Hogg v. Wolske

130 P.3d 1087, 142 Idaho 549, 2006 Ida. LEXIS 19
CourtIdaho Supreme Court
DecidedFebruary 22, 2006
Docket30818
StatusPublished
Cited by55 cases

This text of 130 P.3d 1087 (Hogg v. Wolske) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hogg v. Wolske, 130 P.3d 1087, 142 Idaho 549, 2006 Ida. LEXIS 19 (Idaho 2006).

Opinion

EISMANN, Justice.

This is an appeal from a judgment quieting title to certain real property, awarding special damages on a claim for slander of title based upon the filing of a void quitclaim deed, and rejecting the defendants’ contention that a deed and contract to reconvey the property executed by their predecessors in interest constituted a mortgage. We affirm the district court and award the respondents attorney fees on appeal.

I. FACTS AND PROCEDURAL HISTORY

The central issue in this case is whether a deed and contract to reeonvey real property constituted a mortgage. Fred and Phyllis Wolske and Vanness and Verda Anderson entered into a written agreement (Agreement) dated March 22, 1975. The Agreement provided that the Wolskes would convey by warranty deed certain real property to the Andersons in exchange for $141,991. It also provided that if the Wolskes paid certain sums, the Andersons would reconvey the property back to them. On March 22, 1975, the Wolskes executed a warranty deed *552 conveying the real property to the Andersons. The Andersons paid the $141,991 and took possession of the real property.

The documents for the transaction had been prepared by the Wolskes’ attorney, who has retired from practicing law and did not represent the defendants in this case. The Andersons were not represented by counsel at the time. The Wolskes’ attorney recorded the warranty deed conveying the property to the Andersons, but kept the original in his file. He had also prepared a quitclaim deed which the Andersons executed. The Agreement and quitclaim deed were to be placed in escrow at a local bank, but the attorney did not set up the escrow account because the Wolskes did not pay him the fee necessary to do so.

In January 1976, the Wolskes failed to make the first payment of principal due in order to repurchase the property. The Andersons retained counsel, who on May 3, 1976, gave the Wolskes a written sixty-day notice of default as provided in the Agreement. The Wolskes did not cure the default, although in December of that year they did tender a cheek for an annual principal payment. The Andersons rejected the payment because it did not include accrued interest. In subsequent correspondence, the Andersons’ attorney also referred to the check as being “not sufficient at the bank.” The Wolskes made no further attempts to perform under the Agreement.

In 1977 or 1978, Fred Wolske and his attorney had a falling out, and the attorney gave Wolske all of the files he maintained while representing him. In doing so, the attorney inadvertently gave Wolske the quitclaim deed that had been executed by the Andersons.

Fred Wolske died on October 7, 1997. From 1975 until his death, he made no claim to the real property. In his will, Fred named his son Kelvin as the personal representative of his estate. While going through his father’s records, Kelvin found the quitclaim deed. After talking with his mother, Kelvin recorded it on October 24, 1997. He also found and recorded a quitclaim deed executed by the Bohrers who had entered into a similar transaction with his parents with respect to other real property. In response to the Bohrers’ demands, Kelvin and his mother executed a quitclaim deed conveying that property back to the Bohrers along with affidavits stating that the quitclaim deed executed by the Bohrers should not have been recorded, that the Wolskes had not paid any consideration for the property, and that it was recorded in error and without authority-

Over the years, the Andersons sold portions of the property they had purchased from the Wolskes. After the Andersons died, their successors learned of the quitclaim deed recorded by Kelvin when they attempted to sell the remaining property. The sale fell through because the title report disclosed the quitclaim deed as a cloud on the title to the property.

On May 21, 1998, the Estate of Vanness Anderson and the Estate of Verda Anderson (Respondents) filed this action against Kelvin Wolske, Phyllis Wolske, and the Estate of Fred Wolske seeking quiet title to the property, 1 damages against Phyllis Wolske and Fred Wolske’s Estate for breach of warranty of title, and damages against Phyllis Wolske, Kelvin Wolske, and Fred Wolske’s Estate for slander of title. They later filed an amended complaint adding a claim that Kelvin Wolske’s recording of the quitclaim deed constituted a fraudulent transfer. The amended complaint also added as defendants the Silver Star Nevada Trust and the Wolskes’ five other children, all of whom along with Kelvin were alleged to be heirs of Fred Wolske. The five other Wolske children were later either dismissed after filing a disclaimer of any interest in the real property or given a release of liability after judgment had been *553 entered, and they are not parties to this appeal.

Kelvin Wolske, Phyllis Wolske, and Fred Wolske’s Estate answered and filed a counterclaim, seeking quiet title to the real property. The counterclaim alleged that the warranty deed and Agreement constituted a mortgage, that the statute of limitations had run on any action to foreclose the mortgage, and that the counterclaimants were entitled to have title to the real property quieted in them. They also alleged title to the real property based upon the quitclaim deed recorded by Kelvin. Phyllis Wolske died while the case was pending, and her estate was substituted for her as a defendant-eounterclaimant.

The matter was tried to the district court without a jury. The court found that the warranty deed and Agreement did not constitute a mortgage. It also found that the claim that the deed and contract of reconveyance constituted a mortgage was barred by laches and by the doctrine of adverse possession. It quieted title to the property in the Andersons’ successors in interest, declared void the quitclaim deed recorded by Kelvin Wolske, and awarded the Respondents the sum of $94,359.37, representing the attorney fees and costs incurred in quieting title to the property. The Wolskes’ Estates, Kelvin Wolske, and the Silver Star Nevada Trust then timely appealed.

II. ISSUES ON APPEAL

A. Did the district court err in failing to find that the warranty deed and contract of reconveyance were not intended by the parties to constitute a mortgage?

B. Did the district court err in finding that there was a valid delivery of the warranty deed from the Wolskes to the Andersons?

C. Did the district court err in awarding damages for slander of title against Kelvin Wolske?

D. Did the district court err in awarding costs and attorney fees against the Silver Star Nevada Trust?

E. Did the district court err in awarding damages for slander of title against the Wolskes’ Estates and the Silver Star Nevada Trust?

F. Are Respondents entitled to an award of attorney fees on appeal pursuant to Idaho Code § 12-121?

III. ANALYSIS

A. Did the District Court Err in Failing to Find that the Warranty Deed and Contract of Reconveyance Were Not Intended by the Parties to Constitute a Mortgage?

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Bluebook (online)
130 P.3d 1087, 142 Idaho 549, 2006 Ida. LEXIS 19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hogg-v-wolske-idaho-2006.