37 N.E.2d 766 | Ill. | 1941
Lead Opinion
George H. Durbin owned 210 acres of land in Fayette county, Illinois, on September 16, 1936. There is no dispute that he and his wife executed oil and gas leases which now belong to the Carter Oil Company, and which covered the 180 acres here in question. The Durbins filed this suit to set aside, as a cloud on their title, a mineral deed *34 which purported to have been executed by the husband and wife, September 16, 1936, to "H.W. Davis of Tulsa, Oklahoma," and subsequent mineral deeds in the chain of title from Davis. The Durbin deed purported to convey an undivided one-half interest "in and to all of the oil, gas, in and under and that may be produced from the following described lands situated in Fayette County, State of Illinois, to-wit: [Here follows the description of the 180 acres in question.] (Grantor reserves the 10 cent lease rental on present lease.) * * *. This sale is made subject to any rights now existing to any lessee or assigns under any valid and subsisting oil and gas lease of record heretofore executed; it being understood and agreed that said Grantee shall have, receive and enjoy the herein granted undivided interest in and to all bonuses, rents, royalties and other benefits which may accrue under the terms of said lease insofar as it covers the above described land from and after the date hereof, precisely as if the Grantee herein had been at the date of the making of said lease the owner of a similar undivided interest in and to the lands described and Grantee one of the lessors therein.
"Grantor agrees to execute such further assurances as may be requisite for the full and complete enjoyment of the rights herein granted and likewise agrees that Grantee herein shall have the right at any time to redeem for said Grantor" etc.
George H. Durbin died testate before the hearing. His widow and sole devisee, Eliza M. Durbin, and their adopted son, Silas Durbin, (to whom they had conveyed part of the 180 acres, August 9, 1938,) prosecuted the suit after Durbin's death. The chancellor dismissed, for want of equity, the amended complaint as amended and granted specific performance as prayed in the counter-claim, except as to a homestead interest of $1000 in the southeast quarter of the southeast quarter of section twenty-eight in township eight north, of range three east of the Third Principal *35 Meridian, situate in Fayette county, Illinois, a part of the lands here involved, which homestead interest was decreed to belong to Eliza M. Durbin and was ordered set off to her by commissioners. Subject to this homestead, she was ordered to make a mineral deed to H.W. Davis conveying one-half of the oil and gas underlying the 180 acres, subject to the above mentioned oil and gas leases. This deed was to be made within thirty days after the homestead was set off to her. If she did not make the deed, the master in chancery was to execute it in her stead. Those cross-appellants who claimed by mesne conveyances under Davis, were to receive the benefits which flowed from the new deed.
The Durbins have appealed from the portions of the decree which dismissed their complaint for want of equity and which granted specific performance. W.O. Allen, Davis, and his grantees bymesne conveyances, have appealed from the portion of the decree which held Eliza M. Durbin had a homestead in the forty-acre tract above described. A freehold is involved and this court has jurisdiction.
September 16, 1936, a notary public and real estate broker named Charles L. Kanatzar of St. Elmo, Illinois, went to the home of George H. and Eliza M. Durbin. Kanatzar had been active in securing mineral deeds and oil leases from landowners in Fayette county. He told the Durbins what other people had been getting for mineral deeds and oil and gas leases; that seventy-five cents an acre was a good offer; that it "would be like finding money in the road" and that if a well were drilled on their land, salt water would be found instead of oil. The Durbins were upwards of eighty years of age and George's sight was so poor he could not see to sign his own name. They finally accepted Kanatzar's seventy-five cent offer for a mineral deed to convey an undivided one-half interest in the oil and gas underlying and to be produced from the *36 180 acres. In this same transaction, Kanatzar bought at $22.50 each, a paid-up ten-year oil and gas lease to 20 acres and a mineral deed to a one-half interest in the oil and gas under 30 acres of land. These two instruments were dated September 15, 1936, the day before, and were taken in the name of his cousin, A.B. Chance, as lessee and grantee, respectively, who was Kanatzar's straw-man. That deed and lease are not involved in this suit.
