191 Iowa 554 | Iowa | 1921
The instrument Exhibit C was as follows:
“Agreement.
“Whereas, J. C. Manchester died intestate June 29, 1903, leaving Ella J. Manchester, his widow, and Edward A. Man-*556 Chester, his son and only heir at law. The said J. 0. Manchester was at the time of his death the owner of considerable property, one third of which would have gone to his widow, by law, and two thirds of which would have descended to his son, but that, on the 3d day of July, A. D. 1903, the said Edward Manchester and his wife, Natalie Manchester, joined in a deed conveying to the said Ella J. Manchester all the real estate owned by the said J. C. Manchester at the time of his death, and on the same day, the said Edward A. Manchester joined in a contract with the said Ella J. Manchester, by the terms of which all the property, money, and notes of the deceased were turned over to the said Ella J. Manchester absolutely, except the one-half interest in the Ballingall Hotel, furniture, fixtures, and the business. Said deed is recorded in the quitclaim record W, page 344, in the recorder’s office at Wapello County, Iowa.
“Realizing the fact that the said Edward A. Manchester might die before the death of the said Ella J. Manchester, and in that event the wife of the said Edward A. Manchester would not be an heir of the said Ella J. Manchester, and could not by law inherit any of the said property, and in consideration of the conveyance to me, by the said Edward A. Manchester and wife, all of the property which the said Edward A. Manchester would have been entitled to, as the son and heir of the said J. C. Manchester, deceased: I, Ella J. Manchester, do hereby agree that, at my death, the said Edward A. Manchester, if living, and in case of his death,' his said wife, Natalie Manchester, shall inherit all of the property of which I may die seized, either real, personal, or mixed. This, however, expressly understood and agreed that the said Edward A. Manchester or wife shall have or make no right or claim of any kind to any part of the property belonging to the said Ella J. Manchester during the lifetime of the said Ella J. Manchester, but the same is to remain the property of Ella J. Manchester absolutely during her lifetime, and at the time of her death shall be the absolute property of the said Edward A. Manchester, or in -the case of his death, his wife’s, Natalie Manchester, as above stated.
“It is further agreed that this contract shall take precedence of and be superior to any will which the said Ella J. Manchester may have heretofore or hereafter make, except that,*557 if the said Ella J. Manchester should so desire, she is to have the right to dispose of, by will or otherwise, not to exceed one third in value of her said property. In witness whereof, we have hereunto signed our names this 6th day of January, A. D. 1908.
“Ella J. Manchester
“Edward A. Manchester
“Natalie Manchester.”
The foregoing instrument was duly executed on January 6, 1908, and was duly acknowledged and filed for record.
The antecedent facts leading up to this alleged contract may be stated briefly. J. C. Manchester died suddenly, June 29, 1903, leaving no will. He left surviving him his widow, Ella Manchester, and his only child and heir, Ed Manchester. Natalie Manchester was the wife of Ed. J. 0. Manchester left an estate of about $60,000, free from debts. At the time of his death, and for some years prior thereto, he had operated the B allingall Hotel at Ottumwa, and was the owner of the hotel equipment therein. Up to the time of his death, the father, mother, son, and daughter-in-law all lived together as one family in the hotel, and were all engaged more or less actively in the operation thereof. On July 3, 1903, being the next day following the funeral, the son and daughter-in-law conveyed all the property of the father’s estate to the mother by the following instruments, known in the record as Exhibits A and B.
“Exhibit A.
