Campbell v. Warnberg
| Decision Date | 06 June 1931 |
| Docket Number | 29,897 |
| Citation | 299 P. 583,133 Kan. 246 |
| Parties | ERNEST W. CAMPBELL, RALPH H. CAMPBELL, ALBERT T. CAMPBELL, LAPORTE CAMPBELL, LYMAN CAMPBELL and CHARLES CAMPBELL, Appellants, v. MILDRED WARNBERG and CHARLES WARNBERG, Appellees |
| Court | Kansas Supreme Court |
Decided January, 1931.
Appeal from Sumner district court; WENDELL P. READY, judge.
Judgment affirmed.
SYLLABUS BY THE COURT.
1. VENDOR AND PURCHASER--Option to Purchase--Exercise in Reasonable Time. Where a person has an option to purchase property at a specified figure, and no time is fixed for the exercise of the option, a reasonable time is implied, and what length of time is reasonable is governed by the circumstances of the particular case.
2. SAME -- Option to Purchase -- Speculative Fluctuations as Affecting Time of Exercise. The circumstances require prompt action on the part of an option holder where values are likely to be suddenly and radically changed by impending probability of gas and oil discoveries in the vicinity of the property covered by the option.
3. WILLS--Option to Purchase Land--Time of Exercise--Effect of Fluctuating Value. Where a testator devised agricultural lands to his six sons and two daughters at an estimated value of those lands in monetary shares of $ 500 each, and granted to each of the two oldest sons options to purchase particular tracts of those lands at specified prices, and where the option holders were "to pay to his [their] brothers and sisters their respective shares therein," with like optional privileges to each of his younger sons in succession if the older brothers did not exercise the options conferred upon them, and where the option holders did not exercise their options for fifteen months after the probate of the will, during which time the devised lands had greatly increased in value by reason of gas and oil exploration and development in the vicinity; it is held that the options were forfeited and furnished no basis for any action against one of their codevisees under the will of the testator.
4. SAME -- Option to Purchase Land -- Loss by Speculative Delay. Assuming that by the will of their father his six sons were authorized to exercise jointly the options conferred upon two of the sons individually, their failure to exercise any such option promptly while the value of the devised lands rose from $ 36,000 to $ 150,000 because of gas and oil development in the vicinity defeated the options entirely; and those options furnished no basis for an action against their sister to require her to accept a monetary stipend for her "shares" in her father's estate.
5. SAME--Construction. Other matters urged against the trial court's ruling on the demurrer lodged against the defendants' answer noted but not sustained.
H. W Goodwin and W. H. Schwinn, both of Wellington, for the appellants.
E. J. Taggart, John Bradley, both of Wellington, W. L. Cunningham, D. Arthur Walker, Fred G. Leach and William E. Cunningham, all of Arkansas City, for the appellees.
This was an action to construe a will and to determine certain rights of its beneficiaries appearing here as litigants.
The late L. J. Campbell, of Sumner county, died testate seized of several hundred acres of land upon which he placed a testamentary valuation of $ 36,000. After making suitable provision for his wife he apportioned his real estate among his children in "shares" of the value of $ 500 each. Thus the $ 36,000 worth of land was to be regarded for purposes of division among his children as seventy-two shares worth $ 500 each.
A description of the lands and the testator's valuations may be thus abridged:
(1) SW 1/4, sec. 11
2 SE 1(2) S 1/ /4, sec. 11, less 20 acres and plus tract 30
2 NE 1(3) N 1/ /4, sec. 14, and tract 12, less portion contracted
away
4,000
6,000
2 NE 1(5) N 1/ /4, sec. 15
4,000
Total
$ 36,000
The will then provides:
The will next gave options to the sons Ernest and Ralph to purchase certain of the lands, indicated in the list as Nos 1 and 2, at the testator's valuations, and gave the younger sons successively the same options in the event their older brothers did not elect to exercise those options. The same paragraph provided that the daughters should not receive their shares until they attained the age of twenty-five years. The paragraph concerning the options reads:
"And I do hereby give to my son, Ernest W. Campbell, the option to take said southwest quarter of section eleven at its value of sixteen thousand dollars and to pay to his brothers and sisters their respective shares therein and I do give to my son, Ralph H. Campbell, the option to take said south half of the southeast quarter of section eleven and said tract number thirty at its value of six thousand dollars and to pay to his brothers and sisters their respective shares therein--and in case my sons, Ernest W. Campbell or Ralph H. Campbell, do not elect to exercise their respective options, then such options may be exercised by any other sons according to priority of age, and in case two or more of my sons in the exercise of such option desire the same tract of land such choice to be settled by lot; and it is my further wish, desire and will that when my daughters, Mildred Warrensburg [Warnberg] and Helen Campbell shall arrive at the age of twenty-five years, then my sons herein named shall pay to each of them the sum of four thousand dollars for their respective shares in said real property, it being my will that my said daughters shall not receive any portion of said shares of my real property until they arrive at the age of twenty-five years and then to receive said sum of four thousand each."
Another paragraph throwing some light on the testator's testamentary purposes provided:
"Out of the net income of the land I direct my executors to use the portion or share of each of my children who may be a minor, for his or her education."
The will was executed on December 13, 1921. The testator died on February 22, 1929, and his will was probated on February 27, 1929, without controversy.
Neither of the sons, Ernest or Ralph, elected to exercise the specific options conferred upon them by the will or signified any such purpose, nor in the successive order authorized by the testator did any of the younger sons do so, unless the commencement of this action on June 7, 1930, by all six of the sons against their sister Mildred, defendant in this action with her husband, should be so construed.
Plaintiffs also alleged that at various dates they tendered to Mildred the sum of $ 4,000, which she refused to accept; that she claimed to be the owner of an undivided interest in the real estate devised by her father's will; and plaintiffs alleged their readiness to pay to her the sum of $ 4,000. They prayed that their title be quieted against Mildred and her husband.
By way of answer Mildred and her husband admitted various formal matters, including the death of the testator, the probate of the will, and the accuracy of the copy attached to plaintiff's petition. She alleged that the only heirs of the testator were his widow and herself and her brothers and sister, whose ages were indicated by their births, to wit: Ernest W. Campbell, born May 20, 1893; Albert T. Campbell, born September 12, 1894; Ralph H. Campbell, born February 9, 1897; Mildred Warnberg, born February 15, 1899; LaPorte Campbell, born July 18, 1903; Lyman Campbell, born July 11, 1906; Helen E. Campbell, born February 15, 1908; Charles Campbell, born July 29, 1910.
Defendants' answer denied that plaintiffs were exclusively the owners and tenants in common of the lands described in the will; denied that plaintiffs were directed or obliged to pay Mildred $ 4,000 in lieu of any interest in the real estate; denied that plaintiffs at the dates mentioned in their petition or at any other time tendered her $ 4,000.
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