Sheldon v. Maude Lord Parker

• Decision Date: 03 December 1902
• Docket Number: 12,380
• Citation: 92 N.W. 923,66 Neb. 610
• Parties: FRANK B. SHELDON, TRUSTEE, APPELLEE, v. MAUDE LORD PARKER ET AL., APPELLANTS. [*]
• Court: Nebraska Supreme Court

92 N.W. 923

66 Neb. 610

FRANK B. SHELDON, TRUSTEE, APPELLEE, v. MAUDE LORD PARKER ET AL., APPELLANTS. ^[*]

No. 12,380

Supreme Court of Nebraska

December 3, 1902

APPEAL from the district court for Gage county. Action by trustee in bankruptcy. Heard below before LETTON, J. Decree for plaintiff. Defendants appeal. Affirmed in part.

AFFIRMED IN PART.

Thomas J. Doyle, George W. Berge, Hugh J. Dobbs, Francis M. Davis and John N. Rickards, for appellants.

Nathan K. Griggs, George M. Johnston, Leonard W. Colby, Albert H Babcock, Samuel Rinaker and Robert S. Bibb, contra.

DUFFIE C. AMES and ALBERT, CC., concur.

OPINION

DUFFIE, C.

On the 19th of July, 1899, Lewis C. Parker, one of the appellants herein, was, on his own petition, duly adjudicated a bankrupt by the district court of the United States for the district of Nebraska. Frank B. Sheldon is the trustee of the bankrupt estate, and because of the insufficiency of the assets to pay the claims of the creditors, amounting to about $ 26,000, he instituted this action to have certain property held by Maude Lord Parker, wife of the bankrupt, and by the Drake Land Company, a corporation, decreed to be held by said parties in trust for the said Lewis C. Parker, and the conveyance thereof set aside, and said property held to belong to the trustee. Numerous pieces of property are described in the petition filed in the district court, of which it is alleged Lewis C. Parker is the equitable owner; but upon the trial the court found that three tracts only were held in trust for the bankrupt, and that two other tracts, the legal title to which had stood in the name of his wife, had been conveyed by her to innocent purchasers, and entered judgment against her for their value; and as the trustee has not appealed from the decree, it will only be necessary to examine the decree entered and the evidence upon which it is based, so far as it relates to the property decreed by the court to belong to the bankrupt.

The first tract is what is known as the "Home Place." This embraces about sixteen acres of land, which, for some years prior to 1896, was the homestead of Almira T. Parker, the mother of Lewis C. Parker. Maude Lord Parker, wife of Lewis C. and one of the appellants, claims title to this tract through a deed of conveyance made to her by Almira T. Parker, dated May 6, 1899. The district court found that on February 20, 1896, Almira T. Parker, then a widow, made a division of her property between her two sons, Lewis C. Parker and Frank H. Parker; that to perfect said division, she executed deeds to several pieces of property, which deeds were delivered to Lewis C. Parker, to be held in trust for himself and his brother, Frank, until the death of their mother, who was to retain a life interest therein. Among other tracts conveyed was the home place, Lewis C. and Frank H. Parker being joint grantees in the deed conveying that property. The court further found that this deed was never recorded, but that by virtue of said deed Lewis C. Parker acquired an undivided one-half interest in the premises conveyed, the said Frank H. Parker acquiring the other undivided one-half interest; that on the 3d day of May, 1899, Frank H. Parker, being then the owner in fee of an undivided one-half of said home place, for a valuable consideration, paid to him by Lewis C. Parker, sold and conveyed by warranty deed the undivided one-half interest which he then had and owned in said premises, whereby said Lewis C. Parker became sole and entire owner of all of said premises; and that for the purpose of fraudulently concealing his ownership of said premises from his creditors, and hindering, delaying and defrauding such creditors, Lewis C. Parker caused the deed to himself from Frank H. Parker for said premises, to be so altered and manipulated as that the legal title to said premises now appears to be in the name of the defendant Maude Lord Parker, his wife; that on or about the 6th day of May, 1899, the defendants Lewis C. Parker and Maude Lord Parker procured from Almira T. Parker a deed of that date, purporting to convey said premises to said Maude Lord Parker; that Almira T. Parker at said time was occupying and residing upon said premises under an agreement between said Lewis C. Parker and Frank H. Parker entered into at the time she made the first deed to Lewis C. and Frank H. Parker; and that at the time she executed the deed to Maude Lord Parker she had no right, title or interest in or to said home place other than the right to reside thereon and enjoy the income therefrom during her natural life; and that Maude Lord Parker acquired nothing by the deed dated May 6, 1899, from said Almira T. Parker, save the right to use and occupy the premises thereby conveyed until the death of said Almira T. Parker, which occurred in February, 1901.

