MacK v. Augustine

416 P.2d 436, 3 Ariz. App. 542, 1966 Ariz. App. LEXIS 667
CourtCourt of Appeals of Arizona
DecidedJune 30, 1966
Docket1 CA-CIV 183
StatusPublished
Cited by6 cases

This text of 416 P.2d 436 (MacK v. Augustine) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MacK v. Augustine, 416 P.2d 436, 3 Ariz. App. 542, 1966 Ariz. App. LEXIS 667 (Ark. Ct. App. 1966).

Opinion

STEVENS, Chief Judge.

This is an appeal from a summary judgment in favor of the defendants-appellees, against the plaintiffs-appellants, the ancillary administrator and heirs of the estate of Mrs. Lena L. Thornton, in an action for recision and fraud concerning the sale of 160 acres of desert land. The motion *544 for summary judgment raised law defenses and also raised the issue as to the sufficiency of the record to establish two claims for relief. An examination of the files leaves considerable doubt in the minds of this Court that the record is sufficient to defeat the motion for summary judgment in relation to the issue of recision and in relation to the issue of fraud. We are not called upon to make this determination, it being our opinion that the cause may be determined on other legal issues. It is essential to the proper determination of this matter that a chronology be established.

On 22 December 1955, Mrs. Thornton died intestate in San Diego, California, leaving an estate in California and 160 acres of desert land near Phoenix. It is the desert land which is the subject matter of the controversy before us. Mrs. Thornton was survived by her brothers, Harry Baker and George Baker and her nieces Ora Baker Brockway and Lena Baker Toedt as well as her nephew, Everett Baker. All of the heirs at law were residents of Iowa.

Early in January 1956, Harry Baker and his son journeyed to San Diego in relation to the estate and then to Phoenix to inspect the land. Through Mrs. Alkire, a friend of Mrs. Thornton, they became acquainted with the defendant Augustine, a real estate broker. Augustine knew of the property and the Bakers, as well as Augustine and Mrs. Alkire, drove to and visually inspected the property. Augustine offered $100 per acre. On 27 January 1956, a California administrator of the estate of Mrs. Thornton was appointed and qualified.

In April 1956, Augustine and his attorney traveled to Iowa. They met with the heirs, one evening and with the heirs and their attorney the following morning. On this last date a purchase agreement was executed wherein the defendants Augustine and Lauer were the buyers and first parties and the five heirs were the sellers and second parties. The agreement recited a consideration of $16,000 which was in fact paid on that date and further recited:

“5. It is further understood and agreed that in the event that the net value of the Estate of said Lena L. Thornton being probated in the County of San Diego, State of California, shall exceed the sum of $37,000.00 and that by adding the sale price of $16,000.00 for the subject real property of this agreement and any other property of any kind and description hereinafter discovered which would cause the net value of the Estate of the said Lena L. Thornton to be subject to a federal or state inheritance tax, that second parties shall pay the same.”

The heirs executed deeds which were shortly thereafter recorded in Arizona.

On 2 May 1956, the five heirs employed counsel in Iowa to instigate an Arizona action based upon fraud in connection with the sale. On 10 May through the services of Phoenix counsel, not counsel in the case now before us, a fraud action was filed in the United States District Court in and for the District of Arizona wherein the five heirs were the plaintiffs and Augustine and Lauer, together with their respective wives and the attorney who traveled with Augustine to Iowa, were named as defendants.

On the 29th of October of that year a letter was written on behalf of Harry Baker to the attorney who accompanied Augustine to Iowa which letter stated that Harry Baker and his brother George Baker were satisfied with the transaction and that they were not going to prosecute the federal court action. Some time thereafter the federal court action was dismissed without prejudice, the exact date not being reflected in the file.

On 26 December 1956, one Brown was appointed Special Administrator of the Estate of Mrs.' Thornton in a probate cause in Maricopa County and on the same day a two count complaint was filed in the Superior Court naming as parties defendants Augustine and'Lauer and their wives. The first claim for relief asserted that the es~ *545 tate became liable to the State of Arizona and to the Federal Government for estate taxes, that the administrator was entitled to the possession of the property for the purposes of administration and was entitled to recover title to the property so that it could be sold, with a prayer:

“ * * * that the estate of LENA L. THORNTON, deceased, be decreed the owner of said land and entitled to possession thereof, that the deed to the defendants be ordered cancelled, and that it be decreed that the defendants have no estate or interest therein except as to their entitlement to a lien in the amount of the purchase price paid until such time as said amount as determined by the Court is refunded to said defendants, for plaintiff’s costs incurred herein, *

The second claim for relief was one for fraud in connection with the transfer by the heirs with the following prayer:

“WHEREFORE, plaintiff prays judgment voiding, setting aside, and holding for naught the deed and contract here-inbefore described and quieting plaintiff’s title as Administrator of the estate of LENA L. THORNTON, deceased, in and to the real property hereinbefore described, subject to such lien as the Court shall impose in the exercise of its judicial discretion; * *

While the allegations of fraud are not identical with those set forth in the federal court action, the key allegations are substantially identical. On the same date, pursuant to Section 12-1191 A.R.S. 1 , a notice of lis pendens was filed in the Office of the County Recorder. The face of the complaint of record in the Office of the Clerk of the Superior Court does not reflect the issuance of a summons. The official file received by this Court does not reflect that a summons was issued as of the date that the complaint was filed or in relation to the original complaint. The record reflects that this complaint was never served upon the defendants.

Even though the complaint was not served, the file which is presented to this Court reflects that there were some settlement negotiations and further reflects that on 13 March 1958, the attorney for the plaintiff—special administrator, wrote to the defendant Lauer stating among other things:

“ * * * It is our opinion that the land purchased by you is subject to debts, taxes, and costs of administration. The purpose of the land recovery suit is to obtain funds to meet these obligations of the estate in Arizona”. It was suggested that there be discussion “ * * * Otherwise we have no alternative but to proceed with action on the recovery suit.”

On 19 September 1958, an amended complaint was filed. The original thereof forwarded to this Court from the Office of the Clerk bears a notation indicating that a siimmons was then issued. There is a summons in the file issued on that date with a return of service showing service of process upon the Aúgustines and the Lauers. In this amended complaint Brown still continues in his capacity as Special Administrator. The amended complaint recites Mrs.

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Cite This Page — Counsel Stack

Bluebook (online)
416 P.2d 436, 3 Ariz. App. 542, 1966 Ariz. App. LEXIS 667, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mack-v-augustine-arizctapp-1966.