Northwestern Nat. Bank of Sioux Falls v. Brandon

221 N.W.2d 12, 88 S.D. 453, 1974 S.D. LEXIS 150
CourtSouth Dakota Supreme Court
DecidedAugust 30, 1974
Docket11385
StatusPublished
Cited by11 cases

This text of 221 N.W.2d 12 (Northwestern Nat. Bank of Sioux Falls v. Brandon) 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
Northwestern Nat. Bank of Sioux Falls v. Brandon, 221 N.W.2d 12, 88 S.D. 453, 1974 S.D. LEXIS 150 (S.D. 1974).

Opinion

BIEGELMEIER, Chief Justice.

*455 Plaintiffs’ complaint claims that by mutual mistake of the parties involved herein the legal descriptions of two four-plex apartments were inadvertently and mistakenly set forth in two earnest money agreements (hereafter referred to as the contracts) and two deeds of conveyance, and as a result defendants received title to excess property. Plaintiffs asked that the agreements and deeds be reformed, that the defendants reconvey the claimed excess, and that general relief be granted. Defendants’ answer in effect was a general denial. Plaintiffs appeal from the judgment for defendants.

The action as to plaintiff Bank (herein referred to as Bank) and its appeal claim our first attention. A settlement agreement in an estate was followed by a final decree in which part of the property was assigned to plaintiff Juliann Kittelson and part to R. D. Kittelson. By a written agency agreement Mrs. Kittelson authorized the Bank generally to manage, but not sell, the property described therein as “Two-fourplex apartments 953 and 956 South Blaine,” that being their street numbers.

The Bank, with Mrs. Kittelson’s oral consent, negotiated for the sales of her property which resulted in the contracts and deeds above mentioned. It is clear that the Bank had no title or legal interest in the real estate involved, that Mrs. Kittelson was sole owner, and that if any person had a claim for reformation of the deeds or to a reconveyance it was Mrs. Kittelson, not the Bank. While defendants have not appealed, they did move that the trial court dismiss the Bank’s action. On appeal it appears that the Bank had no title in the property or any interest in Mrs. Kittelson’s cause of action against defendants, if any, and the trial court should have dismissed that action. This is so even if, as the Bank’s counsel admits, the Bank would be responsible to Mrs. Kittelson for any damage she might have suffered as a result of its mistake. That would be a liability resulting from the principal-agent relationship with which defendants are not concerned. The Bank’s appeal will therefore be dismissed.

Descriptions of the properties involved will in some instances be those used in the various instruments. The county auditor had designated land 330’ by 660’ as County Auditor’s Tract 2 NE XA 22-101-49, Minnehaha County, South Dakota. See SDCL 43-21-2

*456 through 43-21-4. It was not shown that this tract was ever officially platted into lots, blocks, streets or alleys, yet Exhibit 7 was introduced into evidence “for the purpose of illustration only” and to help with the opinions, descriptions and charts. This exhibit indicates some physical features, such as Blaine (Avenue) and six or seven outlined parcels, although it is not shown that Blaine was ever dedicated as such or that any of the parcels inside the 330’ by 660’, Tract 2, were ever platted as lots. The converse is true as the conveyances in the record were made as unplatted properties, in effect by metes and bounds. The descriptions (or misdescriptions) of the properties appearing in the record indicate this may have been one of the reasons that gave rise to this controversy.

It is undisputed that defendants were buying two parcels of real estate with an apartment house on each parcel. One parcel referred to in the evidence as No. 953 was on the west side of Blaine Avenue and the other referred to as No. 956 was on the east side of Blaine Avenue.

The first contract and offer to purchase was on a printed form of the Bank’s Trust Department. It was filled in by a bank employee under the direction and supervision of a Bank Trust Officer. The abbreviated and erroneous description hereafter noted may have been partly caused by the use of the forms which provided very small spaces for the types descriptions. It contained the following description:

“953 South Blaine & 956 South Blaine and generally described as Sioux Falls Unplotted (except S 120’) East 132’ W 297’ County Auditors Tract 2 NE Vi 22-101-49 & SE Unplotted (except S 120’) E 132’ W 297’ County Auditors Tract 2 NE Vi 22-101-49 located in Minnehaha County South Dakota.”

The bank officer testified and an examination of Exhibit 7 confirms the fact that the abbreviated legal description as typed by the secretary described one parcel of land instead of two which both Brandon and the Bank officer agreed were involved. The contract was dated December 7, 1971, and was signed “R Marshall Brandon.” Below this signature was an acceptance of *457 the offer dated “Dec. 8, 1972,” signed by the Bank, “subject to court approval.” Mrs. Kittelson did not accept this offer, nor was it shown that the contract was presented to her, evidently by reason of the noted error.

While the evidence is not clear on the subject, it shows' that the erroneous description was discovered shortly thereafter, and another contract form (Exhibit 4) was filled out. It, too, was da^ed December 7, 1971, and was signed “R M Brandon.” A similar acceptance was signed by the Bank, and below that appears an acceptance by Juliann Kittelson, dated December 9, 1971. Exhibit 4 is referred to as a Xerox copy of Exhibit 3; however, while in some respects it does appear as such, in others it does not. In any event, the parties intended to correct the description, but again the same description as appears in Exhibit 3 was used, and thus only one of the two parcels agreed to be sold was described.

The trust officer testified that he explained the agreement to Mrs. Kittelson when he went to see her, and she signed the acceptance. Thereafter, abstracts were obtained and the titles examined by attorneys for the Brandons. As there were mortgages on the properties assumed by the buyers, the abstracts were returned to the lienholder. The two title opinions of the attorneys for the Brandons showed title to No. 956, the property on the east side of Blaine Avenue, in Mrs. Kittelson and title to No. 953, the property on the west side of Blaine Avenue, in Richard D. Kittelson. The trust officer testified he was familiar with the descriptions involved, though apparently not familiar enough as he used the tax records in his possession to draw the two contracts. The assessed valuation of No. 953 being some $2,500 more than that of No. 956 would indicate there was more land in No. 953 than in No. 956. This is a fact. The deed to No. 956 added only a 12-foot strip to the north side, sometimes referred to as being used as a street, while the added unplatted land in the deed to No. 953 included the land up to the north boundary of Tract 2, a much larger tract.

About a month after the contracts were signed, Mrs. Kittelson signed two deeds to the property involved in this action — one to Mr. Brandon and the other to his wife. There *458 after, some difficulty arose resulting in a claim of damages against the Bank because surface water was flowing over the Brandon property from other property the Bank was managing. This caused an investigation of the properties, and a year later this suit was commenced.

The trial court found:

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Bluebook (online)
221 N.W.2d 12, 88 S.D. 453, 1974 S.D. LEXIS 150, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northwestern-nat-bank-of-sioux-falls-v-brandon-sd-1974.