Esselstyn v. Meyer & Chapman State Bank

208 P. 910, 63 Mont. 461, 1922 Mont. LEXIS 123
CourtMontana Supreme Court
DecidedMay 26, 1922
DocketNo. 4,754
StatusPublished
Cited by8 cases

This text of 208 P. 910 (Esselstyn v. Meyer & Chapman State Bank) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Esselstyn v. Meyer & Chapman State Bank, 208 P. 910, 63 Mont. 461, 1922 Mont. LEXIS 123 (Mo. 1922).

Opinion

MR. COMMISSIONER COMER

prepared the opinion for the court.

This is an appeal from a judgment in favor of the defendant (respondent herein). Prior to the year 1912, the lands involved in this action were owned by one Sam W. Gebo, who was indebted to plaintiff (appellant herein). Plaintiff obtained judgment against Gebo for the amounts owed him, procured the issuance of execution, levied upon and caused the lands to be sold at execution sale, purchased the land, and received, on August 18, 1913, a sheriff’s deed therefor, under [465]*465and pursuant to said execution sale upon said judgment. Theretofore, and on March 27, 1913, Gebo and wife quitclaimed their interest in the lands to plaintiff, but the deed was not acknowledged by Mrs. Gebo. However, prior to the rendition of the judgment, Gebo had given a first mortgage to F. L. Cleveland, who afterward assigned it to A. C. Johnson, who caused it to be foreclosed; and the lands mortgaged thereby were, on the sixteenth day of February, 1914, sold at public auction by the sheriff, the defendant bank purchasing the land at such foreclosure sale. The defendant was at the time of its purchase, and still is, the owner of a second mortgage given by Gebo upon this land, also given prior to the rendition of the judgment of plaintiff. On March 10, 1914, plaintiff made a quitclaim deed of his interest in the land to defendant bank, and the following agreement in writing was entered into between plaintiff and defendant:

‘ ‘ Option.
“For value received, Meyer & Chapman State Bank, a banking corporation, organized and existing under and by virtue of the laws of the state of Montana, with its principal place of business at Red Lodge, Montana, does hereby agree to sell to Elmer E. Esselstyn of Fromberg, Carbon county, Montana, at any time before February 16, 1915, the following described real estate situated in the county of Carbon, state of Montana, to wit:
“The west half of the southwest quarter (W^SW^) and the northeast quarter of the southwest quarter (NE]4SW]4) and the northwest quarter of the southeast quarter (NW^4-SE]4) of section twenty-seven (27); the southwest quarter (SW14) of section twenty-eight (28), and the south half of the southeast quarter (S^SE^) and the northeast quarter of the southeast quarter (NE^SE^) and lots five (5), and eight (8) of section twenty-nine (29) and lots one (1), two (2), seven (7) and eight (8) and the northeast quarter of the northeast quarter (NE^NE^) of section thirty-two (32) and the east half of the southwest quarter (E^SW%) and the
[466]*466northwest quarter of the southwest quarter (NW^SW1^) and the east half (E^) of section thirty-three (33), all in township five (5) south of range twenty-three (23) east, M. P. M. Also all water, water rights, ditches, ditch rights, dams, flumes and aqueducts appurtenant to the above-described land, for the sum of $63,600.00 plus the amount of the charges of the present receiver of said property as allowed by the court, and which the said Meyer & Chapman State Bank hereafter may pay, with interest on the entire sum at the rate of ten per cent per annum from the date hereof until this option is exercised by the said Elmer E. Esselstyn; the said property to be sold subject to all taxes, water and ditch assessments and charges and liens of every nature and description, now existing or hereafter to be imposed upon the said real estate. The said Meyer & Chapman State Bank agree to co-operate with Elmer E. Esselstyn in the sale of this property or any legal subdivision thereof, and he is hereby authorized to enter into any contracts of sale of the said property under such terms which may be mutually agreed upon by the parties hereto. In the event said Elmer E. Esselstyn fails to purchase said land prior to February 16, 1915, all rights and obligations hereunder cease at once.
“In witness whereof, the said Meyer & Chapman State Bank has caused its name to be hereunto subscribed and its corporate seal to be hereunto affixed, by the hand of its president, this 10th day of March, 1914.
‘ ‘ [Signed] Meyer & Chapman State Bank, Red Lodge, Mont.,
“By J. W. Chapman, President. [Seal.]”

The complaint consists of three counts. In the first count it is alleged the deed was given by plaintiff to defendant “by way of mortgage and not as an absolute .conveyance of plaintiff’s rights in and to said lands”; and that it was agreed plaintiff should have the right to pay off the indebtedness of defendant against said land and to receive a reconveyance of said lands, but that defendant has wrongfully refused to per[467]*467mit plaintiff to pay off said indebtedness and treated tbe deed as an absolute conveyance and denied him any interest in said lands.

Tbe second count alleges defendant was to bold tbe legal title as trustee for plaintiff; tbat tbe deed was given to clear, disencumber, and simplify the title to tbe lands so tbat a sale thereof, or of certain subdivisions, might be bad, to tbe end that the said indebtedness might be paid and the mortgage and other liens removed: tbat pursuant thereto and as part consideration for tbe making of said deed, tbe option agreement was entered into; tbat tbe plaintiff obtained purchasers for large tracts of said land at reasonable cash prices, but tbat defendant refused to execute warranty deeds therefor; tbat plaintiff was then, and still is, able and willing to carry out bis part of tbe agreement by obtaining purchasers for said lands and paying off the indebtedness, but tbat defendant has prevented plaintiff from selling tbe lands or any part thereof, from so paying off tbe indebtedness and receiving a reconveyance of tbe unsold portions thereof, with tbe wrongful purpose of obtaining absolute title to tbe premises, and of depriving tbe plaintiff of tbe same and bis equity therein; tbat on February 17, 1915, defendant ejected plaintiff from the premises, destroyed alfalfa seeded by plaintiff, and greatly damaged tbe lands, to plaintiff’s damage.

The third count alleges the making of tbe deed and tbe option, and tbat plaintiff obtained purchasers for a large quantity of said land for tbe purpose of obtaining funds to pay off tbe indebtedness and demanded of defendant tbe making of deeds therefor, to such intending purchasers, but tbat defendant refused, and has ever since wrongfully and oppressively prevented tbe plaintiff from selling tbe land, or any part thereof, and from paying off tbe indebtedness and receiving a reconveyance of tbe unsold portion thereof.

Tbe plaintiff demanded tbe deed be declared a mortgage; tbat he be permitted to pay off tbe indebtedness and receive a reconveyance; tbat defendant account for tbe rents, issues, [468]*468and profits; and that plaintiff’s damages for failure to convey to the purchasers of plaintiff be offset against defendant’s indebtedness.

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Cite This Page — Counsel Stack

Bluebook (online)
208 P. 910, 63 Mont. 461, 1922 Mont. LEXIS 123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/esselstyn-v-meyer-chapman-state-bank-mont-1922.