Steffen v. Davis

217 N.W. 221, 52 S.D. 283, 1927 S.D. LEXIS 340
CourtSouth Dakota Supreme Court
DecidedDecember 31, 1927
DocketFile No. 5933
StatusPublished
Cited by4 cases

This text of 217 N.W. 221 (Steffen v. Davis) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Steffen v. Davis, 217 N.W. 221, 52 S.D. 283, 1927 S.D. LEXIS 340 (S.D. 1927).

Opinions

BÍITRCH, J.

This suit is based upon a claim filed by plaintiff with Nick Davis as administrator of the estate of Harry Davis, which was rejected and disallowed both by the administrator and the county court. Shit was then brought upon the claim in the circuit court of Day county. At the close of the evidence the court instructed the jury to return a verdict in favor of defendants. From the judgment entered on such verdict and an order overruling a motion for new trial, plaintiff appeals.

The facts upon which the claim is based are as follows: Deceased, Harry Davis, resided in Andover, S. D. He was a brother of the administrator, and was engaged to marry plaintiff, Grace Steffen. He became sick in the early part of 1923, and while ill and in Aberdeen to consult physicians, on the 6th day of February, 1923, in company with his brother Nick, he produced two certificates of deposit — one No. 8477 for $1,000 issued by the Citizens’ State Bank of Andover drawing interest at 6 per cent; the other [285]*285for $664.81 issued by a bank in Groton. It is claimed that there was a conversation between the two brothers wherein it was stated that if either should die the survivor would have the other’s property. Harry Davis at that time indorsed on the back of the two certificates these words:

“In case of death pay this order to brother Nick Davis.

“Signed by myself, Harry Davis.”

—and delivered the two certificates to his brother Nick. Later Harry became so ill that it was thought necessary to’ take him to a sanitarium in Minneapolis. While on the train en route to’ Minneapolis, Harry seemed anxious to make his will, and wanted to go back to Andover for that purpose, but was informed by John Steffen, father of plaintiff, that he could malee the will just as well in Minneapolis. Later during the night Harry got up and insisted on making some disposition of a part of his property. He borrowed a pencil of Nick, wrote out an order as follows:

“Andover 2-21-23

“Mr. Earl Stone — Please turn the 1,000 dollars I have on your bank to Miss Grace Steffen.

“Sign by myselft, Harry Davis.”

—handed the paper to Nick to read, and asked if it was all right, to which Nick answered “Yes.” He then delivered the paper to John ¡Steffen, father of Grace, and asked him to give it to Grace, the appellant. Earl Stone was cashier of the Citizens’ ¡State Bank of Andover. On arrival in Minneapolis, Harry was placed in a sanitarium, and about four months later was taken to the insane asylum at Yankton, where he died September 8, 1923. When John Steffen returned from Minneapolis he delivered the order to Grace, and her claim is based upon this order, which is known in the record as Exhibit 1.

There are several assignments of error with reference to the receipt and rejection of evidence, but what appears to be the chief question is the validity of the order Exhibit 1. It is contended by appellant and admitted' by respondent that the indorsement and delivery of the certificates of deposit constituted a gift causa mortis which was subject to revocation. The language of the indorsements on the certificates is too plain to admit of any doubt as to the character of the gift to Nick D'avis, if in fact a gift was [286]*286made to him. As a gift causa mortis, it was subject to revocation (section 563, iR. C. 1919), and might be revoked at the option of the donor. Appellant therefore contends that the act of Harry Davis in making and delivering the order, Exhibit 1, above quoted, was a revocation of the gift to Nick Ddvis, of certificate No. 8477 for $1,000, issued by the Citizens’ State Bank of Andover, and effected a gift of such certificate inter vivos to appellant, Grace Steffen. Respondent contends that such order was ineffective for any purpose, being too indefinite to identify the certificate, and because a gift of the certificate to be effective would have to be accompanied by a delivery of the certificate to the donee. Respondent bank is interested only in paying the proceeds of the certificate to the person entitled thereto, and need not be further considered in discussing the questions now before us.

There are no word's of revocation of, or any allusion to, a former gift, and if such gift was revoked it is because of the subsequent act of the donor in giving the same property to another. However, if the act of executing and delivering Exhibit 1 to appellant’s father, with a request that he deliver it to appellant, which request was complied with, amounts to a gift of such certificate to appellant, then it also amounts to a revocation of the former revocable gift to Nick Davis, because, to make a valid gift of the certificate of deposit to Grace, there would have to be a valid delivery of the certificate to her, which could not be done without taking the certificate from Nick either actually or constructively and giving it to Grace. There is nothing in the record to indicate that this was done or attempted. There is nothing to show that Harry ever had the certificate in mind' in connection with his gift to Grace. But it is apparent that he did have in mind the deposit covered by the certificate, for in his order he directs the cashier of the bank to turn over to Grace “the 1,000 dollars.” The evidence shows that there was no other deposit of that amount in the bank, that, if there was any other deposit, it was only a small checking account, and that there was no sum whatever on deposit with the cashier personally, so, if the donor had an}'- conception of what he was doing, there can be no doubt that he had in mind the money on deposit in the bank covered by the certificate and was trying to convey it to appellant. He was on a train in company with appellant’s father and his brother Nick, and had asked to be [287]*287allowed to return so that he could make a will. It is not likely he remembered the number of the certificate, and, being a laborer on a railroad section, it is not remarkable if he did not understand the business details necessary to transfer the fund or the importance of assigning the certificate.. But, if he did not have the certificate in mind, he could not have intended to- give it, and if he did not deem it important, there is no reason to infer that he intended to give it to Grace. There is not sufficient evidence to show a gift of the certificate to Grace. Much of the argument of appellant’s counsel and citation of authorities are inapplicable to the facts of this case, because they have confused the certificate with the deposit. Although both parties concede that the delivery of the certificate to- Nick was a gift, it is apparent that they both have in mind the certificate as the subject of the gift. But no one values the certificate except as an instrument to obtain the deposit. The deposit is the subject of the gift, if one was made, and- is the property sought in this action. At the risk of departing from the theory of both sides, we must test the transactions involved with the deposit in mind as the subject of the gift.

Section 561, R. C. 1919, defines a gift as “a transfer of personal property, made voluntarily and without consideration,” and section 565 provides that “a gift made during the last illness of the giver, or under circumstances which would naturally impress him •with an expectation of speedy death, is presumed to -be a gift in view of death.” Under the circumstances presented by the record, we are satisfied that if a gift was made to either party it was a gift causa mortis and not inter vivos, and its validity must be tested by the rules governing such gifts.

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Bluebook (online)
217 N.W. 221, 52 S.D. 283, 1927 S.D. LEXIS 340, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steffen-v-davis-sd-1927.