Knabe v. Kirchner

293 N.W. 433, 228 Iowa 1156
CourtSupreme Court of Iowa
DecidedAugust 6, 1940
DocketNo. 45005.
StatusPublished
Cited by7 cases

This text of 293 N.W. 433 (Knabe v. Kirchner) 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
Knabe v. Kirchner, 293 N.W. 433, 228 Iowa 1156 (iowa 1940).

Opinion

*1158 Bliss, J.

For about five years prior to September 26, 1931, the defendant John A. Kirchner was the owner of approximately 234 acres of Lee county farm land. All of this land was unencumbered except 90 acres, which he had purchased of Y. M. Schmitt about 1926. Schmitt held a mortgage of $12,000 on this 90 acres. There was no equity in this tract over and above the mortgage, and on September 28, 1931, John A- Kirchner, joined by his wife, the defendant Amelia Kirchner, conveyed it to Schmitt in satisfaction of the mortgage indebtedness. Amelia Kirchner, the wife, was the owner of an additional 90 acres, on which was the homestead of the family. This tract was encumbered by a mortgage of $2,900, held by the Citizens State Bank of Donnellson, Iowa. It was stipulated that there was no value, either in this 90 acres or in the 90-acre Schmitt tract, above the encumbrance. Schmitt and wife and the bank at Donnellson had been made defendants, but the suit was dismissed as to them.

The defendants, other than John A. and Amelia Kirchner, are the children of these two. In as much as the ages of the children are the subject of comment in the arguments they are set out: Anna B. was born April 8, 189 9 Edward, April 30, 1902; Fred, April 4, 1901; Carl, May 10, 1908; Emma, January 18, 1910; and Walter, January 28, 1916.

On March 1, 1926, John A. and Amelia Kirchner executed to the plaintiff, Fred C. Knabe, an old neighbor, their note for $2,000 payable one year after date with interest at 5 percent per annum. The money borrowed was to be used in connection with the purchase of the Schmitt land. This note was never renewed or paid but all interest was paid to March 1, 1931.

On September 26, 1931, John A. and Amelia Kirchner executed a deed conveying to their six children, above named, all of the said real estate owned by him after the conveyance of the Schmitt tract. The land so conveyed to the children, contained approximately 144 acres. It was unencumbered, and its value was stipulated at the trial to be $25 an acre. This is *1159 all of the land involved in this litigation, as Amelia Kirchner retained title to her 90 acres. On September 28, 1931, the parents, by bill of sale, transferred to said children certain livestock and other chattels, which included all of their nonexempt personal property. The parties at the trial stipulated that its value was $2,500. In each instrument the only recited consideration was “$1.00 and other valuable consideration.” Both were filed for record on September 28, 1931.

When the plaintiff loaned the money to Kirchner he knew of the latter’s ownership of the land, and something of the encumbrance against it. At that time he asked for a real-estate mortgage as security, but when Kirchner told him that the boys would pay him if anything happened to Kirchner, the plaintiff did not press the matter of security any further. Once or twice in the years following, the plaintiff asked for a mortgage, but Kirchner, without giving any reasons, told him he could not give a mortgage. Plaintiff first learned of the transfers to the children from his neighbors. On March 29, 1932, he brought his action on the note and secured judgment for $2,119.20 and costs on May 6, 1932. The sheriff’s return on the general execution showed no property other than that which had been transferred. This was levied upon.

Plaintiff’s petition alleged, in general, the fact statements above outlined, and that Kirchner and wife, when insolvent, had made the pretended conveyance and sale of the real and personal property with the intent to hinder, delay and defraud the plaintiff in the collection of his note, and the children had taken said conveyances and property, with the like intent to hinder, delay and defraud the plaintiff, and without any consideration paid therefor. Defendants, in their original answer, filed December 6, 1932, admitted plaintiff’s judgment and the levy thereunder, and the transfer of the property, but denied the allegations that the conveyance was a pretense, or that it was made to hinder, delay and defraud the plaintiff in the collection of his note, and further alleged that “the sale and conveyances referred to in plaintiff’s petition were made for a good, substantial and reasonable consideration.” The de *1160 fendants, in a separate paragraph of the answer, denied, each and every allegation of the petition not specifically admitted to be true. In compliance with an order of the court in ruling on plaintiff’s motion to make the answer more specific, the defendants, on January 18, 1934, filed an amendment to their answer in which they struck out paragraph 4 thereof, which contained the quotation from the answer above set out, and inserted in its stead, the following:

“That said payments and conveyances were made upon good and sufficient consideration, to-wit:

“1. That at the time the defendants, John A. Kirchner and Amelia Kirchner, purchased part of the real estate described in plaintiff’s petition, that they agreed with defendants, Anna Kirchner, Edward Kirchner, Carl Kirchner, Fred Kirchner, Emma Kirchner and Walter Kirchner, that if they would stay at home and help farm said real estate, the defendants, John A. Kirchner and Amelia Kirchner, would pay them the usual wages paid male and female farm help.

“That pursuant to the terms of said agreement the defendants worked on said farm of defendants, John A. Kirchner and Amelia Kirchner, but the defendant John A. Kirchner, failed to pay said defendants, Anna Kirchner, Edward Kirchner, Carl Kirchner, Fred Kirchner, Emma Kirchner and Walter Kirchner, any wages for their services.

“That the usual farm wages for male help between the 25th day of August, 1925, and approximately the 25th day of August, 1928, was $40.00 per month, and between the 25th day of August, 1928, and the 25th of September, 1931, was $25.00 per month.

“That the usual farm wages for female help between the 25th of August, 1925, and the 25th of September, 1931, was $1.00 per day.

“That at the time of the conveyance and sale of the real estate and personal property described in plaintiff’s petition, to-wit: September 28, 1931, there was due and owing the *1161 defendants, for wages from John A. Kirehner the following amounts:

“(a) Anna Kirehner, Aug. 25, 1925, to Sept. 25, 1931, 72 months at $30.00 per month — $2,160.00.

“(b) Edward Kirchner, Aug. 25, 1925 to Aug. 25, 1928, 36 months at $40.00 per month — $1,440.00. Aug. 25, 1928, to Sept. 25, 1931, 36 months at $25.00 per month — $900.00.

“(c) Carl Kirehner, Aug. 25, 1925, to Aug. 25, 1928, 36 months at $40.00 per month — $1,440.00; Aug. 25, 1928, to Sept. 25, 1931, 36 months, at $25.00 per month — $900.00.

“(d) Fred Kirchner, Aug. 25, 1925 to Aug. 25, 1928, 36 months at $40.00 per month — $1,440.00; Aug. 25, 1928, to Sept. 25, 1931, 36 months at $25.00 per month — $900.00.

“(e) Emma Kirchner, Aug. 25, 1925, to Sept. 25, 1931, 72 months at $30.00 per month — $2,160.00.

“(f) Walter Kirehner, Aug. 25, 1928, to Sept. 25, 1931, 36 months at $25.00 per month — $900.00.

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Bluebook (online)
293 N.W. 433, 228 Iowa 1156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knabe-v-kirchner-iowa-1940.