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Lewis et al. v. Merryman et al., Appellants

Supreme Court of Pennsylvania1921-07-01No. Appeal, No. 179
271 Pa. 255

Summary

Holding. The court affirmed the judgment below, holding that the presumption of delivery arising from a recorded, absolute deed executed with proper formalities and delivered to a third party cannot be rebutted by the grantors' loose and inconsistent oral statements, particularly where the grantors' own conduct—including allowing recording and informing tax officials of the grantee's ownership—evidenced an intent to deliver the deed.

The plaintiffs sought to establish that a deed conveying farm property to their decedent was not validly delivered, arguing instead that it was intended as a testamentary instrument to take effect only upon the grantors' death. The grantors had executed an absolute deed naming the plaintiffs' decedent as grantee, delivered it to a third party (Mr. Wilt) with instructions to secure an agreement protecting the grantors' right to use and occupy the property during their lifetime, and the deed was then recorded. The defendants, claiming through the grantors' will, challenged the delivery based primarily on Mr. Wilt's testimony containing statements suggesting the deed was not to take effect until after the grantors' deaths.

The court held that a recorded deed, absolute on its face and delivered to a third party without restriction or limitation except as to lifetime occupancy rights, carries a strong presumption of delivery that cannot be overcome by the loose and inconsistent testimony presented. The grantors' own acts—including recording the deed without objection, telling the tax assessor that the grantee owned the land, and never retrieving the instrument—all evidenced an intention to deliver it. Mr. Wilt's conflicting statements about the deed taking effect only after death were insufficient to rebut the statutory presumption arising from recording and the formalities of execution and acknowledgment.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether a recorded, absolute deed carries a rebuttable or irrebuttable presumption of delivery
  • What evidence is sufficient to overcome the presumption of delivery arising from recording
  • Whether a deed with a lifetime occupancy reservation can constitute a valid present delivery or is testamentary in character
  • The effect of grantor's conduct (recording, public acknowledgment of grantee's ownership) on delivery presumption

Procedural posture

The defendants appealed from a judgment of the court below, presumably upholding the validity of the recorded deed and the grantee's title.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Opinion by

Mr. Justice Kephart,

Defendants’ entire case turns on the sufficiency of the evidence to overcome the presumption of delivery attaching to a recorded deed. It is admitted a deed, absolute on its face, without reservation or restriction, was executed, acknowledged and recorded in Centre County eighteen years ago. Plaintiffs’ decedent was grantee therein, while defendants claimed through the will of grantor. Delivery is a matter of intention to pass title. It may be accomplished by words alone, by acts or by words and acts. To be sufficient in law it must be found grantor has parted with the title: Smith v. Markland, 223 Pa. 605, 612. When delivery is disputed it is generally a question for the jury (Galbraith v. Zimmerman, 100 Pa. 374); particularly is this true where delivery is solely a matter of oral proof. A delivery is complete, however, when a deed is acknowledged before a proper officer as being signed, sealed and delivered without an act, expression or writing indicating an intention to qualify this formal act: Blight v. Schenck, 10 Pa. 285. Retention of the deed by the grantor will generally negative this idea, but a delivery to a third person for the grantee’s use, or, after execution and acknowledgment, the grantor’s parting with all control over the deed:, is a good delivery: Cummings v. Glass, 162 Pa. 241; Eckman v. Eckman, 55 Pa. 269; Blight v. Schenck, supra; Stephens v. Huss, 54 Pa. 20; Eckman v. Eckman, 68 Pa. 460, 464. But a delivery does not take place where the deed is delivered to a third party who is attorney for both parties, without an express understanding that it was to be handed to the grantee: Sears v. Scranton Trust Co., 228 Pa. 126, 141.