“Know all Men By These Presents: That Edward A. Manchester and wife, Natalie Manchester, of Wapello County and state of Iowa, in consideration of the sum of exchange of property and one dollar, to me in hand paid by Ella J. Manchester, of Wapello County, state of Iowa, the receipt whereof I do hereby acknowledge, have bargained, sold, and quitclaimed unto the said Ella J. Manchester and to her heirs and assigns forever all my right, title, interest, estate, claim, and demand, both at law and equity, and as well in possession as in expectancy of, in the following described .premises, to wit:
*558 “Lots 36 and 37, Block 3, in Janney’s Addition to Ot-tumwa, Iowa. Also the northwest ya of the present brick wall of the two-story brick building situated on Lot 5, and all of Lot 6 in H. P. Graves et al. Subdivision of Lots 157 and 160, original plat of Ottumwa, Iowa. Also, Lot 29 in the Dain Addition to Ottumwa, Iowa; also, Lots 19 and 20 in Block 17 in S. E. Gross Calumet Addition to South Chicago, in Cook County, Illinois. Also the undivided one-fourth interest in the E% of the NE14 of the SE^ of Section 24, Township 18, Range 15, and the NW1/^ of the SW^ and the S% of the NW14 of Section 19, Township 18, Range 14, all in Marion County, Arkansas. Also, all personal property belonging to the estate of J. C. Manchester, deceased, who died intestate, June 29th, 1903, leaving the grantee, his widow, and the grantor, his only child and heir at law. The intention being to convey all interest in said estate, except the hotel business in Ottumwa, which is owned by grantor and grantee jointly, as by written contract this day entered into by the parties, with all and singular the hereditaments and appurtenances thereunto belonging, and Natalie Manchester hereby relinquishes her right of dower in and to the above described premises.
“Signed this 3rd day of July, 1903.
“Edward A. Manchester,
‘ ‘ Natalie Manchester.1 ’
“Exhibit B.
‘' Contract.
“This article of agreement, made and entered into this 3rd day of July, A. D. 1903, by and between Mrs. Ella J. Manchester, widow of J. C. Manchester, deceased, of Ottumwa, Iowa, and Edward A. Manchester, son and only heir at law of said J. C. Manchester, deceased, of Ottumwa, Iowa, witnesseth:
“That whereas said J. C. Manchester died intestate, June 29, 1903, leaving the undersigned as his widow and only heir at law, we therefore make this contract for the purpose of dividing the property of which said J. C. Manchester died seized. It is agreed by and between the parties hereto that the said*559 Ella J. Manchester is to have and to hold in her own right, by title in fee simple, all the property, personal, real, or mixed, of which said J. C. Manchester died seized, except the hotel business and property connected therewith, including the bar, stock, and fixtures thereto belonging.
“It is further agreed by and between the parties that said hotel business shall be owned jointly by the parties hereto, each owning an undivided % interest therein. That the same shall be conducted under the firm name of J. C. Manchester, but that the hotel shall be known, in the future as in thd past, as the Ballingall Hotel. By the hotel business herein referred to is meant all the furniture and fixtures and property heretofore belonging to said J. C. Manchester and used in connection with the said hotel business in the Ballingall Hotel in Ottumwa, Iowa, including the bar, saloon stock, and fixtures.
“It is further agreed that the wholesale liquor business heretofore sold to Z. A. Frazier, by contract entered into between said Frazier and J. C. Manchester, shall be conducted in the same firm name, subject to the said contract of sale, but that the payments, when made, shall be paid to said Ella J. Manchester, and shall belong to her.
“It is further agreed by and between the parties that the hotel business hereinbefore referred to shall be conducted and managed by both of the parties hereto jointly ás a firm or partnership, and that an accounting of said business shall be had on request of either party at any time.
“It is further agreed that the said Ella J. Manchester hereby assumes all indebtedness against the estate of J. 0. Manchester, and she hereby agrees to pay all past debts of J. C. Manchester and to hold said Edward A. Manchester harmless from any indebtedness that might be made a valid claim against the estate of said J. C. Manchester, deceased.
“In witness whereof, we have hereunto signed our names, this 3rd day of July, A. D. 1903.
“Ella J. Manchester.
“Edward A. Manchester.”
More than four years thereafter, Exhibit -C was executed. In June, 1914, the son Ed died testate, survived by his mother
Following the death of J. O. Manchester, the broken family continued as one. They operated the hotel successfully for several years. 'During this time, they built a new home, and occupied it together. After the death of the son, the mother and daughter-in-law continued the operation of the hotel for a time, and then sold it. In the meantime, the mother’s health had become bad, and she was cared for in the common home by the daughter-in-law until her death. The evidence is undisputed that the relation existing among all the members of this family was, at all times, of the most affectionate and trusting nature.
It is the contention of the plaintiff that, by virtue of the instrument, Exhibit C, she has succeeded to two thirds of all the estate left by her mother-in-law, Ella Manchester.
The contention for the defendants is that the instrument Exhibit O is a nullity, in that it was executory and without consideration, and in that it was testamentary only. It is contended, therefore, that the entire estate, over and above the specified bequests, passes, under the will of Ella Manchester, to the residuary legatee named therein.
