Bahnemann v. Lehmann

193 N.W. 477, 49 N.D. 729, 1923 N.D. LEXIS 23
CourtNorth Dakota Supreme Court
DecidedApril 21, 1923
StatusPublished

This text of 193 N.W. 477 (Bahnemann v. Lehmann) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bahnemann v. Lehmann, 193 N.W. 477, 49 N.D. 729, 1923 N.D. LEXIS 23 (N.D. 1923).

Opinions

Statement.

Bronson, Ch. J.

This is an action to foreclose both realty and per[732]*732sonalty mortgages. Defendants have appealed from a judgment of foreclosure and have demanded a trial de novo.

The facts are: In 1917 Adolph Lehmann, a single man then aged thirty-one years, was possessed of some 800 acres of land in Stark county. There he was engaged in farming, cattle and sheep raising. He had considerable stock and machinery. On May 20th, 1917, he killed one Wetzstein. On May 22nd, 1917, he gave a mortgage upon his land to his counsel for $8,500. lie was arrested and confined in jail. 1 While there, on June 8th, 1917, he gave to plaintiff a bill of sale covering his horses, cattle, sheep, machinery, and household furniture situated on his farm, for a consideration of $9,000; also, a lease of the land from June 8th, 1917, to December 31st, 1919, for a consideration of $1,000; $500 payable immediately and $500 in November, 191S. The plaintiff is the brother-in-law of Adolph. Plaintiff’s mother married Adolph’s father. Plaintiff paid the consideration of $9,500 and took possession of the property. Later, in September, 1917, bail was fixed for Adolph at $20,000. His brother and plaintiff became his bondsmen. Adolph gave to them a mortgage upon the land to secure $20,000. Adolph was released from custody. Adolph went to Beach, North Dakota, and lived there most of the winter following. In January, 1918, after trial he was convicted of murder in the second degree and sentenced to serve twenty years in the penitentiary. After the trial he went to his farm where plaintiff was living and remained there a month or so. Plaintiff and Adolph had negotiations concerning the return or resale of the personal property so sold and concerning the cancelation of the lease. Adolph contemplated a period of about two years during which he might remain without the penitentiary, go back upon his farm, and rehabilitate his property interests. On March 18th, 1918, Adolph married his present wife whom ho had met while at Beach. On March 25th, 1918, Adolph and plaintiff signed a written agreement for sale of the personal property upon the farm including a threshing machine; also the cancelation of the lease, for a total” consideration of $24,000 to be secured by a mortgage upon the land and all personal property. 'Plaintiff therein agreed to assume the mortgage of $3,500 to Adolph’s counsel and a mortgage of $1,200 against the land. This agreement provided for execution of the papers on March 30th, 1918. On that day in a bank at Biohardton, North [733]*733Dakota, Adolph and his wife made ten promissory notes aggregating $24,430 payable, respectively, $1,430 and $3,000, on July 1st and November 1st, 1918; and $3,000 and $1,000, respectively, on July 1st and November 1st, 1919, 1930, 1921, and 1922. They made also a realty mortgage upon the land and a chattel mortgage upon the personalty to secure the same. On the same date they also made to plaintiff and Adolph’s brother another mortgage upon this land to secure $20,000, the amount of plaintiff’s bond for his freedom during the course of an appeal to the supreme court. After these papers were executed, plaintiff and his wife took possession of the farm and personalty; there they lived throughout the summer and in 1919. Plaintiff paid the mortgage to Adolph’s counsel and the $1,200 mortgage upon the land. Por a time and until about May 11th, 1918, he remained on this farm where Adolph and his wife were. Later he went to California. The notes that fell due in 1918 and 1919, as well as the interest upon the whole indebtedness at 10 per cent up to October 27 th, 1919, wore paid. On November 15th, 1919, this court affirmed the judgment of conviction rendered in the trial court. See State v. Lehman, 44 N. D. 572, 175 N. IV. 730. Later, Adolph became an inmate of the state penitentiary to serve his sentence. Subsequently, while a trusty, he escaped. His whereabouts, of course, are unknown. In 1920 the wife remained upon the farm. In 1921, it was in the possession of the wife’s tenant. Poor crops upon the farm resulted in 1919. No payments have been made upon the principal of the notes due sinee 1919 excepting two items amounting to $102.50. In June, 1921, this action of foreclosure was instituted.

An answer in behalf of Adolph and his wife was interposed which alleges that the notes and mortgages were given pursuant to an agreement to loan them $24,430 with interest at 10 per cent, of which they had received only $14,430; that plaintiff retained $10,000 as interest; that defendants are entitled to be relieved upon payment of $14,300 to plaintiff; that such agreement, furthermore, was executed for such amount, $24,430 with interest at 10 per cent, in order to secure plaintiff agáinst- any loss upon the bail bond and with the understanding that when defendants had paid $14,430 with interest at 10 per cent plaintiff would satisfy the mortgages and debt. Otherwise, the answer alleges relations of trust existing between the parties and fraud, duress, and [734]*734undue influence by plaintiff upon Adolph by reason of his arrest, conviction, and the necessity of having a bail bond. As a counterclaim the answer further demands double the amount of excess payments upon the ground that the transaction was usurious. Trial was had in the lower court in December, 1921.

Pursuant to the testimony of Adolph’s wife, when the notes and mortgage wore executed plaintiff agreed to satisfy the mortgage and debt upon payment of $14,430; that pursuant to an oral agreement, Adolph possessed the right to repurchase the personal property at the same price plaintiff paid therefor after allowing plaintiff 10 per cent interest on his money and $50 per month while he remained on the place. That, in addition, there was the agreement that plaintiff should assume the mortgage given to Adolph’s counsel and the mortgage on the land for $1,200; and that Adolph should pay for the threshing outfit $2,000.

There was also testimony to the effect that this deal was thus made to protect plaintiff upon the bail bond and Adolph against the greed of his counsel.

Pursuant to the testimony of Adolph’s brother, who had signed his bond, plaintiff told him that he had it fixed so that the lawyers could not get any more money from Adolph; that plaintiff, out of the personal property purchased, sold cattle, calves, and wool from the sheep receiving therefor substantial amounts.

Pursuant to the testimony of Adolph’s father, when the personal property was sold by Adolph to plaintiff,, plaintiff told Adolph he could buy tire property back at the same price plaintiff paid for it; that if plaintiff sold any of the property it would, accordingly, lessen the price therefor; that plaintiff further told him that the mortgage was for about $14,000; that when Adolph paid that amount he would remit the $10,000.

Another -witness testified to the effect that the plaintiff told him that Adolph had given him a note for $10,000 additional so that Adolph’s counsel could not get everything Adolph had.

Pursuant to the testimony of plaintiff, he bought this personal property only after inspection and consideration; it was a good deal. He had sold his farm and was planning on going away. .Tie cropped the land in 1917 and secured only 92 bushels of wheat; when Adolph came there after the trial, he was not anxious to sell, but Adolph was so anx-[735]*735ions to buy that he finally made a contract with him.

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

Related

State v. Lehman
175 N.W. 736 (North Dakota Supreme Court, 1919)

Cite This Page — Counsel Stack

Bluebook (online)
193 N.W. 477, 49 N.D. 729, 1923 N.D. LEXIS 23, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bahnemann-v-lehmann-nd-1923.