Babcock v. Hubbard

15 A. 791, 56 Conn. 284, 1888 Conn. LEXIS 19
CourtSupreme Court of Connecticut
DecidedJune 26, 1888
StatusPublished
Cited by2 cases

This text of 15 A. 791 (Babcock v. Hubbard) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Babcock v. Hubbard, 15 A. 791, 56 Conn. 284, 1888 Conn. LEXIS 19 (Colo. 1888).

Opinion

Pardee, J.

In February, 1872, Charles E. Babcock and his wife Lydia, plaintiffs, and Eben T. Starr and his wife Almira, whose interest is now in Ewen McIntyre, plaintiff, claiming that one George H. Penfield had procured from them by fraudulent representations a conveyance of their interest in certain valuable real estate in Hartford, which upon the finding constituted their entire property, employed Richard D. Hubbard, of the firm of Waldo, Hubbard & Hyde, as an attorney-at-law to institute and conduct such legal proceedings as should be necessary for the recovery of their estate. In that month he in their behalf brought a bill in equity to set aside the conveyance. Immediately thereafter negotiations for an adjustment of the controversy commenced, and the son of George H. Penfield made proposals for the purchase of the interests of all owners of the land, including the complainants in that bill. Thereupon E. E. Marey and his wife, owners of a part thereof, plaintiffs, retained Mr. Hubbard as an attorney-at-law to protect their interests.

The title of all these persons to the land was by devise from Dolly Babcock. Claims exceeding $20,000 in amount having been presented against her estate, it had been represented insolvent. Of these the devisees disputed many. At their request Mr. Hubbard spent much time and labor in resisting those which they deemed-unjust and in bringing the estate into a condition for division. As the outcome of these labors it was agreed between creditors, heirs and devisees, that the estate should be represented by the sum of [294]*294$50,000; that the debts should stand at $13.602.41; the balance to be divided among the heirs and devisees according to their respective rights.

These last agreed to sell, and Charles H. Penfield agreed to buy, their interests in the land, and secure payment by a mortgage thereof with other property. Mr. Hubbard advised the grantors to require from the grantee a separate note for, the share of each, all to be secured by one mortgage to a trustee to hold the title for the equal and common benefit of all, that there might be no opportunity for priority as between them. The grantors requested him and he consented to take and hold the title as trustee for such purpose. On or about April 29th, 1873, C. H. Penfield, having received a deed from the heirs and devisees, executed and delivered to him as such trustee the several notes required, and secured the payment thereof by his mortgage deed to him, as trustee, his successors and assigns, of an undivided three fourths interest therein. The terms and conditions of this trust were not expressed in the deed; neither was any written declaration of the trust ever made or asked for. But he held the notes in trust for the persons whose interests in the land they represented. With the exception of E. E. Marcy and wife, the persons for whom Mr. Hubbard was counsel were unable to pay him otherwise than from the proceeds of the notes.' They were anxious to convert their interest in the land into money, and accepted the notes because of their belief that they would readily sell in the market; and it was their understanding that he would be paid from the proceeds of such sale. The- notes were not sold; they matured in April, 1874, but remained unpaid. In May following Mr. Hubbard commenced proceedings for foreclosure . in September following, by consent of his clients, he granted an extension of one year to the mortgagor upon payment of $5,000. This sum he paid to his clients pro rata.

In June, 1875, he renewed proceedings- for foreclosure, and obtained a decree in October following. the time of redemption to expire in February, 1876. The mortgagor not redeeming, the title then became absolute m Mr. Hub[295]*295bard as such trustee. Thereafter, with the consent of his clients, he agreed to sell the interest thus acquired by him to the mortgagor upon present payment of $2,000, the balance in instalments. Mr. Hubbard paid the $2,000 to E. E. Marcy in reduction of a prior mortgage upon the property in liis favor. Charles B. Penfield made no further payments.

In September, 1876, E. E. Marcy commenced proceedings of foreclosure against C. B. Penfield, and Mr. Hubbard, trustee, as owners of an undivided three fourths thereof, and against W. J. Babcock and Catherine S., his wife, and Alfred E. Ely, a mortgagee, as owners of the remaining fourth. By decree of court the debt was'fixed, at $6,554, and tbe third Monday in May, 1877, was made the limit for redemption. Mr. Hubbard as trustee had no funds for redemption; the Babcocks, plaintiffs, had none; the Starrs, whose interest is now represented by the plaintiff McIntyre, had none. In January, 1877, at the request of Mr. Hubbard, his son, the defendant, bought the Marcy mortgage at a discount of two hundred dollars and took an assignment thereof. Mr. Hubbard at once gave notice of this purchase to C. E. Babcock, and offered the mortgage interest to him. He also asked Mrs. Marcy to repay her proportion of this sum, and made to her a partial statement, omitting interest and other items. Mrs. Marcy asked for a complete statement, promising to pay upon presentation thereof. Mr. Hubbard said he would advise her as soon as he could “get matters into proper shape for contribution.” He did not make the complete statement.

There being no redemption of the Marcy mortgage the title vested in W. D. Hubbard, subject to a prior mortgage to the State of Connecticut, which he subsequently paid from his own funds.

On or about the 17th "of September, 1878, Catherine S. Babcock, as the owner in fee of one fourth interest in the real estate, and Wells J. Babcock as tenant therein by the ■ curtesy, and Alfred E. Ely as a mortgagee thereof, brought their petition to the Superior Court in Hartford County, [296]*296showing that they had never been served with notice of the foreclosure proceedings instituted by E. E. Marcy, and asking for ieave to redeem. During the pendency of this petition, on May 17lh, 1879, W. D. Hubbard conveyed to R. D. Hubbard the premises included in the Marcy mortgage, and on the same day R. D. Hubbard gave him a memorandum check for $10,163.13, on which check he paid on August 25th, 1879, $7,000, and the balance on September 22d, 1879, with interest at the rate of five per cent, from the date of the check.

R. D. Hubbard thereupon intervened in the suit commenced by Catherine S. Babcock and others, before mentioned, and filed a cross-bill therein, and such proceedings were subsequently had that the court passed a decree allowing the petitioners to redeem the mortgage originally held by Marcy, but also decreed that if they did not pay to R. D. Hubbard the sum of $3,706.14, with interest from the 29th day of May, 1879, on or before the 27th day of July, 1879, they and each of them should be barred of all interest in the premises.

Neither Catherine S. Babcock, Wells J. Babcock, nor Alfred E. Ely, have ever paid that sum, and they have become barred of all rights' in the premises, and the legal title thereto became vested in R. D. Hubbard individually.

It is found that it was the understanding between the plaintiffs and Mr. Hubbard that the latter should be paid for services and disbursements from the proceeds of the property. No one offered to pay him or asked for a statement of his account before Charles E. Babcock’s request for it in September, 1880. His letter contained these paragraphs : “I merely want the amount due against the estate, including your bill. It will be necessary for me to have the items. I feel confident of making arrangements that will he satisfactory to all.” Mr.

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Bluebook (online)
15 A. 791, 56 Conn. 284, 1888 Conn. LEXIS 19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/babcock-v-hubbard-conn-1888.