Varnell v. Lee

14 N.W.2d 708, 234 Iowa 1053, 1944 Iowa Sup. LEXIS 577
CourtSupreme Court of Iowa
DecidedJune 6, 1944
DocketNo. 46490.
StatusPublished
Cited by1 cases

This text of 14 N.W.2d 708 (Varnell v. Lee) 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
Varnell v. Lee, 14 N.W.2d 708, 234 Iowa 1053, 1944 Iowa Sup. LEXIS 577 (iowa 1944).

Opinion

Bliss, J.

The decree in the partition suit, entered April 26, 1943, established the title and the interests of the various owners in a farm of 188.98 acres in Hamilton county, and a residence property, not connected with the farm, in Webster City. The plaintiff, Annie Yarnell, and Bessie Lee each own an undivided one third of 120 acres of the farm, and Leroy and Floyd Boyn-ton each own an undivided one sixth of the 120 acres. In the remaining acreage of the farm, Annie Varnell and Bessie Lee each own an undivided one fourth; Leroy Boynton, Floyd Boyn- *1055 ton, Marion Hollis, and Dwight Hollis each own an undivided one eighth. Referees were appointed by the decree to sell the land at either public or private sale, but if the latter, it was to be at not less than the appraised value. The decree directed the town property and the farm to be appraised separately, and the 120 acres and the 69 acres to be appraised separately. The entire farm was appraised as a whole at $23,500, or approximately $125 an acre, and the town property at $3,500. The 120-acre tract by itself was appraised at $14,140, and the smaller tract with the town property was appraised at $10,600. These appraisals were made on May 24, 1943, and were of the land only, without crops. The town property is not involved in this appeal. It was sold for cash, prior to the sale in question. There is no evidence that the farm which the decree directed to be appraised in two separate tracts was ever offered for sale in that manner. According to the referees there were a number of prospective buyers but they were chary about making offers. On July 9, 1943, they made a written contract, subject to the court’s approval, with the appellee, L. M. Rogers, for the sale of the whole farm, including the 1943 crop, for $115, which was approximately $10 an acre under the en masse appraisal. After consultation with Mr. Lund, attorney of record for plaintiff in the partition action, and who testified that he represented the Hollis boys in the proceedings before us, it was decided by the referees that it might be advisable to offer the property for -sale in court. They accordingly prepared a "Referees’ Report of Sale of Real Estate,” which stated that after diligent efforts the best offer made was by Rogers for $1,767.30 less than the appraised value. The report also stated:

"Your applicants further report that there are a number of prospective buyers, but they verily believé that such buyers are withholding their maximum bid and that such prospects will likely not disclose such maximum bid unless a limitation, or so called dead line, is fixed in which to make the same. Your applicants believe that competitive bidding upon said land held publicly would bring forth a higher price. * * * In order to bring this matter before the court, your applicants have entered into a tentative contract with the said L. M. Rogers for the sale of said real estate for the sum of $21,732.70, together with crops *1056 thereon grown during the year 1943, etc., and have made the same subject to the approval of this court. Your applicants believe, as heretofore stated, that by fixing a time and place of heaidng on said sale and giving others an opportunity to bid upon said premises under a certain period before said hearing is heard will result in a higher price and will probably bring out the true value of said premises. ’ ’

The application also stated that a copy of the Rogers contract was attached,, and asked the court to fix the time and place for hearing on the application, and that the applicants be permitted to give notice and advertise the premises for sale, including proper display ads and bills, and, “That the Court approve such sale or make such orders as may be necessary to protect the right and interest of the owners and interested parties in said real estate.”

The copy of the Rogers contract attached to the report named the purchase price, “payable $1,000 on execution of this agreement; the balance, to-wit: Upon approval of contract and delivery of deed. ’ ’ It recited that the purchaser would take subject to a lease expiring March 1, 1944, and would receive the landlord’s share of the rentals. It said nothing about the nature of the deed or an abstract of title.

On July 14, 1943, during a hearing before Judge Peisen, in the Nellie Hollis estate, of which this farm was not a part, at which Mr. Lund was appearing, and also Mr. Burnstedt and Judge Henderson and the appellant were present, Lund presented the application in this-matter, stating that the land had been sold privately for less than the appraised value. The judge then told him that the referees had no authority to sell privately at less than the appraisal and that the court could not approve such a sale. According to his testimony, Lund then turned to Burnstedt and Henderson and said: “Gentlemen, can’t we arrange for this public sale?” He briefly told the court the thought of the referees as stated in the application. Judge Henderson had represented Bessie Lee as a proponent in the Nellie Hollis will contest, In re Estate of Hollis, 234 Iowa 761, 12 N. W. 2d 576, because Mr. Burnstedt, who attended to the business of Frank and Nellie Hollis, was a witness. Mrs. Lee had been very sick after the will contest and had had an operation *1057 at the Mayo Clinic, and had left her bed to attend the Hollis hearing, over the protest of her doctor. Of the occurrence in the courtroom, Judge Henderson testified:

“Mrs. Lee was in the court room at that time. She was sick, had just returned from Rochester, and I took the liberty to speak up that she was willing to abide by the order and I sort of felt that I had sufficient authority from the two boys in California [Boyntons] to speak for them, that we all wanted it sold, I think, and Mr. Lund said something about the original contract was for $115.00 an acre, I think, but he thought on a public sale in court it would go up to one hundred twenty-five dollars an acre, which I knew would be satisfactory to Mrs. Lee and if to her, would be to the California boys, so I spoke out of turn, I admit that, merely for the purpose of binding them to that order of Judge Peisen, which I suggest you abate * * * . * * * All I can say is I had no idea the crops were to go with that farm. Whatever connection I had with it, I don’t care what they lay up to me- — T didn’t know it and I am sure Mrs. Lee didn’t know it and I am sure the gentlemen in California didn’t know it, that is all I can say. Mrs. Lee was very much opposed to the sale at one hundred fifteen dollars.an acre for the real estate alone, so much so that there was just a little talk that if it was to go at that price she would bid on it herself * *

Judge Henderson nor Mr. Burnstedt nor Mrs. Lee saw the application at the hearing. While it was filed that day, this was done apparently after the hearing. Each of these three testified that no mention that the crops were being sold was made by Mr. Lund, and eaeh testified that he had no knowledge of that fact. Mr. Lund testified that he thought he read the report at the hearing but maybe he was mistaken, maybe he did not. At the hearing on July 14th, Judge Peisen took the order from Mr.

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Related

Varnell v. Lee
19 N.W.2d 205 (Supreme Court of Iowa, 1945)

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Bluebook (online)
14 N.W.2d 708, 234 Iowa 1053, 1944 Iowa Sup. LEXIS 577, Counsel Stack Legal Research, https://law.counselstack.com/opinion/varnell-v-lee-iowa-1944.