Coney v. Laird

55 S.W. 96, 153 Mo. 408, 1900 Mo. LEXIS 122
CourtSupreme Court of Missouri
DecidedJanuary 23, 1900
StatusPublished
Cited by8 cases

This text of 55 S.W. 96 (Coney v. Laird) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coney v. Laird, 55 S.W. 96, 153 Mo. 408, 1900 Mo. LEXIS 122 (Mo. 1900).

Opinion

BURGESS, J.

This is an action to restrain a sale of lands under a deed of trust, and for an accounting.

A temporary injunction was granted in the case, which, upon motion of defendants after answers filed, was dissolved, and 'judgment rendered for defendants. Plaintiff then filed his motion for a new trial, which was overruled and he appeals.

Prior to the 20th day of November, 1889, the estate of William Eeed, deceased, owned a large body of land in Benton county, containing about 9,526.81 acres. About that time the executors of said William Eeed sold these lands to one Eichard H. Melton, of Sedalia, for the sum of $19,053.42, of which $6,351.14 was paid in cash by said Melton, and for tire balance of the purchase money he executed two notes for the sum of $6,351.14 each, payable to the order of Samuel Collins, William P. Murray and F. C. Osburn, executors of the estate of said Eeed, and to secure their payment Melton and his wife executed the deed of trust on the lands sold, the sale of which under the deed of trust was enjoined in this proceeding.

Thomas O. Chapman was named as the trustee in the deed of trust. It provided that in the event of the death of the trustee or his refusal t,o act that the then acting sheriff of Benton county might execute the trust.

To obtain the money necessary to make the cash payment Melton went to the defendant Shirk for assistance, who agreed to help him raise the money. They then arranged with the. Third National Bank of Sedalia for the money, to secure the payment of which Melton executed his note, payable to the order of Shirk, for $7,000, the note being made for a larger sum than the actual amount of money necessary for the purpose, in order to cover the payments of interests, and Shirk indorsed and delivered this note to the bank as collateral to secure their joint note, which they at that time executed and [415]*415delivered to the bank for the sum of $6,200, the amount requisite to make the payment The note for $7,000 was secured by a second deed of trust on all the lands purchased, in which R. H. Moses was made trustee, and was recorded in the recorder’s office of Benton county. It describes the lands as it appears of record as in Bettis county, as containing 9,525 acres and “are all the lands purchased by me of the estate of 'William Reed, deceased.”

Thereafter, on the 23d of September, 1890, Melton made a warranty deed conveying these and other lands to the defendant Oyrus Newkirk. This deed was recorded in the recorder’s office of Benton county on the 25th day of October, 1890. By this deed the lands thereby conveyed are described as the same lands as those bought from the Reed executors, and also conveyed by the Shirk deed of trust, and recites upon its face that the land within conveyed is subject- to the incumbrances then on the same, amounting to about $23,000.

While this deed purports to be a warranty deed, it was in fact only a conveyance of the lands as security for certain, indebtedness owing by Melton to Newkirk, and to the First National Bank of Sedalia.

On the 30th of March, 1892, Newkirk and Melton sold to one E. D. Ayers all of the timber suitable for ties, saw-logs and piling on about three thousand, three hundred and fifty acres of the land. The contract for the sale of the timber was also recorded in the recorder’s office of Benton county; It is dated March 30, 1892, and recites that in consideration of $10,750, of which $7,000 was to be paid in cash and $3,750 in twelve months, “said sum to be paid on the indebtedness of said Melton to said Reed estate, and said Melton to get the written consent of said executors to this contract,” Ayers to have five years in which to move the timber from the land, to which the executors gave their consent in writing April 6, 1892.

When Shirk heard of this contract, he objected to its [416]*416being consummated, because it would impair the security he held by virtue of his second mortgage, and an arrangement was then made by which Shirk should be paid $1,250 of the consideration for the sale of the timber to Ayers, which was done, and this sum was applied by Shirk as a credit upon Melton’s indebtedness to him by reason of the note secured by the deed of trust to him, and which was deposited with the Third National Bank, but upon which note Shirk had paid the interest.

At the time of this transaction Melton was indebted to the executors of the Reed estate on other matters outside of the indebtedness for the purchase of the land in controversy. This other indebtedness was for other land purchased by Melton of them, .and for interest and taxes for which Melton was liable. Abotit $4,000 of the money received from Ayers was applied by the executors of the Reed estate to discharge this other indebtedness and the balance applied upon the debt se-^ cured by the deed of trust to Chapman.

At this time the equity of redemption in this land stood in the name of the defendant Newkirk. The negotiations for the. sale of the timber to Ayers was conducted through Newkirk and the delivery of the deeds for the other land, the purchase money for which constituted the other indebtedness owed by Melton to the Reed executors, was also conducted through Newkirk, and it was with the full consent and approval of Newkirk that a part of the purchase money received from Ayers was applied by the Reed executors in discharge of this other indebtedness. Newkirk in a letter to these executors, dated April 19th, 1892, advises the executors to ratify the sale to Ayers of this timber and he transmits in that letter to these executors $5,000 in exchange and Ayers’ note for $3,725, and advises them that he thinks it would be entirely satisfactory to Melton for the executors to deduct the price of thirty acres of their land from this money. Collins, one of the executors who conducted this negotiation, testified that the [417]*417money was so applied by Melton’s direction, and that they never would have consented to the sale of the timber to Ayers if it had not been understood by them and by Melton that part of this purchase money for the'timber was to be applied in discharge of Melton’s other indebtedness to the executors. The executor, Osburn, testifies to the same facts. Shirk testified that it was well understood by Newkirk, Melton, the Third National Bank and himself that out of the moneys received by the Reed executors from the sale of the Ayers timber, whatever indebtedness Melton owed them, other than that secured by the Ohapman deed of trust, should be first discharged and the balance should he applied as a credit upon the indebtedness secured by the Ohapman deed of trust.

During the progress of the trial, when the amount and disposition of the Ayers money was being inquired into, it was stipulated between the parties and put as an .admission in the record, as follows:

“It is admitted that E. D. Ayers paid on account of the purchase of the timber referred to in the testimony the sum of $10,275, as follows: $8,525, to the executors of the Reed estate accounted for by Mr. Oollins in his testimony; $1,250, paid to Judge Shirk and the Third National Bank on account of the mortgage held by the Third National Bank; $500 paid for commission for the sale; and $200 which was deducted for the reason that the timber had been cut off of some of the land.”

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Bluebook (online)
55 S.W. 96, 153 Mo. 408, 1900 Mo. LEXIS 122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coney-v-laird-mo-1900.