Simpson v. Bostwick

80 N.W.2d 339, 248 Iowa 238
CourtSupreme Court of Iowa
DecidedJanuary 15, 1957
Docket49076
StatusPublished
Cited by17 cases

This text of 80 N.W.2d 339 (Simpson v. Bostwick) 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
Simpson v. Bostwick, 80 N.W.2d 339, 248 Iowa 238 (iowa 1957).

Opinion

Larson, J.

Under a written agreement executed in California January 24, 1950, plaintiffs T. A. Simpson and Lola E. Simpson deeded a farm located in Appanoose County, Iowa, to defendants L. V. Bostwick and Miriam K. Bostwick on January 31,1950. There are other defendants, but when referred to herein these are the parties so designated. In part, the agreement provided as follows:

“Parties of the first part, Thomas A. Simpson and Lola E. Simpson, agree to exchange 375 acres in the County of Appanoose, State of Iowa, to wit: [farm description] * * * This property free and clear of all other encumbrances except a loan on real estate of $8800, the original amount of which was $10,000, payable $300 per year on the principal, plus 4%% interest. Next payment due March 1951- — this year’s taxes paid.
“For the property known as the Woodruff Trailer Park and Apartments at 15717 Woodruff Avenue, Bellflower, California, which is at the present time in litigation between L. V. Bostwick and James R. Carter, who are equal partners at this time. At the close of litigation, L. V. Bostwick and Miriam K. Bostwick are to transfer title to the above mentioned property to Thomas A. Simpson and Lola E. Simpson, subject to an indebtedness of approximately $28,000; * * *
“Simpson will not receive any income from said property or be subject to any payments on said property until title is delivered. All payments are to be up to date, including taxes, at the time title is delivered.
“It is further agreed that Thomas A. Simpson and Lola E. Simpson give immediate title to the farm to L. V. Bostwick and Miriam K. Bostwick; Mr. Bostwick agrees to advance $2500 to be returned to him in time to close his litigation on the Trailer *241 Park. In the event Mr. Bostwick cannot deliver title to said property, then this $2500 is to be used as rent on the above farm for the year 1950, ending March 1951. If for some cause Bostwick cannot deliver title to the Woodruff'Trailer Park and Apts., then he is to deed back the farm to Thomas A. Simpson and Lola E. Simpson. Both parties agree to transfer insurance.”

Plaintiffs’ farm at the time was under foreclosure due to some arrearages. While there was some dispute as to whether defendants were aware of the foreclosure and arrearages when entering the agreement, we believe that under the record the trial court’s determination that it was known or acquiesced in before accepting the deed was justified. On January 31, 1950, the date the deed was executed, defendants paid plaintiffs only $500 of the agreed $2500. A few days later they sent the $1981.14 via their representative to Iowa to cover the arrearages and reinstate the mortgage upon the Iowa farm. Mr. Bostwick’s instruction of February 5, 1950, to complete the reinstatement of the mortgage if it could be “straightened up for not more than $2500” is quite persuasive. The trial court found defendants were aware of the situation and retained the $2000 on the 31st of January to cover the approximate arrearages. It pointed out, as defendants made no effort toward obtaining reimbursement for the $1981.14 actually paid for that purpose, the inference was strong that defendants knew of and acquiesced in that transaction. 'The record discloses plaintiffs themselves had made an effort to comply with the agreement and to reinstate the mortgage for $2000 prior to defendants’ payment, but for personal reasons were unsuccessful. It thus appears that defendants’ subsequent attempt to accomplish the same result, as a new owner, was successful.

Plaintiffs contend the $500 plus the $1981.14 account for the $2500 advancement under the agreement. Defendants’ contention was that $2000 had already been advanced plaintiffs under several loans and that the $1981.14 was a necessary and unexpected additional advancement. The trial court held no substantial evidence was introduced to prove these alleged prior loans, rejected that contention, and accepted plaintiffs’ explana *242 tion of that transaction and their account of the agreed advancement.

Prior to March 1, 1950, defendants took possession of the Iowa farm by placing thereon as tenants a relative, W. F. Bostwick and his wife, also listed as defendants herein, and by them continued in possession until removed therefrom by the decree of the trial court March 1, 1956. Although defendants failed to obtain title to the trailer park before or at the referee’s sale as contemplated in the agreement, and retained possession of their part of the proceeds of that sale, they refused plaintiffs’ demand on April 6, 1951, that the farm be deeded back to them as per the agreement. The trial court held such failure breached the agreement, and that possession and title from that time on was wrongfully withheld from the plaintiffs.

There were charges and countercharges of fraud and misrepresentation, lack of good faith, etc. made by each party, but a careful examination of the record, we think, sustains the trial court’s rejection of those allegations. True, we try this matter de novo, but the trial court was in the best position to determine the credibility of the witnesses, and we are satisfied there was insufficient proof to justify a finding of false representation, fraud, or even mistake. Considerable importance is given the testimony of Marvin Wood, Mr. Bostwick’s brother-in-law, by the court. He testified he visited the farm the latter part of January 1950, at defendant Bostwick’s request, and gave him a report by phone. Wood said: “Well, I tried to tell him like I saw it.” Defendants’ actions thereafter, including the money advanced to clear the arrearages, do not sustain their claim of fraud and misrepresentation. They did not then complain or make demand on plaintiffs due to the revealed facts. The element of reliance is also totally lacking. It further appears, if there was any misrepresentation or misunderstanding, the deal was ratified by defendants’ subsequent affirmative acts. Armstrong v. Breen, 101 Iowa 9, 69 N.W. 1125; Steckel v. Million, 210 Iowa 1139, 231 N.W. 387; Gipp v. Lynch, 226 Iowa 1020, 285 N.W. 659; 37 C. J. S., Fraud, section 37, page 284.

Predicated upon a determination that title to the farm should be restored to plaintiffs, the trial court determined that an *243 accounting was necessary to settle the various claims and counterclaims arising out of the relations of the parties during that period. It was undisputed that defendants had loaned plaintiffs $500 on a note on May 5, 1950, which had not been paid; that defendants had paid off the entire mortgage on the farm and had paid the taxes each year when due. Defendants further introduced evidence that many costly improvements were made upon the farm during the period they were claiming title and were in possession of the farm. On the other hand, plaintiffs introduced evidence as to the rental value of the farm from March 1, 1951, to March 1, 1956. Judgment was entered setting aside the deed of January 31, 1950, and quieting title to the- farm in plaintiffs. Under the accounting defendants were granted a judgment of $616.16 against plaintiffs and possession of the farm was given plaintiffs as of March 1, 1956, with a lien established against the farm for defendants’ judgment. Costs were taxed to defendants under other appropriate orders of the court.

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Cite This Page — Counsel Stack

Bluebook (online)
80 N.W.2d 339, 248 Iowa 238, Counsel Stack Legal Research, https://law.counselstack.com/opinion/simpson-v-bostwick-iowa-1957.