Woodruff v. Miller

• Decision Date: 03 November 1947
• Docket Number: 4-8288
• Citation: 205 S.W.2d 181,212 Ark. 191
• Parties: Woodruff v. Miller
• Court: Arkansas Supreme Court

205 S.W.2d 181

212 Ark. 191

Woodruff v. Miller

No. 4-8288

Supreme Court of Arkansas

November 3, 1947

Appeal from Washington Chancery Court; John K. Butt, Chancellor.

Modified and Affirmed.

Thomas F. Butt, Harvey L. Joyce and Glen Wing, for appellant.

Rex W. Perkins and G. T. Sullins, for appellee.

OPINION

Griffin Smith, Chief Justice.

The appeal is from a decree that a deed executed by Mrs. Sarah A Bales Cover was not delivered, notwithstanding the fact that Fred H. Woodruff for whose benefit, prima facie, it was executed, received the document at the grantor's direction.

Mrs. Cover died intestate August 31, 1945, owning certain real property. She had owned other property, some of which had been disposed of. When death occurred Mrs. Cover resided at Lincoln, Washington County. She had formerly lived in Fayetteville at 318 East Lafayette Street. This is the property described as part of lots five and six of the Masonic Addition. It was one of five tracts appellees claim Mrs. Cover owned at the time of her death, and is included with other descriptions in the deed executed August 7, 1941 under which appellants claim. ^[1]

Fred H. Woodruff, 64 years of age, is a farmer, wood-cutter, and laborer in general, living at Lincoln a short distance from the place selected as a home by his aunt, Mrs. Cover, when she moved from Fayetteville. In 1941, before going to Lincoln, Mrs. Cover wrote her nephew, requesting that he meet her at the bank in Lincoln. Mrs. Cover was accompanied by Mrs. Little M. Martin Hughes, who acted as a secretary, doing other incidental tasks, such as driving an automobile, running errands, etc. She served in this capacity from September 1939 until Mrs. Cover died.

August 7, 1941, Mrs. Cover and Mrs. Hughes went to the Lincoln bank. Mrs. Cover had some deeds or other papers containing descriptions of the property being dealt with. She explained to W. T. Shannon -- then cashier of the bank, but now president -- that she wanted a deed "made or changed", and that the property was to go to Fred H. Woodruff "and his bodily heirs". The heirs were named: Freddie Woodruff, Jr.; Vernon Eugene Woodruff, and James Monroe Woodruff; "their heirs and assigns". When the deed had been prepared it was signed by Mrs. Cover and indorsed "Executed in the presence of James English, Jr. [and] Mrs. Lillie M. Martin Hughes". Woodruff, Sr., handed Mrs. Cover a dollar bill and Mrs. Cover directed Shannon to give the deed to Woodruff, which he did.

This deed was filed a few hours after Mrs. Cover died, for the purpose of having it recorded. It is undisputed that Mrs. Cover gave instructions to Woodruff not to record the deed during her lifetime; and, acting under this compulsion and seemingly acquiescing in Mrs. Cover's right to attach this condition to manual delivery, Woodruff accepted the document and retained it with his personal papers for more than four years.

During the interim between execution of the deed and death, Mrs. Cover dealt with the property as though no conveyance had been made. It is shown that on a previous occasion she had deeded lands to Woodruff, who held at his aunt's convenience and then reconveyed. It is intimated that Mrs. Cover was threatened with litigation [with possibility of a judgment against her] and for this reason she attempted to conceal her holdings. There was no substantial evidence to sustain this alleged motive, and it is not to be considered, although a deed was in fact made.

Litigation resulting in this appeal began when R. A. Miller, Lula J. Osborne, and Shelby Niccum brought an action in Chancery reciting that Mrs. Cover died intestate owning the real estate they described, including the residential property in Fayetteville. They were nieces and nephews of Mrs. Cover, and their aunt, as was alleged, had been fraudulently imposed upon by Woodruff when he procured the deed. Primarily, however, it was asserted that the deed was not delivered with intent that it should vest in Woodruff or his children title to any of the property, it being Mrs. Cover's purpose to retain control, with the right to sell, lease, give away, or otherwise utilize or make disposal. The prayer was that the deed be cancelled and the property partitioned.