Kanatzar was the real party in interest although Davis was named as grantee in the mineral deed here involved. He owed the Durbins seventy-five cents an acre for 180 acres covered by that deed and $45 for the lease and deed to his straw-man and cousin, Chance, or a total of $180.
Mrs. Durbin signed her husband's and her own name to the mineral deed but the manifest weight of the evidence shows that there was no description in the deed, that there was no seal, scroll or word "seal" on the deed after the grantors' signatures or either of them, and that the certificate of acknowledgment which Kanatzar signed as notary public, contained no waiver and release of homestead. When Eliza M. Durbin asked Kanatzar for a copy of the mineral deed, he gave her a similar form to that he had used and marked it "Copy." It had in it the names of the grantors, and the grantee, "H.W. Davis, Tulsa, Oklahoma" but no description of any land. Mrs. Durbin objected that there was no land described and Kanatzar told her she "knew the numbers of the land" and that "he always finished the papers at his office." The record is barren of any evidence to show that Kanatzar had either a written power of attorney or any authority, under seal, to fill in the missing description in the paper signed by Mrs. Durbin and her husband as above described.
It is also shown by the manifest weight of the evidence that the 40 acres above described in section 28, where the Durbins lived, September 16, 1936, was worth not to exceed $960. All the appellants' witnesses knew of sales *37 of similar land which had been made within a reasonable time before September 16, 1936. They lived in the neighborhood and had known this land for years. Their testimony as to value was based on this knowledge. On the other hand, appellees' witnesses knew of no such sales. Many of them had never lived in the neighborhood and, for these reasons, their testimony as to value was mere personal opinion and was lacking in probative force. An application for fire insurance that George H. Durbin had made was admitted in evidence over objection. It contained figures as to the house, outbuildings and land that would total more than $1000. The proof shows the buildings were at least thirty-eight years old and were not in a very high state of repair. What amount of fire insurance Durbin applied for or carried, if admissible at all, would only be a circumstance and it, coupled with the empty opinions of appellees' witnessses as to value, did not overcome the testimony of appellants' witnesses. Hence, it did not sustain the finding in the decree that the Durbins' home place was worth more than $1000 on September 16, 1936.
After Kanatzar left the Durbin home, he sent the mineral deed to an undivided one-half interest in the oil and gas under the 180 acres with a sight draft to another defendant, W.O. Allen, Tulsa, Oklahoma. Allen sent Kanatzar $225 instead of $135 which would be seventy-five cents per acre for 180 acres. Out of the $225 Kanatzar deposited to the credit of George H. and Eliza M. Durbin, $180 in a bank in St. Elmo. Thus he paid them the $135 he owed for the mineral deed he had taken in the name of Davis and the $45 for the deed and lease he had taken in the name of his cousin, Chance, as straw-man. Kanatzar contradicted himself. For example he said $180 was all he got for the mineral deed taken in the name of Davis but he claimed later the additional $45 out of the total sum of $225 was a "commission." The statement that the $180 was all he got was also contradicted by appellees' *38 exhibit No. 11 which was a draft for $225 payable to Kanatzar and sent by Allen. Kanatzar did not explain why the paper he marked "Copy" and gave to Mrs. Durbin at her request for a copy of the mineral deed lacked any description of land. The proof shows there was no description in the so-called mineral deed signed by Mrs. Durbin for herself and her husband, there was no seal after either of their signatures, and there was no waiver of homestead in the certificate of acknowledgment which Kanatzar undertook to make as a notary public.
Later, W.O. Allen discovered the omission of the word "seal" and the omission of the release and waiver of the homestead from the certificate of acknowledgment. He sent the deed to another of the defendants, Leroy Rogers, who claims to own a fractional interest in the mineral rights in this 180 acres by mesne conveyance from Davis. Rogers was Allen's agent and Allen instructed him to "have the deed reacknowledged, fix it and have it rerecorded." Rogers said he consulted "a lease man" who told him the way to "fix" the deed was to make the changes in it and have the notary initial them. After he had "printed in" the release and waiver of homestead in the certificate of acknowledgment, Rogers went to Kanatzar and the latter did not agree with the advice given by the "lease man" so Kanatzar fixed up a new certificate of acknowledgment on which he wrote the words "To include waiver of homestead, as per deed annexed and seal."
