Utterback v. Stewart

277 N.W. 735, 224 Iowa 1135
CourtSupreme Court of Iowa
DecidedFebruary 15, 1938
DocketNo. 44206.
StatusPublished
Cited by2 cases

This text of 277 N.W. 735 (Utterback v. Stewart) 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
Utterback v. Stewart, 277 N.W. 735, 224 Iowa 1135 (iowa 1938).

Opinion

Per Curiam

The property involved in the contract of sale which plaintiff in this action seeks to have performed originally belonged to one T. 0. Stewart, who died testate in Mahaska County, Iowa, on the 22d day of July, 1935, leaving no child or spouse surviving him. His will was duly admitted to probate on or about the 30th day of July, 1935, and by the terms of the residuary clause in his will the property involved in this litigation was devised and bequeathed to his brother, W. W. Stewart, and two sisters, M. Elva Marmon and Delia B. Downey. Delia B. Downey was indebted to the Oskaloosa National Bank of Oskaloosa, Iowa, and a suit was brought upon this indebtedness, and an attachment was issued therein, and levy made upon her interest in said estate. By way of settlement of this indebtedness made between Mrs. Downey and Joe S. Utterback, receiver of said bank, said receiver obtained all the interest of Delia B. *1137 Downey in the estate of T. 0. Stewart, deceased, being an undivided one-third interest. By contract entered into on December 8, 1936, between said receiver and the other heirs, W. W. Stewart and M. Blva Marmon, the appellants herein, said receiver undertook to sell and convey to the appellants all his remaining interest in the property then owned by the estate. At the time this contract was entered into the estate was still pending and the appellants were also executors of the estate and had possession of the property of the estate. Prior to the time of the execution of the contract in suit, two separate tracts of reial estate had been sold, both the receiver and the appellants joining in the conveyances, and the bone of contention between these parties is whether or not the contract in suit included these two tracts of land which had already been disposed of. In one instance, deed had been made and delivered and the consideration paid, and in the other the consideration had been placed in escrow, but had not been distributed and the deal had not been closed because of defects in the title. It is the contention of appellants that the contract involved in this suit included these two tracts, while the receiver contends that they were not included. The trial court found in favor of the receiver, and entered decree accordingly. We are abidingly satisfied the trial court was right.

The reading of the transcript of the entire record in this case brings one’s mind unhesitatingly to the conclusion that appellants, in order to gain what seems to us an unwarranted advantage, undertook to twist and contort a simple contract and the plain intent of the parties, as expressed by its terms and as disclosed by their own testimony, in order to include property which had already been disposed of, and which, at the time the contract was entered into, none of the parties had even the remotest idea was included therein. Throughout the negotiations and the legal proceedings leading up to the consummation of the contract out of which this litigation arises, both sides were represented by able counsel. Yet there isn’t the slightest indication in the contract, or any of the proceedings in or out of court, that the parties had in mind, when the contract was drawn, the matters which counsel for appellants at the trial below sought, by persistent, leading questions, calling for incompetent testimony, to inject into the case as being the understanding and agreement of the parties to the contract. Not only is there an *1138 entire absence of any reference to such matter in the contract, but the prior negotiations, the positive record evidence as disclosed by solemn court records, and the undisputed acts and conduct of the appellants themselves in their capacity as executors of the estate, as well as their own testimony, tend strongly to refute their present contentions in reference to this matter.

The decree of the trial court is so manifestly right, just and proper that any extended reference to the facts or discussion of the legal principles involved would be a waste of time and space and serve no useful purpose. The contract by its express language purports to include only land belonging to the estate “which has not heretofore been conveyed and now owned by the parties hereto.” If the contracting parties intended to include these two tracts which had been previously sold under written contracts joined in by both parties, there was no necessity for including the foregoing clause limiting the sale to real estate “which has not heretofore been conveyed,” for no other real estate had been conveyed. It not only limits the application of the contract to land not heretofore conveyed, but also to land “now owned by the parties.” Furthermore, after this contract in the instant case was executed, a dispute arose over the title to one of these tracts which had been sold and these very appellants as executors of the estate obtained an order of court correcting said error and ordering the proceeds from the sale of said tract paid in three equal parts to the appellee and appellants, respectively, thus recognizing and confirming the sale. Much more could be gleaned from the record pointing in the same direction in sustaining the trial court’s conclusion as to this matter.

Complaint is made because the court overruled the defendants’ motion to transfer the ease to the law calendar. There is no merit in such complaint. Equity is the proper forum in which to bring actions for specific performance of real estate contracts. The fact that this contract also included personal property including bonds and mortgages and some livestock does not oust equity of jurisdiction or require a transfer to the law docket. When equity has once obtained jurisdiction of a controversy, it will retain it and determine all questions necessary to the accomplishment of full and complete justice between the parties, even though in doing so it may be required to pass upon some matters originally cognizable at law. Reiger v. Turley, *1139 151 Iowa 491, 498, 131 N. W. 866. So held in the case of Leach v. Fobes, 11 Gray (Mass.) 506, 71 Am. Dec. 732, wherein the plaintiff obtained a decree for specific performance of contract to convey land and transfer shares of stock.

There can be no basis for the claim of lack of mutuality. The contract contains an express obligation on the part of one to sell and the other to buy at a specified fixed price the appel-lee’s one-third interest in all the property owned by the estate of T. 0. Stewart. It was equally binding on both parties and enforceable by either party against the other. Wickham & Burton Coal Co. v. Farmers Lumber Co., 189 Iowa 1183, 179 N. W. 417, 14 A. L. R. 1293.

Since the contract is one which the vendee might enforce in equity and compel a delivery of a deed, the vendor is recognized as having the same right even though his demand is in substance to recover money for breach of contract. This was one entire contract for a lump sum, and where part of an entire contract relates to personal property and the rest to land “specific performance may be had of the contract as a whole, including the clause relating to personal property.” Kipp v. Laun et al., 146 Wis. 591, 603, 131 N. W. 418, 422. Furthermore, at the time the court ruled on the motion to transfer to the law docket, there was a cross-petition of the appellants on file asking for specific performance of the contract as they claimed it to be. This in and of itself is sufficient reason for overruling the motion.

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Bluebook (online)
277 N.W. 735, 224 Iowa 1135, Counsel Stack Legal Research, https://law.counselstack.com/opinion/utterback-v-stewart-iowa-1938.