Immediately following Mrs. Cover's death Woodruff was appointed administrator of the estate. He was succeeded by Pat Johnson.

Woodruff demurred to the complaint on the ground that a claim was pending in Probate Court and a sale of the property would be necessary to satisfy creditors.

Numerous pleadings were filed, including an amendment to the complaint in which all of the heirs of Mrs. Cover were named, or sought to be named. In the amendment A. A. Adams was made a party on allegation that shortly before her death Mrs. Cover leased to Adams the north half of a building at 29 North Block Street in Fayetteville. After the lease was executed a supplemental agreement relating to Adams' right to make alterations was executed. Adams demurred to the amended complaint. Woodruff filed what he termed "an interpleader against the interpleaded defendant, Pat Johnson, as administrator". It was alleged that the lease directed the monthly rentals of $ 25 to be paid to Woodruff -- this being in the nature of an assignment. Woodruff contended that by reason of the assignment all rentals received by the administrator since August 30, 1945, should be paid to him.

July 25, 1946, Woodruff, acting for himself and as guardian of his minor children, brought an action in Washington Circuit Court, alleging that Mrs. Cover's deed of August 7th, 1941, conveyed to the plaintiffs a fee simple title to all of the property therein described. In disregard of this deed, said these plaintiffs, the grantor conveyed to Elbert H. and Emma Heath certain parts of the property identified as Item No. 1; to J. C. Waits a lot identified as Item No. 2; to J. S. Bates a part of Lot 20 identified as Item No. 3, and to Nick Kabouris Lot No. 3 identified as Item No. 4. By reason of these wrongful conveyances to bona fide purchasers Woodruff asserted that he had been damaged to the extent of $ 8,800, and asked judgment for that sum. This cause was transferred to equity.

It would unnecessarily burden this opinion and tax without reason the patience of those who must read it if we should set out in detail all of the pleadings as they have been abstracted. An exhibit is Woodruff's claim filed in Probate Court February 26, 1946, in the action against Johnson as administrator. It listed the four items referred to in the Circuit Court action and alleged that the present values were respectively, $ 1,000, $ 300, $ 2,500, and $ 5,000. The contention was that Woodruff, Sr., had been damaged in the sum of $ 800 -- his estate being for life -- and that the minor children had been damaged $ 8,000.

In substance, the Chancellor found that Mrs. Cover's deed to the Woodruffs should be cancelled because not delivered; that the lease to Adams was effective, but the provision assigning rentals to Fred Woodruff, Sr., was void because contrary to public policy; that the Circuit Court action based upon Probate Court claim and consolidated in Chancery should be dismissed; and that those who bought from Mrs. Cover subsequent to her deed to the Woodruffs were innocent purchasers.

The decree expressly finds that after execution of the deed Mrs. Cover continued in possession. She paid all taxes and special assessments, had insurance written in her own name, and paid the premiums. Fred Woodruff, Sr., assisted her in making two of the sales and witnessed execution of the deeds. It was also found, contrary to Woodruff's contention, that he knew of the other sales.

It is our view that these findings -- other than the one relating to payment of rentals under Adams' lease -- are sustained by clear and convincing evidence. From appellants' standpoint the difficulty is that Mrs. Cover and Woodruff were wrong in assuming that title could be conferred with one hand and withheld by the other. It appears clear that Woodruff did not at any time question his aunt's continuing ownership; nor did he move in any manner to assert the rights he later claimed were his when seeking to recover for value of property sold.

Mrs Riley Miller testified that shortly before August 31, 1945, Mrs. Cover asked her to write Stella Bynum in California. In the letter Mrs. Cover told Stella that if she would move back home -- "meaning the home place or...