information, to make the same false representations, and that he, being a stranger in the country, and ignorant of its laws and usages, and of the value of the property in the country, relied on the state[430]*430ments'made to him, and made the sale and conveyance in.the belief induced thereby that he was receiving the fair value of the interest of his principal in the property.

1. Estates of Decedents: administrator: fiduciary relation to co-tenant of inherited land. 1. ESTATES Of adminlstrlreiatíoíu.oiary fniicr’ited °£ Iaud' I. Defendant had been appointed administratrix of the estate of her husband before the transaction in question. It is urged that her position with reference to the n 1 estate created a fiduciary relation between the parties; and, as she acquired an interest in the property of the estate in the transaction, it is presumptively fraudulent. But, clearly, this position is not tenable. .Defendant did not occupy a position of trust or special confidence towards plaintiff. She did not deal with his attorney in her capacity as administratrix of the estate. On the death of John Herron, the real estate of which he was seized descended in equal shares to plaintiff and defendant. Her interest in the property was a personal interest. In her representative capacity she had no interest whatever. It was a case of tenants in common dealing with each other with reference to the common estate. Neither of the parties was charged with the duty of protecting the rights or guarding the interests of the other in the property. They stood upon an equality, and clearly there can be ho presumption of unfairness or fraud in the transaction.

2. Fraud: in purchase of land: inadequate consideration as evidence of. II. It is next urged that the consideration paid by defendant for the conveyance ivas so grossly inadequate as to raise a presumption of fraud. There is some . . conflict in'the evidence as to the value of the prop01’!/) but .we think the preponderance of the evidence shows that the value was from $20,000 to $22,000. Defendant claims that a portion of the property had been purchased with money which belonged to her, and which she had given to her husband for investment. She made this claim at the time of the transaction, and the parties appear to have proceeded on the theory that it was valid. At least, Michael Herron did not question it; nor did he make any investigation of it, but accepted defendant’s [431]*431statement as true. She testified on the trial that she furnished the money, and that it was invested in the property, and the title taken in her husband, for reasons of conveyance. Her testimony in this respect is nncontradicted. Indeed, she is corroborated, to some extent, by the testimony of other witnesses. It may be that she is not, under the statute, (Code, § 3639,) a competent witness to the transactions between herself and her husband, although no question as to her competency was made by counsel. But it is not necessary in this proceeding to go into the question whether her claim in that respect is valid. The parties, as we have said, dealt upon the theory that she had a valid claim to some portion of the property on account of moneys advanced by her to her husband, and invested by him in the property, and the transaction has not been attacked on the ground that there was any fraud or mistake as to that claim; and it will be assumed, for the purposes of the case, that her claim in that respect is valid. Deducting that portion of the property, the value of the balance is shown to have been from $12,-000 to $14,000; so that in the transaction plaintiff received $1,500 for an interest worth at the time from $6,000 to $7,000. Mere inadequacy of consideration is not a ground for'the rescission of an executed contract. Story Eq. Jur. § 245; Kerr, Fraud & M. 186, 187. Oases have arisen, however, in which the inadequacy was so gross as to be regarded as satisfactory evidence of fraud. In such cases, relief is given, not because' of the inadequacy of the price paid, but because of the fraud of which it is an evidence. To warrant a court, however, in presuming fraud from the inadequacy of the consideration, it must be such as to demonstaate some gross imposition or undue influence. Story, Eq. § 246. The facts of the present case do not bring it within the rule. The amount received by plaintiff was from one-fourth to one-fifth of the actual value of his interest in the property. The evidence shows, without any conflict, that his attorney thought that his interest would be best served by selling the land. He [432]*432was not favorably impressed with the country, and he did not regard it as either desirable or to the interest of his principal to retain the ownership of the property. Plaintiff was nearly eighty years old at the time, and his home was in another country. The presumption from the circumstances is that he preferred to accept the comparatively small amount paid him fot the interest, rather than that he was cheated and overreached in the transaction.

3. -: -: NEGLIGENCE OF COMPLAINANT: BELIEF IN EQUITY. III. We come now to the question whether actual fraud by defendant in the transaction is proven. Michael Herron testified that the defendant represented to him, during the negotiations, that the only real estate owned by John at the time of his death was the farm on which she then lived, which, as we understand, is a half section, and another farm of about 150 acres, and that she stated that the value of his father’s interest in the property did not exceed $1,500 or $2,000; also that the same statement was made to him by two other persons, one of whom is a relation of his, and the other a nephew of defendant. One of these parties was examined as a witness, and he testified that he had made the statement attributed to him at the request of defendant. We attach but little weight, however, to his testimony. He is positively contradicted by defendant, and his own testimony shows that he has but a low sense of honor. Defendant denied positively that she ever made the statement to Michael which he attributed to her.

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Bluebook (online)
32 N.W. 407, 71 Iowa 428, Counsel Stack Legal Research, https://law.counselstack.com/opinion/herron-v-herron-iowa-1887.