Hoffman v. Hoffman

219 N.W. 311, 205 Iowa 1194
CourtSupreme Court of Iowa
DecidedMay 8, 1928
StatusPublished
Cited by2 cases

This text of 219 N.W. 311 (Hoffman v. Hoffman) 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
Hoffman v. Hoffman, 219 N.W. 311, 205 Iowa 1194 (iowa 1928).

Opinion

Kindig, J.

— Involved in this controversy are two estates, and, for a more lucid understanding of a somewhat complicated affair, a statement of the relationships of the parties and the chronological facts is important.

Peter and Adelaide Hoffman were husband and wife. Augustin Hoffman, the appellant, and Emil P. Hoffman, the appellee, are their sons. On the 23d. day of October, 1888, Peter Hoffman acquired, by warranty deed, title to certain real estate in Mills County. It is this land that is now in litigation. In December, 1907, appellant purchased this farm from his father for a consideration of $4,000, payable by the execution of a promissory note to Adelaide and Peter Hoffman, due on or before January 1, 1918, with interest at the rate of 5 per cent per annum. That instrument was secured by a mortgage on said acreage. Adelaide Hoffman, the mother, died intestate, October 30, 1914. Her estate was never administered, b.ut, according to the record, she left no debts. After Adelaide’s death, the "note” was left with the father, Peter Hoffman, who died testate, August 30, 1924. By the terms of his will,' he gave ap-pellee $2,000, which was to be collected from the-"note,” and the balance thereof due the testator, together with the residue *1196 of his estate, was bequeathed to appellant. Appellee received the $2,000, and receipted therefor.

Subsequently, it appears, discovery was made by appellant that the mortgage to his parents, securing the $4,000 purchase price .aboye;named, could not be properly released, because the mother’s estate was never settled, and appellee still retained an interest therein. That is to say, originally Peter Hoffman owned a one-half interest in the “note,” and the other one half thereof belonged to Adelaide Hoffman; and when she'died, one third of her one half was inherited by her husband, and the remaining two thirds descended to appellant and appellee, share and share alike.

. Five propositions are suggested by appellant for reversal. However, he argues them under four points. They are: First, That appellee’s election to accept the $2,000 under his father’s will estops him.from denying his. brother, the appellant, the right to take under the same document; second, the statute of limitations; third, that a mortgage' creates no interest in, but rather a lien upon, the real estate; and fourth, lack of authority for appellee to recover, because his mother’s estate was not probated.

These contentions will be considered in the order made.

I. Under certain requisite facts, a devisee or legatee named in a will is required to affirm or disaffirm the instrument. Election so to do, under some circumstances, is im-

peratiye. Hainer v. Iowa Legion of Honor, 78 Iowa 245; Kostelecky v. Scherhart, 99 Iowa 120.

II. Yet, however that may be as a general legal proposition, nevertheless it is not controlling here, for the reason that there is nothing in the record to demand application thereof; for appellee is not opposing his father’s will, nor' is he denying appellant’s right to-take thereunder.

Foundation for appellee’s claim in the case at bar is based upon his interest in the mother’s estate, not the father’s; So there is ■ no inconsistency in the attitude taken by appellee. Consequently no “election” is necessary. Hence'an estoppel does not result.

*1197 *1196 III. At this juncture, the assertion is made by appellant that appellee’s demand is barred by the statute of limitations. Such plea relates to appellee’s partial ownership of the note as *1197 an asset of Ms mother’s estate. If the necessary period of time has not elapsed to prevent the assertion of that right, it is conceded that recovery on the instrument is allowable, for the reason that it is not ten years past due. Close analysis of the situation, howr ever, reveals the fact that this position is not tenable. Parenthetically, it is recalled that the “note” in which Adelaide Hoffman owned a half interest was, at her death, retained by her surviving husband, Petef Hoffman. This was done, according to appellee’s theory, so and in order that the living parent'could eollect the proceeds and make proper distribution of the same.

A careful reading of the entire record, together with the provisions of the will, sustains this idea. The will itself, although indefinite at this point, upholds that interpretation: of the father’s purpose in keeping the “note” in his possession, Because, in the third paragraph of the testamentary document, giving to appellant an interest in the “note,” the language is:

“To my son Augustin, I give and will to him the balance (due), or to become due me from said four thousand dollar mortgage which I now hold **■*.”

Recognition was there made by the testator that some portion of the debt described was not his, and in this he was correct ; for, in truth and fact, it did not belong to him, but rather, was the property of and “due” the estate of Adelaide Hoffman. If there is nothing due the testator, then neither appellant nor appellee could receive anything under the will. All that the testator owned was due him, and no more. He could give away what was his; not that which belonged to someone else. Therefore, the object of Peter Hoffman in holding the “note” was twofold: First, to preserve and retain his own share therein; and second, to act as trustee for appellant and appellee, so far as concerns the interest acquired by them through their mother’s estate. Such fiduciary relationship existed until the death of Peter Hoffman, and he at no time repudiated it. Necessarily, then, the statute of limitations never ran. Murphy v. Murphy 80 Iowa 740. Therein we said:

“As a general rule, the possession of property subject to the trust by the trustee is the possession of the cestui que trust. * * * Therefore, the trustee must repudiate his- trust, * * * and notice of such repudiation * * * must be so given as to *1198 make the cestui que trust chargeable therewith, before the statute will commence to run.”

IV. As a defense to appellee’s cross-petition asking for the foreclosure of the mortgage, appellant urges that such security contract does- not create an interest in the real estate, and that, therefore, the title to the land in question should . . he quieted m him who is the fee-simple owner. To establish this doctrine, reliance is made upon Keokuk Trust Co. v. Campbell, 205 Iowa 414, and like cases. No doubt, a “mortgage,” rather than conveying title to the premises, produces only a lien thereon. Manifestly, the principles under which appellee claims are misunderstood by appellant. Clearly, appellee is not disputing appellant’s ownership of the farm. Forsooth, it is to appellee’s interest that appellant have a. good and valid title thereto. Limitation of appellee’s demand is made to the foreclosure of the “mortgage” securing his one-sixth interest in the “note” which at one time was owned in common by his father and mother.

Consistent with the Keokuk Trust Co.

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

Related

Herbst v. Treinen
88 N.W.2d 820 (Supreme Court of Iowa, 1958)
Reichard v. Chicago, Burlington & Quincy Railroad
1 N.W.2d 721 (Supreme Court of Iowa, 1942)

Cite This Page — Counsel Stack

Bluebook (online)
219 N.W. 311, 205 Iowa 1194, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoffman-v-hoffman-iowa-1928.