Anderson v. Engwall
Anderson v. Engwall
Opinion of the Court
The claim of the defendant is that on April 9, 1913, the date when this controversy arose, in addition to his judgment he had an open account against Sampson, consisting of a note of about $125, not yet due, and an open running account of about $11, making a total of $136; that on April 9, 1913, Hextell made a payment to defendant of about $127, which payment was made upon the express understanding and agreement between defendant and Hextell that the same was to be used, first, in paying the costs of $10.65 due on the judgment, and the balance was to be applied towards the payment of the open account, and that no part of said sum was to be used in paying off the judgment, except the item of $10.65 costs; that by reason of said agreement defendant was not bound or obligated to apply any of the money so paid upon said judgment, except the item of costs before stated, and that the said judgment and the lien created against said city property should be in no way affected by said transaction.
Prior to the time this controversy arose, Sampson was a man of considerable property, owning farm lands in Polk county, city property in Des Moines and Altoona, besides owning considerable real estate outside of Iowa. On and prior to June 20,1912, Mr. Sampson was heavily indebted to numerous creditors, one of whom was the defendant, and on that date Sampson deeded a part of his real estate to Mr. Hextell, who agreed to act as trustee for the property deeded to him, agreeing to sell it, pay off the incumbrances, and pay the proceeds to certain parties named in a trust agreement executed by some of the larger creditors, Sampson, and Hextell. The three acres of land in controversy was not conveyed to the
The three-acre tract in controversy sold for $900, and was worth more than defendant’s judgment. The evidence is undisputed that on April 9,1913, Mr. Hextell came to defendant and told him that he would pay $127.94, which was about the amount of the judgment, with interest and costs, provided defendant would satisfy said judgment in full and, in addition thereto, execute a quitclaim deed, quitclaiming and releasing any and all right that defendant might have in the farm property which had been conveyed to and was held in trust by Hextell. Defendant told Hextell that he would accept the same in full satisfaction of the judgment, or that Hextell could go to the clerk and pay it there and satisfy the judgment, but refused to execute a quitclaim deed covering the farm property. Defendant knew that his judgment was a lien against the three acres in question, and informed Mr. Hextell that so far as the judgment was coneerned.it was absolutely secure because of this lien. Hextell was also informed by defendant that he was contemplating making an effort to collect the open account by instituting an attachment ease, and expected to attach the farm property held by Hextell under the trust deed or garnishee the trustee.
After the defendant refused to execute a quitclaim deed, Hextell agreed to pay defendant the amount of the check which he had prepared and brought with him, and that defendant might apply all of said sum on his open account against Sampson, except that $10.65 of said money should be used in
The situation, then, on April 9, 1913, when the payment was made by Hextell to defendant, was that the city property stood in the name of Sampson, against whom defendant had v judgment. The city property was never conveyed to any trustee. Defendant was not consulted about the trust agreement until after it was made, and he at no time thereafter signed the trust agreement, nor did he ever consent to it. At the time defendant obtained his judgment he had the open account against Sampson outstanding and unsecured, and at the date of the judgment Sampson had standing in his own name certain real estate, including the three-acre piece in Altoona, so that the judgment became a valid lien against the city property on that date, July 31, 1912. As before stated, Sampson sold the property to plaintiff after the judgment was obtained.
It seems that prior to April 9, 1913, Mr. Hextell, the trustee, had contracted to sell the Polk county farm land, but the purchaser was insisting that a quiclaim deed be procured by Hextell from the defendant. In fact, the purchaser wanted Hextell to obtain quitclaim deeds from all Sampson’s creditors, and he had obtained quitclaim deeds from other creditors
As before stated, there is no dispute as to these facts. Defendant was simply standing upon his rights, and the only question is: Did defendant have a right to protect himself, and ask for and receive some consideration, before he would execute a quitclaim deed to the farm property. We think he clearly had the right to do so. It should be remembered that this is not an action in bankruptcy, or under the statutes pertaining to general assignments for the benefit of creditors. If it were so, different questions might possibly arise.
Plaintiff cannot come in and compel defendant to credit on the judgment the consideration which he received from Mr. Hextell, when the express agreement was that he was to credit it upon the open account, and not upon the judgment. Defendant has quitclaimed all his interest in the farm land, and has given credit upon the open account for $117.29. He gave up all the rights he had against the farm land, or his right to make his claim out of the farm land by suitable action, and satisfied his open account to the extent stated. The court may not make a new contract for defendant, and compel him to apply this payment on the judgment, contrary to the agreement of the parties. The three acres of city property has nothing to do with the trust arrangement between Sampson and Hextell. If it be considered that the trust arrangement was in the nature of assignment proceedings, then only a part of the property was assigned, and under such circumstances the provisions of the statute with reference to general assignments would not apply. There was no relationship, so far as
It is said further by plaintiff that before the money was paid to the defendant, as before stated, it was agreed and understood between Sampson and Hextell and the plaintiff that the money should be paid to the defendant in. satisfaction of the judgment; and this is what Hextell attempted to do, upon conditions stated, but defendant refused. Such an arrangement between those three parties would not bind the defendant.
We conclude, therefore, that the decree of the trial court was erroneous, and it is reversed and remanded for a decree in harmony with this opinion, or defendant may have a decree in this court, at his option. It is said in argument that a written stipulation between the parties has been made that, if defendant’s lien be sustained, plaintiff may pay it off and have a decree. The decree may so provide, if the parties so agree.— Reversed.
Reference
- Full Case Name
- Lucille Anderson v. O. A. E. Engwall
- Status
- Published