Jones v. State

Decision Date27 July 1967
Docket NumberNo. 9760,9760
Citation432 P.2d 420,91 Idaho 823
PartiesMarietta JONES, Kenneth Jones, and Stanley John Jones, minor children, by and through Philip E. Dolan, court appointed guardian of the Estates of Marietta Jones, Kenneth Jones and Stanley John Jones, minors, Plaintiffs-Appellants, v. STATE of Idaho, Dan Deshon and Teresa Deshon, husband and wife, W.A.Nieman, and Maybelle Nieman, husband and wife, Glenn Bandelin and Dora Bandelin, husband and wife, Fred Schedler and Iris Schedler, husband and wife, Malcom P. McKinnon and Margaret McKinnon, husband and wife, Fred Kennedy and Lotta Kennedy, husband and wife, Marjorie Payne, Kenneth Carey, Vernon Carey, James W.Carey, G.F.McClelland and Irene McClelland, husband and wife, Sandpoint Land Development Co., Inc., a corporation, and George Gregory and Genevieve Gregory, husband and wife, Defendants-Respondents.
CourtIdaho Supreme Court

Stephen Bistline, Sandpoint, Philip E. Dolan, Coeur d'Alene, for appellants.

Richards, Haga & Eberle and Faber F. Tway, Boise, and Hardy C. Lyons, Sandpoint, for respondents.

SMITH, Justice.

This action was dismissed with prejudice as to the named respondents, George and Genevieve Gregory, husband and wife, they having disclaimed any interest in the subject real property, although they are parties to this appeal. The action was dismissed without prejudice as to the named respondent, Sandpoint Land and Develolpment Co., Inc., a corporation, it not having been served with process; it is not a party to this appeal.

Appellants brought this action seeking to quiet title in them to certain real property sometimes referred to as the McGhee and Gregory Tracts.

The McGhee Tract, now Lot 7, Block 21 of Weil's Third Addition to Sandpoint, is situate in the SE1/4 of Section 22, Township 57 North, Range 3, East of the Boise Meridian, in Bonner County, Idaho.

The remainder of the property, referred to as the Gregory Tract, is situate in the SE1/4 of Section 22, the W1/2 SW1/4 of Section 23, and in U.S.Lot 1 of Section 26, Township 57 North, Range 2, East of the Boise Meridian, in Bonner County, Idaho.

Prior to May 1947, Jack Jones owned the fee simple title to the McGhee Tract under a duly recorded deed of conveyance.

The Gregorys had contracted to sell, and the Joneses to purchase, the Gregory Tract under an agreement executed in May 1946. The contract was not acknowledged by Genevieve Gregory as required by I.C. § 32-912, nor recorded in the office of the Bonner County recorder. The contract required the Joneses to pay a purchase price of $7,000.00 as follows: $2,000.00 as a down payment, and the balance at the rate of $40.00 per month beginning June 2, 1946, with interest figured at the rate of 6% per annum; time of payment constituted the essence of the contract.

Jack and Veneta Jones were divorced May 19, 1946, evidenced by decree of the Bonner County district court. The decree operated to transfer Jack Jones' interest in the Gregory and McGhee Tracts to Veneta Jones as trustee for the three minor children of the marriage, whose names appear herein as appellants. The judicially created trust permitted Veneta Jones as trustee, to convey the trust assets, but imposed limitations upon that power of sale:

'(I)n the event of an offer for purchase (of the) property, before a sale is made, the Court is to be advised concerning same and the Court shall determine the terms and conditions upon which said property is to be sold, and before the same shall be final shall approve the sale of said property, and * * * Veneta Jones shall comply with all orders that the Court may make in reference to the sale or contract of sale of any of said real estate, also as to the disposition of the proceeds of said sale.'

The divorce decree, which affected the title to the Tracts within the meaning of I.C § 31-2407, does not appear in the Bonner County record index of deeds, grants and transfers, but does appear in the county's record index for transcripts of judgment. See I.C. §§ 31-2404(1) and 31-2404(17).

On a previous appeal, 85 Idaho 135, 376 P.2d 361, 3 A.L.R.3d 1158 (1961), this court considered the validity of the trust created by the district court's decree, and ruled that such a trust for the purpose of subjecting property to the support and education of the minor children was within the jurisdiction and statutory authority of the district court.

Following the Jones' divorce title to the Gregory and McGhee Tracts, by mesne conveyances, became vested in respondents. The title sequence will be related separately as to each tract.

