Citation Numbers: 184 Iowa 441
Judges: Evans, Gaynor, Ladd, Preston, Salinger, Stevens, Weaver
Filed Date: 12/21/1917
Status: Precedential
Modified Date: 10/18/2024
We are in no doubt that, had the trial judge found that the mother was mentally incompetent to enter into the transaction complained of, we would have been constrained to reverse such a finding. There is the rather usual exaggeration of things that happen in the life of all, and of matters usual with those who reach old age; an array of testimony that the mother had complained of headaches, had been sick in bed on some few occasions in all her long, hardworking life; some stress is laid on the fact that, though very frugal and thrifty for nearly all her life, that at last, when she had an annual income of $640, she expended most of it, and bought some presents for her grandchildren, and committed other like extravagances. It is pointed out that
In addition, there is opinion testimony of medical men, in answer to hypothetical questions constructed along familiar lines, in which it is announced, in answer to questions which fill pages of print, and in the fewest possible words, that this woman was of unsound mind. A familiar strain pervades this testimony. It rests, in part, upon what is not proven, or upon a grossly exaggerated version of the
1-a.
“There must be terms employed to create a deMtum in praesenti, though the solvendum may be in futuro, and even after the death of the obligor. It would seem to be clear that the relation of debtor and creditor must be created and subsist in the lifetime of the parties to the instrument, though the time of payment may be deferred until after the death of one of the parties.”
See Fitzgerald v. English, 73 Minn. 266 (76 N. W. 27).
In holding that this was a deed, and not a will, we are not unmindful that whether it be a conveyance or an instrument of testamentary character involves intent. Crispin v. Winkleman, 57 Iowa 523; Conrad v. Douglas, 59 Minn. 498 (61 N. W. 673). But we do hold that, taking into consideration the entire transaction and the direct testimony bearing on intention, it must be found that this was a conveyance in praesenti. It follows the deed may not be set aside.
A contract was made between the mother and son at the time when she conveyed to him, and as part of the same transaction. It recites that the consideration of the conveyance is the payment by the grantee, within one year from the death of the grantor, of $500 to the appellant and $8,875 to each of the three brothers other than the grantee, — a total of $12,125; and that these sums are to draw interest at five per cent per annum from the time of the death of the grantor until the same are paid, within said one year.
A conveyance may be' in praesenti though the purchase price is not to be paid until after the death of the grantor. And the price to be paid for a conveyance which is unquestionably one in praesenti may be disposed of by will. Thus we have the question whether the direction in this contract is not merely an ineffective testamentary disposition. On this question, the writer is constrained to differ from the majority. Its views are expressed by Mr. Justice Evans, as follows:
I am unable to agree that the contract is ineffective whereby the son Fritz bound himself to pay certain sums of money to the other children of his mother. The opposing view is thfit those provisions for payment were merely intended gifts on the part of the mother which were not consummated by delivery; or else that these provisions were intended to be testamentary in character only, and were void for want of statutory formality in the execution thereof.
The theory of the opposing view is that the case does not differ from one in which the son had paid this sum to the mother, and she had then made a writing making a gift of the money to her children in stated proportions, and directed another to pay over after, and only after, the death of donor; wherefore all that transpired was no more than an attempt to make a gift.