Kanatzar and Rogers testified they drove out to the Durbin home, but Rogers said he drove up and down two or three times in front of the house and that George H. Durbin was on the porch. He could not say whether Durbin was smooth shaven or describe him. Durbin's photograph in evidence showed he wore a large mustache. Rogers said he did not go into the house but remained outside. Kanatzar said he went in, explained the want of a seal after the signatures and the defect in the certificate *39 of acknowledgment and obtained the consent of the Durbins to make the changes, and that they reacknowledged the deed, there, on October 21, 1936. He pasted on the new certificate of acknowledgment and added the word "Seal" after each of the grantors' signatures to the deed and then went out to the car and handed it to Rogers who rerecorded it.
Mrs. Durbin denied that Kanatzar and Rogers came to her home on October 21, 1936, and testified she did not see Kanatzar from September 16, 1936, until July, 1937. She denied in detail all the things Kanatzar said occurred on October 21, 1936. The mineral deed was recorded in its new and altered form. H.W. Davis lived at Dix, Marion county, Illinois, and had only been in Tulsa once during his lifetime. Like Rogers, he worked for W.O. Allen. He had nothing to do with obtaining or paying for the mineral deed but, at the direction of Allen, conveyed away the interest supposed to be vested in him. The defendant W.O. Allen did not testify, and there was nothing to show that Rogers lacked authority or that Kanatzar lacked authority to make the alterations in the deed they both made.
As in Tucker v. Kanatzar,
Appellants had a right to attach to their complaint copies of the mineral deed in its original form as well as its altered form and to show by the record of the deed the changes that were made. By doing so, contrary to appellees' contention, they were not bound and did not admit the validity or efficacy of the deed, either in its original or altered form. Hogan v. Orr,
Appellees contend that appellants have limited this appeal, on their part, to the single contention that the mineral *40 deed was made void by the alteration of a material part of the deed, after delivery, by adding the word "seal" after the signatures of the grantors. The appellants set up as "Errors relied upon for reversal," the following:
"1. The court erred in dismissing the complaint for want of equity. 2. The court erred in sustaining the counterclaim of the defendant H.W. Davis. 3. The court erred in finding and adjudging that the alterations in the deed constituted a spoliation rather than a material alteration. 4. The court erred in permitting the altered deed to be offered in evidence for any purpose whatsoever. 5. The court erred in granting specific performance of an agreement which admittedly had been materially altered by the person seeking specific performance. 6. The court erred in refusing to grant to the plaintiffs the relief prayed for in the complaint."
Moreover, appellants rely on the alteration of the certificate of acknowledgment and the fact that Kanatzar was the real party in interest when he got the mineral deed from Durbin and wife, and insist this never was a deed that conveyed any interest, legal or equitable. In Miller v. Cook,
In Anderson v. Steger,
This brings us to a consideration of the present Civil Practice act. (Ill. Rev. Stat. 1939, chap. 110.) Paragraph 198, which is section 74 of the act, in substance makes an appeal a continuation of the original suit and "(1) * * * such appeal shall be deemed to present to the court all issues which heretofore have been presented by appeal and writ of error. (2) All distinctions between the common law record, the bill of exceptions and the certificate of evidence for the purpose of determining what is properly before the reviewing court are hereby abolished." Paragraph 216 (section 92d) among other things attempts to empower this court and the Appellate Courts to "permit such further testimony to be taken in or presented to the reviewing court as it may deem necessary, where evidence has been erroneously excluded or where there has been an omission of proof at the trial of some fact which, under the circumstances of the case, may subsequently be proved without involving any question for a jury and without substantial injustice to either party. (e) Draw inferences of fact; (f) give any judgment and make any order which ought to have been given or made, and make such other and further orders and grant such relief, including a remandment, *42 a partial reversal, the order of a partial new trial, the entry of a remittitur, or the issuance of execution, as the case may require."
