Utley v. Boone

299 N.W. 437, 230 Iowa 979
CourtSupreme Court of Iowa
DecidedAugust 4, 1941
DocketNo. 45554.
StatusPublished
Cited by4 cases

This text of 299 N.W. 437 (Utley v. Boone) 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
Utley v. Boone, 299 N.W. 437, 230 Iowa 979 (iowa 1941).

Opinion

Hale, J.

— This action was originally brought under chapter 517 of the Code, to recover possession of real estate. Later there was an amended and substituted petition in equity to quiet title, filed March 8, 1940. Plaintiff’s contention in her petition, summarized, is that her title was superior to any claim of defendants, which claim, she alleges had been relinquished, abandoned, and waived by defendants by reason of (1) voluntary relinquishment of their rights under a contract and oral leasing and payment of rent for a number of years prior to the beginning of the action; (2) failure of performance by the defendants of the obligations o£ their contract which became due April 30, 1928, and that all their rights thereunder are now barred by the statute of limitations; (3) further relinquishment and waiver of rights under the contract by written lease dated December 24, 1938; and (4) estoppel to deny plaintiff’s title. The defense set up by answer of Mrs. L. C. Boone, which answer was adopted by other defendants, in addition to a general denial, *981 was that the property in question was the homestead of E. E. Boone and L. C. Boone, husband and wife; that said possession of a homestead right was under a contract of purchase; that she believes and therefore alleges that the purchase price was paid and that her rights under said contract had not been foreclosed or forfeited in a statutory manner; that any rights of the plaintiff were inferior to the rights of these defendants under their homestead right; that the lease from plaintiff to defendants was void by reason of duress; and that the statute of limitations had run against the plaintiff. Plaintiff replied, denying generally, and denying duress, denying that the purchase price was ever fully paid, and further denying defendants’ homestead rights. On trial the court found in favor of the plaintiff, and defendants appeal from such- decree.

Plaintiff is the owner of record of certain town property in Manchester, deriving title thereto as part of the estate of her deceased husband, G. H. Utley, who purchased the land from one Clark, and by deeds from the heirs. On April 80, 1923, the former owner, Clark, and his wife, entered into a contract for sale on payments to E. E. Boone and his wife L. C. Boone, by the terms of which Clark agreed to sell and the Boones to purchase the property in controversy, upon payment of $2,000 “on April 30, 1923, said Two thousand dollars to draw interest at the rate of eight per cent, payable semi-annually, due April 30th, 1928.’’ The second parties, Boone and wife,' were given the privilege of paying $100 or even multiple thereof on any interest-paying date after the expiration of the first six months; and second parties were to receive a warranty deed when the full amount of the purchase price had been paid; and second parties were to pay all taxes and special assessments. First party was to keep the premises insured in' the sum of $2,000, payment of premium to be made by the second parties, who were also to keep the premises in good repair at their own expense. Time was to be of the essence of the contract, and failure to make payments as provided in the contract, or to pay taxes and special assessments, or to keep the property in good repair, would give first parties the right to declare a forfeiture of the contract, and all amounts, paid by second parties should be forfeited as liquidated damages. No *982 note for the amount of the contract price was mentioned. The evidence shows failure of full performance, and failure to pay-taxes as agreed. Besides the original suit at law, filed February 19, 1938, there were filed various pleadings, among them a motion to require plaintiff to amend the abstract of title filed with petition and to strike a part of the petition. This motion was not ruled upon until after December 23, 1938, on which date 'judgment was entered by default for the plaintiff. On the same day, December 23, 1938, defendants’ attorney, being informed by plaintiff’s attorney that default had been entered, filed a motion to set aside the default on the ground that a motion was on file and undisposed of at the time of entering the default and judgment. This motion, on May 15, 1939, was sustained by the court, and a ruling entered setting aside the default and judgment of December 23, 1938. Thereafter other pleadings were filed and eventually, on March 8, 1940, plaintiff filed her amended and substituted petition in equity, the claims of which are heretofore set out. Answer was filed April 10, 1940. Pending proceedings a receiver was appointed. E. E. Boone, originally named as a defendant, died, and his heirs were substituted.

I. Defendants’ first contention is that the entire record discloses that the defendants were rightfully in possession of the real estate under a contract of purchase which has never been forfeited or foreclosed in any legal manner. Defendants argue that under the statutes a mere failure to' pay the' purchase price does not in itself effect a forfeiture of the vendee’s interest in the property, that some act on the part of the vendor is required. They insist that the vendor can pursue only one of two remedies — first, forfeiture under the provisions of chapter 527, Code of 1939, and second, foreclosure as in the case of a mortgage, as provided in Code sections 12382 and 12383.

That actions to quiet title have allowed such relief seems to be the rule in this state, on the theory that in an equitable action equity has full power to give all relief necessary. McKenney & Seabury v. Nelson, 220 Iowa 504, 262 N. W. 101; Davis v. Niemann, 219 Iowa 620, 258 N. W. 761, citing Wyland v. Mendel, 78 Iowa 739, 37 N. W. 160, and Lees v. Wetmore, 58 Iowa 170, 12 N. W. 238. See also, Eckert v. Sloan, 209 Iowa *983 1040, 229 N. W. 714; Westerman v. Raid, 203 Iowa 1270, 212 N. W. 134. In Equitable Life Ins. Co. v. Taft Co., 192 Iowa 934, 179 N. W. 880, wbicb sustains the plaintiff’s right to maintain this form of action, the court says (page 946 of 192 Iowa, 179 N. W., page 885):

“We have heretofore construed our statute broadly, and as applying to every form of hostility to the full right and unclouded title of the petitioner. The plaintiff in such case is entitled to precipitate the litigation, and to bring in his adversary at once, to try the question of right.”

II. Defendants assail plaintiff’s alleged oral release of the contract as not being valid under the statute of frauds, being a transfer of interest in real estate. We do not need to consider whether the reconveyance as claimed by plaintiff is substantiated, since the case must be determined on other grounds.' Much of the evidence offered would be incompetent under Code section 11257, relating to transactions with one deceased. Other parts of the testimony offered consist of receipts on printed rent-receipt forms, cancelled checks, tax receipts, and entries in an account book, on three pages of which appear credits to Boone. Much evidence along this line was offered, but whether or not the testimony satisfies the requirements of the statute of frauds so as to amount to proof of a surrender of the contract, it does evidence that there had been a failure of defendants to comply with the contract, and that they have long been in' default as to payments and are not therefore in a position to demand conveyance, nor have they been.

III.

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299 N.W. 437, 230 Iowa 979, Counsel Stack Legal Research, https://law.counselstack.com/opinion/utley-v-boone-iowa-1941.