Out of an abundance of caution, the arguments of counsel have taken a wide range, and they aré to be highly commended for their thoroughness of investigation of the many questions which might arise in the consideration of the case. It will be impracticable, however, for us, within the appropriate limits of an opinion, to follow the briefs into their many ramifications. In view of the conclusion we reach on the question of consideration, we shall confine our discussion mainly to that question.
I. Was there a consideration?
The instrument purports to be a contract. It is so denominated at its head. It is signed by all the parties thereto. The
(2) Because it recites a consideration, and states the source out of which such consideration flows.
The burden is clearly upon the defendant to show affirmatively an absence of - consideration. And this means that there is no burden upon the plaintiff to prove that the consideration was in this form or in that form. Her co-contracting parties are dead. Her own mouth is sealed by that fact. The fact of consideration is all that is material to her, and she may stand upon the legal presumption arising out of the recitals of a written contract, even though she be unable to specify by competent oral evidence just what the specific consideration was. The burden east upon the defendant to show want of consideration is not met by a showing that no consideration passed at the time the instrument was signed. With due reference to the recitals of the instrument, the defendant must negative, not only some’ particular form of consideration, but every reasonable hypothesis out of which a consideration for this contract might fairly be deemed probable, or perhaps possible.
(1) Was the conveyance of July, 1903, a giftl
(2) If not a gift, was it a closed transaction, in the sense that the consideration for the conveyance had been performed?
These questions could have been readily answered by the testimony of the parties to the instrument in their lifetime. The record discloses that there is no competent oral evidence available now for such purpose, in any detailed sense. Considerable evidence has been introduced over objections, much, if not most, of which is incompetent, under the statute. Some general facts are made to appear without substantial dispute. The witness Garriott, who was one of the friends of the deceased father, had a conversation with the son, Ed, wherein he suggested a conveyance by Ed to his mother. He also had a separate conversation with the mother, wherein he suggested substantially the same thing. The instruments Exhibits A and B were prepared by the family attorney, Cornell, upon the suggestion or direction of Garriott. Garriott was never present at any conversation between mother and son on the subject. It is to be inferred from the record that he did understand, from one or both of them separately, that the conveyance was to be made. He had no knowledge of what consideration for the conveyance was agreed upon or understood between them. The family attorney, Cornell, having prepared the instruments, took them to the hotel for execution. He had no prior conference with any of the parties to the instruments. They were there formally executed, without any disclosure of just what the consideration, if any, was to be.
If, therefore, we find that the recital of consideration in Exhibit A implies an agreement of some kind for a conveyance of property or property right in some amount, the obligation to perform such agreement is a sufficient consideration to support a future contract between the same parties, whether within or without the statute of frauds. Daily v. Minnick, 117 Iowa 563, 568, and authorities therein cited. By this discussion we are not holding that such a parol agreement would be within the statute of frauds, nor do we stop to consider the question of part performance, as taking the same out of the statute. That the conveyance of property is a sufficient consideration for a promise by the grantee to will the same property to the grantor, if the grantor survive him, and to a third party, if otherwise, and that such consideration may be enforced after the death of the grantee, is well settled, under our cases. Mueller v. Batcheler, 131 Iowa 650, 652. Not only do Exhibit A and Exhibit C in their recitals respond to each other as mutual considerations, but the fair inferences which arise out of the conceded facts surrounding the transactions strongly point the same way. At the time of his father’s death, the son, Ed, was 26 years old. He had been married three years. By the death of his father, he had become the owner by inheritance of $40,000 worth of property. By the July, 1903, deed, he conveyed it all to his mother, except a one-half interest in the hotel equipment. At the time of its execution, there was no discussion of it, nor was the deed even read. It was signed and acknowledged immediately. The affectionate relations between the members of this little family justified a high degree of mutual confidence. The
We necessarily hold, therefore, that Exhibit C is not wanting in a good consideration.