Although we have held that the legislature cannot delegate to this court the functions of a nisi prius court and compel it to receive additional evidence, these sections clearly indicate that the intention of the General Assembly was to recognize the right of a reviewing court in this State to examine the entire record. It is not material that we have not permitted new evidence to be introduced. The decisions of this court and the language of this section clearly indicate that the intention was that the parties were not to be bound in a chancery case by the findings of the chancellor.
In view of these facts and the broad scope of the "Errors relied upon for reversal," appellants have not limited themselves to one single error. It must be remembered, too, that there is a cross-appeal and that, in answering the argument of cross-appellants, cross-appellees are not limited in their arguments when they are attempting to sustain that part of the decree covered by the cross-appeal. Before leaving this statute, we point out here that the chancellor made findings of fact in the decree before us. In this circumstance, paragraph 188 (section 64 (3),) "No special findings of fact or certificate of evidence shall be necessary in any case in equity to support the decree," has no application to the case sub judici.
Appellants contend that material alterations were made and that this made the mineral deed void, while appellees say that, in equity, alterations made after delivery amount to mere spoliation. Appellees rely on our decision in Wilson v. Kruse,
Appellees also rely on Barnes v. Banks,
In Ashelford v. Willis,
The incorporators failed to affix the word "seal" after their signatures to the certificate of incorporation, as required by the statute, in People v. Ford,
Barrett v. Hinckley,
To support their contention that the changes in the mineral deed amounted only to mere spoliation, appellees cite 1 R.C.L. pp. 984, 985, where it is said: "Though a *45 few early cases followed the English doctrine, yet the American rule and with the much better reason appears to be entirely the other way, and it would seem now to be completely settled in this country that a material alteration by a stranger without the privity of any of the parties thereto will not render an instrument void if it can be shown by evidence, what the language was as it originally stood. Such unauthorized act by a stranger is considered strictly speaking, as being a spoliation rather than an alteration of the instrument." This is not in point because Kanatzar was the original purchaser and W.O. Allen, the purchaser from him. He authorized Leroy Rogers, his agent and a party defendant and in interest, whose authority was not questioned by any testimony, to "have the deed reacknowledged, fix it and rerecord it." Rogers and Kanatzar made the alterations. Neither was a stranger. All the appellees claim the deed was legally and validly altered and reacknowledged and claim the benefit of the acts of Rogers and Kanatzar. We have pointed out that Kanatzar cannot be believed and that Mrs. Durbin testified she did not see him from September 16, 1936, until July, 1937, and the chancellor found that there was no second acknowledgment.
Volume 51 A.L.R. 1232, is cited, but it refers only to acts of unauthorized agents. It cites Patterson v. Higgins,
Appellees also cite in support of the proposition that an agent who makes a change in a material part of a deed, without fraudulent intent, commits a mere spoliation, the case of Black
v. Bowman,
Here the intention was to deprive the Durbins of their homestead and to give the deed the effect of passing legal title by the addition of the word "seal" after the grantors' signatures.
Appellees also contend that if there were material alterations in this deed, they did not destroy the title conveyed by it. InDunn v. Heasley,
"Stiles v. Probst,
"Adding the word `junior' to the name of a grantee, solely for the purpose of identifying him as the real grantee does not affect the validity of the title, (Coit v. Starkweather,
"In Clark v. Creswell,
Turning now to appellants' contention that here we have material alterations that made this deed void, in Osby v.Reynolds,
Williams v. Williams,
Kelly v. Trumble,
In Waggoner v. Clark,
The burden was on appellees, who admitted that the alterations were made, to produce evidence that satisfactorily explained the making. The discredited Kanatzar, who was an interested party,(People v. Bartels,
The same thing is true of Kanatzar's actions here as was true in Chance v. Kimbrell,
Blackstone (second edition revised, Cooley, volume 1, Book the Second, Of the Right of Things, chapter 1, of Property in General, p. 295,) says: "That there be persons able to contract and be contracted with for the purposes intended by the deed: and also a thing, or subject matter to be contracted for; all which must be expressed by sufficient names. (f) So as in every grant there must be a grantor, a grantee and a thing granted; * * * sixthly, it is requisite that the party, whose deed it is, should seal, and now in most cases, I apprehend should sign it also."
