Nolan v. Guggerty

187 Iowa 980
CourtSupreme Court of Iowa
DecidedNovember 22, 1919
StatusPublished
Cited by5 cases

This text of 187 Iowa 980 (Nolan v. Guggerty) 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
Nolan v. Guggerty, 187 Iowa 980 (iowa 1919).

Opinion

Salinger, J.

1- aryEraiationsC-" prool.n oi I. One claim of the petition is that said deed was made for the purpose of protecting plaintiff in the ownership of the land; that he received no consideration; that the deed was obtained of plain^iff in some way and for some reason unknown to plaintiff, and obtained in some manner growing out of an intimate relationship between plaintiff and Lawrence Guggerty. These allegations were in no manner challenged. Wherefore, the only question at this point is the state of the evidence in support of these allegations.

The subordinate question arises whether these defendants who claim under the will of Lawrence Guggerty do not, because of the relations existing between plaintiff and Lawrence Guggerty at the time- when said deed was obtained by Guggerty, have the burden of proving that the deed from plaintiff was fairly obtained.

As to that relationship, the following matters are fairly deducible from the record: Prior to the opening of the Civil War, plaintiff became acquainted with Lawrence Guggerty. After spending three years in the army, and on returning from the war, the acquaintance with Guggerty was renewed; plaintiff worked for him, and they became very intimate. While it is true that, at the very time the deed in question was obtained, plaintiff was not living with or working for Guggerty, the record shows that plaintiff had the feeling that would be created by long living with and working for Guggerty. It appears plaintiff was an old country Irishman, of meager intelligence; that he never transacted business, and had very little, business ability; that he went away on sprees, now and again; that he was at one time sent to the hospital for the insane, at Mount [982]*982Pleasant; that he relied on 'the business judgment and wisdom of Guggerty, and trusted him implicitly; that plaintiff was, when with Guggerty, a sort of errand boy for him, and yielded him the obedience that a child does to a parent; that Guggerty did business as the agent of plaintiff, in collecting his pension money and managing his savings; that he looked after plaintiff's property, including the management of this land, its improvement, its renting, the collection of the rent, and the payment of taxes. In a word, these two men were and remained on close and intimate terms and intimate friends for long years. Some nine years after the dee# was made, Guggerty applied to be and was made the guardian of plaintiff, because plaintiff had become mentally deranged. And the plaintiff testifies he never knew he had made this deed, until after Lawrence Guggerty had died.

On this record, we hold that these defendants have the burden to show that the obtaining of this deed was a fair transaction, upon fair and adequate consideration. Curtis v. Armagast, 158 Iowa 507, at 519. All done by defendants in reference to this matter is a denial that there was this burden, and an assertion that certain admissions made by Lawrence Guggerty in his petition to become guardian or to sell as guardian do not prove he paid no consideration to plaintiff. Since they had this burden, it does not help them that evidence for the plaintiff fails to show a want of consideration. These defendants cannot discharge their burden because plaintiff has failed to disprove what it is the duty of the defendants to prove. Farmers & Merch. St. Bk. v. Shaffer, 172 Iowa 173.

1-a

[983]*9832‘ ceiiation :C adCTidence. as [982]*982Appellants have urged upon our consideration that statute which requires declarations or creations of trusts in lands to be executed in the same manner as deeds of [983]*983conveyance must be. -We will assume, for the sake of argument, that there is no re-suiting trust in this case. We will assume that certain admissions made by Guggerty in written reports as guardian do not constitute a formal statute declaration of trust. We will assume, further, that the statements made in said .reports arte voluntary, are without consideration, and are not independently “enforcible.” But does it follow that these solemn written admissions may not be evidence that the deed given by plaintiff was without consideration, was obtained from an incompetent, and that there was no intention to part with or to obtain title? No matter what the statute on trusts requires, why may not the admissions of this grantee establish that the deed in which he is named as grantee was wrongfully obtained, and is, in truth, no deed?

We are persuaded that such admissions are competent as to that. Finally, it remains to consider what the admissions were.

3. Trusts: proof of 6X6Cllt6Cl trust. • Guggerty, as guardian, petitioned the court to. order this land to be sold. He got no more by the deed than what he understood he was getting. If he understood he owned the land, what occasion was there to ask, as guardian, a permission to sell? If Guggerty believed this land had been conveyed to him, he could sell his own land, without permission from any court. The application advised the court that the land ought to be sold, for the following reasons: (1) The rents have been inadequate to pay taxes, and to pay for such improvement as had been made. (2) To make the land' valuable, considerable improvement is required, and that there will be no advancement in the price unless considerable expenditure is made. (3) That his ward lacks the means to make such expenditures, and if they are not made, the land will not pay more [984]*984than taxes and repairs. (4) That the guardian is of opinion a good price can now be obtained, and that the sale will be for the best interest of the ward, because such sale will, if the proceeds are. properly invested, produce a better income for the ward. Finally, it is declared in this application that, while the guardian “has held title, and could doubtless make title, he has intended to account to his ward either with said land or its value, regarding himself as a trustee for his said ward.” The court made order finding that the statements of this petition were true, and, accordingly ordered the sale as prayed. In inventory filed June 28, 1899, Guggerty reported “that he had in his control as such guardian 160 acres of land in Calhoun County, on which he has paid taxes up to 1888, in the sum of $292.55.” On June 26, 1899, he filed an inventory of personal effects of Peter Nolan, and therein said:

“I have in my possession 160 acres of land in my own name, the property of Peter Nolan, of unsound mind, for which I have paid taxes out of my own money.”

He frequently spoke of this land as “Pete’s land.”

Whatever may be the requisites of a formal declaration of trust, the foregoing statements and the solemn written allegations of the inventory and in the application to sell are the clearest of proof on two propositions: First, that, while there was a formal deed, the land was never conveyed; second, these allegations are clear proof that the trust was executed. The application itself is such execution. And such admissions as these were admissible where the trust has been executed. Ratigan v. Ratigan, 181 Iowa 860.

What is the avoidance?

Appellants cite Davis v. Stambaugh, 163 Ill. 557 (45 N. E. 170). It holds that an admission of a trust in a deposition will not effect a declaration of trust, because, under the Illinois statutes, a trust is void unless created in [985]*985the statute manner.

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187 Iowa 980, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nolan-v-guggerty-iowa-1919.