American Inv. Co. v. Brewer

1918 OK 741, 181 P. 294, 74 Okla. 271, 1918 Okla. LEXIS 228
CourtSupreme Court of Oklahoma
DecidedDecember 24, 1918
Docket8778
StatusPublished
Cited by7 cases

This text of 1918 OK 741 (American Inv. Co. v. Brewer) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Inv. Co. v. Brewer, 1918 OK 741, 181 P. 294, 74 Okla. 271, 1918 Okla. LEXIS 228 (Okla. 1918).

Opinion

Opinion by

STEWART, C.

David II. Spain is a minor Indian owning certain lands situated in Stephens county: Thomas H. Spain being his guardian. On application for order of the county court the guardian sold the land of the minor to B. L. Brewer, $2,000 being the consideration, $1,100 of which was to be cash, the remainder to be secured by mortgagei against the land. The guardian made his report to the court, and the sale was approved, and guardian’s deed executed. The evidence shows that B. L. Brewer was without funds, and that, by arrangement with the guardian before he paid the cash consideration, the guardian’s deed was executed and the land was mortgaged by Brewer to the American Investment Company to secure a loan of $1,100, and what is known as a commission mortgage was executed as a part of the same transaction to C. E. Caret to secure two notes of $165 each, said commission mortgage being second to the mortgage made to the American Investment Company; that afterwards O. E. Cartt transferred the commission mortgage' to> the American Investment Company. The $1,100 was paid to the guardian, and a third mortgage given to secure the minor for the remainder of- the purchase price. It does not appear that the court made investigation of the facts at the time of approving the sale and transfer, but granted relief upon the representations of the guardian in the return of the sale which showed the payment of the cash consideration and proper security for the unpaid part. On failure to pay the notes secured by the commission mortgage when due, the American Investment Company brought foreclosure action on the commission mortgage, alleging in the petition that . the first mortgage for $1,100 had been trans- , ferred by the company and was not at the time owned by the plaintiff; a foreclosure of the commission mortgage only being asked. T« B. Reeder was appointed guardian ad litem for the minor, and appeared and filed answer and cross-petition setting up necessary facts showing collusion and fraud between the guardian of the minor, the American Investment Company and B. L. Brewer, .•the purchaser, of .the land, and asking that :.$11 mortgages against the land be canceled and all cloud be removed from the minor’s title to the same, also praying in the alternative that the mortgage made for the purpose of securing the unpaid purchase price coming to the minor be declared superior to all mortgages and liens against the land, and that the same be foreclosed. Upon a trial being had, the court ordered that the. title and possession of the premises be settled and quieted in the minor as against any and all claims or demands of the plaintiff and other defendants who had been made parties and those claiming under them; that the guardian’s deed, the commission mortgage, and all other deeds or- documents be canceled and removed as clouds upon the title of the minor; that the American Investment Company and those claiming by, through, or under it and the defendants and each of them, and those claiming through, by or under them, or either of them, be perpetually enjoined from claiming any right, title, interest, or estate in and to the land adverse to the minor, from which judgment the plaintiff duly appeals to this court, and as grounds for reversal urges the following propositions:

“First. The judgment is void for the reason that said court had no jurisdiction of the particular matter which the judgment professed to decide.
“Second. The fact that the prayer to the answer of said defendant prayed that plaintiff’s mortgages and certain deeds through which it claims be canceled as clouds upon his rifle did not warrant the court in canceling the same.
“Third. The validity o'f the guardianship sale cannot be attacked in this proceeding.”

Under the first proposition the plaintiff in error urges that the court had no jurisdiction to render the particular judgment for ihe reason that the same was entirely outside the issues in the case; in other words, that the pleadings were not sufficient to authorize the court to render the particular judgment. Our attention is called to Standard Savings & Loan, Association v. Anthony Wholesale Grocery Company, 62 Okla. 242, 162 Pac. 451, L. R. A. 1917D, 1020; Jefferson v. Gallagher, 56 Okla. 405, 150 Pac. 1071; Sharp v. Sharp, 65 Okla. 76, 166 Pac. 175, L. R. A. 1917F, 562; Rogers, Treasurer, et al. v. Duncan, 57 Okla. 20, 156 Pac. 678; Rogers v. Bass & Harbour Furniture Co., 47 Okla. 786, 150 Pac. 706; Anglea v. McMaster et al., 17 Okla. 501, 87 Pac. 660, Choi v. Turk et al., 55 Okla. 499, 154 Pac. 1000; 23 Cyc. 683.

... The second proposition is necessarily embraced in ithe first, being argumentative and merely meant to suggest that, as the issues *273 joined did not authorize the particular judgment, the prayer could not cure the failure to make necessary allegations. There is no doubt about the soundness of the authorities presented nor of the abstract proposition of law urged by plaintiff in error, but, on an examination of the pleadings in the ease, we find that the facts showing the fraud have been sufficiently pleaded, and that the allegations have been sustained by the proof. The relief sought being equitable, it was therefore the duty of the court, under the pleadings and the proof, to render such judgment as would adequately protect the injured minor,, at the same time doing equity between the parties. As to the third proposition, that the validity of the guardianship sale cannot be attacked in this proceeding, we desire to say that the rule of law which-the plaintiff in error seeks to invoke does not apply' to a proceeding to set aside a sale or cancel instruments affecting the title of land on the ground of fraud, and that upon a proper showing such relief may "be--ha'd whether the fraud is in connection with a guardian's sale approved ’ by the court or otherwise. The, thing necessary to be determined is whether or'not there was fraud in the sale, and. if fraxid was. perpetrate#, the fact that it has the ‘appearance of judicial sanction does not affect the right of the defrauded person to equitable relief.

The American Investment Company and all other persons' dealing with the land in question were charged with notice of the probate proceedings which showed that the rninor’s land w.as sold partly for cash ánd partly on 'time and a.re also presumed., ito kno-w and, are charged. with notice of tíáe law as to guardianship sales. The statute which applies - is section 6567, Rev. Laws 1910,-which .reads

“All sales of real estate of wards must'be for cash, or. for part cash and part deferred payments, not to exceed three years, bearing date from date of sale, as, in the discretion of-'the county judge, is most beneficial ’to the ward. Guardians making sales must demand and receive from the purchaser-a bond and mortgage on the real estate sold, with such additional security as the, judgej deems necessary and sufficient to secure the faithful payment of ,the deferred payments' and the interest thereon.”

,,,; As -(ye construp su$i statute/it is necessary that a cash, payment’ be' ma.'d.e and 'tliat itlie balanee.be secured by a first mortgage ,on the land with such additional security as ‘the county judge may deem sufficient. While 'the Statute,,dops nothin it^ terms,, r.pqpire a 'first mortgage on the land, it. wouíd'be’un-reasonable to hold that the Legislature 'had any other, intent. , It would also be violative of the.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Gomes v. Hameed
2008 OK 3 (Supreme Court of Oklahoma, 2008)
Sapp v. Warner
144 So. 481 (Supreme Court of Florida, 1932)
Critchlow v. Bacon
1930 OK 72 (Supreme Court of Oklahoma, 1930)
Kelly v. Scott
1927 OK 171 (Supreme Court of Oklahoma, 1927)

Cite This Page — Counsel Stack

Bluebook (online)
1918 OK 741, 181 P. 294, 74 Okla. 271, 1918 Okla. LEXIS 228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-inv-co-v-brewer-okla-1918.