I think the reasoning is faulty at this point, and that it runs counter to certain legal propositions that are well settled under our decisions. The form of delivery necessary to effectuate a gift may be either actual or symbolical, or implied from the circumstances. Vosburg v. Mallory, 155 Iowa 165. If it can be said from the circumstances that what was done by the donor was intended as a present delivery, then it will be deemed such. Farmers’ & Traders’ Bank v. Haney, 87 Iowa 101. An implied delivery was found in Newton and Seeley v. Bealer, 41 Iowa 334, from circumstances which fall far short of those in the present case. The
To my mind, the slip in the opposed reasoning is indicated in the illustration above stated, in that the hypothesis therein stated eliminates the element that is vital to the case. Such element being eliminated, it can properly be said that there was no delivery. But this, in effect, begs the whole question here involved. The hypothetical case is not the same, in a legal sense, as the actual case presented by the record. When the mother entered into the contract with her son Fritz, she had a right to stipulate for the payment of a specified consideration to herself. She had an equal right to stipulate for the payment thereof to someone else. When the son Fritz bound himself to pay "these sums to other parties, he became bound thereby to such other parties. He was thereby necessarily relieved of any implied obligation to pay the same to his mother. If the mother had received the purchase money from Fritz into her possession, as stated in the hypothesis, or if she had received and had in her possession a note therefor or a chose of action in any other form payable to herself, then I concede that she could not make a gift of the same without delivery thereof. The' execution of the deed by the mother and the promise to pay by Fritz were parts of the same transaction. The very fact that the deed was confessedly delivered, carries the implica
Salinger, J. — The writer finds himself unable to agree to the foregoing. What was done?. The mother deeded her land to her son Fritz. As a part of the transaction, she and Fritz made a writing as to what should be done about the payment of the purchase price. The fundamental error of the majority is that it gives undue effect to the fact that the deed and this writing are, in a sense, part of the same transaction. They were, in the sense that both dealt with the conveying land by one party to the other; and that both writings were made about the same time. . But the two were not part of a sale, in such sense-as that the seller was never entitled to the purchase price. The record does not disclose what oral negotiations were had; and we are limited to what the two writings disclose. Now, if the writing that attempts to dispose of the price was begun in one minute after the deed was delivered, and signed within five minutes after its preparation was begun, during those minutes the law made the seller the owner of the purchase price. If the seller had orally agreed, when she delivered her deed, that the price should be made a gift to. a third person, and agreed to sign a writing to that effect, a refusal to sign such writing after it was prepared would have left her the owner of the purchase price. The buyer could not enforce the oral agreement. While he was obligated to pay the price, he, of course, had parted with nothing to get a direction that he pay it to a third person. To him, it made no difference to whom he paid, unless someone could complain if payment was not made to the complainer. The other
Some phases of the writing constitute a binding contract between her and her son. He could not be made to pay more than the sum named, nor' to pay it before the time fixed for payment. Another phase told him to whom to pay. As said, the son paid nothing to induce the selection of the ones to whom payment should be made. In the eye of the law, it was a matter of entire indifference to him to whom he paid. The mother gained nothing by naming who should get her money which would affect her as by a consideration. The ones selected to be paid gave nothing for being selected to be paid, and lost nothing by being chosen. This proves that the rule of contracts for the benefit of a third person, upon which the majority places reliance, has no application. As to the children other than Fritz, no contract was made. Had the mother changed her mind, and selected others, these children could not have
What has been said demonstrates as well that the direction was one to make a gift. Some gifts must be delivered presently, and are otherwise ineffectual, no matter how clear is the intention to give. This is the rule as to the gift of a chattel. What was the gift which the son was directed to effectuate? Why, a gift of the agreed purchase price. Surely, that was not delivered presently. It was agreed it should not be delivered at the time the writings were made, and was not delivered, if at all, until after the death of the donor. Not even the paper that directed the making of the gift was ever delivered to the donees. True, it was delivered to Fritz; but that does not constitute a delivery of the paper for the benefit of the donee, because the rights of Fritz made it proper to deliver the paper to him for his own use and benefit. • It fixed what he was bound to pay, and gave him time wherein to pay. Be that as it may, the gift, the money, was not then delivered to anyone. Certainly not to the donees. As certainly not to Fritz. Delivering him a paper which obliged him at a later time to pay money to donee was surely not a delivery of that money to the one who was to so pay it out. He had it all the time. The mother never delivered it to him. She merely directed that money which the buyer had not yet parted with should later be given to her other children. That is all there is to making the gift effective by present delivery, and this did not constitute a presently completed gift of a chattel.
In Chevallier v. Wilson, 1 Tex. 161, approved and fol
“The test of delivery — of the consummation of a parol gift of a chattel — is the change of property — the immediate right to entire dominion over the subject of the gift— a perfect title, which is as good against the donor as anyone else. * * * The change of property must, in all cases, be complete at the instant of the gift. The right which had been in the donor must eo> in-stanti of the gift be vested in the donee.”
I cannot see how it can be said that such change took place here.
For the proposition that parental declarations must not be mistaken for a complete gift, see Williamson v. Williamson, 4 Iowa 279, 281; Wilson v. Wilson, 99 Iowa 688; Shellhammer v. Asbaugh, 83 Pa. St. 24.
It is vital that future control over the property remain . in the donor until his death. Stark v. Kelley, 132 Ky. 376 (113 S. W. 498). The gift must be consummated during life. In re Estate of Elliott, 159 Iowa 107; Foxworthy v. Adams, 136 Ky. 403 (124 S. W. 381).
