Story Case

Mr. Austin was a wealthy farmer living in eastern Iowa, where he had accumulated a fortune by raising corn. At the time of his death, in November, he had a thousand acres in corn, most of which was not yet husked. A will was found which did not mention real estate, but provided that Mr. H. H. Homer, president of Coe College, should act as executor, sell all the personal property of Mr. Austin, and apply it to the Coe College endowment fund. Mr. Homer hired men to husk the ripened corn on the farm and sold it to a corn flake company in Battle Creek, Michigan. The heirs of Mr. Austin insisted that Homer had exceeded his rights, and sued him for the proceeds of the corn, alleging that it was a part of the real estate. Will Mr. Homer be compelled to deliver the proceeds to Mr. Austin's heirs?

Ruling Court Case. Sherman Vs. Willet, Volume 42 New York Reports, Page 146

Elmer Willet was the owner of a farm upon which a mortgage was given to Zina Cornell. Upon the former's death, his administrator sold to Sherman, the plaintiff in this action, the crop of rye then growing on the farm, and not yet harvested. Subsequently, the farm was sold to satisfy the mortgage of Zina Cornell, the title passing to Cornelius Willet. The latter claimed that the growing crop passed to him on sale of the farm. His contention would be correct had the growing crop been a part of the real estate, for the administrator gets title only to personal property, and if the crop was real estate he would have had no title to convey to Sherman, and his prior sale to him Would have been a nullity. Sherman claimed that the crop was personal property passing to the administrator, so that a sale by the latter to him conveyed good title. Sherman brought suit against Willet to enforce his right to the crop under the administrator's sale.

Mr. Chief Justice Earl delivered the opinion of the court: "The crop of rye was personal property, and as such, passed to the personal representatives of Elmer Willet, to be applied and distributed as part of his personal estate, and the administrator had a right to sell it. Hence, there is no room for doubt, that the sale of rye to the plaintiff by the administrator was a valid and legal sale." Judgment was given for the plaintiff, Sherman.

Ruling Law. Story Case Answer

Annual crops, fructus industriales, are generally regarded as personal property, and, consequently, may be sold as any other personal property; and no writing is required, as is the case with natural fruits of the soil. Although annual crops are regarded as personalty, they pass with a sale of the land to the grantee, unless expressly reserved. Hence, as between mortgagor and mortgagee, a mortgage given by the owner of land will cover the growing crops upon the land mortgaged. Upon foreclosure of the mortgage, the crops go to the purchaser of the land. This is true, although the crops pass to the administrator should the mortgagor die before foreclosure.

In the Story Case, Mr. Homer was authorized to sell the personal property of the deceased. In husking and selling the corn, did he deal with personal or with real property? Corn is an annual crop peculiarly the fruit of human industry, and, therefore, regarded as personalty even though still attached to the soil. Mr. Homer may apply the funds to the Coe College endowment.