186 Iowa 257 | Iowa | 1918
In April, 1915, E. T. Runion, who was then about 93 years of age, executed two warranty deeds, conveying his real estate, consisting of a residence property in New Hampton, Iowa, and a 480-acre tract in Texas, to the defendants O’Connor and Kennedy; and about the same time, and as a part of the same transaction, a trust agree
The deeds are in the usual form of warranty deeds, and acknowledge a consideration of one dollar and other good and valuable consideration. The trust agreement is somewhat lengthy, but the following is the part thereof material to this controversy:
“It is further agreed that second parties shall hold the legal title to the land above described, free from any trust limitations, Avith authority to sell and convert the same into cash as soon as they shall deem it expedient to do so, the intention being to authorize and direct such sale and conversion at the earliest moment consistent with good business judgment; and second parties are hereby authorized and empowered to convey said property to any purchaser or purchasers thereof, free from the terms and limitations of this trust, and without any appraisement, order of court, or other restrictions of any kind.
“It is further agreed that second parties, as trustees, shall, out of the funds or proceeds arising from the sale of said property, pay over to first party the sum of $1,000 for such special purposes and use as first party may desire to
“Second parties are hereby authorized to apply proceeds from the sale of said property in wholé or in part, or the property itself (so far as same may remain unsold), to aid the said Servant Sisters of the Holy Ghost-in the erection of a hospital in New Hampton, Iowa, and in the purchase of a proper site therefor; provided, however (if first party be living at said time), that, before any of said property or funds shall be used for hospital purposes as above provided, said Servant Sisters of the Holy Ghost shall first legally obligate themselves by written contract to continue to furnish first party all necessary board, lodging, clothing, washing, and laundry, nursing, medical attendance, and a nominal amount for pocket money from time to time, so long as he shall live, and to furnish him respectable and proper burial in case of his death; and said contract shall provide that first party shall be assigned a suitable and comfortable room in said hospital.”
Defendant Servant Sisters of the Holy Ghost is an Illinois corporation, having its principal place of business at
About the year 1S97, O’Connor, at the request of Tim Donovan, a banker residing in New Hampton, of whose bank Bunion was a customer, after one consultation with Bunion, prepared a will for him, which was later signed in O’Connor’s-presence. Again, in 1910, Bunion desiring to have a new will, Donovan for him employed O’Connor to write it, and in 1912, Donovan employed the firm of Smith & O’Connor' to make defense for Bunion, in an action brought against him in the district court of Chickasaw County. After some delay, and when the case was about to come to trial, it was settled by Bunion by páying plaintiff $500. The settlement was made upon the advice of his attorneys. But two conferences were had between O’Connor and Bunion during the pendency of this litigation. All of the above matters were fully closed before the transactions in question arose, and no business relation existed between O’Connor and Bunion at that time, except that the latter was still indebted to Smith & O’Connor for $100 attorney fees.
In the case at bar, no such relation is shown to have existed, at the time the instruments were executed. Just when the relation terminated is not shown, but O’Connor was in no wise employed by or acting for Iiunion at the time of the transaction complained of. That clients often repose a high degree of confidence in attorneys formerly employed by them is, of course, true, but the transactions between them cannot be set aside upon that ground. The papers in question were prepared by Mr. O’Connor, but specific provision is made in the trust agreement that he is to receive no personal profit or benefit therefrom. But it is the contention of counsel for appellant that, while the evidence of alleged fiduciary relations between O’Connor and Bunion may not justify the cancellation of the deeds and trust agreement upon that ground alone, yet, when considered in connection with other matters appearing in the record, the transaction is so ill-advised, improvident, and unfairly obtained that it should be set aside. No substantial evidence from which it could be reasonably inferred that any of the defendants exercised undue influence over Bunion is found in the record. Bunion testified to some effort upon the part of defendants to encourage him to makp the conveyance by flattery, but no false representations .or inducements are shown to have been made. Whether the transaction was a wise one for Mr. Bunion is a question upon which minds reasonably might differ, but this cannot be made the basis of a decree canceling and setting aside the instruments assailed. No close personal relations are
The Servant Sisters of the Holy Ghost is a Catholic organization, and Mr. Bunion, some time after his marriage to a Catholic woman, became a member of that church;- and, while the evidence tends to show that he may not always have been prompt in his attendance upon church services, it does appear therefrom that he read the Bible and prayer book, occasionally received the sacrament, and in one of the wills executed by him, $100 was left for masses. Some weeks elapsed after the negotiations for the conveyance of his property began before the papers were executed. During this time, several conferences were had with him by defendants. It is conceded by counsel for appellant that no actual fraud is shown, and that the defendants are men of large business experience and integrity.
Many years before this controversy arose, he became involved in some unfortunate real estate speculations in Alabama, and, for the purpose of aiding him to save some
“Mr. Bunion was a witness in plaintiff’s behalf, and submitted to an extensive oral examination by the attorneys. He displayed an unusual strength of memory and acquaintance with the facts in controversy. He showed a
Mere mental weakness in the grantor will not invalidate a deed. To have that effect, the mental powers must be so far deteriorated or destroyed that the grantor is incapable of understanding, in a reasonable degree, and knowing the consequences of, the instrument he executes. Nowlen v. Nowlen, 122 Iowa 541; Swartwood v. Chance, 131 Iowa 714; Paulas v. Reed, 121 Iowa 224; Reese v. Shutte, 133 Iowa 681; Flynn v. Moore, 181 Iowa 1163; Mitchell v. Mutch, 180 Iowa 1281.
. Only acts tending to show some degree of childishness upon the part of Mr. Runion were shown, and it does not appear that his mental faculties were impaired to such an extent as to render him incapable of exercising a free agency, or of comprehending and understanding the scope, purpose, and legal effect of the instruments executed. We find nothing in the record indicating that any of the parties connected with the matter were moved to any extent by questionable motives. Transactions of the character shown, with old people, often prove unfortunate; but, in the absence of some recognized ground of equitable relief, they cannot be disturbed. We have not overlooked the contention of counsel that, upon the execution of the papers, they were delivered to the defendant Kennedy for safe-keeping; but, as the deeds recited a consideration only of one dollar and other valuable consideration, and did not designate the grantees as trustees, it appears to us that the defendants, who, it is conceded, are men of integrity, were personally interested in the preservation of the trust agreement. They must have realized that they would some time be called upon to show the real consideration for the conveyance.