Voegele v. Mahoney

54 N.W.2d 15, 237 Minn. 43, 1952 Minn. LEXIS 697
CourtSupreme Court of Minnesota
DecidedMay 23, 1952
Docket35,732
StatusPublished
Cited by8 cases

This text of 54 N.W.2d 15 (Voegele v. Mahoney) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Voegele v. Mahoney, 54 N.W.2d 15, 237 Minn. 43, 1952 Minn. LEXIS 697 (Mich. 1952).

Opinion

Knutson, Justice.

Appeal from an order denying defendants’ alternative motion for amended findings, conclusions of law, and order for judgment in their favor or for a new trial.

Many of the facts are not in dispute. Cornelius Mahoney, grandfather of defendants, died testate on April 28, 1926. Objections were filed to the allowance of his will, but after a contested hearing it was admitted to probate. Mary Long, a daughter, was named executrix, and Thomas H. Quinn, .an attorney at law practicing at Faribault, acted as her attorney. The contestants were represented by other counsel.

The estate of Cornelius Mahoney consisted of 352 acres of land in Eice county and some personal property. Of the land, about 110 acres were located in Wells township and 212 acres in Shields-ville township. When the time came to close the estate, it was found that there was insufficient money to do so. License to mortgage the real estate was obtained from the probate court on April 10, 1928, and, pursuant thereto, all of the land was mortgaged to Farmers & Merchants State Bank of Faribault to secure a loan of $2,000. The mortgage, which was duly approved by the probate court, is dated October 1, 1928. It was assigned by the bank to plaintiff for a valid consideration on December 31, 1929.

*45 The final decree in the estate was entered on February 24, 1929, assigning the land to the devisees under the will, subject to the mortgage. By his will, Cornelius Mahoney created several life estates, and defendants were remaindermen in undivided shares, subject to such life estates.

Some four and one-half years after the entry of the final decree, proceedings were commenced by the father of the present defendants, who were then minors, as their guardian, and also in his own right, challenging the validity of the mortgage, as well as the final decree. The petition to set aside the final decree was denied by the probate court and, on appeal to the district court, was affirmed. On appeal to this court, we affirmed the district court. In re Estate of Mahoney, 195 Minn. 431, 263 N. W. 465. The validity of the mortgage can therefore no longer be in doubt.

Abbie Mahoney, as guardian of the estate of her mother, who was the surviving spouse of Cornelius Mahoney and owner of the first life estate in the property, paid the interest on the mortgage for 1929 and 1930. She failed and refused to pay the interest due April 4, 1931, because she “was short of funds.”

On April 9, 1931, on account of default in the payment of interest, plaintiff gave Thomas H. Quinn a power of attorney to foreclose the mortgage. Quinn, as has been mentioned above, had theretofore acted as attorney for the executrix of the will of Cornelius Mahoney and, from time to time, had advised Abbie Mahoney in connection with her guardianship of the estate of her mother, the surviving spouse of Cornelius Mahoney. At the time that plaintiff gave him a power of attorney to foreclose the mortgage, however, he was not acting as attorney for any of the Mahoney heirs. The mortgage was thereafter foreclosed and bid in by plaintiff on June 5, 1931, for $2,644.34, which represented the amount then in default.

After the time for redemption had expired, some of the Mahoney heirs, including the father of defendants, with whom defendants were then living, continued to occupy the land. In order to get possession, plaintiff commenced an action in the district court to *46 eject the occupants, and judgment in her favor was entered on June 22, 1933. Pursuant to the judgment so entered, the sheriff moved the family off the farm in July 1933. Some of the Mahoney heirs persisted in cutting timber on the land, and, to restrain such action, plaintiff procured a restraining order and an injunction from the district court on June 22, 1933.

Since the removal of the Mahoney family in July 1933, plaintiff has been in possession of the land. She has paid the taxes thereon and has made improvements. During 1933, attorney Quinn commenced an action in her behalf to quiet title to the part of the land located in Wells township. Plaintiff was under the impression that the action included the land in Shieldsville township as well. The land in Wells township has long since been sold by plaintiff.

On December 27, 1949, plaintiff entered into a contract for deed to sell the land in Shieldsville township. It then appeared that it would be advisable to bring an action to quiet title to this land. Such action was accordingly commenced, and defendants, claiming to be the owners of undivided shares in the land, interposed their joint and separate answer setting up the claims which will hereinafter be discussed.

From the time when plaintiff first obtained possession of the land in 1933 until the commencement of this action, none of the Mahoney heirs made any claim of ownership to the property. . Defendant Catherine Bauer (nee Mahoney) was bom October 31, 1914; defendant Cornelius Mahoney, III, was born February 29, 1916; defendant John Mahoney was born December 31, 1918; and defendant Mary Mahoney was born February 14, 1923. At the time plaintiff obtained possession of the real estate involved, all of the defendants were minors, but at the time this action was commenced they were respectively 35, 34, 31, and 27 years of age.

While defendants’ assignments of error are stated in general terms, their contentions are based largely on the following claims: (1) That the land involved was worth so much more than the amount of the mortgage security that there has been an unconscionable enrichment on the part of plaintiff and that they should *47 therefore be declared to be the owners of undivided interests in the land which was devised to them under the will of their grandfather; (2) that plaintiff and attorney Quinn entered into a conspiracy to defraud defendants of their share in the estate at the time when they were minors, that they did not discover the fraud until this action was commenced, and hence that the statutory period was tolled and had not run against them; and (8) that by reason of the facts in this case a constructive trust has arisen in favor of defendants.

Defendants first contend that the land covered by this mortgage was worth so much more than the amount due on the mortgage debt that their interests should be set aside to them, in spite of the mortgage, because of the fact that plaintiff has been unconscionably enriched at their expense.

The witnesses differ as to the value of the land at the time the mortgage was foreclosed. Defendants’ witnesses testified that the land was then worth from $78 to $98 per acre. Plaintiff’s witnesses, on the other hand, testified that the land was then worth from $20 to $25 per acre. That it was worth more than the amount' due on the mortgage cannot well be denied. The farm involved consisted of much land which was not under cultivation. There were then about 40 acres of the farm under cultivation. The buildings were run down. It is a matter of common knowledge that at the time this mortgage was executed and at the time of the foreclosure thereof our country was in the throes of a serious depression. Farm land had depreciated to such an extent that there was hardly any market for it. It was difficult to borrow money on land.

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Bluebook (online)
54 N.W.2d 15, 237 Minn. 43, 1952 Minn. LEXIS 697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/voegele-v-mahoney-minn-1952.