Reeves v. Hunter

185 Iowa 958
CourtSupreme Court of Iowa
DecidedApril 8, 1919
StatusPublished
Cited by13 cases

This text of 185 Iowa 958 (Reeves v. Hunter) 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
Reeves v. Hunter, 185 Iowa 958 (iowa 1919).

Opinion

Evans, J.

In September, 1915, a guardianship was established by regular proceedings over Charles L. Hunter on the ground that he was air incompetent, and that he was squandering his property. Daugherty was appointed his permanent guardian. On July 28, 1916, while said guardianship was in full force and effect, and while Daugherty was still acting as his permanent guardian, the'plaintiff obtained from Charles L. Hunter the execution of the note in question, as the consideration for a secondhand automobile. Subsequently, Daugherty resigned as guardian, and the defendant Harrold was appointed, and is made defendant herein as such guardian. Counsel for defendant, appellant, contends that the note was void in its inception, and is of no force or effect; whereas counsel for the plaintiff, appellee, contend that the contract was voidable only, and that the restoration by the maker of the consideration received is a condition precedent to its avoidance. The brief of the appellant states the question as follows:

“Boiled down, the issue is, Can a person under guardianship execute an enforoible contract?”

[961]*961On the other hand, the brief of appellee states the question as follows:

“Boiled down, Can a person of apparent normal mind make an ordinary contract in the ordinary way with another person in ignorance of the fact that he was under guardianship, and avoid his obligation incurred therein without restoring the consideration received ?”

1. insane persons : voidable:' res-status gao. 2. wills : testaíty: effect of permanent guardianship. The foregoing brief statements indicate clearly the range and nature of the respective arguments put forth. The specific question is one which has not heretofore confronted us, and we find abundant difficulty in it. It is well settled in this state that a contract of an incompetent, when entered into innocently by the other party, is voidable only, and not void. It is settled also that such a contract may be enforced, if fair and reasonable, and if both parties cannot be put m statu quo. Behrens v. McKenzie, 23 Iowa 333. Such rule, however, has never been applied in this state to a case where the incompetent was under actual guardianship. Neither is any case cited to us from any other jurisdiction where the rule has been applied to an incompetent under guardianship, except, possibly, where a question of necessaries is involved. It is generally true, also, that, where the contract of an incompetent with an innocent party is set aside as voidable, the innocent party is entitled to be restored to the status quo or its equivalent. . It is settled in this state also that, though a person be under guardianship, he may yet be found competent to make a will. In such case, however, the fact of guardianship is presumptive proof of incompetency to make a will, and the burden is ' , , , upon the proponent to overcome such presumption.

Cases from other jurisdictions are cited to us which hold that the fact of guardianship will not defeat a contract [962]*962for actual necessaries furnished to the ward; nor are any cases cited to us holding otherwise on this point. In such a case, however, the vitality of the plaintiff’s cau-se of action is not in his contract, 'but in the fact that he responded to ihe actual necessities of the ward. In such a case, the plaintiff’s jmsition before the court is just as strong without a contract as with one. The contract adds nothing to his right of recovery.

None of the foregoing propositions quite reach the case at bar. The question presented must be answered by á consideration of our statute and the necessary effect thereof.

3' wARDDI^nsane* tractsSfOTCnecutes.ries: stat" The subject of guardianship is dealt with in Chapter 5, Title XVI, of the Code, being Sections'3192 to 3228 inclusive. The provisions of this chapter are made applicable alike to the guardianship of minors, idiots, lunática, insane, drunkards, and spendthrifts who squander their property. Section 3223 provides:

“The provisions of this chapter, and all other laws relating to guardians for minors, and regulating or prescribing the powers, duties or liabilities of each, and of the court or judge thereof, so far as the same are applicable, shall apply to guardians and their wards appointed under the fourth preceding section of this chapter.” The “fourth preceding section” referred to in Section 3223' is Section 3219, which is as follows:

“When a petition, verified by affidavit, is presented to the district court that any inhabitant of the county is:

“1. An idiot, lunatic or person of unsound mind;

“2. An habitual drunkard, incapable of managing his affairs;

“3. A spendthrift who is squandering his property; “And the allegations of the petition are satisfactorily proved upon the trial provided for in the following section, [963]*963the court may appoint a guardian of the property of such person, who shall be the guardian of the minor children of his ward, unless the court otherwise orders; and if such person is an habitual drunkard the court may appoint a g-uardian of Ms person, whether he has any estate or not.”

The argument for appellee is made to rest largely upon Code Section 3189, which is as follows:

“A minor is bound not only by contracts for necessaries, but also by his other contracts, unless he disaffirms them within a reasonablé time after he attains his majority, and restores to the other party all money or property received by him by virtue of the contract, and remaining witMn his control at any time after his attaining Ms majority, except as otherwise provided.”

The argument is that, by the terms of Section 3223, the provisions of Section 3189 are made applicable to all persons under guardianship. It is to be noted that Section 3189 is not a part of Chapter 5, Title XVI, but is a part of Chapter 4. It declares the liability of a minor for his contracts, subject only to a right of disaffirmance upon certain conditions. It does not deal at all with the question of guardianship, nor with the “powers, duties or liabilities” of guardians. The argument that would make Section 3189 apply to the idiot and the insane, and to the drunkard and spendthrift, would make Sections 3190 and 3191 apply, likewise; and this would be a strained argument. We are clear, therefore, that the argument of appellee cannot be sustained at this point, and that the liability of the insane and the spendthrift is not to be ascertained from the terms of Section 3189.

[964]*9644' ward0-1 contracts structive notice guarSansMp.10m [963]*963Some reliance is put by plaintiff, appellee, upon the fact that he dealt innocently, and without knowledge of the guardianship. Does tMs furnish him any protection against [964]*964the invalidity or voidability of the contract? Wb-en the guardianship was established by the judgment of the court, such court, through the appointed guardian, took charge of the property and of the business of the ward. The property was thus, in a sense, m custodia, legis.

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Bluebook (online)
185 Iowa 958, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reeves-v-hunter-iowa-1919.