McGillivray v. Peterson

41 N.W.2d 832, 73 S.D. 266, 1950 S.D. LEXIS 13
CourtSouth Dakota Supreme Court
DecidedMarch 17, 1950
DocketFile 9081
StatusPublished
Cited by4 cases

This text of 41 N.W.2d 832 (McGillivray v. Peterson) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McGillivray v. Peterson, 41 N.W.2d 832, 73 S.D. 266, 1950 S.D. LEXIS 13 (S.D. 1950).

Opinion

ROBERTS, J.

This is an action commenced by Susanna A. Stinson in the circuit court of Clark county against Alice G. Peterson and Patricia Madeline Mann to set aside three deeds executed in consideration of a promise to sup *268 port the grantor. Judgment was entered canceling the deeds and defendants have appealed.

Susanna A. Stinson has been committed to the State Hospital for the Insane since the trial of this action and the guardian of her estate has been substituted as plaintiff. We will for convenience hereinafter refer to Susanna A. Stinson as plaintiff.

On November 29, 1946, plaintiff and defendants went to an attorney in Clark and the deeds in question were prepared and delivered. Plaintiff- conveyed by separate deeds a quarter section of land to each of the defendants and by another deed conveyed to them jointly a quarter section. These warranty deeds recited a consideration of “one dollar and other good and valuable consideration.” As recited in a separate contract entered into by the parties, the consideration for the deeds and the inducement to the plaintiff to execute them was the promise of the defendants to support and care for the plaintiff for the remainder of her life. No mention was made in these instruments that the lands described therein and other tracts owned by the plaintiff were subject to- mortgages.

The evidence shows that plaintiff, her sister Marguerite and brother Ed, who were' also unmarried, resided for many years on the land involved in this action. The sister died in November, 1943, having made testamentary disposition of her title in the property to- the surviving brother and sister. Before his death in October, 1946, the brother conveyed his title in the property to plaintiff. Defendants are nieces of the plaintiff. At the time of the execution of the deeds and contract for support, Mrs. Peterson was living on a farm in Clark county and Mrs. Mann was living in St. Paul, Minnesota. In October, 1946, plaintiff, then about 70 years of age, went to live with Mrs. Peterson and her family and so continued until January 15, 1947, when she left and did not thereafter live with either of the defendants. This action to cancel and set aside the deeds on the ground that defendants failed to perform their agreement followed.

Defendants filed an answer and counterclaim denying the affirmative allegations of the complaint and alleging that they were at all times able and willing to perform the *269 terms of the agreement and offered to do so. For further answer, they alleged that plaintiff warranted that the lands conveyed were free from encumbrances; that the defendant Alice G. Peterson had on deposit as trustee for plaintiff the sum of $6,577.88; and that this fund should be' used to reduce the amount of the encumbrances against such land. They also alleged and claimed that they were entitled to compensation in the amount of $1,250 for services rendered to the plaintiff prior to the execution of the deeds.

The court found in part as follows: “That shortly prior to January 15th, 1947, the defendant, Alice G. Peterson, went to Watertown, South Dakota, to ascertain from the secretary of the National Farm Loan Association the amount that would have to be paid upon the mortgages * * * in order to induce the Federal Land Bank of Omaha and the Federal Farm Mortgage corporation to release the lands conveyed to the defendants from the liens of said mortgages, and on or about January 15th, 1947, the defendant, Alice G. Peterson, demanded, as a condition to further support .of the plaintiff, that the said plaintiff use the cash on hand to reduce the mortgages so as to free said land so conveyed, or that she sell some of her remaining land for the same purpose. As a result of this demand, the plaintiff and the defendant, Alice G. Peterson, each became angry and as a result the plaintiff left the home of the defendant, Alice G. Peterson, on January 15th, 1947, and never returned. * * * That neither of the defendants have furnished any support whatever since January 15, 1947, and both of the said defendants positively conditioned the furnishing of any further support to the plaintiff upon the plaintiff discharging the mortgages described in paragraph 7 hereof as to the land conveyed to them and upon the said plaintiff coming to their homes to receive said support and both testified that they would not furnish support elsewhere.”

Appellants insist that the evidence was insufficient to warrant cancellation of the deeds; that there was no failure of consideration or refusal on the part of defendants to perform the agreement; and that plaintiff left the Peterson home without fault of these 'appellants and has rendered performance on their part impossible.

*270 It has been held in this state, with respect to conveyances made in consideration of a promise to support the grantor, that a failure by the grantee to perform will ordinarily justify a rescission and cancellation of the conveyance. Hegge v. Hegge, 44 S.D. 555, 184 N.W. 800; Peters v. Peters, 62 S.D. 563, 255 N.W. 466. This is the rule in the great majority of states. See annotations in 103 Am.St.Rep. 1039; 43 L.R.A., N.S., 918; 34 A.L.R. 136; 112 A.L.R. 670; and see also 12 C.J.S., Cancellation of Instruments, § 30, page 986. The support agreement need not be set out in the conveyance as a condition or covenant and the grantor need not establish a case for reformation because of mistake. In Hegge v. Hegge, supra, it was said, in substance, that it is not important whether an agreement to support, whatever its form, should be construed as imposing a condition subsequent; that where the relation of trust and confidence exists and the grantee repudiates or substantially fails to perform his agreement a cancellation where appropriate to the case may be decreed. This same view was well expressed in Bruer v. Bruer, 109 Minn. 260, 123 N.W. 813, 814, 28 L.R.A., N.S., 608: “There is in such transactions an element of confidence reposed by the old people in their grantee, sacred in its nature, a breach of which, and retention of the benefits, no court should tolerate by a refinement upon technical rules and principles- of law. By the modern trend of authority these transactions are placed in a class by themselves, and enforced without reference to the form or phraseology of the writing by which they are expressed, or whether by the strict letter of the law a forfeiture of the estate is expressly provided for.” A grantor, of course, who leaves the place of contemplated support or otherwise prevents performance on the part of the grantee without the latter being at fault will not be permitted to take advantage of the noncompletion of the agreement by securing equitable aid to cancel the conveyance. Scott v. Scott, 89 Wis. 93, 61 N.W. 286; Russell v. Robbins, 247 Ill. 510, 93 N.E. 324, 139 Am.St.Rep. 342; Moore v. Bugg’s Ex’r., 274 Ky. 135, 118 S.W.2d 185; Fisher x. Sellers, 214 Ark. 635, 217 S.W.2d 331; see also annotation in 25 L.R.A., N.S., 932. If an agreement as in the instant case does not *271

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Bluebook (online)
41 N.W.2d 832, 73 S.D. 266, 1950 S.D. LEXIS 13, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcgillivray-v-peterson-sd-1950.