In Re Estate of Silkett

227 N.W. 965, 209 Iowa 417
CourtSupreme Court of Iowa
DecidedDecember 13, 1929
DocketNo. 39483.
StatusPublished

This text of 227 N.W. 965 (In Re Estate of Silkett) 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
In Re Estate of Silkett, 227 N.W. 965, 209 Iowa 417 (iowa 1929).

Opinion

Evans, J.

Joel Silkett died on May 17, 1924, survived by the appellant, as his widow, and by five children and the only child of a deceased daughter. In short, he left surviving him six heirs. The decedent and the surviving spouse were married in December, 1921. The appellant had been married previously, and, at the time of her marriage to the decedent, had a son and a daughter, adult. The first wife of the decedent had died in the year 1917. His children were the fruit of the first marriage. At the time of his death, both the decedent and his wife were approximately 80 years of age. The funeral of the decedent occurred on May 19, 1924. Two members of the family were nonresident, and absent from the funeral. The decedent was a resident of Eed Oak, in Montgomery County, where he died, and where his funeral occurred. After the funeral, and on the same day, those members of the family who were present, including the widow, appellant, and her adult daughter, went together to • the office of Attorney Powell and conferred with him concerning the estate. A written contract was entered into at that time, and signed by the widow and such of the heirs as were present, whereby the widow was to receive an allowance of $100 per month and the statutory widow’s allowance and the use of the homestead for life, free of rent and of taxes, and whereby she relinquished to the heirs all her interest in her husband’s estate. It was understood .that the contract should be deemed tentative until it should be signed by the absent heirs. Such signatures were obtained on June .14, 1924. The contract was carried out without controversy from that time until October, 1927, when it was repudiated by 'the appellant herein. The grounds .of repudiation are various, and rather indefinite. They *419 are, in the main: That a fraud was perpetrated on the widow; that she was not advised of her rights; that the heirs and the attorney sustained a fiduciary relation with her; that they misled her and took advantage of her; and that the contract in its result was unconscionable. It appears that the property of the decedent consisted almost wholly of a bank deposit of $76,000, being the proceeds of the sale of his farm, and that the bank in which the deposit was made had closed its doors, whereby the value of such deposit became largely a matter of speculation. It further appears that efforts were in progress to reorganize the bank and to reopen it, and that this was accomplished on June 9, 1924; that, as a result of such reopening, a substantial part of the deposit was rescued, and became available as assets of the estate. It was stipulated at the trial that, if the court should hold that the appellant was entitled now to take her distributive share, the amount thereof would be the sum of $17,000 plus. The contention for the appellant in argument is that the attorney knew that negotiations for reopening the bank were in progress; that he knew it would be reopened; that he knew the deposit would attain substantial value; and that, by statement and advice, he misled the widow to her injury. It is contended also that the widow was taken advantage of by the haste with which the meeting was arranged, and that such meeting on the day of the funeral was unseemly, and indicated a purpose to take advantage of the widow in her affliction. Much argument is predicated upon the theory that a fiduciary relation of attorney and client existed between the widow and Attorney Powell, and between her and the heirs. We find no warrant in the record for this contention. So far as the attorney was concerned, he was a stranger to all the parties. They knew him only by reputation. He had never met any of them prior to that date. Earlier in the day, W. E. Silkett had called at his office and advised him that the family would call upon him in the afternoon for advice concerning estate matters. It does appear that there was a very distant relationship between the widow and the attorney Powell. Whether the fact was known at that time does not appear. It does appear that they had never previously met. The conference in the attorney’s office was an open one, participated in by all the parties. The widow was advised that she had the right to appointment as administrator *420 unless she waived it. She expressed her desire for the appointment of W. E. Silkett (referred to in the record as Ed). She signed an application for his appointment. The contention that the heirs and Powell knew at that time that the bank would be reorganized and that the deposit would be restored, is without merit, upon this record. The receiver then in charge of the bank was a witness upon the trial, and testified to the condition of the bank and to the difficulties in the way of a reorganization. The capital of. the bank was $60,000. It had worthless paper of more than $100,000 and doubtful paper of more than $200,000. Its president was himself insolvent, and the bank was ultimately held chargeable for more than $50,000 of his indebtedness. In order to reorganize and reopen the bank, it was requisite that all stockholders should pay an additional sum of $100 per share of their stock; that new stock should be sold at $200 per share, to the amount of $180,000; that the consent of all creditors should be obtained. The first actual step in the direction of such reorganization was had on May 20th. It was accomplished by June 9th. Of the new stock subscribed, $20,000 thereof was previously subscribed by Joel Silkett, to be paid out of his deposit. The Silkett estate did save, through the reorganization, a substantial part of their deposit. The uncertainty on May 19th as to what might ever be received out of that deposit was a reality, and not a pretense. The record does not justify any claim of false representation predicated upon forebodings as to the extent of loss to be suffered from the bank failure.

The relations between these heirs and the widow had at all times been kindly. In that sense, the widow undoubtedly trusted her stepsons. The record is too voluminous for detailed discussion. We have read it carefully. The appellant herself was a witness in her own behalf, and testified with commendable candor. The record discloses, and her testimony confirms it, that she was an intelligent person, well versed in the ordinary affairs of life, and with an active mentality at the time of the transaction, as well as at the time of the trial. In her early days she was á school-teacher. The record discloses her as a woman of kindly character. It shows also that her motives were influenced by her sense of her duty toward the children of her husband. It is undisputed that she expressed it as her *421 desire tbat the estate of her husband should ultimately go to his children; that she desired only a comfortable living therefrom during her life. The amount provided for in the contract was accepted by her voluntarily, and with full appreciation of what she was doing. This continued to be her attitude of mind until August, 1927, when she took offense at a certain remark made by W. E. Silkett, and contained in a letter. Some negotiations were begun about that time for amortizing or commuting her monthly payments, and a lump sum of $5,000 was offered to her. This was rejected, and it was in this connection that offense was given to her. The following quotation from her testimony furnishes as good a resume of the record and the proper conclusions to be drawn therefrom as could well be made in small compass:

"I read the contract over before I signed it.

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

Cite This Page — Counsel Stack

Bluebook (online)
227 N.W. 965, 209 Iowa 417, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-silkett-iowa-1929.