Vought v. Kanne

10 F.2d 747, 1926 U.S. App. LEXIS 2263
CourtCourt of Appeals for the Eighth Circuit
DecidedJanuary 15, 1926
Docket272
StatusPublished
Cited by16 cases

This text of 10 F.2d 747 (Vought v. Kanne) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vought v. Kanne, 10 F.2d 747, 1926 U.S. App. LEXIS 2263 (8th Cir. 1926).

Opinions

STONE, Circuit Judge.

This is a petition by a bankrupt to revise an order of the trial court affirming an order of the referee designating certain grain as exempt and refusing to designate certain other grain as also exempt.

The bankrupt claimed all grain crops growing on the designated homestead as exempt because a part of and included within the statutory exemption of the homestead; and, in addition, claimed full feed and seed exemptions from grain growing on land other than the homestead. The trustee designated certain amounts of hay, oats and corn for feed and of oats, flax and com for seed. Apparently the only exception to this designation was filed by the bankrupt. The referee reviewed the designation, somewhat reducing the allowances made by the trustee. On petition by the bankrupt to review, the trial court affirmed the allowance of the referee.

Three questions, claimed to be of law,, are set out in this petition to revise, only two of which are presented here. One of these two is whether the feed and seed allowances should have been made from grain grown on land other than the homestead. From the record here it cannot be determined whether such allowances were from grain grown on the homestead or on other land. As questions of fact cannot be determined on a petition to revise and as the burden is upon such a petitioner to show error of law upon a settled state of fa.ets shown by the record, we cannot examine this matter.

The main contention raised in the petition and urged here is that the bankrupt is entitled to the crops growing on the homestead as an element or part of the homestead exemption. Exemptions in bankruptcy proceedings depend upon and are the same as those allowed by the governing state statutes as construed by the highest court of the state. Fletcher v. Kennedy, 282 F. 622, 623 (8th Cir.). If there be no controlling state-decision, the federal courts construe such state statutes. Provident Savings Institution v. Mass., 6 Wall. 630, 18 L. Ed. 907; In re Sullivan (8th Cir.) 148 F. 815, 817, 78 C. C. A. 505.

The bankrupt contends, first, that certain decisions of the Supreme Court of Minnesota have determined that growing crops on the homestead are exempt as a part of the homestead; and, second, that, if there be no state decisions settling this point, this court should so construe the statute. The cases [748]*748upon which reliance is thus placed are Lockey v. Lockey, 128 N. W. 833, 112 Minn. 512; Stauning v. Crookston Mercantile Co., 159 N. W. 788, 134 Minn. 478; Erickson v. Paterson, 50 N. W. 699, 47 Minn. 525; Sparrow v. Pond, 52 N. W. 36, 49 Minn. 412, 16 L. R. A. 103, 32 Am. St. Rep. 571; Kammrath v. Kidd, 95 N. W. 213, 89 Minn. 380, 99 Am. St. Rep. 603; and Kirkeby v. Erickson, 96 N. W. 705, 90 Minn. 299, 101 Am. St. Rep. 411. The Lockey Case is cited as holding directly that “the proceeds of the homestead are exempt.” That case did not involve the “proceeds,” in any sense, of a homestead. The sole question there determined was whether certain tenements which formed part of the building wherein the claimant lived in a city and which entire building covered less than the area allowed as a homestead in a city were exempt as part of the homestead. The holding was that the claimant had a right, under the homestead exemption statute, to a certain area (to include the home residence) and that this right was not effected by the fact that parts of that area, other than the home residence, were devoted “to purposes other than a dwelling place.” 128 N. W. 834, 112 Minn. 514. The Stauning Case is of the same character and the ruling therein to the same effect. The other cases cited bear upon the legal relation of growing crops to the land and are of two classes; those involving the question of whether growing crops pass under deeds conveying the land and making no mention of the crops; and those involving the right to claim homestead exemptions against the levy of executions or attachments upon crops or products growing on the homestead. The Kirkehy Case is an instance of conveyance, but the decision there, turned on whether wild grasses growing from perennial roots should be regarded as fruetus naturales and, while unsevered, as “pertaining to the realty.” It is hardly in point here as this controversy concerns annual crops which are classed as fruetus industriales by the Minnesota Supreme Court. Erickson v. Paterson, 50 N. W. 699, 47 Minn. 525; and see the Kirkeby Case, 96 N. W. 705, 90 Minn. 300.

In the Kirkeby Case the court regarded the right to enter upon the land and sever the grass (held to be fruetus naturales) as an interest in land because the owner had a right to the exclusive possession of the land but this reason was held not to apply if it was intended that the owner sever the crop and it could not apply to the trustee in bankruptcy because he is vested by the act (Bankruptcy Act, § 70 [Comp. St. § 9654]) with possession and right to possession of all unexempted property and even of exempted property until such he set aside as exempt. The Kammrath Case involved the conveyance of land on which were growing crops. The Erickson Case involved both such a conveyance and also a levj upon such crops. The Sparrow Case was one of levy on growing crops. The Kammrath Case held that growing crops pass with a conveyance of the land unless expressly reserved. To the same effect is the Erickson Case. These eases are not determinative that such crops axe, for all legal purposes, to he regarded as a part of or inseparably pertaining to the realty.

Growing crops occupy an unique legal position. They spring from and are physically attached to the land, but are intended to be and may be severed therefrom without injury to the land. When so severed there can be no question that they are then personal property. There is some conflict in the different jurisdictions as to whether such crops, while unsevered, are personalty or realty but the great weight of authority is that unsevered annual crops are personalty. 17 C. J. 379, note 5; 8 R. C. L. 356, notes 13 and 14. This was the common-law rule and it has been followed in most of the American Jurisdictions. 23 L. R. A. (N. S.) 1219, note. However, it is hardly correct to say that any jurisdiction, where there are decisions upon different character of transactions affecting growing crops (such as conveyances, statute of frauds, ejectment, trespass, landlord and tenant, execution levy, attachment, inheritance) has held such crops in all instances and as to all transactions to be either personal property or real property. The determination “depends very greatly on the nature of the transaction in which the question arises.” 8 R. C. L. 356. Also see 17 C. J. 379; Minneapolis Iron Store Co. v. Branum, 162 N. W. 543, 36 N. D. 355, L. R. A. 1917E, 298. Therefore, as above stated, the determination in the Kammrath and the Erickson Cases that growing crops pass, unless expressly excepted, on conveyance of the land is not decisive that they pass as a part of the homestead under the exemption laws of the state. As said in the Kirkeby Case, 96 N. W. 706, 90 Minn. loc. cit. 300, in discussing the rule laid down in the Kammrath and Erickson Cases: “This is because for the purposes of sale they are regarded as part of the real estate” (italics ours). The [749]*749“purpose” now under examination is the right of exemption from the claim of creditors. The Erickson Case involved not only a conveyance of the land but a levy on crops growing on the land conveyed. The land there in question had been entered as a homestead under the public land laws and the entry perfected to the stage where there was a right to a patent.

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Vought v. Kanne
10 F.2d 747 (Eighth Circuit, 1926)

Cite This Page — Counsel Stack

Bluebook (online)
10 F.2d 747, 1926 U.S. App. LEXIS 2263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vought-v-kanne-ca8-1926.