Watts v. Watts

Decision Date08 March 1949
Docket Number47392.
Citation36 N.W.2d 347,240 Iowa 384
PartiesWATTS v. WATTS et al.
CourtIowa Supreme Court

Hatter & Hatter, of Marengo, for appellants.

Lundy Butler & Lundy, of Eldora, for appellee.

BLISS Justice.

The real parties in interest joined with the petitioner in asking for clarification and modification of the original divorce decree, and also prayed for such general relief as the court might deem equitable in the premises.

For several years, plaintiff and defendant, as wife and husband, lived at Marengo, Iowa County, where the husband was a physician and operated a hospital. They also owned and operated certain real and personal property, known as 'Iowa Valley Stables', as a copartnership engaged in the purchase sale, and training of show horses. Having no children, they adopted Elissa, age three September 13, 1947, and Craig, age two December 24, 1947.

On June 21 1947, they separated, and plaintiff went to Eldora, Hardin County, and lived in a rented cottage on a lake east of town. Defendant brought suit in Iowa County for the appointment of a receiver of the partnership and an accounting, and plaintiff brought a divorce suit in Hardin County. Prior to the anticipated decree of divorce, the parties entered into a written stipulation settling all property rights and claims of all kinds against each other. Under the agreement plaintiff received the property, known as the 'Iowa Valley Stables', and furniture and equipment, coach dogs, ten horses, and an airplane, all encumbered by mortgage liens securing an indebtedness of $6,325 to a Marengo bank, which she assumed and agreed to pay, in addition to all contracts and debts of the horse business. The doctor agreed to help her to get a six-months extention of the bank obligations. The agreement provided for the disposition of both suits and the settlement of all marital obligations. Plaintiff also received a residence property in Marengo.

The stipulation provided that plaintiff should have the custody of the two adopted children, and that defendant should have the right to visit them at reasonable hours as frequently as he desired. The stipulation also provided that defendant 'agrees to pay for the care, education and support of Elissa Watts, the sum of $125 per month, said payments to commence July 15, 1947, and to continue until said child attains the age of 18 years, or marries, or until the death of said child; whichever event first occurs.' There was a like provision for the minor, Craig Watts.

The stipulation also provided that 'the payments above provided for, shall be made through the office of the Clerk of the District Court of Iowa, and in and for Hardin County.' It was further provided that should the plaintiff (wife) remarry, the matter of the further custody and support of the children might be submitted to the Hardin County district court if the parties were unable to agree.

On July 10, 1947, a hearing was had and a consent decree was entered by the district court of Hardin County on the written appearance of defendant, granting an absolute divorce to Helen Watts, and providing: 'That the Stipulation, as entered into by and between the parties heretofore filed in this cause, and all the provisions and conditions therein contained, be and the same is by this reference hereby adopted and incorporated herein as a part of this decree the same as fully rewritten herein.'

On the day the divorce was granted, plaintiff herein left her rented cottage in Hardin County and returned with the two children to the home in Marengo, received by her under the stipulation. Defendant paid the July allotment of $250 for the children to the clerk of the Hardin County district court, as provided in the stipulation and decree, without any directions as to whom it should be sent, and it was remitted to the plaintiff without any protest from defendant.

On August 2, 1947, defendant executed and filed in the district court of Iowa County his petition, alleging the fact of his divorce and stipulated obligation to pay the award for the care, support, and education of the two minor children, their custody, by their foster or adopted mother, and that since the monthly payments were largely in excess of the children's present needs, and the excess should be preserved for their future needs, he prayed for the appointment of guardian of the property of the children including the said monthly payments. At an ex parte hearing of which no notice was given the mother, who was living in Marengo, Ward Hatter was appointed such guardian on August 2, 1947, under bond of $1,000. The appointed guardian accepted and qualified.

Defendant made the $250 payments for August, September and October, 1947, to the clerk as provided in the decree, without any directions and they were sent to plaintiff. She operated the 'Stables', and in August and September exhibited horses at shows in Ames and Clinton, and drove home several nights from the shows. During this time she was in Missouri attending to business matters and looking up a new location which she selected a few miles from Springfield, Missouri. She sold the home at Marengo, which was unencumbered, and also the 'stables', and about October 1, 1947, she took her horses and their equipment to the new location, and with the children took up her residence there. The place which she bought was a 40-acre tract, improved with a 14-room stone residence having modern conveniences, and with barns necessary for the show horse business. She brought with her the horse trainer who had been in the employ of the partnership at Marengo.

On November 14, 1947, Hatter & Hatter, attorneys for Mr. Watts, sent his check for $250 to the clerk at Eldora payable to his order, together with a certificate from the Iowa County clerk of the appointment and qualification of Ward Hatter, as guardian of the minors' property. The letter requested that the proceeds of the check be sent to the guardian. Mr. Miller, the clerk, promptly answered that he thought he had no authority to remit to the guardian, and that pending the court's instruction he would hold the check or return it to the sender, if the latter so desired. The December check was sent to the clerk with the same instructions. On February 24, 1948, defendant's attorneys sent a C. F. Watts' check dated January 15, 1948 for $250, and one of like amount dated February 15, 1948, each payable to the guardian and the clerk, with the direction that the checks for November and December 1947 be returned. On February 26, 1948, the lawyers wrote a letter reviewing the previous correspondence and informing the clerk at Eldora that Mr. Watts was withdrawing his restrictions on remittances, and that he would make payments in compliance with the decree, and it would be for the clerk to determine whether to remit to the guardian or to the plaintiff, and that no claims would be made against the clerk. On February 27, 1948, the clerk acknowledged receipt of the checks of January 15th and February 15th, and returned the checks payable to himself and the guardian.

On April 10, 1948, the clerk filed his petition for direction. Thereafter numerous pleadings were filed, the essence of which we have stated. On May 18, 1948, on application of Mr. Watts in the guardianship in the district court of Iowa County, an order was made conforming the earlier appointment of the guardian and reappointing him. The guardian requalified.

The hearing in the present proceeding was before Judge Clock of the Eleventh Judicial District at Eldora on May 26, 1948.

The defendant introduced as exhibits, the letters noted, proceedings in the guardianship; the stipulation of settlement and decree in the divorce action, and rested. Plaintiff as a witness for herself was examined and cross-examined at length, very largely as to the operation of the horse business in Missouri, and for what purposes the remittances for the children were spent. As noted herein these remittances were not made to her for some months pending instruction to the clerk by the court. Over objection she testified that at the time the stipulation was made Mr. Watts told her that the remittances were to be sent to her. Mr. Watts denied this on rebuttal. In substance she testified that all of the remittances received by her had been commingled with her own personal funds in her checking account in the bank, upon which she drew checks for her own personal and household needs and for all of the needs of the children. She testified that she...

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