Addison v. Wilson

37 S.W.2d 7, 238 Ky. 143, 1931 Ky. LEXIS 200
CourtCourt of Appeals of Kentucky (pre-1976)
DecidedFebruary 3, 1931
StatusPublished
Cited by14 cases

This text of 37 S.W.2d 7 (Addison v. Wilson) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky (pre-1976) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Addison v. Wilson, 37 S.W.2d 7, 238 Ky. 143, 1931 Ky. LEXIS 200 (Ky. 1931).

Opinion

Opinion of the Court by

Judge Willis

Reversing.

L. D. Addison and his wife, Alice S. Addison, sued Leonidas Wilson and wife, Wm. A. Fleming and wife, W. H. Brown and wife, R. R. Houston and wife, and the Breckenridge Bank of Cloverport, seeking to secure equitable relief. Wilson, by answer and counterclaim, sought to obtain certain relief against the Addisons. The circuit court dismissed the action of the plaintiffs, and granted in part the relief sought by Wilson. The plaintiffs have prosecuted an appeal. A full statement of the facts is necessary to a fair understanding of the case.

It appears that a written contract, dated September 24, 1928, was-executed by Wilson and Addison, and -witnessed by Brown and Houston. It provided for an exchange of properties.

Wilson agreed to transfer to Addison 126 lots in Dayton, Ohio, free of all incumbrances, except a blanket mortgage for $23,000, and the taxes and assessments due and payable in December, 1928, and thereafter. Addison agreed to exchange for the lots his farm of 243 acres situated in Breckenridge county, free of all incumbrances, except taxes due and payable in December, 1928. The contract covered also the crops, chattels, farm ma'chinery, horses, and mules, all hogs, shoats, and poultry, and ail improvements, including the machinery in a flour mill, all of which were to go with the farm to Wilson.

Wilson further agreed to purchase at the invoice price a stock of goods then in Addison’s store, located on *145 the farm. The invoice was to be taken by two persons, one to be selected by, and to represent, each of the parties. The invoice was to be based upon current market values. Wilson covenanted in the contract to pay in part for the stock of goods by a second mortgage for $10,000, bearing 7 per cent, interest, payable in eighteen months, upon a garage building in Dayton, Ohio. The first mortgage thereon was for $13,500, and it was recited in the contract that it would be due in eighteen months from the date of the deal. The excess of the invoice price of the stock of merchandise, above the $10,000 represented by the second mortgage, was to be paid by Wilson in cash. The deeds of exchange of the lands and bills of sale for the personalty were to be passed within two days from the date of the contract. The invoicers were to be selected not later than three days from the day of the deal.

The bill of sale for the stock of goods and the second mortgage for $10,000 were to be put in escrow. The contract closed with the statement: “Both parties to this contract are making this deal after seeing and inspecting all property involved therein.”

A deed dated September 24, 1928, from William A. Fleming and Ella Fleming, his wife, to L. D. and Alice S. Addison, purported to convey 126 lots described by number and by reference to the revised plat of the city of Dayton, Ohio. The signatures of the Flemings to the deed were witnessed by W. H. Brown and Charles Johnson, and it was acknowledged before Wm. W. Rosson, a notary public of Hamilton County, Ohio. The deed was lodged for record on October 13, 1928, and recorded two days later.

A note for $10,000, dated at Indianapolis, Ind., September 25, 1928, payable on or before eighteen months after date to L. D. Addison and Alice S. Addison, with interest at 7 per cent., payable semiannually bore the names “William A. Filming” and “Ella Fliming.” The signatures to the note are not witnessed. A mortgage from “William A. Fleming and Ella Fleming, his wife,” to L. D. Addison and Alice S. Addison to secure the sum of $10,000, covering the garage property in Dayton, Ohio, and bearing date of September 25,1928, was signed with the same names and the same erroneous spelling as appeared on the note. It was witnessed by Henry Miller and “Laura Whie,” and acknowledged before “R. L. Mosley,” a notary public of Marion county, Ind. *146 It was lodged and recorded on the same dates as was the deed from the Flemings to the Addisons. It developed that the notary’s name was also misspelled, and the name of the witness, Laura Whie, is a peculiar one, unless it was intended for “Laura White,” in which event it also was misspelled.

A deed from Irene Mae Wilson and her husband, Leonidas Wilson, to Wm. A. Fleming, bearing date August 10, 1928, purported to convey the same garage property covered by the mortgage from the Flemings to the Addisons. The deed is on a printed form, and the blanks and the description are filled in script. The handwriting, apparently, is that of Leonidas Wilson. The signatures are witnessed by W. H. Brown and James Jackson, and the acknowledgement is certified by “R. L. Mosley,” a notary public of Marion county, Ind. The notary’s name was again misspelled. The certificate is also dated August 10, 1928, but the deed was not lodged for record until October 26, 1928. It was recorded three days after it was lodged.

The Addisons on September 26, 1928, conveyed to Leonidas Wilson the Breckenridge county farm mentioned in the contract, and executed a bill of sale for the personalty. When the transaction was about completed, Houston claimed that he had been acting as agent for the Addisons, and induced L. D. Addison to give him several notes aggregating $3,100 to compensate him for his services. The amount was arrived at by calculating a commission of 5 per cent, upon an assumed value of $62,-000, which was represented to Addison to be the amount received by him in the exchange.

The Breckenridge Bank of Cloverport was alleged to have some interest in the personal property granted to it by Leonidas Wilson, subsequent to the transfer of the Addison property to him.

When the invoice of the stock in the store was completed, it was turned over to the defendants, and Wilson paid Addison $200 by check and gave a promissory note for $615, due in ninety days. The total invoice price of the merchandise in the store exceeded by $815 the amount of the second mortgage executed by the Flemings.

This action was filed on November 2,1928, to rescind the entire transaction, to cancel all deeds, notes and transfers, and to -restore to the respective parties the properties exchanged.

*147 The pleadings are voluminous, but, reduced to their essence, they present a claim of conspiracy on the part of the defendants to defraud the plaintiffs of their property by means of falsehood, misrepresentations, concealment, and persausion, and its complete accomplishment and full consummation. Wilson counterclaimed that he had been defrauded in two particulars. The first claim was that a small-tract of land included in the contract had been omitted from the deed, and the other was that the invoice price of the stock of goods had been padded to the extent of $1,189. He sought recovery of the $200 cash payment and cancellation of his $615 note. He sought to recover also the sum of $374, by which sum Addison’s mortgage from Fleming exceeded the actual invoice price of the stock of goods. The circuit court, as already stated, dismissed the action of the Addisons, and granted Wilson relief to the extent of canceling his note for $615 to Addison, and rendering a judgment against Addison for the items of $200 and $374. Wilson was denied the right to recover the small tract of land which was not included in the contract or the deed.

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Cite This Page — Counsel Stack

Bluebook (online)
37 S.W.2d 7, 238 Ky. 143, 1931 Ky. LEXIS 200, Counsel Stack Legal Research, https://law.counselstack.com/opinion/addison-v-wilson-kyctapphigh-1931.