Kelly v. Grainey

129 P.2d 619, 113 Mont. 520, 1942 Mont. LEXIS 46
CourtMontana Supreme Court
DecidedOctober 2, 1942
DocketNo. 8,287.
StatusPublished
Cited by9 cases

This text of 129 P.2d 619 (Kelly v. Grainey) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kelly v. Grainey, 129 P.2d 619, 113 Mont. 520, 1942 Mont. LEXIS 46 (Mo. 1942).

Opinion

MR. CHIEF JUSTICE JOHNSON

delivered the opinion of the court.

The plaintiff, Peter J. Kelly, appeals from a judgment in favor of defendant, Rose Grainey, upon the latter’s cross-complaint in a quiet title action. The pleadings are in the usual form, each party joining issue with the other’s cause of action. It will not be necessary to refer to the other two defendants, whose rights are agreed to be dependent upon those of Rose Grainey.

Briefly stated, the controversy is whether, as asserted by defendant (plaintiff’s sister) and found by the trial court, anoth *523 er sister, Mae J. Kelly, while plaintiff’s employee, informed of all the facts, and living on the premises in question with his consent, initiated against him a claim of adverse possession, perfected it while still living there with his consent, and thereafter conveyed it to defendant as a bona fide purchaser for valuable consideration. The controversy, which has disrupted a family and involved the title to property costing plaintiff $4,600, has arisen because he and his sister Mae, upon whom defendant bases her claim to title by adverse possession, dealt with the property for their parents’ benefit, without legal advice.

The undisputed evidence shows that in 1917 the plaintiff was residing with his parents, his daughter and his sister, Mae J. Kelly, that he bought the Butte residence property in question here, known as 221 Jackson Street, for $4,600, paying for it with his own funds, and that all of them then moved into the house. Having taken them into his new home he paid the household expenses, although they were not dependent upon him. He had just taken office as county assessor and had appointed Mae as a deputy in his office at a monthly salary of $150, later raised to $162.50. The father was employed as a mine watchman at a wage of $4 per day. The defendant, Rose Grainey, another sister of the plaintiff, was married and living at Helena during all the times in question.

In December, 1918, being about to marry again, plaintiff deeded this property to his parents and on the same day and as part of the same transaction they deeded it back to him. The deed to them was recorded some two months later but the reconveyance to plaintiff was not recorded until 1939, after this controversy had arisen and his mother had informed him that she did not need the property any longer and that he should resume possession.

Plaintiff testified that the purpose of the two deeds was to transfer to his parents a life estate, retaining the reversion in him by means of the reconveyance under which he would reclaim the property only at their death in order to prevent claims to it by his brothers and sisters; that the matter had been *524 discussed by Ms parents, bimself and Ms sister Mae, that he had told Mae and she knew the purpose of the deeds, and that Mae had prepared both deeds in plaintiff’s office.

There was no change of occupancy or possession when the deeds were given, plaintiff continuing to live there with his relatives; but two months later, in February, 1919, plaintiff remarried and moved to another house, leaving his parents, his sister Mae and his daughter living in the house in question.

Although neither Mae nor the parents had become dependent upon him, plaintiff continued to contribute for the household expenses while his daughter was living with them; but when she moved elsewhere in 1921 he discontinued regular contributions.

While he continued to live in this house with his relatives plaintiff kept charge of the property and paid the taxes, but upon his marriage and removal Mae took charge of it and continued to manage it until shortly before her death, paying the taxes, making the repairs and collecting the rent. During the six years, 1917 to 1922, the plaintiff continued to be county assessor of Silver Bow county, and Mae was deputy in his office.

In 1922 Mae decided to buy the adjoining property, on which was a smaller house which she considered large enough for herself and her parents, plaintiff’s daughter having gone elsewhere. She attempted to borrow the entire purchase price of $2,500 from a Butte bank but learned that the bank could not make a 100% loan on the property. She then inquired whether the property here in question would constitute sufficient additional security; finding that it would, she returned, first with a deed to her from her mother alone, and, when that was rejected, with a deed to her from both parents. The loan was then consummated, the bank taking as security in lieu of a mortgage a deed to John Burke, one of its officers, as trustee. Upon its merger with the Metals Bank & Trust Company, a deed was executed by Burke as trustee to the latter bank. In 1923, when the loan was reduced to $1,500, Mae obtained the release of her own property by means of a deed to her from the bank; this deed was not recorded until after her death. In 1925, when the loan *525 was paid in full, Mae obtained the release of the property at 221 Jackson Street, by a deed to her which she recorded about two weeks later, thus again placing the record title in her name.

Upon purchasing the adjoining property in 1922, Mae and the parents moved into the house thereon, and Mae rented the 221 Jackson Street premises to tenants. She never accounted to plaintiff for the rent, but continued to pay the taxes and upkeep, as she had done since plaintiff had turned over the management of the property to her upon his marriage and removal.

Mae never told plaintiff of the bank transaction or of the deed to her from the parents, and he never received actual notice thereof, or of the subsequent deed from her to plaintiff, until June, 1939, about four months before filing suit, although the various deeds were recorded and thus constituted constructive notice.

The parents did not become dependent upon their children until 1929, about a year before the father’s death, when he became unable to continue work as a mine watchman. However, as noted above, plaintiff had paid the household expenses while living with them at 221 Jackson Street, and contributed regularly for two years longer, while his daughter continued living there.

It does not appear what use Mae J. Kelly made of the rent, but she is entitled to the presumption that she used it to continue paying upkeep and taxes (which she had begun to do after plaintiff’s marriage in 1919) and used the remainder for the benefit of the parents, in accordance with plaintiff’s intent, fully known to her, that they should have the benefit of the property during their lifetime.

After the disability of her father in 1929 she supported both parents until her father’s death in 1930, and then her mother until her own death in 1937. The mother was then taken to live with defendant and her family at Helena, and continued there until her death sometime after the trial of this case in district court, which was held in September, 1910. The relations *526 of all the family continued friendly until this controversy arose in 1939.

In October, 1937, two weeks .before her death, being conscious of her condition, Mae deeded to defendant both this property and the adjoining premises which she had bought.

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Bluebook (online)
129 P.2d 619, 113 Mont. 520, 1942 Mont. LEXIS 46, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kelly-v-grainey-mont-1942.