Eldriedge v. Hoefer

93 P. 246, 52 Or. 241, 1908 Ore. LEXIS 119
Oregon Supreme Court·Decided January 7, 1908·Published·Cited by 7 cases

Opinion

Mr. Justice Moore

delivered the opinion of the court.

This is a suit by F. J. Eldriedge against John Hoefer and Casper Zorn, partners as Hoefer & Zorn, and David M. Keene, to have a deed, absolute in form, of certain real property, decreed to be a mortgage and Keene declared to be plaintiff’s trustee; that a redemption ■ of the land be allowed, within a reasonable time, on the payment of $14,600, the sum admitted in the complaint to be due from the plaintiff to Hoefer & Zorn, but if such payment cannot be made within the time limited, that the premises be 'sold, and if .the sum realized therefor does not equal $42,000, the price which it is alleged was offered for the land, that Hoefer & Zorn be required to account for that sum, less the debt so specified.

The admitted facts are that plaintiff’s father died seised of two farms situated in Marion County, containing 728.89 acres, whereupon his mother was appointed and duly qualified as administratrix of the decedent’s estate, to pay the debts of which it became necessary to sell [243] the real property. The plaintiff, desiring -to purchase the land, but not having the means with which to pay for it, applied to Hoefer & Zorn for -a loan of money for that purpose, but they declined the request because he was not then of age, and for the further reason that his mother held a dower interest in the premises. Mrs. Eldriedge, at plaintiff’s request, executed a deed of such life estate to Keene, who, at a sale of the land by the administratrix, bid therefor $14,577.80, to pay which he borrowed from Hoefer & Zorn $15,600, giving his promissory note for that sum, payable in five years from October 10, 1892, with interest thereon at the rate of 7 per cent per annum, payable yearly, and also stipulating in the note to pay all taxes that might be assessed against it. The sale by the administratrix having been confirmed, she executed a deed of all the estate the decedent had in the land at the time of his death to Keene, who immediately conveyed the premises to Hoefer & Zorn, taking from them a bond for a deed, wherein they covenanted to reconvey the land to him on the payment of the note. No part of the taxes assessed against the note having been paid to Hoefer & Zorn, Keene, on January 25, 1896, executed to them a quitclaim deed of the-premises, without securing a surrender of the note or the indorsement of any payment thereon as a consideration for the conveyance, and in August, 1905, this suit was instituted.

The complaint states the facts in detail, the substance of which is hereinbefore set forth, and avers, in effect, that at the time the money was so loaned it was agreed by all the parties hereto, that in all the transactions mentioned Keene was plaintiff’s trustee, which fact was assented to by Hoefer & Zorn, and that the original deed, executed by Keene to Hoefer & Zorn, was given to secure the payment of the promissory note, and the bond taken as a defeasance; that when the land was sold to Keene the plaintiff took immediate possession of the premises, [244] which he retained until October, 1893, when he leased the real property, ever since which his tenants had been in possession thereof; that the plaintiff paid the interest on the note for the first three years after it was given, and in October, 1895, he also paid $1,000 on account of the principal; that about the date last mentioned the plaintiff, desiring to make certain improvements on the land, so as to increase the profits therefrom, and to pay the cost of such betterment from the income received from the premises, entered into an agreement with Hoefer & Zorn whereby they stipulated to accept the rents of the real property in full payment of the interest and taxes, and each year thereafter they received the landlord’s share of the crops annually raised on the premises, pursuant to such agreement; that in July, 1905, the plaintiff was offered for the land $42,000, which sum would then have been paid for the premises, if he could have given a sufficient deed therefor; and that, upon receiving such bid, he notified the defendants thereof, in writing, and demanded that he be permitted to redeem the real property by paying the sum of $14,600, but they refused to comply with his request and would not join him in executing a deed of the land.

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Eldriedge v. Hoefer, 93 P. 246, 52 Or. 241, 1908 Ore. LEXIS 119 (Or. 1908).

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