Wheeler v. Brady

253 N.W. 338, 126 Neb. 297, 1934 Neb. LEXIS 256
Nebraska Supreme Court·Decided March 2, 1934·No. No. 28827·Published·Cited by 15 cases

Opinion

Day, J.

This is a suit to reform a purported deed and to quiet title to real estate. The deed is the ordinary quitclaim deed except for a provision which caused this controversy. It was given to Mrs. Wheeler by her husband about six months before his death, after , which she caused it to be recorded. The other heirs of Mr. Wheeler brought a suit to set aside the deed and quiet title in themselves to an undivided one-half interest in the real estate. The trial court decreed that the purported deed was in fact testamentary in character but that it was not executed in accordance with the laws pertaining to the execution of wills and quieted title in the plaintiffs. Mrs. Wheeler appealed from this judgment, which was affirmed by this court, Miller v. Wheeler, 120 Neb. 874, on the authority of Pinkham v. Pinkham, 55 Neb. 729. Subsequently, this suit was commenced in the district court and upon trial a decree was entered against the plaintiff. In the decree, the court found generally in favor of defendants. The assignments of error present two questions: (1) Application of the doctrine of res judicata and (2) considera[299] tion of the evidence to determine if it requires a reforma1 tion of the deed. The present suit was commenced by filing a petition in the same case, and the theory of the plaintiff, who was formerly the defendant, is that', .after the case was affirmed, she was entitled to file a petition asking reformation, since the adjudication by the court that a deed is testamentary in character is not res judicata nor a bar to an action to reform the instrument." She relies upon the case of Pinkham v. Pinkham, 60 Neb. 600. In that case, the trial court had decreed that a deed was a conveyance of the present title. This court held upon appeal that the deed was not a conveyance but was testamentary in character, reversed the judgment of the trial court and remanded the case for further proceedings. Whereupon the defendant filed an amended answer pleading mistake and error in the drawing of the deed, and asking for a reformation. In that case it was held that where a case was remanded generally, and not for a particular purpose, the trial court, in the exercise of a sound discretion, may permit amendments of the pleadings. This is not the situation here and the rule is 1 not applicable.

A suit was brought against plaintiff, the wife of deceased, by other heirs to quiet title to real estate which was clouded by this purported deed. A decree was entered that the purported .deed was testamentary in character but not executed in accordance with the law of wills and quieted title in the heirs. Whereupon plaintiff brought this suit to reform the purported deed and quiet title in her against the same heirs. Does the judgment in the first suit constitute a bar to the second suit?

The former decision is not of course an adjudication that the contract cannot be reformed. That question was not presented nor considered at that time. That suit only decided that the purported deed as it stood did not' convey title to the real estate in question, because it was testamentary in character, but since it was not executed according to the law relating to wills, title to a portion [300] of the property was quieted in the other heirs at law. The cases in which the fundamental principles of res judicata are discussed are legion. All we need as a test here is.the general rule, which is well stated as follows: “Any right, fact, or matter in issue, and directly adjudicated upon, or necessarily involved in, the determination of an action before a competent court in which a judgment or decree is rendered upon the merits is conclusively settled by the judgment therein and cannot again be litigated between the parties and privies whether the claim or demand, purpose, or subject-matter of the two suits is the same or not.” 34 C. J. 743. The right of reformation was not a right, fact, or matter litigated in the first suit and the judgment therein was not a bar to this suit.

In Grand View Bldg. Ass’n v. Northern Assurance Co., 73 Neb. 149, a suit which was brought to reform a policy of fire insurance after an action at law had previously been brought upon the policy in the federal court and a verdict obtained, an appeal was taken to the circuit court of appeals, where the judgment was affirmed, and the case removed thence by certiorari to the supreme court of the United States, which latter court reversed the judgment of the lower courts and, in obedience to a mandate from the supreme court, the circuit court rendered a judgment for the defendant company upon the merits. Northern Assurance Co. v. Grand View Bldg. Ass’n, 183 U. S. 308. In this court, that case held: “A suit in equity to reform a policy of fire insurance so that it will express consent to concurrent insurance, and to recover on the instrument as so reformed, may be maintained after the termination of an unsuccessful action at law to recover on the unreformed contract.” Grand View Bldg. Ass’n v. Northern Assurance Co., 73 Neb. 149. Since this court affirmed a judgment in that case on the policy, the case was removed to the supreme court of the United States, and that court held: “An adjudication in an action at law on a poliey of insurance that the insured cannot re[301] cover on the policy as it then stood is not an adjudication that the contract cannot be reformed.” Northern Assurance Co. v. Grand View Bldg. Ass’n, 203 U. S. 106. See, also, City of Omaha v. Redick, 61 Neb. 163; Reams v. Sinclair, 97 Neb. 542; Simons v. Fagan, 62 Neb. 287; Uppfalt v. Woermann, 30 Neb. 189. We are constrained to hold that the correct rule is that an adjudication in an action to quiet title against a purported deed, testamentary in character, is not res judicata to a suit to reform the instrument. This conclusion is reached without reference to election of remedies, which could not be pertinent here, if ever, for that plaintiff was defendant before and did not make an election.

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Wheeler v. Brady, 253 N.W. 338, 126 Neb. 297, 1934 Neb. LEXIS 256 (Neb. 1934).

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