Rummel v. Zeigler

281 N.W. 159, 225 Iowa 613
CourtSupreme Court of Iowa
DecidedAugust 5, 1938
DocketNo. 44366.
StatusPublished
Cited by2 cases

This text of 281 N.W. 159 (Rummel v. Zeigler) 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
Rummel v. Zeigler, 281 N.W. 159, 225 Iowa 613 (iowa 1938).

Opinion

*614 Mitchell, J.

— In September of 1931 Bertha Zeigler and David F. Zeigler, wife and husband, who lived in Codington County, South Dakota, executed and delivered to two of their sons, Loren and Elery, a warranty deed for 80 acres of land located in Wright County, Iowa. The recital in the deed as to the consideration is as follows: “The sum of One Dollar to her in hand paid by Loren D. Zeigler and Elery F. Zeigler,” and, “that the same are free from all encumbrances, excepting mortgage of record, which grantees assume and agree to pay.” The encumbrance on the farm at the time of the transfer was a mortgage of $600.

The sons to whom the 80 acres were transferred, were working at home, assisting in farming three quarter sections of land operated by the mother and father. They received no wages. The father died on November 5, 1932, and the mother on December 21, 1933. In 1935 Loren. Zeigler and Elery Zeigler moved to Iowa and improved the 80-acre tract of land that had been transferred to them.

In 1937 U. H. Rummel was duly appointed and qualified as administrator of the estate of Bertha Zeigler, who died intestate, and he commenced this action to set aside the deed to the 80 acres, alleging that said conveyance was fraudulent as against him and the creditors of the said estate, the record showing that Bertha Zeigler was indebted to a certain bank in South Dakota at the time she made the transfer, and that there was no property out of which her debts could be paid. Answer was filed, denying each and every allegation, praying that the petition be dismissed with costs. There was a trial, at which evidence was offered, and the lower court entered a decree, setting aside the deed but establishing a lien in favor of the defendants in. the amount of $3,700, against the real estate. From this decree Loren and Elery Zeigler have appealed. There is also- a cross-appeal on the part of U. H. Rummel, the administrator of the mother’s estate.

There is little dispute in the record. The Zeiglers lived in South Dakota. They operated three quarter sections of land. The mother owned the 80 acres in Wright County. Loren and Elery lived at home and assisted their parents in the operation of the Dakota land. They received no wages for the work they performed. It is their claim that the consideration for the. transfer of the 80 acres by their mother to them was: the past due wages which were owing them; the amount of the first mortgage *615 on the land in Wright County, to wit: the sum of $600; and the agreement on their part to take care of their parents as long as they lived and to pay for their burial expenses. That they performed the labor is not denied. The value of the services and the length of time are in dispute.

I. It is the contention of the appellee on his cross-appeal that the lower court erred in holding that Loren and Elery Zeigler were entitled to credit for wages for work they claimed to have performed; that it was also in error in allowing the funeral and medical expenses, because they were contracted to be performed in the future and there was no consideration at the time the deed was made. Loren was allowed the sum of $840, which was at the rate of $35 per month; and Elery, on the same basis, was allowed the sum of $140. We are convinced that the lower court was right in allowing these amounts, which the record shows were a fair, reasonable allowance for the services rendered. The amount of the funeral expense was $1,200 and of the medical expense $320. Appellee overlooks the fact that at the time of the commencement of this acticfn to set aside this deed the contract the Zeigler sons entered into with their mother had been fully executed and the funeral and medical bills had been paid.

In the case of Merithew v. Ellis, 116 Me. 468, 102 A. 301, 2 A. L. R. 1429, the Maine court said (we quote from page 470 of 116 Me., page 301 of 102 A., page 1430 of 2 A. L. R.):

“The defendant attacks the deed of June 6, 1889, from the mother to her minor daughter, relying upon the familiar principle that a conveyance of all one’s property in consideration of future support is purely voluntary and prima facie voidable as to existing creditors. Such is the law. Webster v. Withey, 25 Me. 326; Rollins v. Mooers, 25 Me. 192; Egery v. Johnson, 70 Me. 258; Graves v. Blondell, 70 Me. 190; Spear v. Spear, 97 Me. 498, 54 Atl. 1106.
“But another rule is of equal force, that if, in the performance of such an agreement, the support has been actually furnished in good faith, so that the consideration has been subsequently paid, the conveyance will be upheld. 'Such a conveyance will not be set aside at the instance of creditors, after support has been furnished in reliance on it, which in value exceeds that of the property conveyed.’ 12 R. C. L. 547; Kelsey *616 v. Kelley, 63 Vt. 41, 22 Atl. 597, 13 L. R. A. 640; 20 Cyc. 493; Harris v. Brink, 100 Iowa 366, 69 N. W. 684, 62 Am. St. Rep. 578; Walker v. Cady, 106 Mich. 21, 63 N. W. 1005; Long Branch Bkg. Co. v. Dennis, 56 N. J. Eq. 549, 39 Atl. 689. These cited cases are all in equity, but there is no logical reason why the justice of the principle should not be applied in an action at law when the facts warrant it. "

The Indiana court in Hays v. Montgomery, reported in 118 Ind. 91, 20 N. E. 646, at page 647 said:

“In the case of Willis v. Thompson, 93 Ind. 62, it is held that a conveyance made in consideration of an agreement on the part of grantee to support and maintain the- grantor during life was a valid one, and, where the grantee had performed the contract, it became a valuable consideration, and in order to set aside such conveyance as fraudulent, as against creditors, it was necessary to aver and prove that such conveyance was made with the fraudulent intent to cheat and defraud creditors, and that the grantee, at the time of the conveyance, had notice of such intent.”

And in Walker v. Williamson, 177 Ky. 599, 198 S. W. 10, at page 12, the Kentucky court said:

“Purely voluntary conveyances are per se. fraudulent as to existing creditors, regardless of the intent of either of the parties or knowledge of the grantee of the existence of his grantor’s indebtedness, and the law seems to be that conveyances upon the sole consideration of future support are, at least to the extent that they have not been executed, voluntary ones within this rule. In asserting this principle, the editor in 20 Cyc. vol. 493, says:
“ ‘An agreement for future support is not a sufficient consideration to uphold a conveyance or transfer by a debtor, when to do so will operate to the prejudice of the existing creditor, as where all the debtor’s property is conveyed or transferred. Where, however, support has been furnished in good faith, the conveyance will be sustained to that extent; and where an agreement for future support has been fully performed it becomes a valuable consideration, and in order to set the conveyance aside as fraudulent against creditors, if is necessary to show that such conveyance was made with fraudulent intent, and (that *617 the grantee at the time of the conveyance had notice of such intent. ’

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281 N.W. 159, 225 Iowa 613, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rummel-v-zeigler-iowa-1938.