135 Iowa 64 | Iowa | 1906
Plaintiff recovered judgment against M. W. Lang September 10, 1900, for $338.93, and costs, based on three promissory notes — the first two dated March 21, 1893, for $185, and the last September 15th, of the same year, for $37. At that time Lang was the husband of his co-defendant, now Mary E. Perkins, from whom she obtained a decree of divorce December 19, 1894, and was awarded the custody of their five minor children. The day previous he had conveyed to her one hundred and sixty-one acres of land and a house and lot in Monona, the title to all of which was in his name, • and all personal property, save his wearing apparel and $9 in pocket money. Twenty acres of the land was subsequently sold by her, and, in this action, the plaintiff prays that the remainder be subjected to the payment of its judgment.
On the contrary it fully appears that, for twenty years, the land, while belonging to Mrs. Perkins, was allowed to stand in her husband’s name and to be held by him in secret trust for her benefit. He occupied the premises and treated them in all respects as his own, and the evidence is without dispute that credit was extended to him by plaintiff in reliance upon such ownership. It would be inequitable to permit his wife, after allowing him to obtain credit upon the apparent ownership of this property for so long a time to set up a claim thereto against the creditors who had trusted him in reliance upon such ownership. She must be presumed to have known that, in the ordinary course of business, he would be likely to obtain credit by reason of his ostensible ownership, and, having consented that the land stand in his name, she ought not to be. heard to say, as against those extending credit in reliance on the security which she permitted him to hold out, for the purpose of defeating the collection of the indebtedness, that she, rather than he, owned the property. These principles are recognized in practically all the authorities. Iseminger v. Criswell, 98 Iowa, 382, and cases cited; Laing v. Evans, 64 Neb. 454 (90 N. W. 246), and cases cited.
For these reasons, we think the several ti'acts of land should have been subjected to the payment of plaintiff’s judgment. — Reversed.