Corbit v. Smith

7 Iowa 60
CourtSupreme Court of Iowa
DecidedOctober 20, 1858
StatusPublished
Cited by25 cases

This text of 7 Iowa 60 (Corbit v. Smith) 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
Corbit v. Smith, 7 Iowa 60 (iowa 1858).

Opinion

Weight, C. J.

The position of appellant, that the deed was intended as a mortgage, is not sustained by the proof. The only testimony to this point, is of certain admissions made by, and conversations had with, respondent. There is a want of definiteness and certainty, however, in the proof — so much so, as to render it quite unsafe to rely upon it. The deed is absolute upon its face. Complainant relies upon a parol contemporaneous agreement, that it was received as a mere mortgage, and that he was to have the right to redeem. To establish such an agreement, his proof should be clear, satisfactory, and conclusive, and not bo made up of loose and random conversations with respondent. Witnesses are so liable to forget, or unwittingly misrepresent, or mistake such conversations, that their testimony should, as a general rule, be received with great caution. Indeed, all parol testimony against the answer of a respondent, to establish a trust, or to make a conveyance, absolute upon its face, a mortgage, should be clear, and even then, received with great caution. Boyd v. McLean, 1 Johns. Ch., 582; Blair v. Bass, 4 Blackf., 539. In this case, the testimony of com[62]*62plainant upon tliis point, is far from being clear or satisfactory. In addition to tliis, respondent proves by one witness — and lie the agent of complainant in conducting the sale — that it was absolute, and that there was no agreement or understanding that there was to be a redemption.

Nor do we think that the charge, that the deed was obtained by fraud, and the use of undue and improper influences, sustained by the proof. It is stated in the bill, and attempted to be shown, that the price paid was grossly inadequate, and thus fraud is attempted to be established. The testimony, however, when all considered, so far from showing this inadequacy, satisfies us that the price paid was reasonable, and even more than any other person would then have paid. It appears that complainant was at the time confined in jail, and intrusted one Stephens with the sale of the land. Previous to this time, he had been to California, and had selected one Smith to make sale of his land. Both of his agents made efforts to make a sale — offered the land to a great number of persons— but found no one who was willing to give as much as respondent finally paid. Then, the witnesses who speak of the value of the land, leave it probable, to say the least of it, that it sold for its full value. Some, it is true, give it a much greater value, while others placeit at less. The fact, however, that it was in market for several months ; that efforts were made in good faith by Stephens and Smith, the agents of complainant, to sell it for the best price possible ; that they could not succeed in selling it for as much as was paid by respondent — to our minds conclusively rebuts the position, that the price paid was so inadequate as to raise the presumption of fraud in procuring the deed.

The testimony tending- to show the use of undue and improper influences in procuring the deed, is exceedingly slight, and by no means sufficient to satisfy us of the fraud charged. It is true that respondent was about to sell under his trust deed. It appears, however, that respondent first loaned to complainant one thousand dollars, in August [63]*631851, to be paid in August, 1852, to secure which, he took a mortgage upon the land in controversy. Afterwards, in January, 1852, Corbit, desiring to go to California, solicited a further loan, which he received, making, with the amount secured by the mortgage, the sum of over fourteen hundred dollars. Respondent cancelled the mortgage, took a deed of trust, and extended the time of payment to January 15, 1853. The testimony, so far from showing that the respondent unduly hastened or pressed the collection of his debt, by a forced sale of the land, rather shows that he preferred his money, and desired that the land should be sold to some third person, by private sale, if the money could not be otherwise raised.

Then, again, while some of the witnesses testify, that respondent was present in the jail at the time the deed was made, and persuaded complainant to execute it, his presence is expressly denied by the testimony of other witnesses. And then, if present, it is not shown that he made any false representations, or indeed, that he said anything to induce complainant to do different from what he would otherwise have done. It is not established, in a word, that complainant was influenced in the least by any thing said or done by respondent. In view of the fact that complainant was at the time imprisoned — that respondent was his creditor, holding the land by deed of trust, under which he had advertised to sell — and that complainant was, to say the least of it, of doubtful mental capacity to contract, the respondent should be held to the utmost good faith.' "When there is nothing, however, to impeach the fairness and integrity of the transaction — where there is nothing to show that respondent has taken advantage of complainant’s condition, or his own power as a creditor, it will not do to declare the deed void for fraud, or on account of the use of undue and improper influences. The complainant had an agent acting for him, who negotiated the sale. The deed was acknowledged before a magistrate who had frequently transacted business for complainant, and who wrote the deed and acknowledged it, at his re[64]*64quest. The deed was signed in the presence of this agent, the magistrate, complainant’s wife, and several other persons. It is not shown that respondent had, previous to this time, conversed with complainant, or used any means to induce him to make the sale. If he conversed with him at the time, the conversation consisted of but few words. After the sale, the complainant received the remaining portion of the purchase money ; and, indeed, all the circumstances, to our minds, rebut even any presumption of fraud, and are in entire accordance with, and may be regarded as even affirmatively sustaining, the utmost good faith.

We have suggested that it was doubtful whether complainant had sufficient capacity to contract, at the time the deed was made; and herein lies the important point in the ease, and the one principally relied upon to sustain the bill. Did he have a contracting mind at the time the deed was made ? is the question to which the great mass of the testimony is directed, and to it we now give attention.

And first, as to the law. The contest is as to the validity of the particular act, or the capacity of the complainant to execute the deed. Where mental unsoundness becomes a subject of inquiry in such a case, the rule is, that a very modified degree of incapacity will be sufficient to invalidate, if the transaction is accompanied with fraud, imposition, or any over-exercise of authority, (Medical Jurisp. by Whart. and Slitle, section 1); or, as was said in Lord Portsmouth's case, weakness of mind, where circumvented by fraud, would be sufficient to invalidate e^en so solemn a contract as that of marriage. 1 Hagg. Ec. 35s.

in the next place, a distinction is to be borne in mind between contracts executed and contracts cxecuto7'y. The latter, the courts will not, in general, lend their aid to execute where the party sought to be affected, was at the time incapable, unless it may be for necessaries. If, on the other hand, the incapacity was unknown — no advantage was taken — the contract has been executed, and the parties can[65]*65not be put in statu quo — it will not be set aside.

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7 Iowa 60, Counsel Stack Legal Research, https://law.counselstack.com/opinion/corbit-v-smith-iowa-1858.