Now, though there was no present delivery, yet, if one direct that a gift be made at a fixed future date, and it is then delivered, title will, for some purposes, relate back to the time at which the direction was given. It may further be conceded that, where the direction fixes a reasonably proximate time, the gift may be made complete by delivery at that time, even though it happens that the donor had died before that time. But what we have to deal with here is an undelivered gift, which is to be delivered only after the death of the donor, — in other words, a testamentary gift provided for by a writing which is not a testament. I am not able to distinguish between a will which bequeathes a
The following illustrate' what is a testamentary gift, made in a writing ineffectual as a testament. In the case of Fitzgerald v. English, 73 Minn. 266 (76 N. W. 27), it was a letter acknowledging that the writer was indebted to the addressee, and directing him to put the confessed amount in “as your claim against my estate.” That there was such a gift was held as to a case where a husband deposited money and took the certificate jointly in the name of himself and wife, and stated to the banker he did so to enable the wife to draw money on his death, and was informed by the banker the latter would pay; and the husband gave the certificate to the wife to keep (In re Brown’s Estate, 113 Iowa 351) ; as to a case where decedent transferred money in bank to defendant, with instructions as to persons he should give it to in case of her death, he to have anything remaining after her instructions were carried out (Knight v. Tripp, 121 Cal. 674 [54 Pac. 267]) ; to where an instrument directed a banker of grantor to hold certain bonds for the benefit of his wife during her lifetime, and to pay her the interest on these bonds, and a reversion of the bonds to his heirs upon her death, and the instrument further declared that “the assignment is to take effect at my death, I controlling them in the meanwhile” (Comer v. Comer, 120 Ill. 420 [11 N. E. 848]) ; to where there was a verbal arrangement which was intended to take effect after death (Starks’ case, 132 Ky. 376 [133 S. W. 498]) ; to a letter directing conveyance on death of the writer (Conrad v. Douglas, 59 Minn. 498 [61 N. W. 673]) ; to where an instrument delivered stated, “At my death my estate or my executor pay to J. A. Cover $3,000” (Cover v. Stem, 67 Md. 449 [10 Atl. 231]) ; to where, on the back of a promissory note, payable on demand, there was written an unsigned memoran
In McCourt v. Peppard, 126 Wis. 326 (105 N. W. 809), the maker of a note gave it as evidence that he agreed to repay certain expenditures which the payee agreed to make after the death of the maker; and it was held the transaction could be made operative by a will alone, because it is found to amount to a direction that the payee shall, after the death of the maker, be paid the sums needed to make the agreed expenditures out of the estate of the maker. In Crispin v. Winkleman, 57 Iowa 523, 526, a sick son placed property in the hands of his father, on .agreemént that the father should use so much of the property as was necessary in paying the debts of decedent, the expenses of his last sickness and of his funeral, and the balance, if any, he should use in the support of the decedent’s children. With this understanding, possession was taken, and defendant undertook to carry out the wishes of his son; and he appears, in all he did, to have acted in good faith. We hold that the agreement relied upon was of no force, so far as it was designed to be operative after the death of decedent, and gave the defendant no right to or interest in the property, as against the administratrix appointed.
In my opinion, the citations by the majority and some applications of them are irrelevant upon the vital point of difference.
I will assume that White v. Watts, 118 Iowa 549, Runkle & Fouse v. Kettering, 127 Iowa 6, Getchell & Martin L. & M. Co. v. Peterson & Sampson, 124 Iowa 599, and Knott v. Dubuque & Sioux City R. Co., 84 Iowa 462, do hold that a contract between two persons for the benefit of a third person is valid as to such beneficiary and.enforcible by him, and
I am unable to see how this controversy is affected by the rule that, where two contract for the benefit of a third, the latter may enforce the contract. Upon this, something has already been said. This rule deals with nothing but cases wherein the third person could enforce the contract, were it made directly with himself. If he have nothing but an uncompleted gift of a chattel, he could not compel its' completion, and he is not helped because the donor dealt with another in initiating. an uncompleted gift. On the other hand, if the gift be completed, the donee has no mere contract, — has no occasion to sue the donor at all, — and hence has no use for the rule that one for whose benefit a contract is made may enforce the same.
