527 S.W.3d 920
Mo. Ct. App.2017Background
- David and Linda Denny, as trustees of the Denny Revocable Trust, executed a 2005 quitclaim deed conveying real property to John and Terah Richardson that included the clause: “Grantors reserve unto themselves a life estate in the land conveyed by this Deed.”
- The Quitclaim Deed identified the Dennys as grantors in their capacities as trustees; the reservation language did not specify which human life(s) would measure the life estate.
- The Richardsons later obtained a loan secured by a deed of trust; the Bank foreclosed non-judicially after default, purchased the property, and conveyed title to FNMA.
- The Dennys (trustees) filed a quiet title/declaratory action asserting a life estate measured by David’s and Linda’s lives; Defendants counterclaimed for superior title.
- On remand from a prior appeal, the trial court admitted the Dennys’ testimony about their intent, found the deed ambiguous, and declared the reservation created a life estate measured by the Dennys’ natural lives, with the remainder conveyed to the Richardsons (now held by FNMA subject to the life estate).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Admissibility of extrinsic evidence | Deed ambiguous; parol evidence admissible to show trustees intended reservation measured by their lives | Deed unambiguous; parol evidence barred | Court: Deed patently ambiguous (did not specify which life(s)); extrinsic evidence admissible; testimony credited |
| Validity of reservation of life estate (and conflict with fee language) | Reservation valid; trustees intended to reserve life estate measured by their natural lives; reservation controls over habendum | Reservation void because trustees (as trust) cannot reserve a life measured by natural lives; reservation repugnant to fee grant/habendum | Court: Reservation valid and enforceable; intent to reserve life estate prevails despite habendum language; not repugnant or void |
Key Cases Cited
- Denny v. Regions Bank, 479 S.W.3d 781 (Mo. App. 2016) (prior appeal addressing sufficiency of record to establish personal life estates)
- Murphy v. Carron, 536 S.W.2d 30 (Mo. 1976) (standard of review for court-tried cases)
- Ethridge v. TierOne Bank, 226 S.W.3d 127 (Mo. 2007) (definition of ambiguity in deeds)
- McLallen v. Tillman, 386 S.W.3d 837 (Mo. App. 2012) (review of deed-ambiguity determinations)
- Triplett v. Triplett, 60 S.W.2d 13 (Mo. 1933) (distinguishable holding on fee-tail language and restraints on alienation)
- Bullock v. Porter, 284 S.W.2d 598 (Mo. 1955) (premises/granting clause generally prevails over habendum clause)