Rankin v. Smith

174 Iowa 537
CourtSupreme Court of Iowa
DecidedMarch 9, 1916
StatusPublished
Cited by4 cases

This text of 174 Iowa 537 (Rankin v. Smith) 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
Rankin v. Smith, 174 Iowa 537 (iowa 1916).

Opinion

Deemer, J.

I. On June 20, 1912, plaintiff caused an execution to be issued upon a judgment which he held against defendant Smith, in the Wapello County District Court, for the sum of $130 and costs, and caused Emory Plowman to be garnished thereunder. The garnishee appeared and answered, stating that he had no money or property in his possession or under his control, belonging to Smith. Plaintiff controverted this answer and charged that Plowman took in trade two certain tracts of land in Oklahoma in which Smith had an interest, in virtue of an arrangement whereby he was to take the title and hold one third of the value thereof over and above the sum of $4,500 for Smith. He charged that the land was worth $14,000, and that Smith’s interest therein was worth from $2,000 to $3,000, and he asked that the garnishee be [540]*540ordered to hold the land until his (plaintiff’s) judgment was satisfied. Garnishee then answered, pleading that he traded a farm he had owned to a man in Oklahoma, and that Smith introduced the man to him and assisted in making the trade. He also averred that in the beginning he had no arrangement with Smith as to his compensation, but finally agreed that, after he had disposed of the property he had received, cleaned up his expenses, reimbursed himself for what he-paid for the land that he traded for the Oklahoma property, he would give him (Smith) one third of what remained. He also averred that no time was fixed within which the Oklahoma land should be disposed of, and that the deal had not been closed. He also said that he did not know the value of the Oklahoma property, but that there was a mortgage upon one of the farms of $4,500. In other words, according to this answer, Smith was to have one third of the profits after everything, including the mortgage upon the land, was cleared. He also pleaded that one Donaho told him after the garnishment that he had acquired Smith’s interest in the land. On the strength of this answer, which was made in September of the year 1912, the court ordered a continuance of the case against the garnishee until the property in his hands was sold and the profits going to Smith were ascertained. On May 16, 1913, one W. O. Donaho intervened, filing a petition in which he claimed that Smith’s rights in the Oklahoma land were evidenced by a written contract or statement signed by Plowman, of which the following is a copy:

“This certifies that I hold a deed for 320 acres of land located in Logan County, Oklahoma, acquired as follows: Said deed was obtained by me in connection with the sale of certain lands situated in Yan Burén County, Iowa, as part payment of the purchase price. In consideration of the services of A. L. Smith, of Keosauqua, Iowa, who brought me the purchaser of said Yan Burén County land, the said A. L. Smith has an interest in the said Oklahoma land as follows: After [541]*541the completion of the payment of the purchase price of the Van Burén County land by the purchaser, and the sale of the Oklahoma land by me, the said A. L. Smith is to have one-third of the proceeds of said Oklahoma land, after the sum sufficient, when added to the cash payment, to net me $55 per acre for said Van Burén County land, is deducted from the proceeds of sale of said .Oklahoma land, together with all expenses connected with the sale of the above described land.
“Emory Plowman.”
“That thereafter and on May 23, 1912, Smith, for a valuable consideration, assigned the said contract to him (Donaho), the following being a copy of the assignment:
“Keosauqua, Iowa, May 23, 1912.
‘ ‘ For value received, I hereby assign and convey all right and title in and to the lands described in the hereto attached, to W. C. Donaho.
“A. L. Smith.”

He also averred that the assignment was made for the purpose of securing a loan that he made to Smith, in the sum of $480. He also averred that the land had been sold, and that Plowman had in his possession about $500 belonging to the fund referred to in the written agreement. Plaintiff answered this petition of intervention and therein denied that Smith had any interest in the Oklahoma land and denied that Smith ever assigned his right in the land or to the money to Donaho. He further pleaded laches on the part of the intervener, averred that before he came into the ease the property had been sequestered in payment of his (plaintiff’s) claim and the matter fully adjudicated, and that the intervener, having knowledge of the proceedings, stood by and allowed plaintiff to incur expenses without saying anything of his claims, thus estopping himself from asserting his claim; On these issues, the case came on for hearing at the March, 1913, term, and, [542]*542upon the testimony adduced, the court, on June 26, 1913, made an order, from which we extract the following:

“Emory Plowman, appearing in court and upon his answer admitting that he had in his possession the sum of $500 belonging to the defendant A. L. Smith, it is ordered that the said Emory Plowman be and he is hereby required to pay said sum to the clerk of this court for the use and benefit of the said intervener, W. C. Donaho. It is further ordered that the clerk will pay the costs of this intervention proceedings, and that he pay the balance to the said W. C. Donaho, or his attorney, and said cause is hereby continued upon the answer of said garnishee and objections thereto for further hearing and trial. Signed in open court this 26th day of June, 1913.”

On August 12th of the same year, plaintiff filed another paper, which he called a denial, controverting the answer of the garnishee, in which he recited the prior proceedings, and then stated:

“That on or about the 26th day of June, 1913, the said garnishee made further answer saying that he had sold said land to H. C. Taylor, who was a third party interested in said land and entitled to one third of said profits; that he sold same for the sum of $500 for the interest of said A. L. Smith and an equal amount for his said interest. Now the plaintiff comes and denies the correctness of the answer of said garnishee, denies and controverts said answer wherein he answers that the sum of $500 was all that was coming to said A. L. Smith.”

He then averred that the sale of. the land to Taylor was fraudulent and made with intent to cheat and defraud him (plaintiff) ; that the true amount received by Plowman for the land was much more than was stated; and that the sale was for such an amount that the interest which Smith had would amount to-much more than plaintiff’s claim and more than the combined claims of Donaho and the plaintiff. He also averred [543]*543that, if the sale to Taylor was made as claimed, it was for much less than its value and much less than he (plaintiff) had offered Plowman for the land, and that such sale was fraudulent and void. He also pleaded negligence on the part of Plowman in handling the property if he got no more for it than he claimed, and he asked judgment against the garnishee for the amount of his (plaintiff’s) judgment. Plowman then filed a pleading called a plea in abatement, in which he set forth the judgment of the court rendered on June 26, 1913, claiming that this amounted to an adjudication as to the sum owed to Smith, or his assignee, Donaho, and also a holding that Donaho was entitled to the amount. A demurrer to this plea filed by plaintiff was sustained.

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Bluebook (online)
174 Iowa 537, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rankin-v-smith-iowa-1916.