Smith & Co. v. Hill
This text of 49 N.W. 1043 (Smith & Co. v. Hill) 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.
Opinion
The section of the Code referred to in the certificate is as follows: “All money received by any person resident of the state as a pension from the United .States government, whether the same shall be in the [687]*687actual possession of such pensioner, or deposited, loaned or invested by him, shall be exempt from execution or attachment or seizure by or under any legal process whatever, whether such pensioner shall be the head of a family or not.” If the defendant had not traded horses, but had kept the one first purchased for sixty-five dollars, and paid for with pension money, the horse would have been exempt. No additional money from any source is invested in the horse in controversy. The whole investment in this horse was pension money. It is true it was not a direct investment. But construing exemption laws liberally, as we always do, we think there should be no partition of this horse between the pensioner and his creditors. The result of such a construction of the statute would be to compel the pensioner to retain the identical horses, cows and other property purchased with his pension money, or to prevent him from investing it in any property. The horse in question is exempt to the extent of the pension money invested in him; and because the pensioner may have made a good trade, and procured a horse worth more than that amount, appears to us to be no reason for ordering the horse to be sold, and the pern sioner paid his pension money back, and the balance paid to his credit. It is conceded by the certificate that the money invested in the horse is exempt, but that because he is of more value than the pension money the excess of such value is not exempt. It seems to us this rule would require pensioners to be careful that they did not invest the exempt money in property worth more than the money paid for it. There is nothing in this opinion inconsistent with the case of Diamond v. Palmer, 79 Iowa, 578. In that-ease it was held by a majority of the court that, where a pensioner paid for the services of a stallion with pension money, it gave him an exempt interest in the colts, 'the dams of the colts being exempt because purchased [688]*688with pension money. In the case at bar the horse in question represents pension money, and nothing else. There was not one cent of any other money invested in him. Reversed.
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49 N.W. 1043, 83 Iowa 684, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-co-v-hill-iowa-1891.