We think the evidence fully sustains this finding of the court. On the 23d of March, 1896, a written agreement was made between Frank H. and Lewis C. Parker, which recites the following: "This agreement, made and entered into this 23d day of March, A. D. 1896, by and between Frank H. Parker of Santa Cruz, California, and Lewis C. Parker of Beatrice, Nebraska, witnesseth: That whereas the estate of Almira T. Parker has been divided between the parties hereto, that said division is hereby mutually agreed upon; and it being the desire of the parties hereto to make no change of title to property owned by Almira T. Parker until after her death, and whereas certain papers pertaining to her estate have been properly executed and are now in the hands of Lewis C. Parker to be held by him for Frank H. Parker and himself: Therefore be it understood and agreed by the parties hereto that the following papers are not to be recorded until the death of Almira T. Parker: * * * Deed from Almira T. Parker to Frank H. Parker and Lewis C. Parker jointly conveying lots 42 to 60, and 63 to 71, inclusive, of I. N. McConnel's subdivision of the south half of the southeast quarter of section 32--4--6, being the home place, of about sixteen acres; lot 26 McClelland's addition; also the northwest quarter of 27--1--33, Rawlins county, Kansas: Deed from Almira T. Parker to Lewis C. Parker of the east 24 1/2 feet of lot 11, block 48, Beatrice, Nebraska." * * * Other properties and personal property were described in this agrement, which it will not be necessary to mention in connection with this case; but the agreement is important as an acknowledgment by Lewis C. Parker of the possession of this deed, and the joint ownership by himself and his brother of the property conveyed thereby.

There is other and stronger evidence in the record to support the finding of the district court. In order to fully understand the situation it will be necessary to go back to the death of Hiram W. Parker, the father of Frank and Lewis, which occurred April 11, 1893. At the time of his death Hiram W. Parker was largely interested in the Beatrice Canning Company and had become liable upon the notes of that company for something over $ 34,000. On the 20th of March, 1896, Frank H. and Lewis C. Parker entered into a written agreement, in which it is recited that they are the only heirs at law of Hiram W. Parker, and that it was desired to settle up said estate without administration; that they had agreed upon a division of said estate throughout, except the homestead, consisting of about sixteen acres, in West Beatrice, where the widow of the deceased now resides. The agreement then continues as follows: "And whereas the said Hiram W. Parker was party as maker to several promissory notes and other evidences of indebtedness in the sum of $ 5,000 for the Beatrice Cemetery Association, and in the sum of $ 34,150 for the Beatrice Canning Company of Beatrice: Now, therefore, be it understood and agreed, that said Lewis C. Parker has already assumed the liabilities of the said Hiram W. Parker for the payment of said indebtedness and may be compelled to pay large sums thereof: Therefore, it is further agreed, that any indebtedness of the late Hiram W. Parker aforesaid that he, the said Lewis C. Parker, may be compelled to pay, either in the way of principal, or interest, or costs, or attorney fees, by reason of his having assumed said liabilities, shall be borne equally by the parties hereto. And it is further agreed that the proportionate share of said indebtedness, which the said Frank H. Parker shall pay, as per the terms of this agreement, shall be and remain a charge upon any property in the state of Nebraska owned by the said Frank H. Parker." * * * On the back of this agreement appears the following: "Beatrice, Neb. May 23, 1899. In consideration of the delivery of a certain warranty deed to the property known as the home place of Almira T. Parker in West Beatrice, wherein Frank H. Parker and wife convey to Lewis C. Parker all their right, title and interest in and to said property, the said Lewis C. Parker accepts said property as full payment from the said Frank H. Parker of the obligation contained in the within agreement, and the same is hereby canceled and surrendered."

The evidence, to our understanding, is quite conclusive that after Almira T. Parker, the mother of Frank H. and Lewis C Parker, deeded what is known as the "home place" to her sons in 1896, the deed conveying that property was delivered to Lewis C. Parker and held by him for himself and his brother. Afterwards he entered into negotiations with his brother for the purchase of Frank's one-half interest in the property, and some time previous to April 28, 1899, Frank H., who lived in California, had made out and sent to Lewis C. a deed for his half interest in that property. Under date of April 28, 1899, Lewis C. wrote to Frank as follows: "Yours...