Senneff v. Brackey

146 N.W. 24, 165 Iowa 525
CourtSupreme Court of Iowa
DecidedMarch 24, 1914
StatusPublished
Cited by22 cases

This text of 146 N.W. 24 (Senneff v. Brackey) 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
Senneff v. Brackey, 146 N.W. 24, 165 Iowa 525 (iowa 1914).

Opinion

Deemer, J.

Alf. Tallaekson Brackey, by his last will and testament, devised to his son, Albert A. Brackey, a life estate in. a certain quarter section of land with remainder over equally to all the children of Albert A. The remainder of his estate, both real and personal, was devised equally to all his children. At the time of decedent’s death, Albert A. had in his possession $3,260 which belonged to his father, or his estate. Albert was then and has ever since been insolvent. Decedent died April 12, 1909, and Albert A. offered the will for probate. All the other heirs joined in contesting the will, and a trial was had which finally reached this court, resulting in an order confirming the will and probating the same. T. A. KEngland was appointed special administrator of testator’s estate, in October, 1909. He brought suit against Albert A. Brackey for the amount of money held by him belonging to his father’s estate, and as a result thereof, in the same month, recovered judgment for the amount claimed. In June and November of the year 1911, Albert A. Brackey executed mortgages to various parties, which covered all his interest in the quarter section of land specifically devised. These mortgages were executed to Senneff, Senneff & Bliss, the Farmers’ State Bank of Lake Mills, the First National Bank of Lake Mills, and the Lake Mills Implement Company, respectively. Each of said [527]*527mortgagees knew at the time that, the mortgagor was insolvent, and on June 29, 1912, he filed a voluntary petition in bankruptcy and has been discharged, as we understand it. The controversy is with reference to the priorities of these several mortgages and judgment liens. The trial court found that the judgment in favor of the special administrator was prior and superior to the mortgage liens, and superior to the'claims of the trustee in bankruptcy, and the mortgagees and trustee in bankruptcy appeal.

A few more facts should be stated in order that the exact legal propositions may be fully understood. The mortgages covered not only the life estate devised to Albert A. Brackey, but also his one-seventh interest in another eighty-acre tract of land which was afterward sold at referee’s sale, in a partition suit, by T. A. Kingland, referee, and one-seventh of the proceeds from the sale was paid to plaintiff Senneff to be applied on one of the mortgages held by him. The interest of Albert A. Brackey in the personal estate of his father will not exceed $500. The original notice of the suit brought by the special administrator against Albert A. Brackey was served on March 16, 1910, and the petition was filed March 18, 1911. .In June of the year 1911, Brackey made one of the mortgages, heretofore referred to, to John A. Senneff to secure the sum of $1,500, and on November 4, 1911, the mortgages were made to one of the banks, and the implement company before referred to, and on the same date he executed a mortgage to Senneff & Bliss to secure the sum of $1,200. On November 11, 1911, a verdict was returned for the special administrator in the suit brought by him for the sum of $3,260.

On June 29, 1912, Brackey filed a petition in bankruptcy, and on October 5th of the same year judgment was rendered on the verdict. At the time the will was made, Albert did not owe his father any money, but at the time of the testator’s death he (Albert) held $3,260 in his hands, belonging to the estate, which he refused to turn over. The [528]*528mortgages referred to were, generally speaking, made to secure pre-existing debts; but the $1,200 mortgage was made to secure SennefE & Bliss, who are attorneys, in their fees, not only in the will contest case, but in defending against the suit brought by the special administrator. They appeared for Brackey in the suit brought by the special administrator and knew of the claim made against him in that suit.

At the time of th$ making of the $1,200 mortgage, SennefE knew that if judgment was obtained by the special administrator Brackey would be insolvent, but he testified that at the time of the taking of the $1,500 mortgage he was not aware of the mortgagor’s insolvency, although he was advised of the claim made by the special administrator. The $1,200 mortgage was given while the suit of the special administrator was being tried;' SennefE & Bliss, the mortgagees, being attorneys for the mortgagor. Albert A. Brackey was in fact insolvent at the time of testator’s death and remained so until he went into bankruptcy. Neither SennefE nor SennefE & Bliss knew of this fact, however, at the time the first mortgage to SennefE was made, but they were advised before the taking of the SennefE & Bliss mortgage that, if the special administrator recovered in his suit against Brackey, Brackey would be unable to pay the amount to the estate.

After recovering the judgment, the special administrator brought the second action referred to in the title to this opinion, in which he asked that his judgment be declared to be a specific lien upon the real estate devised to him by the testator, prior and superior to the liens created by the several mortgages, and that SennefE be required to refund the amount received by him from the referee in the partition suit, representing Albert A. Brackey’s interest in the lands sold in that suit.

The $1,500 mortgage was made to secure the money with which to pay SennefE & Bliss for their attorney’s fees in the will contest, and possibly some other matter.

[529]*529The suits by the special administrator to secure the judgment and to establish the lien thereof against Brackey’s interest were not unduly delayed, because the contest of the will was pending, and until that was finally decided no one knew whether Albert A. Brackey would take under the will or as an heir of his father. When the $1,200 mortgage was taken, the mortgagees felt and believed that the suit they were then trying was likely to go against their client, and it was made to secure their attorney’s fees in that case, and also some other services theretofore rendered. Upon these facts, and the issues joined, the trial court made the following findings and order in the ease brought by Kingland, special administrator:

It is conceded by the parties that, at the time of the death of Alf. T. Brackey, deceased, Albert A. Brackey was indebted to various and sundry parties in an amount sufficient so that together with the amount of the above judgment he was insolvent. The evidence shows that, if the claims of the defendants are allowed priority over said judgment, the effect will be a loss to said estate of a substantial part, or perhaps all, of said judgment. I am of the opinion that the ‘diligent creditor’ rule does not apply, and that the defendant Albert A. Brackey ought not to be permitted, either by direct or indirect means, to avail himself either personally, or by assignment to others, of property which comes from the estate of Alf. T. Brackey, deceased, and at the same time be permitted to defeat the recovery by said estate of a valid claim against him. It seems to me that to permit him to do so would be unjust to the estate. I have no hesitancy in concluding that so far as Albert A. Brackey would derive any benefit from the personal estate of Alf. T. Brackey, deceased, the estate would properly offset in its favor any claim against Albert A. Brackey, and in principle I can see no reason why the same rule should not apply to the realty. The evidence shows that a certain tract of real estate which belonged to Alf. T.

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146 N.W. 24, 165 Iowa 525, Counsel Stack Legal Research, https://law.counselstack.com/opinion/senneff-v-brackey-iowa-1914.