Schmalz v. McKenna

206 N.W.2d 141, 58 Wis. 2d 220, 1973 Wisc. LEXIS 1462
CourtWisconsin Supreme Court
DecidedApril 20, 1973
Docket81
StatusPublished
Cited by14 cases

This text of 206 N.W.2d 141 (Schmalz v. McKenna) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schmalz v. McKenna, 206 N.W.2d 141, 58 Wis. 2d 220, 1973 Wisc. LEXIS 1462 (Wis. 1973).

Opinion

BeilfüSS, J.

We first consider the respondents’ claim of estoppel by record in the proceedings for admission of the will to probate. 3 The doctrine of estoppel by record prevents a party from litigating again what was actually litigated or might have been litigated in a former action. Gohr v. Beranek (1954), 266 Wis. 605, 64 N. W. 2d 246; Kuchenreuther v. Chicago, M., St. P. & P. R. Co. (1937), 225 Wis. 613, 275 N. W. 457. The constructive trust issue raised by the appellants in their objection to the admission of the will to probate could not be determined in that proceeding. The only question was whether the paper purporting to be the will of the testator represented his legally declared final wishes as to the postmortem disposition of his estate. Will of Rice (1912), 150 Wis. 401, 136 N. W. 956, 137 N. W. 778. Whether the disputed will provisions were contractual and whether *227 Margaret Mueller had breached the contract so as to disable her from taking under them were irrelevant for the purpose of determining whether the will should be admitted to probate. Accordingly, appellants were not es-topped by the record and the trial court was correct in denying respondents’ motion to dismiss on that ground.

The appellants contend that Margaret Mueller would be unjustly enriched if she were permitted to take the property given to her under the provisions of the will and that to prevent this unjust enrichment equity should impose a constructive trust for the benefit of the residuary beneficiaries.

It is the appellants’ claim that Margaret’s failure to perform under the contract, except as to a nominal amount, constituted a breach of the contract and that by the mutual assent of both John and Margaret the contract was rescinded. They further assert that provisions in the will of March 23d for the benefit of Margaret were made only because it was contemplated that Margaret would comply with the contract and because she had done practically nothing for John she would be unjustly enriched.

The appellants concede John was competent to draw the will and that no undue influence, fraud or coercion has been exercised by Margaret upon John but insist that under the expanded test for the imposition of constructive trust of Estate of Massouras (1962), 16 Wis. 2d 304, 114 N. W. 2d 449, it would be unconscionable and inequitable to allow Margaret to take under the will.

In Massouras, the court stated at pages 312, 313:

“The facts in this case call for the imposition of a constructive trust. Such a trust is implied by operation of law as a remedial device for the protection of a beneficial interest against one who either by actual or constructive fraud, duress, abuse of confidence, mistake, commission of a wrong, or by any form of unconscionable conduct, has either obtained or holds the legal title to property which he ought not in equity and in good conscience beneficially enjoy. [Cases cited.]
*228 “It was pointed out in Masino v. Sechrest (1954), 268 Wis. 101, 66 N. W. (2d) 740, and in Nehls v. Meyer (1959), 7 Wis. (2d) 37, 95 N. W. (2d) 780, that a constructive trust is a device in a court of equity to prevent unjust enrichment which arises from' fraud or abuse of confidential relationship and is implied to accomplish justice. In those cases, .the grantee of property would have been unjustly enriched by a repudiation of an agreement. Similarly, here, the petitioner would be unjustly enriched by repudiation of the property settlement. Dean Pound observed, ‘Thus constructive trust could be used in a variety of situations, . . . and sometimes to develop a new field of equitable interposition, as in what we have come to think the typical case of constructive trust, namely, specific restitution of a received benefit in order to prevent unjust enrichment.’ The Progress of Law, Equity, 33 Harvard Law Review (1920), 420, 421. Restatement, Restitution, Constructive Trust, p. 640, sec. 160, states the rule as follows:
“ ‘Where a person holding title to property is subject to an equitable duty to convey it to another on the ground that he would be unjustly enriched if he were permitted to retain it, a constructive trust arises.’
“We consider the language in Will of Jaeger (1935), 218 Wis. 1, at page 13, 259 N. W. 842, that a constructive trust does not arise in the absence of fraud, positive or constructive, to be a too-limited statement of the basis for the imposition of a constructive trust as a ‘formula through which the conscience of equity finds expression.’ See Beatty v. Guggenheim Exploration Co. (1919), 225 N. Y. 380, 386, 122 N. E. 378 (Cardozo).”

The least the appellants must prove under the Mas-souras rule is that there must have been some “form of unconscionable conduct” on the part of Margaret. The findings of the trial court make it clear that there was no unconscionable conduct on the part of Margaret. Throughout the relations between John and Margaret, John was the dominant one. It was John who asked Margaret to be his housekeeper and companion; it was he who suggested the contract and dictated its terms. He drew the will of March 23d without any prompting by *229 Margaret, in fact without her knowledge. There is no evidence in the record to establish any wrongdoing or unconscionable conduct on the part of Margaret. Under the facts of this case as they appear in the record, and as set forth above, our holding in Massouras does not compel nor permit the imposition of a constructive trust.

We are urged, in effect, to go beyond Massouras 4 and to impose a constructive trust upon the ground of unjust enrichment alone. We do not believe the facts of this case establish unjust enrichment on the part of Margaret. Neither at the time of the drawing of the March 23d will nor thereafter did John owe any duty 5 to the residuary legatees. John, upon this record, had no obligation, legal or otherwise, to make provision for them in his will; nor was Margaret guilty of any fraud, coercion, undue influence or unconscionable conduct that deprived them of anything that in equity and good conscience they were entitled to have. They have not established a greater equitable right to John’s property than Margaret has.

This is not a case for the imposition of a constructive trust.

The will was admitted to probate. There are no facts which would permit a construction of its unambiguous terms. To do so would conflict with the sanctity the law affords to wills.

In Estate of Wilkins (1927), 192 Wis. 111, 112-115, 211 N. W. 652, this court stated:

“In the case of Nunnemacher v. State, 129 Wis. 190, 108 N. W. 627, it is said:

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Bluebook (online)
206 N.W.2d 141, 58 Wis. 2d 220, 1973 Wisc. LEXIS 1462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schmalz-v-mckenna-wis-1973.