The Gregory Tract: During 1947 the Joneses, as purchasers, failed to make required monthly payments to the Gregorys as required by the sale and purchase contract. By October 1947, the total deficiency on principal was $240.00. The children, in March 1947, were enrolled in the Lewiston Children's Home; Veneta vacated the property shortly thereafter. George Gregory, who knew the Joneses personally and maintained friendly relations with the family, consulted Mrs. Jones concerning her deficiency in payments and learned of her inability to continue under the contract. With that knowledge, Gregory endeavored to protect his interest as seller, and the Jones' interest as purchasers, by re-selling the tract to a third party.

The circumstances of her divorce, poverty, and concern for the children aggravated Veneta Jones' physical and emotional condition. Judge Boughton of the Bonner County district court apprehended that Mrs. Jones' declining health necessitated additional protection of the trust and the minor beneficiaries. On October 16, 1947, Judge Boughton removed Veneta Jones as trustee, by an order reading:

'It appearing to the Court that some of the property described in the decree in the above entitled case is about to be sold and it further appearing to the Court that the interest of the minor children, to-wit: Marietta Jones, Kenneth Edwin Jones and Stanley John Jones, should be protected and that any monies due or to become due under any contract of sale or for the sale of any property should be deposited in trust for the use and benefit of said children; and it appearing further to the Court that Veneta Jones, at the present time, is not the proper person to act as trustee for said children, now therefore it is,

'ORDERED, that Tom Jones, brother of the defendant, in said action be and is hereby appointed trustee of all funds in trust for the use and benefit of said children and that all monies deposited with any escrow holder shall be deposited to the credit of Tom Jones, trustee, for the use and benefit of Marietta Jones, Kenneth Edwin Jones and Stanley John Jones, and it is,

'FURTHER ORDERED, that any disbursements from said fund by said trustee shall be subject to the approval of the Court.'

November 20, 1947, the Gregorys contracted to sell the Gregory Tract and other property for $6,250.00 to the Rickards. Judge Boughton of the Bonner Colunty district court executed his approval of the transaction beneath the signatures of the parties. Tom Jones as trustee acknowledged receipt of all funds due under the divorce decree and order appointing him trustee, by an instrument of receipt filed with the district court February 21, 1948. A full accounting of the Gregory-Rickard transaction was subsequently filed with the district court.

A quitclaim deed executed by Veneta Jones, dated November 21, 1947, released her claims in the Gregory Tract to her contract purchasers, the Gregorys. That deed was duly recorded December 1, 1947, in the office of the Bonner County recorder.

The Rickards deeded the Gregory Tract to Robert and Elaine Niemann in January 1948. In 1949, the Niemanns conveyed by separate deeds their entire interest in the Gregory Tract to the McKinnons and the Deshons. Respondents Fred and Iris Schedler derived their title from the McKinnons, and respondents Bandelin, Nieman, and Kennedy derived theirs from the Deshons.

The McGhee Tract: The divorce decree of May 1947 effected transfer of title to this property to Veneta Jones in trust for the Jones children. On October 14, 1947, the day prior to the substitution of Tom Jones for Veneta Jones as trustee, Veneta deeded the property to the Spurgeons. The Spurgeons deeded it to James E. Carey on February 13, 1951. James E. Carey contracted to sell to the Skibes, and the Skibes assigned their equity to respondents, Gerald and Irene McClelland. The equity of James E. Carey, upon his death, became vested in Carey's heirs, the respondents Marjorie Payne, Kenneth Carey, Vernon Carey and James W. Carey, evidenced by a probate court decree.

After trial upon the merits, the trial court made findings of fact and conclusions of law in favor of the respondents now holding record title to the Gregory and McGhee Tracts. The judgment entered thereon rested upon alternative bases: First, the respondents holding record title to the Gregory and McGhee Tracts obtained their titles in good faith, without notice of appellants' claims, and for valid consideration; and second, that the present holders of title, and their predecessors in interest, perfected valid titles by adverse possession of the tracts for the prescriptive period. If the trial court is correct upon either theory, the judgment must be affirmed. Bistline v. Eberle, 88 Idaho 473, 401 P.2d 555 (1965); Evans v. Continental Life and Accident Company, 88 Idaho 254, 398 P.2d 646 (1965).

We hold that the trial court correctly found that respondents established valid title by virtue of adverse possession of the property in question for the prescriptive period.

The Idaho Code prescribes the requirements for adverse possession, and perfection of title by such means, as follows:

'5-207. Possession under written claim of title.-When it appears that the occupant, or those under whom he claims, entered into the possession of the property under claim of title, exclusive of other...

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4 cases
  • Taylor v. Maile
    • United States
    • Idaho Supreme Court
    • December 23, 2005
    ...providing it has not passed into the hands of a bona fide purchaser for value without notice." In a later case, Jones v. State, 91 Idaho 823, 828, 432 P.2d 420, 425 (1967), the court appeared to indicate that Rule 17(a) required an action for trespass on trust property to be pursued by the ......
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