Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-08-05
FIRST CASE FROM IOWA INvoLv
ING HOMESTEAD INTERESTS
IN BANKRUPTCY.
oUTGRoWTH OF SIZE AND
CARPENTER FAILURE
Copy Of Opinion Not Vet Received. But
Understanding From Clerk is That
Sies's Contentious Are Upheld in
Reversal Of Case From Federal Court
Trustee Still Hopes For Margin.

Long litigation incident to and fol-
lowing the failure of Size & Carpenter,
brick manufacturers. of this city, in
1912. has reached an end it is believed,
in view of word from ST. Louis to the
attorneys interested, informing them
that Judge Lewis, in the circuit court
of appeals at st. Paul, had handed
down an opinion reversing the case Of
Greene, trustee. VS.. Sieg.
The case is important to Iowa in that
it is the first case from this state ever
sent to the United States circuit court
| of appeals in which the homestead in
terests in bankruptcy were involved.
! Sieg was beaten in the federal court
! for the southern district of Iowa, and
appealed to the United States circuit
court of appeals.
| The case followed the bankruptcy
proceedings OF Size & Carpenter, after
/ Merritt Greene had been named as
trustee of the estate of Size & Carpen-
ter. against which both the First Ma
+ tional and Marshalltown State banks
/ held claims.
( Deed Homestead to Ses.
| During the year before the bankrupt
/ cy proceedings were started w. A Size
! and wife decided to John Sieg their di-
vided half interest in 100 acres of land
I in the west part of town. including the
/ Size home and the brick yards prop
/ erty. The deed, however. was not plac-
ietf on record for a year
7 During that same year Steg had
bought of Size & Carpenter 100000
/ brick and had advanced the firm the
4 money with which to manufacture
/ them. Most of the brick were turned
/ over TO Sieg in 1911 and when bank
j rlDtcy proceeding were started the
I First National Bank brought a case
against Size & Carpenter in attach
ment. Then the bankruptcy proceed
! ings were started. Greene was named
as trustee and tire case was dropped
( in the district court and one started In
! the federal court by the trustee. to re-
/ cover from Sieg the value of the brick
and asking that the deed from Size to
| Sieg be set aside.
Advances Homestead Exemption.
Sieg set forth in defense OF this
claim that he had paid fair value for
the brick in advance OF their manufac-
ture. and that Sizes interest in the
land was his HON estead interest, and
that the value Of the homestead ex-
ceeded the value of his half interest In
the entire tract. therefore was exempt.
and could not be the subject OF pre-
ferencial conveyance.
4 The question raised in the appellate
court was whether. under the Iowa
statute. the real property was exempt
from such attack. as the homestead OF
W. A. Size. Judge Lewis holds in SUBJ
stance that the homestead should have
been set off in the eighty-acre farm
land. including the Size dwelling: but
further holds that no homestead rights
were acquired in the brick manufac-
turing Plant, and the brick yard. on
Inc ground that the deed was voidable
as to excess over homestead rights,
because rot recorded until within four
months of the bankruptcy proceedings.
The case commenced by Greene was
tried in the federal court before the
late Judge Smith Mcpherson in De-
cemher 1913. and in May. 1914. the
court entered judgment against Sies
for $500 as the value of the brick ac-
duired. setting aside the deed from
Size to Sieg. and ordering an account
ing Of the rentals for Sizes one-half
interest From this decree Sieg APP
pealed to the United States circuit OF
appeals, and the case was submitted
May last at st Paul.
Reverses Both Main Contentious.
In the notice sent out from the clerk
Of the circuit court at st. Louis Judge
Lewis opinion reverses the findings
as 70 both the sale of the brick and the
transfer Of the homestead, confirming
sizes homestead interest in the trans
FER, The case is reversed with costs
and the cause is remanded with dfrec-
tons 10 proceed in accordance WITH
the views as expressed in Judge Lewis
opinion.
The opinion further holds that the
liabili of Sieg for rent is confined tc
!, one-half of the excess value over the
homestead. The purchase by John Siee
of the manufactured brick is held no
to be a preference.
Still Hope For Margin.
When the opinion Is received, no"
ever, the attorney for the trustee hopes
70 find that there will be a margin
above the value Of the homestead it
self as compared to the Size interes
in the entire tract which will enable
the banks to realize something on thei
claims.
The trustee and his attorney are in
4 cf;ned To think that the value OF thu
brick plant and the yard when sold
with the accumulated rent on same
will pay the creditors substantially al
their claim. and for this reason tn
trustee will probably not ask a re-
hea ring nor appeal the case to the su
preme court of the United States.
+ The question raised In this case a
to whether married partner can ac
ouire a homestead interest in partner
ship real estate, is interesting AM
novel. and the ruling OF Judge Lewi
will; have a statewide effect.