Lowe Foundation v. Mosley

199 F.2d 227, 1952 U.S. App. LEXIS 3314
CourtCourt of Appeals for the Eighth Circuit
DecidedOctober 15, 1952
Docket14557_1
StatusPublished

This text of 199 F.2d 227 (Lowe Foundation v. Mosley) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lowe Foundation v. Mosley, 199 F.2d 227, 1952 U.S. App. LEXIS 3314 (8th Cir. 1952).

Opinion

THOMAS, Circuit Judge.

The United States in an action commenced in the District Court on May 29, 1951, secured a judgment condemning 1280.93 acres of land situated in Perkins County, South Dakota. It is agreed that the just compensation for the land is $31,057.50. The defendants in that suit were William Mosley, Mabel Mosley, and Lowe Foundation, a not-for-profit Illinois corporation. This controversy involves only the question of which defendants are entitled to the proceeds, the Mosleys or the Lowe Foundation.

The land formerly belonged to Hortense B. Lennan, a widow. On May 31, 1941, she executed ten warranty deeds conveying the land to the defendants Mosley. These deeds were delivered to Mosley on September 16, 1946, and recorded on September 17, 1946. On the day preceding their delivery William Mosley executed and delivered to Mrs, Lennan the following ,

“Memorandum
“In consideration for delivery of deeds conveying unto William M. Mosley and Mabel Mosley 1200 acres, more or less, and described as (describing the land here involved), I hereby agree to repay Hortense B. Lennan the amount of money advanced by her in tax redemption of the above described lands, and in further consideration I hereby agree to continue raising and handling sheep in which Hortense B. Lennan has an interest, on the same basis and general terms as in previous years which is fifty-fifty.
“Dated at Lemmon, South Dakota, September 15, 1946.
/s/“Wm. Mosley.”

On November 21, 1949, Hortense B. Len-nan executed and delivered to' appellant Lowe Foundation, a warranty deed conveying most of the same land conveyed to the Mosleys in consideration of an agreement to care for and support her for the remainder of her life.

In the condemnation case the Mosleys in their answer claimed the entire amount on the ground that they were the sole owners of the land by reason of the warranty deeds executed in 1941 by Hortense B. Lennan and delivered to them in September, 1946.

The Lowe Foundation in its answer claimed to be entitled to all or a part of the amount by reason of the deed of November 21, 1949, conveying the land to it in consideration, it is alleged, of its contract to support the grantor; and in the amended answer it prayed for judgment vacating and setting aside the deeds from Hortense B. Lennan to William Mosley and Mabel Mosley and annulling the alleged contract between the Mosleys and Mrs. Lennan, by the terms of which it is alleged that the consideration for said deeds was an undertaking 'by the Mosleys to support Mrs. Lennan for the remainder of her life, and to award to the Lowe Foundation an amount equivalent to the value of the land described in her deed to the Foundation.

Counsel for the Mosleys objected to the introduction of any evidence under the answer of the appellant Lowe Foundation. The court sustained the motion, saying:

“As I see this case, Mrs. Lennan has a cause of action against the Mosley’s for failure to keep a promise that they made with reference to reimbursing her for certain money and continuing in the sheep business with her. That is all there is in the answer * * *. There wasn’t any fraud in connection with the proposition any more than would be fraud in the failure to pay a promissory note. It was a breach of contract * *

An exception was granted to the ruling, and judgment was entered awarding the entire compensation for the land to the Mosleys.

It is contended here that

1. The court erred in sustaining the objection of the Mosleys to the introduction of *229 any evidence under the amended answer; and

2. The court erred in granting the motion of the defendants Mosley for judgment on the pleadings.

These points relate to a single issue, namely, the sufficiency of the amended answer of the appellant.

The theory of appellant is that the allegations in the amended answer warrant an inference that the Mosleys orally agreed that in consideration of the deeds conveying the land to them they would support the grantor for the remainder of her life; that Mrs. Lennan was entitled to rescind the deeds to the Mosleys because the consideration for them failed in part; and that appellant by reason of the subsequent deed to it has succeeded to that right. We agree with the trial court that such an inference is not warranted by any of the allegations contained in the answer. The only contract between the parties referring to a consideration for the deeds is contained in Exhibit A, supra, entitled “Memorandum.” That contract obligated the Mosleys to “repay Hortense B. Lennan the amount of money advanced by her in tax redemption of the above described lands * * * and * * * to continue raising and handling sheep in which” she “had an interest”, but without specifying for how long. If the Mosleys have not performed that contract Mrs. Len-nan has a cause of action against them for breach of contract. But she is not a party to this suit; nor has she assigned her contract to the appellant.

The first object of the appellant is to secure a decree setting aside and cancel-ling the warranty deeds to appellees. Hortense B. Lennan executed the deeds to the Mosleys May 31, 1941, and they were delivered and recorded in September, 1946. Under these deeds it appears that the grantees took possession. The deed to the appellant was not executed until November, 1949. The rights of the parties are governed by the laws of South Dakota. Appellant contends that its right to maintain this suit is recognized by Section 51.1409 of the South Dakota Code of 1939, which reads:

“Any person claiming right or title to lands, tenements, or. hereditaments, although he, she, or they may be out of possession, and notwithstanding there may be an adverse possession thereof, may sell, convey, and transfer his or her interest in and to the same in as full and complete a manner as if he or she were in actual possession of the lands and premises intended to be conveyed; and the grantee or grantees shall have the same right of action for the recovery thereof, and shall in all respects derive the same benefit and advantage therefrom as if the grantor or grantors had been in actual possession at the time of executing the conveyance.”

Clearly this statute does not in any way affect the rights of rival claimants to title to lands in South Dakota; and no case under the statute is cited in support of appellant’s contentions in the instant case.

The appellant next contends that by its deed it is subrogated to all the rights against the Mosleys that Hortense B. Lennan ever had. In support of this contention the appellant relies upon the decision of the Su-' preme Court of South Dakota in Application of Mach, 71 S.D. 460, 25 N.W.2d 881, 883.

Two alleged rights are sought to be enforced upon the principle of subrogation. First, it is contended that the appellant may enforce the alleged oral contract by the terms of which the Mosleys agreed to support Mrs.

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Cite This Page — Counsel Stack

Bluebook (online)
199 F.2d 227, 1952 U.S. App. LEXIS 3314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lowe-foundation-v-mosley-ca8-1952.