Johnson v. Nelson
Annotate this CaseChad Johnson and Stewart Minnick entered into an agreement whereby Johnson would purchase farmland he had been renting from Minnick and Minnick’s sister after Minnick’s death. The purchase price of the farmland was to be funded by an insurance policy owned by Johnson on Minnick’s life. After Minnick died, the insurer paid the policy proceeds to Johnson. Johnson tendered the the proceeds of the policy to the personal representative of Minnick’s estate, but the personal representative refused to convey the farmland. Johnson brought this action for specific performance and other relief. The district court concluded that the purchase agreement was unenforceable. The Supreme Court affirmed but under different reasoning from that of the district court, holding (1) the purchase agreement was not specifically enforceable as a matter of law because Johnson lacked an insurable interest in Minnick’s life; and (2) Johnson’s claim for damages was time barred.
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