Because title will not pass at law without a seal, in Illinois, and because the homestead cannot be waived and released by deed unless both the body and the certificate of acknowledgment contain such release and waiver, these alterations in the deed in question were material and since their making is admitted, there was a necessity for satisfactory explanation which was not made. *53
We have already pointed out that there was no description in this deed when Kanatzar received it from the Durbins. The copy he marked as such and gave Mrs. Durbin, and her testimony as to what he said, that he always finished the papers at his office, when she objected that the form he gave her contained no description, and further that she knew the "numbers of the land" clearly show the paper he got contained no description. We have quoted fromOsby v. Reynolds, supra, what was said in Shepard's Touchstone as to deeds and the requirement that they be complete. Particularly it is pointed out there that verbal authority to fill in material parts in the deed is not effectual and the deed so delivered and filled in is void. Kanatzar required written authority to fill in the description.
In Wilson v. South Park Comrs.
Since this mineral deed did not have a description in it and Kanatzar had no authority to fill in the description, it never was a deed.
This court is not bound by the findings of the chancellor where this court is of the opinion such findings are not supported by the manifest weight of the evidence. (Nofftz v. Nofftz,
Where findings are made they must be specific. (Chechik v.Koletsky,
Appellants contend that the notary here, Kanatzar, was without authority to take either acknowledgment, hence there never was a release and waiver of homestead.
Cross-appellants rely on the well-established rule that the proof furnished by a certificate of acknowledgment signed by a duly appointed and qualified notary public, cannot be overcome by the testimony of the grantors alone. They cite such cases asGraham v. Anderson,
In Ogden Building and Loan Ass'n v. Mensch,
In Wilson v. Traer and Co.
Kanatzar had a financial interest which continued to exist when he certified to the second acknowledgment and when he placed the word "seal" after the signature of George H. and that of Eliza M. Durbin on the mineral deed *56 before us, in spite of the fact that it was made to Davis and that Kanatzar has received his sale price of $225 from Allen. Both acknowledgments were void.
The chancellor erred in granting specific performance to the appellees. Here the parties had no intention of entering into any but a written contract. All that appellee W.O. Allen did was to pay money, $225 to Kanatzar who paid part of it, $135, to the Durbins for the supposed deed. There was no possession taken and there was no change of position by any appellee to his hurt. The deed was made subject to the subsisting oil and gas leases and it is admitted that they existed and belonged to the Carter Oil Company, and that there is oil being produced from the land. So far as the surface is concerned, the Durbins were in possession and so far as the use of the land for mining and drilling for oil is concerned, the Carter Oil Company was in possession. The appellees can be compensated in damages and the Statute of Frauds is a good defense, first because there never was any written contract which contained a legal and validly inserted description of the 180 acres, and second, for the reason just stated that the appellees have not made a case that would bring them within an exception of the Statute of Frauds. In Dreiske v. Eisendrath Co.
As to the parol agreement, the rule is stated in Winans v.Bloomer,
It was error to grant specific performance in this case.
The remaining contention of appellees is that appellants, by the communitization agreement and the division orders they signed, estopped themselves from denying their deed and ratified and confirmed it. However, in Rhodes v. Davis,
For the reasons stated the decree of the circuit court as to the denial of the claimed right to a conveyance to appellees of the homestead of Eliza M. Durbin is affirmed, and as to all other matters and things the decree is reversed and this cause is remanded to the circuit court of Fayette county, with directions to render a decree in conformity to the views herein expressed.
Reversed and remanded, with directions.
Mr. JUSTICE SMITH took no part in this decision.
SHAW and WILSON, JJ., dissenting.
Concurrence Opinion
I agree with the conclusion reached in this opinion but not with all that is said therein. *58