Weber v. Eisentrager

498 N.W.2d 460, 1993 Minn. LEXIS 267, 1993 WL 114671
CourtSupreme Court of Minnesota
DecidedApril 16, 1993
DocketC7-92-373
StatusPublished
Cited by2 cases

This text of 498 N.W.2d 460 (Weber v. Eisentrager) 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
Weber v. Eisentrager, 498 N.W.2d 460, 1993 Minn. LEXIS 267, 1993 WL 114671 (Mich. 1993).

Opinion

GARDEBRING, Justice.

This case involves competing claims for ownership of property located in Mower *462 County. The issue in this case is whether the application of the Marketable Title Act can bar the claim of those holding vested remainder interests when the party in possession has a source of title more than 40 years old that came from a strawperson who in turn received his interest from the holder of a life estate.

The facts are simple and undisputed. On April 11, 1927, John Diggins received a deed for the real property at issue in this case. He died intestate on May 5, 1933, and was survived by his wife, Lena and two daughters, Grace and Mary. On August 7, 1933, a final decree of distribution directed that Grace and Mary Diggins receive the property in fee, subject to a life estate in their mother Lena Diggins.

On February 19, 1948, Lena Diggins married Roy Eisentrager, respondent. A little over a year later, on June 30, 1949, Lena and Roy executed a warranty deed conveying her interest in the land to a strawperson by a warranty deed. The strawperson, by quitclaim deed, immediately deeded the land back to Roy and Lena as joint tenants. 1 Lena and Roy continued to live together on the property until 1980 when Lena entered a nursing home. It was at this time that appellants learned of their remainder interest in the property. Appellants did not file notice of their interest, but did insure the property. Lena died on June 17,1991, and was survived by Roy. After their mother’s death, appellants ordered Roy to vacate the property, but he refused and this action ensued. The trial court held for Roy on a motion for summary judgment and the court of appeals affirmed.

The purpose of Minn.Stat. § 541.023 (1992), the Marketable Title Act (MTA), is to ensure that “ancient records shall not fetter the marketability of real estate.” Id. at subd. 5. The statute provides that no action affecting the possession or title of real estate may be commenced against a claim of title which has been of record at least 40 years unless the adverse claimant has recorded notice of the adverse claim within that 40 year period. Minn.Stat. § 541.023, subd. 1.

This court first dealt significantly with the MTA in Wichelman v. Messner, 250 Minn. 88, 83 N.W.2d 800 (1957). We said that in order for the MTA to operate to extinguish any interest, two things are necessary:

First, the party desiring to invoke the statute for his own benefit must have a requisite “claim of title based upon a source of title, which source has then been of record at least 40 years,” (i.e., a recorded fee simple title). Secondly, the person against whom the act is invoked must be one who is “conclusively presumed to have abandoned all right, claim, interest * * * ” in the property.

Wichelman, 250 Minn. at 112, 83 N.W.2d at 819 (quoting Minn.Stat. § 541.023, subd. 5).

Two years after the Wichelman decision, the legislature amended the MTA, adding subdivision 7, which defines “source of title.”

[T]he words “source of title” as used in subdivision 1 hereof shall mean any deed, judgment, decree, sheriffs certificate, or other instrument which transfers * * * or purports to transfer * * * a fee simple title to real estate, including any such instrument which purports to transfer * * * a fee simple title from a person who was not the record owner of the real estate. . However, any such instrument which purports to transfer * * * a fee simple title from a person who was not the record owner of the real estate to the grantee or transferee named in such instrument shall be deemed a source of title “of record at least 40 years” within the meaning of subdivision 1 only if, *463 during the period of 40 years after it was recorded, the following two conditions are fulfilled: (1) another instrument was recorded which purports to transfer a fee simple title from said grantee or transferee to another person and (2) no instrument was recorded which purports to be or confirm a transfer of any interest in the real estate by or from whoever was the record owner in fee simple immediately before the commencement of said period of 40 years. The purpose of the next preceding sentence is to limit the effect of erroneous descriptions or accidental conveyances.

Minn.Stat. § 541.023, subd. 7 (emphasis added).

The key question here is whether respondent has a “source of title,” as that term is defined under the MTA, sufficient to allow him to extinguish the rights of those holding vested remainder interests. We do not believe he does.

The trial court concluded that the quitclaim deed, transferring whatever interest the strawperson had to Lena and Roy, served as the respondent’s source of title. The court of appeals agreed, relying on subdivision 7 of the MTA to conclude that Roy is protected by the MTA from adverse claims by appellants. The court focused on language that allows a source of title to include

“any instrument” which transfers * *. * or purports to transfer * * * a fee simple title to real estate, including any such instrument which purports to transfer * * * a fee simple title from a person who was not the record owner of the real estate.

Weber v. Eisentrager, 490 N.W.2d 131, 134 (Minn.App.1992) (quoting Minn.Stat. § 541.-023, subd. 7) (emphasis in the original).

The court of appeals recognized that Lena and Roy did not actually possess fee title when they executed their warranty deed to the strawperson. Weber, 490 N.W.2d at 134. It further recognized that a quitclaim deed could only transfer the interest held by the grantor, which in this case was a life estate. However, it concluded that whether respondent had a “source of title” depended not on whether the strawperson actually conveyed fee simple title to Lena and Roy, but whether the strawperson’s quitclaim deed purported to transfer a fee simple title. Id. The court noted that Lena and Roy deeded her interest in the property with a warranty deed, albeit latently defective. Id. at 135. Consequently, the court of appeals, applying subdivision 7 of the MTA, ruled that the quitclaim deed purported to convey fee title and thus extinguished the claims of appellants.

Curiously, although respondent received favorable rulings from both the district court and the court of appeals, his reasoning differs from that of the lower courts. He asserts that the source of title was not the quitclaim deed, but the warranty deed from Lena and Roy to the strawperson, the first of the two transactions that took place in 1949 between Lena and Roy, and the strawperson.

The statute itself suggests the basis of the respondent’s alternative theory. Under the lower courts’ interpretation, respondent’s source of title was the quitclaim deed conveyed by the strawperson back to Lena and Roy, the second transaction involving these parties.

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Cite This Page — Counsel Stack

Bluebook (online)
498 N.W.2d 460, 1993 Minn. LEXIS 267, 1993 WL 114671, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weber-v-eisentrager-minn-1993.