Brach v. Moen

4 F.2d 786, 1925 U.S. App. LEXIS 3090
CourtCourt of Appeals for the Eighth Circuit
DecidedMarch 14, 1925
DocketNo. 6650
StatusPublished
Cited by5 cases

This text of 4 F.2d 786 (Brach v. Moen) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brach v. Moen, 4 F.2d 786, 1925 U.S. App. LEXIS 3090 (8th Cir. 1925).

Opinion

KENYON, Circuit Judge.

This is an appeal on the part of Edwin J. Brach (other defendants not joining therein) from a decree of the United States District'Court of the Northern District of Iowa, made and entered September 11, 1923. The ease was commenced in the district court of Monona county, Iowa, January 24, 1922, by E. C. Moen against Richard Powers, Elmer E. Brach, Edwin J. Braeh, George W. Stewart, C. A. Moore, and George W. Stewart Company, residents of Chicago, Illinois, to cancel and set aside a certain contract alleged to have been made between Richard Powers and Elmer E. Braeh, party of the first part, and E. C. Moen, party of the second part, and to set' aside and cancel certain deeds given by E. C. Moen and his wife to Edwin J. Brach, covering two certain tracts of farm lands situated in Monona county, Iowa, in one of which his brother, Ole A. Moen, had an interest, and with his wife joined in the deed thereto. The petition alleged that the contract and deeds had been secured by fraud and false representation, and prayed a writ of attachment against the property in Monona county formerly owned by the plaintiff, Moen, and transferred to defendant Edwin J. Brach. The ease was removed to the United States District Court by defendants. The- bills and answers were numerously amended in that court, and after the submission of the case plaintiff was permitted to amend his bill to conform to the proof, and defendant Edwin J. Brach was granted permission to introduce additional evidence.

The facts are complicated and as abundant as the pleadings. Prior to the making of the contract and transfer of the properties involved, appellee was the owner of two tracts of land near Onawa, Iowa, which were free of incumbrance, in one of which his brother, Ole A. Moen, had an interest. One of the tracts contained 320 acres and the other 165 acres.

Mrs. Aurora C. Upton and Mrs. Emily Upton Brach, her daughter, were residents of the city of Chicago, and were the owners of certain property therein, consisting of three apartment houses. Mrs. Upton’s property .was known as the Rokeby street property. It was heavily incumbered with mortgages. Mrs. Braeh was the owner of two buildings, known as the Pine Grove property and the Barry avenue property, also heavily incumbered with mortgages. Mr. George W. Stewart was a real estate agent and operator in the city of Chicago, having in his employ Richard Powers and C. A. Moore, defendants in the trial court, and also a Mr. [787]*787Blair and a Mr. Williams, and others, who acted for him in his various real estate deals. Defendant Edwin J. Brach was the agent of his wife, Mrs. Emily Upton Brach, and Mr. J. G. Upton, son of Mrs. Aurora C. Upton, and brother of Mrs. Emily Upton Brach, represented both Mrs. Brach and Mrs. Upton as broker in the sale of the properties. Later he was agent for appellee, and trustee for his mother. Mrs. Upton was also represented by her husband, Abraham L. Upton, in the various transactions antedating this case.

George W. Stewart in April, 1921, entered into written contracts to purchase from Mrs. Upton and Mrs. Brach their equities in these three pieces of property. He paid $1,000 down on each one, which left approximately $19,000 to be paid Mrs. Upton and $38,-000 to be paid Mrs. Brach. Mrs. Upton had on her property a first mortgage of $145,-000, on which $7,500 had been paid, and before the consummation of the transaction with appellee placed another mortgage thereon of $70,000. Mr. Stewart was to take Mrs. Upton’s property, known as the Rokoby street property, at a valuation of $227,-500, subject to mortgages in the sum of $207,500, and the contract was made between her and Robert W. Blair, one of Stewart’s employes. Mrs. Brack’s two properties were subject to heavy mortgages; she having a claimed equity of $20,000 in each. They were known, respectively, as the Barry avenue property and the Pine Grove property. On the Barry avenue property there was a first mortgage of $125,000, a second mortgage of $75,000, and by the written agreement with Stewart of .April 9,1921, he was to pay $20,-000, and give a purchase-money mortgage for $25,000, making the consideration for this property $245,000. This contract was made in the name of Fred J. Williams (one of Stewart’s employes), who later assigned Ms right to Robert W. Blair (another employe).

The Pine Grove property was incumbered by a first mortgage of $142,500, and a second mortgage of $70,000 was to be placed thereon by Mrs. Brach. By the written agreement of April 13, 1921, signed by both Stewart and Robert W. Blair, it was agreed to pay $232,500 for said property—$1,000 down $19,000 cash on consummation of the agreement, and the assumption of the mortgages. Blair’s interest was later assigned to one Powers (another employé of Stewart). In two of the contracts it was provided that J. G. Upton was to have the management of the building and collect the rents for an adequate compensation.

When the time for payment arrived Stewart was unable to pay the amounts he had agreed to pay. Through the instrumentality of acquaintances of' Stewart in Sioux City, Iowa, appellee was placed in contact with Stewart and went to Chicago for the purpose of seeing him with relation to trading his farm lands for some income-producing property. He was shown by Stewart or his men the three pieces of property before described belonging to Mrs. Upton and Mrs. Brach, for the purchase of which Stewart had the written contracts in the names of his employes. Certain representations were made to appellee by Stewart as to the Rokeby street apartment building, its value, condition as to decorations and repairs, the income therefrom, and the rentals and expenses, and on the strength thereof he entered into a contract, supposedly with defendants Brach and Powers, the same purporting to be executed by Elmer E. Brach, by Richard Powers. (No Elmer E. Brach was known to the parties. He evidently intended to sign the name of the husband of the owner, which was Edwin J. Brach, the appellant.) By the terms of this contract Moen agreed to com vey to Powers and Brach the two farms, hereinbefore referred to, containing 485 acres, free of incumbrance, in exchange for said Rokeby street apartment buildings, subject to the mortgage incumbrances in the amount of $207,500, due in four years, at 6 per cent, per annum. Under the terms of that contract Moen was not required to assume said mortgage indebtedness. The contract was made subject to inspection of the farm lands and acceptance thereof.

Stewart, not being able to make the payments to Mrs. Upton and Mrs. Brach, provided by the contracts, aggregating the sum of $19,000 less certain adjustments to Mrs. Upton, and $38,000 less certain adjustments to Mrs. Brach, arranged through J. G. Upton, broker for Mrs. Upton and Mrs. Brach, to have them take the lands of appellee, Moen, in lieu of what Stewart was to pay them. Stewart during these transactions represented himself to appellee as the agent of Brach. Before the final completion of the matter, Mr. Abraham L. Upton (husband of Mrs. Aurora C. Upton) and Mr. Edwin J. Brach, representing Mrs. Upton and Mrs. Brach, went to Iowa and inspected the lands, and upon their return recommended to these ladies that they accept the lands in lieu of the amount Stewart was to pay them in cash for their properties, and the matter was so [788]*788arranged. Mrs. Upton made the deed of her property, as arranged by Stewart,' direct to Ed. C. Moen, his brother Ole A. Moen, Harold It. Moen, and Belle R. Moen. Appellee Moen, and his wife, in pursuance of the arrangement, made a deed (in which his brother and wife and Harold R. Moen joined) of the' lands direct to Edwin J.

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Bluebook (online)
4 F.2d 786, 1925 U.S. App. LEXIS 3090, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brach-v-moen-ca8-1925.