Court Opinion

ID: 9690153
Source: CourtListenerOpinion
Date Created: 2023-08-24 18:55:24.627613+00
Date Added: 2024-06-11T18:18:53.819902
License: Public Domain

HAYDEN, Judge
(dissenting in part).
I concur with Divisions I, II, III, IV and V of the majority’s opinion, however I respectfully dissent to Division VI.
The majority determines that Donna was not made aware of the legal effects of the note and mortgage on the homestead when she signed it, that the Peoples Bank failed to present clear and convincing evidence to rebut the presumptive invalidity of the note and mortgage signed as the homestead and failed to show the transaction terminating Donna’s homestead exemption was fair under the circumstances. I find the facts do not support such a determination.
The majority determines that Leo was well aware prior to his hospitalization Peoples Bank was demanding additional security for his sizable undersecured loans and the fact Leo was in the hospital when he signed the other notes and mortgages prepared by the Peoples Bank did not make his actions any less knowing and voluntary. The facts show that Donna was present and approved Leo signing the documents in the hospital, and she was given an opportunity to read them.
Donna has had two years of secretarial schooling beyond high school. She was employed as a secretary for a few years. She had assisted her husband in his business as his secretary. She is shown to be competent and of average or above intelligence. I am not persuaded by the argument that Donna was unaware that the documents encumbered her house.
When a party is given an opportunity to read a contract or document, but fails to do so because of statements by an adversary, that party cannot escape liability under the theory that she was ignorant of the terms of the document. Preston v. Howell, 219 Iowa 230, 236, 257 N.W. 415, 418 (1934), Wilmotte & Co. v. Rosenman Bros., Inc. 258 NW 2d 317, 323 (Iowa 1977), Weitz Co., Inc. v. Mo-Kan Carpet, Inc., 723 F.2d 1382, 1385 (8th Cir. 1983); see also Schlosser v. Van Dusseldorp, 251 Iowa 521, 527, 101 N.W.2d 715, 719 (1960) (ignorance of the contents of an instrument does not ordinarily affect the liability of who signs it).
I would affirm the trial court in all respects.