Equitable Farm Mortgage Co. v. Leeper

1933 OK 519, 26 P.2d 931, 166 Okla. 231, 1933 Okla. LEXIS 403
CourtSupreme Court of Oklahoma
DecidedOctober 10, 1933
Docket21472
StatusPublished
Cited by2 cases

This text of 1933 OK 519 (Equitable Farm Mortgage Co. v. Leeper) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Equitable Farm Mortgage Co. v. Leeper, 1933 OK 519, 26 P.2d 931, 166 Okla. 231, 1933 Okla. LEXIS 403 (Okla. 1933).

Opinion

RILEY, C. J.

The question presented by this appeal is whether the mortgage lien of defendants in error is a valid first lien on the premises involved, prior and superior to the claims and interests of the plaintiffs in error, or whether it has been canceled and released by “(a) a release thereof in writing- appearing to have been regularly executed and acknowledged and filed of record prior to' the date plaintiffs in error or any of them acquired their interests in the land, or (b) by the execution and delivery of a general warranty deed appearing of record purporting to have been executed and delivered by defendants in error to the owner of record, the mortgagor, prior to the date of the mortgage here in question.”

The record discloses that on and prior to January 2, 1925, defendants in error, herein referred to as plaintiffs, were the owners of the S. W. quarter of the S. AY. quarter of section 24, township 12 N., range 1 W. I. M. in Oklahoma county, less a small portion thereof comprising a part of the right of way of the Chicago, Rock Island. & Pacific Railway Company, and a small ijortion thereof theretofore conveyed to the county for highway purposes. About that time plaintiffs executed a written contract to sell and convey said land to William Maxey and Pauline Maxey for the sum of $4,000. Thereafter, on January 1, 1926, plaintiff executed and delivered to said William and Pauline Maxey a general warranty deed conveying said land to them, not excepting the strip of land theretofore conveyed to the county for highway purposes. The Maxeys executed and delivered the mortgage in controversy to secure the purchase price represented by eight promissory notes of $500 each, the first becoming due on the first day of January, 1928, and one note maturing on the first day of January each year thereafter. The mortgage was filed for record April 24, 1926. The notes were dated January 1, 1926.

Thereafter, on May 8, 1926, there was filed in the office of the county clerk a release of said mortgage, regular in form, acknowledging full payment and satisfaction of said mortgage, purporting to have been signed by Oscar L. Leeper and Oarrie L. Leeper, and purporting to have been acknowledged in due form before Lottie Gilliland, a notary public in Oklahoma county.

On May 10, 1926> the Maxeys borrowed some $2,000 from the Equitable Farm Mortgage Company and executed their mortgage on said land to secure said loan, and also executed a second mortgage on the land to the same company to secure notes aggregating- $756.95. After the execution of said mortgage, but before payment of the money, the Equitable Farm Mortgage Company required a correction deed from the Leepers to the Maxeys. Thereafter, May 19, 1926, there was filed for record a warranty deed from the Beepers to the Maxeys conveying the same land except as to the description which excepted the small strip theretofore conveyed to the county for highway purposes. This deed was dated May 10, 1926. Plaintiff in error Fidelity National Bank thereafter acquired a mortgage lien, and the other defendants acquired certain interests in the land.

About December 31, 1927, the Maxeys conveyed the land to W. H. Flynn subject to certain mortgage liens then of record. On May 7, 1928, plaintiffs commenced this action to foreclose the mortgage and set aside the purported release thereof and cancel same of record, and also asked to cancel the deed purporting to be executed by them to the Maxeys dated May 10, 1926.

With reference thereto plaintiffs alleged that they did not execute said release or said deed, and that both were absolute forgeries, and were made, executed, and recorded in some_ manner unknown to them, and that they did not know or discover the existence of said release or deed of record nor the perpetra *233 tion of tlie fraud nor the commission of the forgery until on or after March 5, 1928.

Defendants Equitable Farm Mortgage Company and Fidelity National Bank answered and alleged that they paid out the money represented by their respective notes and mortgages in good faith relying upon the genuineness and validity of the release of the Leeper mortgage as of record, and specifically denied that same was a forgery. Defendant Equitable Farm Mortgage Company also pleaded that before it would pay out the money to the Maxeys it required that they procure and have recorded a deed from Oscar L. Leeper and Carrie L. Leeper warranting and relinquishing their right, title, and interest in and to said premises, and that said deed was so executed by said Oscar L. Leeper and Carrie D. Leeper.

Issues being joined as to the validity of said release and deed, the cause was tried to the court without a jury, resulting in the finding and decree that the mortgage of plaintiffs was a first and prior lien on said premises, and decreeing that the pretended release of said mortgage as appearing of record be canceled and set aside and held for naught; that the deed from Oscar L. and Carrie L. Leeper to the Maxeys be held and adjudged to be a correction deed, upholding and foreclosing the plaintiff’s mortgage.

After the cause was tried, defendant IV. H. Flynn died and the cause as to him was revived in the name of Eva P. Thomas Flynn, executrix of the estate of W. II. Flynn, deceased. From said judgment and decree this appeal was prosecuted.

The specifications of error relied upon are that the decision is contrary to the evidence and unsupported by the evidence, and that the court erred in canceling the release and upholding the mortgage of plaintiffs as a prior lien on said land. Defendants contend that the law is that the unsupported and uncorroborated evidence of a grantor, where the instrument appears to have been signed and acknowledged in due form, is not sufficient to overcome the certificate of acknowledgment of the notary public.

That this is the general rule must be conceded. It has been so held by this court in a number of cases. Pittsburg Coal & Mining Co. v. Wright, 122 Okla. 210, 253 P. 487; Posey v. Van Tuyl, 135 Okla. 50, 273 P. 887; Eneff v. Scott, 120 Okla. 33, 250 P. 86; Nickel v. Janda, 115 Okla. 207, 242 P. 264; Fast v. Gilbert, 102 Okla. 245, 229 P. 275.

But in Pittsburg Coal & Mining Co. v. Wright, supra, this court specifically held that the testimony of the grantor alone may be sufficient, if in view of the circumstances and probabilities of the particular case it produces a condition amounting to a moral certainty that the certificate is false.

Plaintiffs both testified positively that they did not sign the release of the mortgage or the deed. They also testified positively that they did not appear before any notary public and acknowledge either of said instruments, and that they had no knowledge whatever of the existence of either until about March, 1928.

This court is committed to the doctrine that, in order to overcome the certificate of a notary public to an acknowledgment of any instrument affecting the title of real estate, the party attacking the same must produce evidence so as to produce a condition amounting to a moral certainty that the certificate is false; or that the evidence of the falsity of such certificate must be clear, cogent, and convincing before a court will be justified in holding it false, and that the unsupported testimony of the grantors is insufficient to overcome the same.

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Related

Holland v. Blanton
1943 OK 208 (Supreme Court of Oklahoma, 1943)
Owens v. Hill
1941 OK 269 (Supreme Court of Oklahoma, 1941)

Cite This Page — Counsel Stack

Bluebook (online)
1933 OK 519, 26 P.2d 931, 166 Okla. 231, 1933 Okla. LEXIS 403, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equitable-farm-mortgage-co-v-leeper-okla-1933.