In Heminger v. Carney, 181 Iowa 42, there is no question involving testamentary papers or making contracts effective on death. It is a naked holding that, in an action by parents against children to set aside a contract and a deed which provides for the parents’ support during their
Dettmer v. Behrens, 106 Iowa 585, holds that the delivery of a deed after death to a purchaser in possession, and by one with whom the grantor has deposited it with’ directions to make such delivery upon payment of the balance of the purchase price, is, on payment of the price, an effectuating of the deed, and makes delivery relate back to the first delivery. It will be noted that here there was no delivery to take effect after death, but a delivery to be made upon conditions arranged for in the lifetime, and that all that death has to do with it is that it happened before payment was made.
All held by White v. Watts, 118 Iowa 549, is that an effective symbolic delivery of land can be made by depositing deed with a third person, to be delivered to grantee upon death of grantor, and that, being so delivered, the delivery is perfect, though it remained within the physical power of grantor to regain possession of the deed, and he retained the mental power to alter his intention, especially where no duty is imposed on the grantee; and that, in such cases, acceptance of the deed is presumed. The other citations in the White group are to the same general effect, or less. In various ways, they apply the rule that, a deed being itself a symbol, taking the place of the delivery of land, it is not vital that the paper be manually delivered, and that an intent to convey is the essential thing. Innumerable cases rule that, where the question is the delivery of a deed, it is solved by ascertaining the intent to be gathered in each case from all its circumstances. On, the other hand, “a delivery of a chattel in the instance of a gift is a transfer of
“It is apparent that the infallible test, which must distinguish it from a testamentary gift, is delivery; change of dominion in praesenti.”
Vosburg v. Mallory, 155 Iowa 165, does deal with the delivery of a chattel, and has some language to the effect that the form of delivery necessary to effectuate a gift may be either actual or symbolical, or implied from the circumstances. What is controlling] and makes the case inapplicable, is that it rightly decides there was both symbolical delivery and actual and completed transfer of notes once owned by the donor and original payee. It is to the facts of the Yosburg case that we spoke in saying that:
“A gift inter vivos takes place by mutual consent of the giver who divests himself of the thing given in order to transmit the title to the donee gratuitously, and the donee*460 who accepts and acquires the legal title to it. It operates, if at all, in the donor’s lifetime, immediately and -irrevocably. It is a gift executed; and no further act of the parties and no contingency is needed to give it effect. ® By a,gift inter vivos, completed by delivery, the property .vests immediately and irrevocably in the donee, and the donor has no more right or control over it than any other person. * * * Delivery is essential to either form of gift, -but such delivery may be to a third person for the donee.” Then comes the announcement of the detached general proposition that “there may be a constructive delivery in many cases where actual manual tradition cannot be made. * * But in every case of gift there must be either an actual or symbolical delivery.” For this is cited Waite v. Grubbe, Packard v. Dunsmore and Stevens v. Stewart.
In Waite v. Grubbe, 43 Ore. 406 (73 Pac. 206), a father had buried sums of money in various places about his estate, and, being-ill, and barely-able to walk, took his. daughter to the. whereabouts of the money, and told her definitely the several places where it was concealed. He added, “I give this money to you. It is yours.- But if I should get :well, and want some of it, would you let me have it?”- She answered that, if he got well, he could have it all. He then cautioned her not to let anyone else know, where it was, and advised her to leave it there, until the place was rented or she needed it. It was held that this showed unmistakably á-present gift and a sufficient delivery.
Stevens & Walker v. Stewart, 3 Cal. 140, holds that a symbolical delivery of an order for goods is considered as a delivery of the goods themselves only where they are .not susceptible of an immediate delivery, and an actual delivery can presently follow.-
Packard v. Dunsmore, 65 Mass. 282, decides that delivery of a key of a building in which personal property is stored by the vendor to the vendee, with intent to surrender
Whosoever sees anything relevant in these, overlooks that the deed is itself but" a symbol of a transfer of land, takes the place of an actual delivery of a commodity, of land which is not deliverable by manual tradition, as a chattel is, and that, therefore, the intent with which the symbol is dealt with is controlling; overlooks, also, that intent does not effectuate the delivery of a chattel, and that the completion of delivery cannot be effected by relation back, if there be no delivery at the time, and, not more than a direction, other than in a duly made will, that the thing shall be given after the donor has died; and overlooks that the purchase price belonged to the seller until she delivered it to another, and that her direction was not enforcible as a contract, because there was no consideration for such direction.
I would modify as to - the writing that deals with the price, and affirm as to the deed. Upon the last, all the judges agree. As to the first, six of the judges favor affirmance also. Wherefore, the decree appealed from stands. —Affirmed. .