Mathis v. Madsen

261 P.2d 952, 1 Utah 2d 46, 1953 Utah LEXIS 223
CourtUtah Supreme Court
DecidedOctober 16, 1953
Docket7900
StatusPublished
Cited by19 cases

This text of 261 P.2d 952 (Mathis v. Madsen) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mathis v. Madsen, 261 P.2d 952, 1 Utah 2d 46, 1953 Utah LEXIS 223 (Utah 1953).

Opinion

WOLFE, Chief Justice.

Initially this was an action to quiet title to land against the claims of the several defendants who filed separate answers, with defendants Ferrell and Madsen filing separate counterclaims. The respective po^ sitions and allegations of the parties will appear as the facts develop; however, in order to present a true perspective of the cause, a crucial stipulation must be mentioned at the outset. Realizing that the title to the property involved was in a state of confusion, the parties entered into a stipulation for the purpose of clearing title to the property, and permitting a sale with the proceeds to be placed in escrow. Hence, this is no longer an action to quiet title but one to determine the interest of the parties in the escrow funds arising from the sale. The stipulation will be later referred to as the issues are developed.

Judge William Stanley Dunford of the Fourth Judicial District who tried the case wrote a very helpful memorandum decision in which he concluded that the plaintiffs were entitled to judgment. The defendants contend that the findings of fact of the trial court are not supported by the evidence. After a careful reading of the entire record we conclude that the findings are supported by competent evidence. From time to time as necessity dictates we shall discuss and elaborate on specific findings. At several places in our opinion we will quote extensively from Judge Dunford’s opinion.

The fundamental facts relative to the first phase of this opinion are succinctly and correctly stated in the memorandum decision of the lower court as follows:

“On January 24, 1942, J. Lloyd Mathis and Nellie Burtenshaw Mathis, his wife, who are the plaintiffs in this action, together with C. E. Kingston, ‘as Trustee in Trust’ for one of the defendants, to wit, Davis County Cooperative Society, Incorporated, entered into a Uniform Real Estate Contract, hereinafter referred to as Exhibit ‘A,’ as joint purchasers, with Western Reserve Underwriters Corporation as sellers, to purchase approximately 560 acres of land situated in Utah County, known as Austin Brothers Farm, together with described water rights and personal property. * * * By ‘Supplemental Agreement’ also dated January 24, 1942, and attached to Exhibit ‘A,’ the seller, Kingston, and the plaintiffs agreed that upon the completion of the payments * * * the deed should be executed conveying an un *50 divided four-fifths of the property to plaintiffs and the remaining undivided one-fifth to ‘C. E. Kingston, as Trustee in Trust for Davis County Co-op, a corporation of Utah.’
“On January 13, 1947, the plaintiffs Mathis, without Kingston, and without the Western Reserve Underwriters Corporation, original sellers, entered into an ‘Agreement/ hereinafter referred to as Exhibit ‘C/ with the defendants Ferrell to sell to the latter, all of the real estate and water rights described in Exhibit ‘A/ for the sum of $120,000, payment of $30,000 of which was acknowledged in the agreement [down payment] with deferred [yearly] payments of ‘$7,500 or more, including interest at the rate of 3 percent per annum’ * * * and the plaintiffs, as [sub-] sellers, covenanted to deliver title to the defendants Ferrell upon completion of payment of the purchase price. * * *
“At the time of execution of this latter agreement, plaintiffs did not have title to the described property, neither were they sole owners of the equity obtained by the purchasers under Exhibit ‘A.’
“On January 23, 1947, or ten days subsequent to the execution of Exhibit ‘C/ C. E. Kingston and Ethel M. Kingston, his wife, executed, acknowledged and delivered to C. Ed. Lewis, a real estate agent, as agent for plaintiffs, * * * an instrument which is marked, and will hereinafter be referred to as ‘Exhibit D/ which is in words and figures as follows:
“‘January 23, 1947
“‘C. E. Lewis Company
117 East Broadway
Salt Lake City, Utah
“‘To Whom It May Concern:
“ ‘J. L. Mathis and Nellie M. Mathis, his wife; and C. E. Kingston and Ethel M. Kingston, his wife, for the Davis County cooperative Society, Inc., own on an 80%-20% basis of Ranch at Lehi, Utah, formerly known as Saratoga or Austin Brothers Ranch; are in process of liquidation.
“ ‘When audit is complete final closing of sale of Real estate, livestock, feed and machinery is sold and allotment of funds from these; it is hereby agreed that in event there is not sufficient funds to pay C. E. Kingston and Ethel M. Kingston for Davis County Cooperative Society, Inc. their equity, this property shall be transferred from Western Underwriters Corporation to J. L. Mathis and Nellie M. Mathis, secured by a mortgage at 3'% per annum payable to C. E. Kingston and Ethel M. Kingston for Davis County Cooperative Society, Inc. out of all future funds derived as per sale except of interest due J. L. Mathis and Nellie M. Mathis until such an amount due C. E. Kingston and Ethel M. Kingston for Davis County Cooperative Society, Inc. has been paid in full, hereby waiving all rights and interests in this property.
“ ‘/s/ C. E. Kingston
/s/ Ethel M. Kingston
“ ‘On this twenty-third day of January A.D. 1947 before me personally appeared *51 C. E. Kingston and Ethel M. Kingston, his wife who executed and signed the foregoing document.
“ '/s/ Ardous Kingston
Notary Public
" 'My Commission Expires:
August 12, 1949
(Seal)'"

Plaintiffs contend that the legal effect of Exhibit “D” is to transfer or assign to plaintiffs all the rights held by Kingston, as trustee for the Davis County Co-op, which rights originated under the contract (Exhibit “A”) with the Western Reserve Underwriters Corporation.

All the defendants, including defendants Ferrell for reasons which will appear hereunder, attack Exhibit “D” on several grounds: (1) that Kingston did not possess any power or authority to sign the instruments for the Davis County Co-op; (2) that even assuming Kingston had authority to execute an assignment of the one-fifth interest of the cooperative, the instrument (Exhibit D) signed by him is “unintelligible, incomplete, uncertain and ambiguous to the extent that it cannot be enforced” and the lower court misinterpreted and misconstrued the document; and (3) other grounds which are either repetitious of the first two or without merit.

As to the question of authority, the lower court found that the instrument was authorized by the Board of Directors of the Davis County Cooperative, although authorization was not granted in writing or by formal action. In this regard, we quote and adopt in this opinion excerpts from the trial court’s memorandum decision as follows :

“Of course it is not contended by defendants, nor could it be shown by Exhibit ‘V,’ [Minutes of Davis County Co-op] that C. E.

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Bluebook (online)
261 P.2d 952, 1 Utah 2d 46, 1953 Utah LEXIS 223, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mathis-v-madsen-utah-1953.