Court Opinion

ID: 9719280
Source: CourtListenerOpinion
Date Created: 2023-08-26 07:47:32.097121+00
Date Added: 2024-06-11T18:24:05.697960
License: Public Domain

DECISION ON THE MERITS
Draper, J.
Appellee filed her complaint in three paragraphs, the first for cancellation and rescission of a deed alleged to have been procured from her by fraud and undue influence; the second for rescission for breach of conditions subsequent and to impress a constructive trust on real estate to prevent the consummation of a fraud; the third for the appointment of a receiver pendente lite.
The court appointed a receiver. This appeal is from the interlocutory order making said appointment.
The appellee is a widow eighty-four years of age. Since her husband’s death in 1912 she has lived in the real estate in question with the appellant, a daughter of her deceased husband, who was seventeen years of age when the husband and father died. In March 1950 she deeded the property to the appellant.. She was not represented by counsel, and she received no money for the deed, but it was her understanding that she was to have a home there as long as she lived, and it is admitted by everyone that such is the fact.1
*584The property consists of four apartments, three of which bring an aggregate rental of $130 per month. The appellant now occupies the other apartment, the appellee having left and moved in with friends. The property is worth about seven or eight thousand dollars.
The parties have lived together thirty-nine years. For many years the appellant’s invalid husband, now deceased, lived with them and the appellee assisted in caring for him. The appellant worked during those years and paid the grocery bills. They all lived together as a family, the appellant and appellee each contributing whatever income they had from any source for the common up-keep of the home. After receiving the deed the appellant mortgaged the property for $3,000. The payments on the mortgage are $50 a month, but the appellant has been paying $60 a month. With the proceeds of the mortgage the appellant converted the property from three apartments to four, using the money obtained by the loan for that purpose and adding to that amount about $1,000 of her own money. She also paid delinquent taxes in the sum of $104.17. The taxes are now paid in full to date. The appellant keeps an itemized accurate account of all income and expenses of the- house. The gross income from rentals since the deed was executed has been $2,154.04 and the expenses, including minor repairs and taxes, has been $2,116.48. The house has been kept in good repair. During the thirty years before the execution of the deed the appellant paid about $4,000 for repairs on the house. In 1920 she obtained a loan of $2,000 and remodeled the downstairs. No- part of that money was repaid to her by the appellee.
The appellee testified that appellant kept after her to sign the deed. She did not remember what conversations she had with the appellant before signing the *585deed, but did say the appellant wanted to control the property and collect the rents and the appellant has collected the rents.
On July 26, 1950, the appellee went to a Mrs. Habel’s to live and remained there about four weeks, the appellant paying her expenses. It seems that she went there because she complained about the workmen smoking and the manner in which they were doing the work. She later went to the home of appellant’s sister where she stayed about six weeks while the house was being repaired.
In January of 1951 she was injured by a fall. The appellant employed and paid a nurse who stayed with the appellee until May 4th. Shortly following her recovery the appellee lost the keys to the house. This brought on an argument and the appellee went to live with the Wibles, where she is now residing. She has keys to the property in question and goes there when she pleases. After “she left she was asked to return home, but has refused to do so. The appellant has offered to pay the Wibles for room and board for the appellee, but Mr. Wible refused. The testimony of the nurse indicates that the appellee was well treated by the appellant and was provided with everything for her comfort and convenience.
The appellee thought there was undue intimacy between the appellant and a seventy year old workman. She mentioned no facts or circumstances supportive of such a belief. It was denied by the appellant. It appears that the appellant has used the word “damn” when she became very impatient with the appellee. The appellant’s sister, who never lived with these parties, but with whom the appellee stayed about six weeks, presented to the appellee ouija board messages and other such nonsense, and this distressed the appel*586lee, who is the widow of a Baptist minister. The appellee and appellant would sometimes have arguments, then they would kiss and make up, and go along as before.
Subdivision 1, 3 and 7 of Burns’ 1946 Replacement, §3-2601, upon which the appellee relies, are set put in the margin.2 We are not now called upon to determine the ultimate rights of the parties. The question before us is whether the court erred in appointing a receiver pendente lite.
A receiver may be appointed to preserve the property involved, or the rents and profits thereof, during the pendency of a suit to set aside a fraudulent conveyance, or in the language of our statute, “to vacate a fraudulent purchase- of property.” But the power is one to be exercised cautiously, 37 C.J.Si, Fraudulent Conveyances, §465, p. 1311; Tardy’s Smith on Receivers, 2nd Ed., Vol. I., §214, p. 518. It is exercised only where the appointment is necessary to secure ample justice between the parties. Sands v. Sands (1938), 214 Ind. 87, 14 N. E. 2d 535; 75 C. J. S., Receivers, §3, p. 658.
In this case fraud and undue influence are asserted. The theory is advanced that the appellant secured the *587deed on a promise of future care, but with no intention of fulfilling that commitment once the deed was obtained. Without intending to prejudge the merits of the controversy we must say that on the showing in the record before us the proof of that fact leaves much to be desired. It is also difficult to find in the evidence any refusal by the appellant to provide and maintain a home for appellee. The appellant has requested the appellee to return home and has also offered to pay her expenses in her present home. Basing our judgment solely on the record before us, we doubt the sufficiency of any showing of a reasonable probability of ultimate recovery. Ratcliff v. Ratcliff (1942), 219 Ind. 429, 39 N. E. 2d 435.
It cannot be discovered from the evidence whether the benefits the appellant has received by having the use of the property outweigh her contributions to its upkeep or whether she actually has an investment in the property. It would probably be difficult to determine the fact. However, the taxes are paid, the property has been kept in good repair, and it seems to be producing an adequate income. At least there is no contention that a receiver could improve it. Insolvency intensifies the probability of loss to a complainant in these cases and serves to show that the remedy at law would be inadequate, Ratcliff v. Ratcliff, supra, but there is no suggestion that the appellant is insolvent, improvident, or likely to waste' or wrongfully dispose of the rents and profits of the property, of which she keeps an accurate account.
The parties have lived together for thirty-nine years, since appellant was a young girl, and their relationship, though marred by occasional arguments, seems to have been mutually satisfactory and advantageous, and so far as the evidence shows, never *588before interrupted. While it is true that a home is something more than a roof over one’s head, and a contract of this kind cannot be satisfied by merely furnishing shelter and substance, Lindsay v. Glass (1889), 119 Ind. 301, 21 N. E. 897, it is also true that the performance of these contracts does not require perfection, but a reasonably strict and substantial compliance is sufficient. Watson v. Gilliam (1934), 252 Ky. 762, 68 S. W. 2d 399.
On the whole record before us it seems to us that the facts do not justify the appointment of a receiver pendente lite, and the order is, therefore, reversed.
Note.—Reported in 105 N. E. 2d 817.

 A written instrument signed by the appellant grants appellee “living quarters” in the' home for life. The date of the execution of this instrument is disputed. It is admitted that the actual agreement was broader than the written statement.

 “A receiver may be appointed by the court, or the judge thereof in vacation, in the following cases:
“First. In an action by a vendor to vacate a fraudulent purchase of property, or by a creditor to subject any property or fund to his claim.
“Third. In all actions when it is shown that the property, fund, or rents and profits in controversy is in danger of being lost, removed or materially injured.
“Seventh. And in such other cases as may be provided by law; or where, in the discretion of the court, or the judge thereof in vacation, it may be necessary to secure ample justice to the parties.”