Chatterton v. Luker

158 P.2d 809, 66 Idaho 242, 1945 Ida. LEXIS 133
CourtIdaho Supreme Court
DecidedMay 1, 1945
DocketNo. 7220.
StatusPublished
Cited by11 cases

This text of 158 P.2d 809 (Chatterton v. Luker) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chatterton v. Luker, 158 P.2d 809, 66 Idaho 242, 1945 Ida. LEXIS 133 (Idaho 1945).

Opinion

MILLEB, J.

This case discloses that on October 20, 1939, Mrs. Chatterton, the respondent, acquired the title to Lot 6 and the Southerly half of Lot 5 of Block 213 of Pocatello Townsite, Idaho, from the heirs of a Mr. Hastie, deceased. For about two years prior to his death Mr. Hastie, a widower and an invalid, who died about October 16, 1939, had occupied one of the rooms of the house on the property and had boarded with and was cared for by Mrs. Chatterton. It was to repay her for her services in caring for Mr. Hastie that his heirs conveyed the premises to her. At the time Mrs. Chatterton acquired the property there was a mortgage thereon for $1000.00, long past due, and demand was made that she pay the same, together with collection, charges of $125.00, later reduced to $75.00 Immediately after demand for the payment of the mortgage and collection charges, Mrs. Chatterton solicited various real estate firms, loan agencies, banks and individuals in an attempt to negotiate a loan on the property to obtain money with which to pay off the existing mortgage, but seemingly without success. For upwards of eighteen to twenty years previously, she and her husband, during his lifetime, and the appellants had been and were close per *245 sonal friends. About the 27th of December, 1939, Mrs. Chatterton, who up to that time had been unsuccessful in negotiating a loan, called on Mr. Luker, one of the appellants, and stated her needs and requested his assistance. There is evidence that she was hard pressed and that her failure in securing the needed loan was not so much because of inadequate security, but more particularly because she was a widow, and it was not until she had exhausted every recourse known to her that she applied to Mr. Luker to assist her in securing the loan and to prevent foreclosure of the mortgage. It is evident that at the outset Mr. Luker made some effort to render her the needed assistance without thought of becoming the bona fide owner of the premises. This is manifest from the fact that he went with Mrs. Chatterton to see various people and concerns in soliciting the loan, among others being Aletha Packard, who came to the place and looked the property over, but declined to make the loan and observed, in substance, that she wouldn’t make the loan to either Mrs. Chatterton or to Mr. Luker. It is apparent that at the time they talked with Aletha Packard they tried to interest her in making the loan to Mrs. Chatterton, but failed in that respect; they then sought the loan in the name of Mr. Luker, and she refused to make the loan to either of them. It is somewhat difficult to determine from the record the definite date that respondent and appellant Luker decided that the property should be deed to him in order to place him in a better position to negotiate and secure a new loan.

On January 5, 1940, Mrs. Chatterton, accompanied by Mr. Luker, went to the office of Mr. Black and Mrs. Chatterton executed a deed as grantor to Mr. Luker as grantee. The deed was not delivered until January 12, 1940. It is the oral agreement, if any, alleged to have been made by Mrs. Chatterton and Mr. Luker that constitutes the gist of this action. Reference to the complaint by Mrs. Chatterton, plaintiff and respondent, against Luker and wife, defendants and appellants, filed June 8, 1943, furnishes the best means of determining the nature of the agreement as alleged by her, and wherein it is shown that ever since October 20, 1939, she had been and still is the owner in fee simple of the real property hereinbefore described; that on or about January 5, 1940, she made, executed and delivered, as grantor, to Lorenzo Luker, one of the appellants, as grantee, a warranty deed, conveying said real *246 property, dated January 5, 1940, and recorded January 13, 1940, in Book 81 of Deeds, at page 20. (A) That for approximately twenty years prior thereto she was well acquainted and friendly with both Mr. and Mrs. Luker, appellants; (B) that at the time the deed was executed and delivered there was a real estate mortgage which was a lien against the property, dated September 5, 1926, as security for the payment of a note in the sum of $1000.00, long past due and unpaid; (C) that for some time prior to January 5, 1940, the owner and holder of said note and mortgage insisted that Mrs. Chatterton pay the same, or failing therein foreclosure proceedings would follow; (D) that in order to comply with such demand for payment she endeavored to obtain money and to give as security a mortgage on the property, but she found that as a widow without definite earning capacity she was unable to obtain the needed loan; (E) that under such circumstances and in an effort to obtain the money with which to pay off the loan then covering the property she discussed said matter with Mr. Luker, who, acting for himself and his wife, Alice Luker, entered into an oral agreement with her substantially as follows:

(1) That Mr. Luker represented to her that he had conferred with the attorney who was acting for the owner and holder of the note and mortgage and had ascertained the exact amount it would take to pay off said note and obtain a release of said mortgage; that said Luker stated that if the title to the property were placed in his name by proper deed that he could and would obtain a loan which would enable her to pay off the existing indebtedness; that thereupon she and the said Luker agreed that she would execute and deliver to him a deed, conveying to him the title to the premises, and that Mr. Luker, upon receiving said deed, would thereupon, together with his wife, sign a note to a lender willing to lend sufficient funds to pay the indebtedness against the property, and that they would execute and deliver to such lender a mortgage as security and obtain a release of the existing mortgage and thereafter Luker and wife would, when the new mortgage had been paid off, reconvey to plaintiff the title to the property, so that the title would appear on record to again become vested in her, and that the new mortgage was to be paid off by monthly installments of $35.00 on the 15th day of each and every month; that said property was to be rented to *247 tenants and that the rentals would be collected to be applied to the payment of the note and mortgage executed by Luker and wife.

(2) That after the delivery of the deed Mr. Luker and his wife signed and delivered to a third party a note and mortgage in the sum of $1075.00, dated on or about January 15, 1940, which mortgage was recorded January 16, 1940, in Book 65 of Mortgages, page 397, mortgage records of Bannock County, Idaho, and that the proceeds of the new loan were used in repaying the amount due on the old note and mortgage and in obtaining a release and satisfaction thereof.

(3) That thereafter said property was rented and that the rentals thereof were paid to Mr. Luker in the sum of $35.00 a month and were by him applied on the payment of the new note; that later on Mr.

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Bluebook (online)
158 P.2d 809, 66 Idaho 242, 1945 Ida. LEXIS 133, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chatterton-v-luker-idaho-1945.