Klauser v. Reeves
Klauser v. Reeves
Opinion of the Court
Plaintiff’s complaint alleged that defendant is engaged in the business of operating a chick hatchery; that on October 2, 1929, January 23, 1930, and January 29, 1930, Alfred B.'Reeves, former husband of 'defendant, executed to plaintiff three promissory notes in the aggregate sum of $1,700, all of which are overdue, and upon which there is now due the sum of $1,700 in principal and $75 in interest; that on or about March 18, 1936, in a divorce action then
In approaching a determination of the effect of the qualifying clause under consideration, two factors are significant: (1) That the transfer to defendant was not subject to the ■payment of debts, but. was merely subject to the debts; (2) that the property so far as disclosed by the facts alleged was not subject to any lien arising out of these debts. Had the transfer been made subject to the payment of the debts, the stipulation and judgment would tend to disclose an intention that defendant assume the debts as her personal liability in view of the fact that the debts were not liens upon the property. Had such been the form of the stipulation a.nd judg:
“In the present case the language of the instrument and the intent of the parties are different. Here was no incum-brance on the property conveyed. The contract to indemnify the builder of the sewer was merely the personal obligation of the partnership, and was not a lien upon the property conveyed. The intent to qualify a liability arising from such lien upon the property conveyed, could not, therefore, exist. The only conceivable intent with which this sewer contract was thus referred to, was to furnish the evidence that the new company would pay to- Dingeldein the amount which the partnership was bound to pay, under the resolution referred to. The fact that in Belmont v. Coman the words were necessary to qualify the grantor’s liability, and that here there was no such occasion, gives a different rule for the construction of the words in the two cases.
“The language, too, is different, and may well bear a different construction. In Belmont v. Coman, the land is conveyed 'subject to the mortgage.’ There is a significant difference between the expression 'subject to a mortgage,’ and ‘subject to the payment of a certain debt.’ In the present case, the property of a partnership, consisting of a railroad franchise, a road partly built, cars, horses, sleighs, harness, leases and licenses, is transferred to a corporation, ‘subject*310 to the payment by the parties of the second part of all the money which the partnership are bound to pay on account of sewers/ specifying the claim in question. They do not take the property ‘subject’ to an incumbrance of the sewer debt, for there is no such incumbrance. It formed no^ lien on the property sold, and no connection with the subject unless the debt was intended to be assumed. They take it subject ‘to the payment’ by themselves of the sewer debt, i. e., to a liability by themselves to pay the debt. They undertake to relieve the partnership from the payment of the debt, and to make themselves liable or responsible for it.”
In Hoy v. Bramhall, 19 N. J. Eq. 74, there was a conveyance of a part of mortgaged premises “subject to the payment of all liens now on said premises.” It was held that this imposed no personal liability in spite of the use of the phrase “subject to the payment” rather than “subject to the mortgage or liens.” Thus, in the Dingeldein Case the fact that the property transferred was unincumbered, and that the transfer was subject to the payment of certain of grant- or’s debts, was treated as imposing liability for these debts upon the grantee because such a result furnished the only explanation for the use of this phrase under the circumstances. In the Hoy Case, the use of the form “subject to payment” was not of itself considered a sufficient indication of a purpose to make the grantee personally liable for liens and mortgages because the incumbered state of the property was a sufficient explanation for inclusion of the qualifying phrase. In view of this, it was held that the qualifying phrase was merely to indicate the conveyance of an incumbered estate. The case at bar is not quite like either of the foregoing cases. Here the property is unincumbered as in the Dingeldein Case, but the formula is that usually adopted in mortgage cases. We are unable to give to the stipulation and the judgment the effect declared in the Dingeldein Case becausé of the failure to add words such as “payment” indi-
In Hammond’s Estate, 197 Pa. 119, 46 Atl. 935, 936, dealing with the construction of a will by which land was devised—
“subject to the following payments and conditions, to be paid and fulfilled by my said son, Henry K. Hammond. . . . The said Henry K. Hammond to pay my executor hereinafter named the sum of $2,500, to be distributed as hereinafter directed as part of my estate,”—
the court said:
“By the words ‘subject to’ the payment of $2,500 to his executor, the testator evidently meant that the devise was to be burdened with the said sum until paid. ... If the words used had been ‘subject to and charged with,’ they would not more certainly define the condition of the devise. Used in such connection, ‘subject to’ and ‘charged with’ are equivalent and interchangeable terms, and either is sufficient to create a charge.”
While this case might be an authority for holding that the effect of the stipulation and judgment would have been to create a charge rather than a personal liability even had the words been “subject to payment,” it at least justifies the conclusion that such a phrase as “subject to debts,” when used to qualify the conveyance of unincumbered property, has the effect of creating a charge or lien upon the property conveyed in favor of those creditors to whose debts the conveyance is subject. This conclusion is fortified by the nature and occasion of the transfer. Upon a division of property in a divorce action, the attempt is usually to ascertain and
In view of this, it must be held that the allegations of the complaint are sufficient to state a cause of action in equity to charge the property received by defendant as a result of the divorce judgment with the lien of plaintiff’s debt. While it is true that no equitable relief is demanded and that the sole prayer for relief is for a judgment at law upon notes, and while plaintiff is not entitled to this judgment, that does not warrant the sustaining of a demurrer to the complaint. The question upon general demurrer is whether any cause of action is stated. ■ If it is, the fact that plaintiff is not entitled to the relief demanded in the prayer is wholly immaterial. Marien v. Evangelical Creed Congregation, 132 Wis. 650, 113 N. W. 66; Bannen v. Kindling, 142 Wis. 613, 126 N. W. 5; State ex rel. Mengel v. Steber, 154 Wis. 505, 143 N. W. 156; Sullivan v. Ashland L., P. & St. R. Co. 156 Wis. 445, 146 N. W. 506; Williams v. Oconomowoc, 167 Wis. 281, 166 N. W. 322; Neacy v. Drew, 176 Wis. 348, 187 N. W. 218.
These conclusions compel affirmance of the order.
Order affirmed.
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