First National Bank of Lindsborg v. Nelson
First National Bank of Lindsborg v. Nelson
Opinion of the Court
The opinion of the court was delivered by
October 13, 1914, Otto Johnson, owner of a quarter section of land, died intestate, the title passing one-half to his widow, Clara Johnson, and one-sixth to each of his three daughters, Edna 0. Heline, Edith E. Johnson and Ellen A. Nelson. December 21, 1920, Ellen A. Nelson- and her husband, Oscar F. Nelson, executed a deed for her interest in the land to her mother. Two days later the other daughters likewise conveyed their interest to their mother. May 3, 1922, the First National Bank of Lindsborg brought this action in the nature of a creditor’s bill, seeking to subject the one-sixth interest in the land inherited by Ellen A. Nelson to the payment of a judgment obtained by it March 22, 1922, against her and her husband upon two notes executed by them December 1, 1920, the plaintiff alleging the transfer to her mother to have been made without valid consideration and in fraud of creditors. The notes were given for an old indebtedness of Oscar A. Nelson, to whom Ellen A. Nelson was married August 12, 1920. Judgment was rendered in favor of the defendants and the plaintiff appeals. >
The court found that about two years before the execution of the deeds referred to the three daughters of Mrs. Johnson orally agreed among themselves that they would all convey their interest to her, and that the deeds were executed in pursuance of this agreement. Any question of actual fraudulent intent is eliminated — settled against the plaintiff by the.decision of the trial court. The questions presented are whether there was any evidence to support the finding that the deeds were made under the circumstances found, and if so, whether the consideration for the deed made by the Nelsons was such as to place the interest of Mrs. Nelson in the land beyond the reach of her existing creditors.
We regard this evidence as sufficient to support the finding that the three daughters agreed with one another that they would convey their interests in the land to their mother and that the deeds were made in consideration of the agreement.
2. We hold also that the agreement of each of the three sisters with the others that all should convey their interest to their mother was upon a valuable as distinguished from a merely good consideration. A promise was given for a promise. Each agreed to
3. It is suggested that the oral contract was too indefinite to form a basis for the deeds, particularly in that the kind of conveyance to be made was not specified. It cannot be assumed, from the fact that their mother’s need of a larger income was the motive for the arrangement, that a transfer of less than a fee was contemplated. Doubtless the usual form of deed — one of general warranty — should be regarded as implied, but in any event, the parties being found to have acted in good faith, indefiniteness in detail is not of concern to the plaintiff.
“The fact that a contract may not be susceptible of specific enforcement does not necessarily imply its invalidity, and, if the parties thereto interpret its terms and carry it into effect by the transfer of property, the creditors of neither can demand the invalidating of such transfer on the mere ground of vagueness of the preliminary agreement.” (Engine & Thresher Co. v. Greenlee, 134 Iowa, 368, 371.)
The judgment is affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.