In Leaver v. Gauss, supra, a purported deed was Reid to be testamentary, and therefore nugatory, because of a provision therein that the grantee should have no interest in the said premises as long as the grantors lived. This case has been followed substantially in some of the later cases above cited. The question thus raised is one which has furnished to this court abundant vexation. ' Coneededly, the polar star of construction of all instruments, testamentary or contractual, is the real intent of the parties, as it shall be gathered from the language of the instrument as a whole, in the light of the circumstances surrounding the making. This means that some meaning shall be given, if possible, to all parts of an instrument. One trouble with the holding in the Leaver case was that it concentrated emphasis upon one provision of the instrument, and made it controlling of the whole. In obedience to it, in the course of years, this court was driven logically to a compulsory disregard of the manifest intent of the instrument as a whole, because of the presence of this objectionable provision which Had received such imperative and controlling significance in the Leaver case. It is sufficient, perhaps, here that we refer to Shaull v. Shaull, 182 Iowa 770, wherein we established a correction line. In lieu of a rediscussion here, we may note that two opinions were filed in that case. The first was by a divided court, and adhered to the lead of the Leaver case. Shaull v. Shaull, 182 Iowa 770. On rehearing, we reversed our position, and sustained the instrument as a deed, in accord with the evident intention of the grantors. Our latter holding is in accord with the undoubted weight of reasoning and authority. The reasons for the one holding or the other are fully gone into, pro and con, in the two opinions referred to, and we will not repeat them. In Leonard v. Wren, 184 Iowa 1339, we sustained an instrument as not testamentary, though it contained substantially the very provision contained in the Leaver case. The effect of our later holding is that such a clause is capable of being construed as having reference to present possession, and not to an interest in the title. Such a construction leaves the court free to give some meaning to all parts
As applied to the contract Exhibit 0, the rights saved to the mother, Ella Manchester, during her lifetime were quite analogous to a life estate, with full power of sale. If Ella Manchester had sold some of her property, and if the plaintiff herein were making claim to such property against the purchaser, a very different question would be presented from that which is actually involved herein. It might well be claimed in such a contest that no present interest passed to the plaintiff herein in any particular property during the lifetime of her mother-in-law, but her rights were confined to such estate, or the two thirds thereof, as the mother-in-law might leave at her death, be it much or little.
Throughout this discussion we have treated the contract Exhibit C as executory. We do not necessarily hold it to be such. If it could properly be regarded as an executed contract, it would make the position of the defendants more difficult, and especially so on the question of consideration. If it were to be deemed an executed contract, it would be sufficient as a completed gift, regardless of consideration. We do not undertake
Needless to pursue further this feature of the case. In Leonard v. Wren, supra, we said that, in the Shaull case, we had receded from the position taken in previous cases upon the question then before us. We ought, perhaps, to have been more definite in our reference to such previous cases, and we ought, perhaps, to say now that the effect of the Shaull case was to overrule the Leaver case, in so far as it made the one proviso in the deed under consideration controlling of the whole, on the question of intent. On that question, the Shaull case controls all our previous cases.
IV. One argument put forward by appellee for the testamentary character of Exhibit C is based upon the use of the word “inherit.” That the word is inaccurately used must be conceded. Such use, however, does not tend to confer a testamentary character upon the instrument. It would be just as inaccurate in a will as in a contract. The real significance of the inaccuracy is that it tends to nullify, the contract as meaningless. Such inaccuracies, howevei’, are always subject to in
V. Some contention is put forward in argument to the effect, in substance, that the mother, Ella Manchester, had, in her lifetime, substantially anticipated the performance of the provisions of Exhibit C or perhaps the considerations for Exhibits A and B, and that she intended the same as a full performance of her obligation. The significance of this argument, we take it, is that this conduct on her part reflected her purpose to repudiate further obligation. If the premise had value to the appellee, we do not find it sustained by the record. After the death of the son, the mother did formally convey to the daughter-in-law a one-half interest in the hotel equipment. This only confirmed the title which the daughter-in-law already held under the will of her iate husband. It removed any possible cloud upon it, and perhaps saved administration. The mother also conveyed to the daughter-in-law an undivided one-half interest in the new home which they occupied. The evidence is undisputed that the ground upon which this new home was built was acquired and paid for with the partnership funds arising out of the operation of the hotel, and that the home was built in like manner by the expenditure of partnership funds. The
1. That the .defendants have not shown a want of consideration as to Exhibit C.
2. That Exhibit C is contractual, and not testamentary.
3. That Exhibit C should be given effect according to its terms, and that the plaintiff is entitled thereunder to an undivided two thirds of the estate.-
For this reason, the decree entered below must be and is— Reversed.