Certain acts with respect to delivery assume a higher evidentiary value because the security of estates so require it; thus, it has been held that signing, attestation, acknowledgment and recording are prima facie evidence of delivery (Rigler v. Cloud, 14 Pa. 361, 364; Ingles v. Ingles, 150 Pa. 397, 401), and the declarations of the grantor in some instances cannot overcome this presumption : Kern v. Howell, 180 Pa. 315, 321; Dickey v. Norris, 216 Pa. 184, 186. But the prima facie case, or the presumption arising from recording, is not irrebuttable: Kanawell v. Miller, 262 Pa. 9, 14; Smith v. Markland, 223 Pa. 605; Clauer v. Clauer, 22 Pa. Superior Ct. 395.

To overcome the presumption and the burden thus imposed, appellant depends on the testimony of Mr. Wilt, a trustee of Bockview Home, Huntingdon County, who, while on a journey in search of funds for this institution, called on the Crains, the grantors. In discussing a proposed gift to that institution, as the men were advanced in years, he suggested the advisability of taking steps looking toward the ultimate disposition of the farm on their death. He was informed it was their wish to give the property to a niece, Mrs. Lewis. A deed was suggested as the proper plan to carry out their wish, subject to their right to use and occupy the land in any way they saw fit until their death. This plan was agreed upon and the matter was left in Wilt’s hands for attention, and, because of the gift to the institution, all charges were to be at his expense. The deed was prepared, executed, acknowledged and witnessed, wherein Mrs. Lewis was named as grantee. It was turned over to Mr. Wilt, who informed Mrs. Lewis of the proposed plan. She readily consented to the execution of an agreement Mr. Wilt considered necessary as a “safeguard,” “sort of a protection so she could not interfere with them during her lifetime, notwithstanding the fact that the deed was made.” And the agreement was “to cover any possibilities that might arise afterwards because the deed was on record.” When the deed was delivered to Mr. Wilt, it was without restriction or limitation, save only the obligation to secure to the Crains the full enjoyment of the property during life. It must be a necessary inference, from this evidence, the*deed could.be delivered, when this duty was met, and here it differs from Sears v. Scranton Trust Co., supra. After the deed was executed and placed of record, ■ the grantors informed the assessor, — who made assessments for the purpose of taxation, — they had nothing to assess, as Mrs. Lewis owned the land.

If the deed was not to be delivered until after death, thus making it a testamentary disposition, there was no necessity for the agreement. When the latter was secured there was an admission that the grantee had a then present interest in the land. No effort was made to conceal the fact of recording, which could have been discovered at any time, and, so far as we are advised by the record, the grantors never questioned it nor the deed, the latter never having been returned to their possession. It is true Mr. Wilt, in the course of his testimony, makes use of such language as “after their demise, or their death,” “the deed was not to go into effect until after the death of the Crains,” and “the deed was SO made as not to convey it over to them during their lifetime.” This latter statement of course is in direct conflict with the deed, and all of them, considered with his entire testimony and the acts done, are not sufficient to rebut the presumption of delivery. His story, throughout, evidences an intention on the part of the grantors to execute and deliver the deed, provided possession and use of the property was secured to them during life. His statements, at best, show a confusion of ideas, if they are not in entire harmony with what transpired when he secured to the Crains the property during the remainder of their lives. To reform a deed absolute on its face, — attended with all the formalities of law, duly recorded, handed to a third party without restriction or reservation, save as to the one purpose mentioned, — and hold it a testamentary instrument, requires evidence more certain than the loose statements here submitted. The reservation of rents, use and occupation would not be sufficient (Knowlson v. Fleming, 165 Pa. 10; Eckman v. Eckman, supra), and the intention must be established by proof of acts of the grantor. The strongest evidence of delivery was the fact of recording, and the burden of overcoming the presumption resulting therefrom was c>n defendants, who, to destroy it, must do so by clear, positive proof that no delivery was intended, and that Mr. Wilt was not authorized to record the instrument. The evidence before us certainly did not meet that burden.

The judgment of the court below is affirmed.