Market News
LLC Can Sue Malfeasant Member After Obtaining Permission from All Disinterested Members
Thu Mar 21, 10:47AM CDT
On January 24, 2024, the Iowa Court of Appeals, in a split decision, overturned a district court’s ruling that an Iowa Limited Liability Company (LLC) lacked standing to sue one of its members when it did not obtain defendant member’s consent to sue. After reviewing Iowa’s LLC statute and othe...
Family Settlement Agreement Made Prior to Testator’s Death Invalid
Thu Mar 21, 8:50AM CDT
On March 6, 2024, the Iowa Court of Appeals found that a family settlement agreement was invalid. The agreement was executed prior to the testator’s death and two of the signers had predeceased the testator. The court found that a family settlement agreement is not binding on the heirs of the dece...
Court Rules that Deceased Beneficiaries’ Shares of Trust “Lapsed”
Thu Mar 7, 4:42AM CST
On January 24, 2024, the Iowa Court of Appeals ruled that a district court improperly determined that the heirs of deceased beneficiaries were to receive the deceased beneficiaries’ shares of a testamentary trust. Ultimately the court held that “lapse” language in the will showed a clear inten...
Hybrid Partitions of Heirs Property are Allowed Under Iowa Law
Thu Feb 22, 8:27AM CST
On January 24, 2024, the Iowa Court of Appeals affirmed a district court’s partition order. The judge ordered a hybrid partition, where a portion of the partitioned property would be sold, and the other portion given in-kind to one owner. The one receiving an in-kind share would also owe owelty...
Court of Appeals Addresses Adjudication on the Merits in Two Cases
Tue Feb 13, 10:52AM CST
Recently the Court of Appeals released two opinions that discussed adjudication on the merits with agricultural related cases. The first case addressed a dismissal that resulted from failure to mediate prior to filing a foreclosure suit. The second case addressed a plaintiff re-filing a suit once...
Fair Market Value Is Determined at Time Testamentary Purchase Option Is Exercised
Tue Feb 13, 5:08AM CST
On January 10, 2024, the Iowa Court of Appeals affirmed the district court’s determination of when to value farmland that was subject to a testamentary purchase option. The doctrine of equitable conversion applies to testamentary purchase options, and equitable title passes when the buyer notifies...
Plaintiff Must Present Evidence of Owner Negligence When Cow Causes Accident on Interstate
Mon Feb 12, 11:17AM CST
On February 2nd, 2024, the Iowa Supreme Court affirmed both the Court of Appeals and district court's finding that the injured plaintiff failed to bring forth evidence that the owner of a cow that caused an accident on Interstate 80 was negligent. The court made clear that an animal on the road is...
Iowa Court Says Scrivener’s Testimony Cannot be Used to Rewrite Farm Owner’s Will
Wed Jan 24, 7:11AM CST
The case is In the Matter of the Estate of Veronica J. Roethler, No. 22-2045 (Iowa Ct. App. Jan. 10, 2024).
On January 10, 2024, the Iowa Court of Appeals held that the district court improperly considered extrinsic evidence when interpreting a will. The decedent’s will directed one farm property...
Fences and the Road Right-of-Way
Fri Jan 19, 2:50AM CST
Many landowners have land that borders a road. Iowa has specific laws about fences located within the right-of-way dating back to 1858.[i] A landowner can be told to remove a fence located within the highway right-of-way even if the right-of-way is established by easement. Unless the fence is an imm...
Deed Transferring Interest in Hog Site Invalidated Due to Grantor’s Incapacity
Tue Jan 2, 4:54AM CST
In a split decision, the Iowa Court of Appeals affirmed the district court’s determination that a deed executed by a 79-year-old with dementia conveying her half-interest in a hog site to her business partner should be invalidated due to lack of capacity. The district court invalidated the conveya...
Court Ensures that Distribution of Farmland Reflects Testator’s Intent
Mon Dec 18, 2023
On November 21, 2023, the Iowa Court of Appeals affirmed the district court’s decision to value farmland on the date of distribution, rather than date of death, when determining a residuary beneficiary’s inheritance. Since the residuary clause required equal distribution among five beneficiari...
Iowa Partition Law Does Not Apply to Farmland Held by a Trust
Mon Dec 18, 2023
On November 21, 2023, the Iowa Court of Appeals affirmed that Iowa’s partition law did not apply to farmland owned by a trust. Iowa Code chapter 651 contains special provisions for the partition of “heirs property.” Because the farmland was not held in tenancy in common, the farmland did not...
Contract Law Controls Relationship Between Joint Bank Account Owners
Fri Dec 15, 2023
On November 8, 2023, the Iowa Court of Appeals reversed the district court’s directed verdict in a surviving spouse’s case against her husband’s estate. The surviving spouse alleged she was entitled to one-half of the price her husband paid to purchase CDs with funds from joint accounts. The...
Disinherited Grandson Fails to Show that 96-Year-Old Grandmother Lacked Testamentary Capacity
Fri Dec 8, 2023
On October 25, 2023, the Iowa Court of Appeals affirmed the district court’s ruling that a 96-year-old woman had testamentary capacity when she rewrote her will to disown her family and to give all farmland to charity. Although she may have believed she had a life estate in some of the farm ground...
Land Sold Under a Life Tenant’s Power of Sale for Their Welfare is Valid
Mon Dec 4, 2023
On November 21, 2023, the Court of Appeals affirmed the district court’s ruling that farmland sold by a life estate holder was proper. The life estate holder was granted a power of sale for the purpose of funding her “health, support, and maintenance.” A remainderman challenged the sale, argui...