Butterfield v. Hungerford

26 N.W. 136, 68 Iowa 249
CourtSupreme Court of Iowa
DecidedDecember 21, 1885
StatusPublished
Cited by1 cases

This text of 26 N.W. 136 (Butterfield v. Hungerford) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Butterfield v. Hungerford, 26 N.W. 136, 68 Iowa 249 (iowa 1885).

Opinion

Adams, J.

I. The land, more particularly described, is N. of the N. W. ¿, and the N. 43 acres of the S. |- of N. W. ¿-, of section 5, township 87, range 40. Hungerford, it appears, never had the legal title to the property.. It seems to be agreed, however, that he purchased it of the Iowa Railroad Land Company, and became the equitable owner, and also that Hallam holds the legal title merely as security. It is agreed, also, that Hallam is a prior incumbrancer as to the entire tract covered by the plaintiff’s mortgage, except 21-|-acres, to-wit, the N. 21|- acres of the S. E. ¿ of the N. W. ¿ of the section. As to that, the plaintiff denies that Hallam has any lien at all, notwithstanding lieholds the legal title; whereas Hallam contends that he holds that as lie holds the remainder, and holds it all as security for his debt, and that his debt constituted the prior incumbrance. There is no question of priority, because it is not denied that ITallam is the prior incumbrancer as to the 21-J acres, if the same was understood to be embraced within his security, as he contends. The fact appears to be that Hallam, in January, 1882, loaned D. IT. Hungerford $1,100. Hungerford at that time held six contracts for deeds from the Iowa Railroad Land Company. The six contracts embrace the N. W. ¿ and the N. -J of the S. W. J of the section in question. He assigned all the contracts to Hallam. Afterwards, the Iowa Railroad Land Company being paid up, Hallam took from the company a [251]*251deed of tbe whole. It never was understood, however, that he was to hold all the land as security for the debt due from D. II. Ilungerford, as above set out; and the plaintiff claims that it never was understood that he should hold the 21-| acres in controversy as security for such debt.

The question is as to what the understanding was in that respect. There never would have been any difficulty, we think, but for the connection which one Cyrus Ilungerford had with the land. At the time of the purchase from the Iowa Railroad Land Company, D. II. Ilungerford took the six contracts, not for himself alone, but partly in trust for Cyrus Ilungerford, who was regarded, at least as between the two Hungerfords, as the owner of one-lialf. Whether he was at any time regarded as the owner of an undivided half does not appear. Certain it is that Cyrus became at some time the owner of the S. and D. II. of the N. each having 117 acres, two of the subdivisions being fractional. This was the condition of their ownership at the time the plaintiff took his mortgage from D. K. Ilungerford on the N. 117 acres, and Ilallam claims that this was the condition of their ownership at the time he first acquired an interest in the land. The plaintiff’s theory is that there was at one time a different division, by which the 21-J acres in controversy was not embraced in D. II. Ilnngerford’s part, but in Cyrus’ part; that such was the division at the time D. K. Hunger-ford’s indebtedness to Ilallam accrued, and at the time he undertook to give Hallara security; and that there was no understanding that Ilallam was acquiring security upon Cyrus Hungerford’s land for D. K.’s debt.

We are brought, now, to a consideration of the evidence upon this point. We have already seen that D. K. Hunger-ford, the plaintiff’s mortgagor, never had the legal title to any part of the land covered by the six contracts for deeds executed to him by the Iowa Railroad Land Oonqrany; but at the time he borrowed money of Ilallam he held the contracts, and he assigned them all to Hallara, and upon them [252]*252Ilallam obtained deeds. We may say, also, that the assignment of the contracts was made before the plaintiff took his mortgage. Prima facie, then, Ilallam, had a right in all the land. ITis case was made out by showing his title, (which, however was not disputed,) and the burden was upon the plaintiff to show that Hallam’s right was not co-extensive with his title, and did not, at the time of the trial, embrace the 21-| acres in controversy. The plaintiff relies for evidence upon the fact that three of the contracts purport to have been assigned by D. X. Hungerford to Hallam, December 3, 1881, which is claimed to be the date of Hallam’s loan to Cyrus, while D. X. Iiungerford’s loan from him was made about January 17, 1882. The plaintiff asks us to infer that the contracts purporting to be assigned in December -were understood to belong to Cyrus, and not to D. X. Now, one of these contracts assigned in December embraced the 21-| acres in controversy, and so it is said that Hallam did not acquire a lien upon that land for D. X.’s debt. But to our mind the plaintiff’s inferences are far-fetched, and not sufficient to sustain his position. The 21-| acres in controversy are embraced in the S. E. ¿ of the N. W.of the section. Now, suppose it is true, as the plaintiff claims, that the contract for that forty was assigned to Ilallam by D. X. at the time of Ilallam’s loan to Cyrus, that does not constitute any reliable evidence that the whole forty was regarded at that time as belonging to Cyrus. This was one of the two middle forties. If none of the subdivisions had been fractional, there would have been in the six forties 210 acres. Cyrus and D. X. would each have had 120 acres; and the division line between them, if so drawn as to give D. X. the N. and Cyrus the S. -J-, would have been drawn east and west through the middle of the two middle forties. But the north two subdivisions were fractional and diminutive. A division of the whole land, therefore, into N. -J and S. required that the division line should be run south of the middle of the two middle forties, and so that 21i| acres or each forty should [253]*253fall in the N. or D. K. ITungerford’s half, and eighteen and one-half acres of each forty should fall in the south, or Cyrus Hungerford’s half.

It is conceded, then, that Cyrus owned at least a part of that one of the middle forties which embraces the twenty and one-lialf acres in controversy. We think the fact is that he owned eighteen and one-half acres in each of the middle forties, just as it is conceded that he did afterwards. That division gave him precisely one-half in quantity, and in a regular form, and the evidence shows that it was one-half in value. But the point to be considered just here is that he owned at least a portion of the forty which embraced the twenty-one and one-half acres in controversy. The understanding was that he should give such security as he could upon his portion of the land. It is conceded that he owned the entire two south forties, and D. K., the holder of the contracts, was called upon to assign to Hallam the contracts for those two forties, which he did. But those two did not embrace all of Cyrus’ land. If he owned, as we think he did, the south eighteen and one-half acres of each middle forty, the problem as to how Hallam should be given the security to which he was entitled was not one of entirely easy solution. The Iowa Railroad Land Company was not bound to receive pay upon a part of a forty, and convey it to one claiming to be assignee of part of a contract. Now, what did they do? Ilallams’s testimony upon the point is in these words: “Cyrus gave me, as security, his contracts for the N. -| of the S. W. and S. -J- of the N. W. Taking this testimony to be true, Hallam acquired as security for his loan to Cyrus four contracts, to-wit, contracts for the south two forties and for the middle two forties. But, according to the dates of assignments, it would appear that only three contracts were assigned at the time of the loan to Cyrus, and for the purpose of the opinion, it may be conceded that that was all.

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Bluebook (online)
26 N.W. 136, 68 Iowa 249, Counsel Stack Legal Research, https://law.counselstack.com/opinion/butterfield-v-hungerford-iowa-1885.