Benton v. Albuquerque National Bank

701 P.2d 1025, 103 N.M. 5
CourtNew Mexico Court of Appeals
DecidedJune 14, 1985
Docket7849
StatusPublished
Cited by16 cases

This text of 701 P.2d 1025 (Benton v. Albuquerque National Bank) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Benton v. Albuquerque National Bank, 701 P.2d 1025, 103 N.M. 5 (N.M. Ct. App. 1985).

Opinion

OPINION

DONNELLY, Chief Judge.

Plaintiff, T. Bruce Benton, appeals from a judgment pronouncing that he owned no legal interest in an apartment building and had no right to any of its profits or rents. Two issues are presented on appeal: (1) failure to find that plaintiff was vested with a valid assignment of a partnership interest; and (2) error in allowing testimony of witnesses undisclosed to plaintiff before trial. Resolution of the first issue renders discussion of the second issue unnecessary. Reversed and remanded.

FACTS

On June 13, 1949, J.T. Benton (plaintiffs father) and Isobel M. Súber, a single woman, entered into a written partnership agreement involving an apartment building located on Coal Avenue in Albuquerque. The land referred to in the partnership agreement had been initially conveyed by warranty deed from third parties to Súber as sole named grantee on December 21, 1948.

The apartments were jointly purchased by J.T. Benton and Súber. The partnership agreement recited in part:

1- It is mutually agreed that the intire [sic] property located at 1701 East Coal Avenue, including furnishings of apartment number one (1) and apartment number two (2) has cost the sum of twenty-two thousand, one hundred twenty-seven dollars. ($22,127.00)
2- It is further agreed that J.T. Benton has paid his share in full in the amount of eleven thousand-sixty-three dollars-fifty cents ($11,063.50) and that Isobel M. Súber has paid the amount of one thousand-one hundred forty-one dollars (1141.00)[.]

The partnership agreement also provided that Súber could live in one apartment rent-free in exchange for managing the apartments, and that all income from two of the apartments would be used to liquidate an outstanding $10,000 mortgage on the property. The agreement further specified that “[i]t is also agreed that at the time the [$10,000 mortgage] loan is liquidated * * * the partners shall share and share alike in the ownership of said property and in all further income derived from rents of same."

On October 11, 1956, J.T. Benton sought to assign his interest in the partnership to plaintiff, by writing on the front page of the partnership agreement:

Assigned to Bruce Benton 10/11/56- In case of my death, Isobel Súber may liquidate this partnership by paying $10,000 in addition to the $10,000 mortgage which was later made on this property.
Signed J.T. Benton

J.T. Benton and Isobel Súber married on September 21, 1957. Thereafter, on February 25, 1959, plaintiff’s father executed and delivered a quitclaim deed to Súber, purporting to convey his interest in the apartment building and lot.

J.T. Benton died on March 14, 1968, leaving as his survivors, his wife, Isobel Súber, and two children by a prior marriage, plaintiff and Elizabeth Cashion. Plaintiff petitioned the probate court in Bernalillo County for letters of administration in his father’s estate and presented a holographic will authored by J.T. Benton and dated October 11, 1957. The will was signed by decedent and duly witnessed by two persons. The will was admitted to probate and decedent’s estate was duly settled. Decedent’s will provided in applicable part:

(1) whereas I am the owner and holder of a first lien mortgage of the sum of $10,000 upon the apartment house * * * owned by my beloved wife Isobel Súber Benton as her separate property, I wish said $10,000 to go to and be the sole property of the said Isobel Súber Benton.

Subsequently, on June 6, 1968, plaintiff recorded the original copy of the partnership agreement with the Bernalillo County Clerk. The agreement included the handwritten assignment to plaintiff. Several years later, on October 31, 1980, Súber sold the apartment building- to defendants Frank R. Stubbs and Robert P. Friggens under a real estate contract. On January 26, 1982, Súber assigned the real estate contract to the Albuquerque National Bank directing that it hold the contract and all its proceeds in trust on her behalf. Súber died a few months later on July 30, 1982.

The trial court in the present case adopted findings of fact and conclusions of law determining that plaintiff had no interest in the realty or its profits. The court’s findings inter alia provided:

1. That in 1949, as evidenced by plaintiff’s Exhibit 43, J.T. Benton and Isobel Súber entered into a partnership covering the property involved in this lawsuit.
2. That the terms of the partnership between Isobel Súber and J.T. Benton are clear and self-explanatory, as shown in plaintiff’s Exhibit 43.
3. That even though the property in this lawsuit was carried of record in the name of Isobel Súber, it was the property of the partnership between J.T. Benton and Isobel Súber formed on or about June 13, 1949.
4. That the property involved in this matter is * * * commonly known as 414 South Pine or 1701 East Coal.
5. That Isobel Súber and J.T. Benton were equal partners and had equal rights to ownership of such property by virtue of the partnership agreement.
* * * * * *
7. That the assignment dated October 11, 1956, was duly notarized on October 11, 1956, [and] such acknowledgement * * * placed on the reverse side of [partnership agreement and assignment] Exhibit 43.
* * * * * *
12. That Isobel Súber gave no value for the quitclaim deed given to her on February 25, 1959, by J.T. Benton.
20. That in 1980, Isobel Súber sold the property involved in this matter to defendants Stubbs and Friggens * * *.
21. That the entire world, including Isobel Súber and defendants Stubbs and Friggens, had constructive notice subsequent to June 6, 1968, of the mutual partnership agreement and its assignment in 1956 to T. Bruce Benton.
22.That defendants Stubbs and Frig-gens made no efforts prior to their purchase of the property involved in this action to ascertain from public documents if Isobel Suber’s claim that she owned the property free and clear was valid.
24. That a routine title search, as shown by Exhibits 41 and 42, would have revealed or disclosed the mutual partnership agreement and 1956 assignment thereof, recorded in 1968.
28. That T. Bruce Benton had no knowledge that Isobel Súber had sold this property until shortly before or shortly after her death in 1982.
29. That Bruce Benton was obligated to advise Isobel Súber of the options given to her to liquidate the partnership, that Bruce Benton did not do so.
30.

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Cite This Page — Counsel Stack

Bluebook (online)
701 P.2d 1025, 103 N.M. 5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/benton-v-albuquerque-national-bank-nmctapp-1985.