Nalley v. First Nat. Bank, Medford

296 P. 61, 293 P. 721, 135 Or. 409, 76 A.L.R. 625, 1930 Ore. LEXIS 153
CourtOregon Supreme Court
DecidedOctober 7, 1930
StatusPublished
Cited by9 cases

This text of 296 P. 61 (Nalley v. First Nat. Bank, Medford) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nalley v. First Nat. Bank, Medford, 296 P. 61, 293 P. 721, 135 Or. 409, 76 A.L.R. 625, 1930 Ore. LEXIS 153 (Or. 1930).

Opinions

*414 KELLY, J.

During the course of the trial, a partial transcript of testimony taken by W. J. Looker, at the instance of the attorney for Mr. Pointer, in a proceeding in the county court, was received in evidence over the objection of plaintiff and appellant. This proceeding had been instituted by defendant and appellant Anna C. Nalley for the purpose of having her father William A. Pointer declared to be an incompetent and having a guardian appointed for him. Mr. Looker, the *415 stenographer who took the testimony, though doubtless most proficient, was not appointed by the court for that purpose and was in no sense an official court reporter. Moreover, the proper foundation was not laid for the use of his notes to refresh his memory while testifying. This partial transcript of testimony should not have been received in evidence. Our view of the record, however, renders its admission harmless.

It is contended by respondents that there was no delivery by Pointer to the Nalleys of the instrument dated February 11, 1928. Upon that question, Mr. Nalley testified, directly and positively, to the effect that such delivery was made. As to the actual passing of the instrument from the hands of Mr. Pointer to those of the appellant Mr. Nalley, he, Mr. Nalley, is corroborated by Mr. Phipps. The instrument itself was taken to the bank. The testimony of the officials of the bank was negative. The conservatism which properly actuates good bankers, when contemplating the uncertainty which attends litigation, caused these officers, when apprised of the imminence of this litigation, to decline to surrender the documents involved until so directed by a court having jurisdiction of the controversy.

The statement of Mr. Pointer in his last will, to the effect that he retained possession of the instrument in question, if given the effect of a denial that he delivered the same to Nalley, when considered in the light of his advanced age and his vacillating course, is not sufficient to counterbalance the probative value of the direct testimony of Mr. Nalley and Mr. Phipps.

It is also contended that the instrument is testamentary in character, and therefore superseded by the *416 last will and testament which has been admitted to probate. This contention is based upon the following clause in the instrument:

“The foregoing provisions of this conveyance, however, shall .not go into effect or be in force until after my death, nor shall this instrument be recorded before my death, and I do hereby authorize and direct the said grantees, Anna C. Nalley and Peter K. Nalley, immediately after my death shall occur, to pay out of the funds hereby conveyed, or out of other moneys of my estate, the sum of one thousand ($1,000.00) dollars unto J. C. Cass and his wife, or the survivor thereof, the sum of $1,000.00 being in consideration of the kindly services rendered unto me and unto my deceased wife in time of trouble and need of such sympathetic services, and I do hereby expressly authorize and direct the payment of $1,000.00 therefor, to be so paid by the said grantees after my death as aforesaid. ’ ’

We are called upon to determine the effect of the statement in the instrument in question that “the foregoing provisions of this conveyance, however, shall not go into effect or be in force until after my death. ” We construe it to constitute a reservation of a life estate in the grantor and not to be testamentary in its nature.

In this case the subject of the transfer is personal property. A remainder in personal property properly may be created by deed: Allen v. Hendrick, 104 Or. 224 (206 P. 733); 18 C. J. 306, § 286, note 52.

The respondents cite the ease of Sappingfield v. King, 49 Or. 102 (89 P. 142, 90 P. 150, 8 L. R. A. (N. S.) 1066), to the effect that language similar to that employed in the case here limiting the taking effect of a deed conveys no present interest, but renders the instrument testamentary and therefore revocable. An examination of the authorities at the present time convinces the writer of this opinion that the weight of authority is *417 not now in harmony with the statement of that phase of the law which is set forth in the Oregon case just mentioned. Most, if not all, of the American authorities on the subject are collated in a note to be found in 11 A. L. E. at page 69 et seq. and at page 92 et seq. The following are subsequent cases upon the subjects: Watts v. Lawrence, 26 Wyo. 367 (185 P. 719; 188 P. 34); Pelt v. Dockery, 176 Ark. 418 (3 S. W. (2d) 62); North v. North, (Tex. Civ. App.), 2 S. W. (2d) 481; Willis v. Fiveash, 297 S. W. 509 (reversed on other grounds 1 S. W. (2d) 585); Turner v. Montgomery, 293 S. W. 815; Nobell v. Town of Beaver, 133 Okl. 247 ( 271 P. 420).

The courts of Arkansas, California, Indiana, Kentucky, Kansas, Maine, West Virginia, South Carolina, South Dakota, Wyoming, and Wisconsin construe instruments containing similar restrictions as deeds. In Alabama, Georgia, Pennsylvania, Mississipi, Missouri, Illinois, Iowa and Texas, the decisions are conflicting.

The courts of Oklahoma, Nevada and Michigan hold that instruments with similar restrictive clauses convey no present interest and are testamentary.

While in the case of Sappingfield v. King, supra, the restrictive language is similar to that employed in the instrument now under consideration, it is not the same. In Sappingfield v. King, the instrument construed to be testamentary in its nature, contains this clause:

‘ ‘ This deed is made with the full understanding and upon the condition that the same shall take effect from and after the death of the grantor. ’ ’

In the case at bar, the restrictive clause relates only to “the foregoing provisions” of the conveyance. The habendum clause follows; and cannot properly be *418 construed to have been rendered entirely nugatory by the restrictive clause if any other reasonable construction can be given to the instrument.

As stated, Anna C. Nalley seeks reformation of that certain instrument executed by her in March, 1928. The testimony on that phase of the case is not of such clear and convincing nature as to justify a decree of reformation. •

As was well said upon oral argument in this court by counsel for appellant Anna C. Nalley, this is a question of fact and involves a consideration of the testimony upon that point.

Concerning the execution of the instrument in question, Anna C. Nalley testified as follows:

‘ ‘ Q. Tell the court how you happened to make that instrument and what the intent was at the time that instrument was made.
“A.

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Nalley v. First Nat. Bank, Medford
296 P. 61 (Oregon Supreme Court, 1930)

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Bluebook (online)
296 P. 61, 293 P. 721, 135 Or. 409, 76 A.L.R. 625, 1930 Ore. LEXIS 153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nalley-v-first-nat-bank-medford-or-1930.