Lutz v. Billick

172 Iowa 543
CourtSupreme Court of Iowa
DecidedNovember 22, 1915
StatusPublished
Cited by18 cases

This text of 172 Iowa 543 (Lutz v. Billick) 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
Lutz v. Billick, 172 Iowa 543 (iowa 1915).

Opinion

Ladd, J.

J. J. Billick died seized of 240 acres of land and leaving him surviving a widow, Susan A. Billick, who died in 1899, and five sons and one daughter. Of the sons, Seef Billick remained single, and died in 1897. Freed Billick departed this life in 1910, leaving him surviving five children and four grandchildren by a deceased daughter. ■ T. J., or Jefferson, Billick died January 1, 1913, at the age of 65 years. Lewis A. Billick was born in 1872 and, therefore, was fifteen years old at the time' of his father’s death. The plaintiff, Ella Billick, married Frank Lutz, February 14, 1900, and had lived on the premises up to that time. James II. Billick. is still living. At the time of the death of T. J. Billick, title to about 450 acres of land stood in his name, and in this suit the plaintiffs pray for the partition of said land. Lewis A. Billick, by way of cross-petition, alleged that he was joint owner of said premises with deceased, T. J. Billick; that he and the deceased entered into an oral agreement about the year 1889, under thé terms of which they were to “take over and acquire all the land of which their father, James J. Billick, died seized; that they should work together jointly, cultivate the land and engage in the business of farming and stock raising together, and by their joint efforts and the proceeds of such business pay all of the debts, claims and incumbrances against the estate and the lands of which their father died seized, and in that way, acquire said lands and own them together in equal shares”; that, in pursuance of said agree[545]*545inent, they did carry on the farm by raising stock and cultivating the soil until the death of said T. J. Billick, and from the proceeds paid all of the debts and claims against the estate of their father, including incumbrances thereon, and acquired title to said lands and, out of the proceeds of said business, acquired the other real estate; that, as a matter of convenience, title was taken in the name of T. J. Billick and he held the same in trust for himself and Lewis; that all of said lands' were paid for out of partnership funds under the foregoing arrangement, and defendant, Lewis A. Billick, prayed that his ownership of an undivided one half thereof be decreed. This claim was put in issue. There was also an application for the sale of the land in order to pay claims against the estate, and this was consolidated with the first mentioned suit.

From this statement, it is apparent that the main issue is whether the land was acquired as averred by Lewis A. Billick. The contention as to one tract may be disposed of at the outset. Title to the S. E. ]4 N. W. % and S. W. % N. E. of Section 13 in Township 76 was acquired by T. J. Billick January 21, 1879, or about eight years prior to the death of J. J. Billick, and by him retained until his death. Whatever may have been the subsequent arrangement, it could not have entered into the purchase or payment of the purchase price of this 80 acres. Title to the S. W. *4 of Section 13 and the E. y¿ of the S. E. 14 of Section 14 was obtained by deceased from the administrator of his father’s estate. Of the other land, he acquired title to 80 acres in 1899, and to other portions of the farm in 1901,1902 and 1911. In other words, all the land except 80 acres, deeded to him in 1879, was acquired and title taken in the name of T. J. Billick after his father’s death. The indebtedness of J. J. Billick at that time equaled, if it did not exceed, the value of the estate, and the theory of the plaintiff is that shortly after his father’s death, T. J. Billick, who was then unmarried and 39 years of age, proposed to his brother, Lewis A. Billick, then a little over 15 years old, that they operate the farm together and out of the profits pay the debts [546]*546of the estate and acquire the land; and that they would share alike in the property so obtained.

1. Paktnehship : the relation: handi?n.>-oi property.

2‘ ^"relation? ’ anaflÍosses: presumption from sharing profits. An examination of the record has convinced us that such an agreement was entered into and fully performed. As the testimony of .neither party is available, death .having closed the mouth of one and the law that of the other, we necessarily must revert to what deceased may have said with reference thereto in connection with other, proved facts. He appears to have talked freely to his neighbors con- . , cerning the arrangement with his brother, and-what he said leaves no doubt that, shortly after-his father’s death and-before title was acquired to any of this land, he proposed to Lewis that, if he would join him in handling and working the farm left by his father, they would acquire title thereto and each should have an equal share therein; that Lewis accepted the proposition and that, during all the years following, they continued on the land under this arrangement, and out of the profits derived from its use and their joint labors and enterprise, paid whatever was expended in acquiring title and improving the land. Lewis did most of the work on the farm and Jefferson transacted most of the business — practically all of it prior to Lewis’ attaining majority. Later, Lewis was consulted in business matters, such as leasing portions of the farm, and he appears to have been in charge of disposing of watermelons, to the raising of which the land- seems to have been adapted. Evidence. of the manner of operating the farm — how each participated, and the disposition of the profits — was pertinent to the inquiry as to whether the brothers were copartners and, if so, when they became such. Illinois Malleable Iron Co. v. Reed, 102 Iowa 538. The crucial test is whether they intended to become such. Profits certainly were contemplated, for the purpose ' , . ,, ' , , , , was to acquire the title to the land through ■* ° the payment of debts and incumbrances against it, but nothing was said of sharing losses. This was [547]*547clearly to be implied from their undertaking to share profits, the nature of the enterprise and their relation thereto. Johnson Bros. v. Carter & Company, 120 Iowa 355; Richards v. Grinnell, 63 Iowa 44. See Heard v. Wilder, 81 Iowa 421; Irwin v. Cooper, 111 Iowa 728, 731.

3. Partnership: property of firm: property partner6-°re-°ne suiting trusts, If there was a partnership, then, and the land was purchased with the money or property belonging thereto and title taken in the name of one partner, the law is well settled that a resulting trust arose in favor of the firm. Paige v. Paige, 71 Iowa 318; Kringle v. Rhomberg, 120 Iowa 472. The principle, tersely and accurately stated, found in 2 Story Eq. (13th Ed.), Sec. 1207, is quoted with approval in Paige v. Paige, supra: “Where real estate is purchased for partnership purposes, and on partnership account, it is wholly immaterial, in the view of a court of equity, in whose name or names the purchase is made and the conveyance taken,— whether in the name of one partner, or of all partners; whether in the name of a stranger alone, or a stranger jointly with one partner. In all these cases, let the legal title be vested in whom it may, it is in equity deemed partnership property, not subject to survivorship, and the partners are deemed the cestuis que trust therefor.”

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Bluebook (online)
172 Iowa 543, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lutz-v-billick-iowa-1915.