Lisner V. Chicago Title & Trust Co.

582 F.2d 1092
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 14, 1978
DocketNo. 78-1028
StatusPublished
Cited by1 cases

This text of 582 F.2d 1092 (Lisner V. Chicago Title & Trust Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lisner V. Chicago Title & Trust Co., 582 F.2d 1092 (7th Cir. 1978).

Opinion

PELL, Circuit Judge.

Nicholas Bride (Nicholas) died in 1957, seised of a farm in Woodford County, Illinois. His will devised a life estate in the farm to his brother, Isadore Bride (Isadore), followed by a second life estate to Isadore’s daughter, plaintiff-appellant Audrey Bride Lisner (Audrey), with the remainder in fee to Audrey’s children. At the time of Nicholas’ death, Isadore was 77 years old. He is still living.

In the 1951 will executed by Nicholas (superceded as discussed infra by a 1953 codicil) it was provided that after Isadore’s death and prior to Audrey’s attaining 35 years of age, a trustee would collect rents and incomes and pay expenses on the property and pay to Audrey only the net income from the farm. The will also created a power in Audrey to convey the property once she attained 50 years of age. The 1953 codicil set forth more liberal provisions. After restating the life estate to Isadore and the subsequent life estate to Audrey, the codicil stated, as pertinent:

After the death of said Isadore . and until said Audrey . . . shall have attained the age of twenty-five years, said real estate shall be managed and looked after for her benefit by [a trustee] . . . . After she becomes entitled to receive the income from such real estate herself, she shall pay all . expenses . . . and keep said premises in a proper state of repair. After she shall have attained the age of twenty-five years and become entitled, also, to the income from such real estate, said Audrey . . . shall have full power to sell, dispose of and convey all or any part or parts of said real estate. . In the event of any such sale or sales by her, my said niece shall be entitled to the proceeds of such sale or sales without any further accounting therefor. This power shall not give my said niece the right or authority to mortgage or create any lien on said real estate. [Emphasis added.]

Audrey left her father’s home to attend college in California, where she has since resided. She married, and later was divorced in 1963. By the fall of 1964, her husband having made no support payments, she was in serious need of funds. She was also suffering from physical ailments. She communicated with one Thomason, a Peoria, Illinois lawyer, about selling the Woodford County farm. Thomason, in turn, got in touch with a local real estate broker who had, from time to time, been employed by defendant-appellee Jack A. Coney. The broker discussed the farm with Coney, an attorney who devoted substantial time to [1094]*1094the real estate business. In due course, Coney and Audrey agreed to a sale of the farm at the price of 813,50o,1 the consideration was paid and a deed was given. There is no dispute that both parties to the sale understood that Audrey was conveying a remainder in fee simple, subject to Isadore’s life estate.

This action was brought in 1977 to obtain relief in the form of alternative declarations that Audrey had no power to dispose of or convey any interest in the farm until after Isadore’s death, and that the deed is therefore void; that the purported signatures on the deed recorded2 are not genuine and that the deed is thus void; and that Audrey was overreached in the deal, making the transfer voidable. The district court dismissed the complaint insofar as it alleged overreaching (and thus fraud) for failure to plead with the specificity required by Rule 9(b), Fed.R.Civ.P., and on cross-motions, granted summary judgment to the defendants3 on the claim that Audrey had no power to convey a remainder in fee. The court construed Nicholas’ will and codicil as imposing a limit on Audrey’s power to appoint the property before Isadore died, but reasoned that the limit was merely a condition on the exercise of the power, and that the appointment was therefore effective, with Coney’s enjoyment of its benefits to be deferred until the condition occurred.4 Audrey and her children (and co-plaintiffs), Jacqueline and Jannette, have appealed.

We address the primary issue, the effectiveness of Audrey’s conveyance, first. Although the complaint alleges that Audrey could convey no interest in the farm prior to Isadore’s death, plaintiffs now concede that Nicholas’ will and codicil devised a vested life estate to Audrey (subject, of course, to divestment in the event Audrey predeceased Isadore), the alienation of which was not restrained under Illinois law. See Gray v. Shinn, 293 Ill. 573, 127 N.E. 755 (1920). The question, then, is only whether the power granted to Audrey to convey the fee remainder could be exercised before Isadore’s death.

We agree with the district court that Nicholas’ intent is basically clear. He had a plainly discernible concern that Audrey might immaturely and unwisely convey the fee remainder, thereby depriving her children of their interest in the farm. Although his 1953 codicil gave Audrey a power less limited than he had created in his 1951 will his continuing concern is evident from the terms of his will as revised. Even though her father might have died, e. g., in 1958, when Audrey was 21 years old, she was not to be allowed to receive gross income and pay expenses until she became 25. She was not given the power to mortgage or encumber the farm at any time. And the power to convey the fee remainder was expressly stated to arise only “[a]fter she shall have attained the age of twenty-five years and become entitled, also, to the income from such real estate.” The emphasized language would be surplusage if construed to refer only to the fact that Audrey was not entitled to receive income directly until she reached the age of 25. That restriction was clearly articulated earlier in the pertinent codicil provision. In our opinion, the only reasonable reading is that the [1095]*1095testator intended that Audrey have no power to convey prior to the time of her father’s death, which, of course, would be the first time she could become entitled to the income from the farm. This reading has the additional virtue of giving meaning to all of the language of the devising provision. This factor has particular significance here, where the emphasized language was added to the devise by the same codicil that reduced the age at which the power was to be exercisable from 50 to 25. Under the provisions of the original will, Isadore would have had to live to be 107 for a limitation on the power based on his death to have any effect. Under the codicil, however, if Isadore lived nine years after its execution (to the age of 82) the additional limitation would be meaningful. We conclude, accordingly, that Nicholas’ will and codicil created a power in Audrey to convey the fee remainder only after Isadore’s death.

Obviously, then, Audrey’s deed to Coney could not have been an exercise of the power, for the power did not then exist. Nor will it do to treat the deed as a contract to exercise the power when it became exercisable, for the law does not allow such contracts to be enforced:

The donee of a power not presently exercisable cannot contract to make an appointment. If the promise to make such an appointment is not performed the promisee cannot obtain damages or the specific property; but the fact that the power is not presently exercisable does not prevent him from obtaining restitution of value which he has given for the promise.

3 Restatement of Property § 340 at 1902 (1940).

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Related

Lisner v. Chicago Title And Trust Company
582 F.2d 1092 (Seventh Circuit, 1978)

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Bluebook (online)
582 F.2d 1092, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lisner-v-chicago-title-trust-co-ca7-1978.