Estes v. Martin

34 Ark. 410
CourtSupreme Court of Arkansas
DecidedNovember 15, 1879
StatusPublished
Cited by11 cases

This text of 34 Ark. 410 (Estes v. Martin) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estes v. Martin, 34 Ark. 410 (Ark. 1879).

Opinion

C. B. Moore, S. J.

The original bill in this case was brought in the Pulaski chancery court, to the October term, 1867, by Jasper M. Gonder against James A. Martin, as administrator de bonis non of the estate of James B. Johuson, and against his widow, then married again, and his heirs, and Albert Rust andD. J. Iiartsook, as executor of Mary W. Cabell, and her heirs.

The bill alleges in substance that, in 1859, James B, Johnson agreed to sell to Gonder certain lands known as the Ben Oak plantation, in Desha county, Arkansas, for the sum of $75,000, one-third of which was to be paid in cash, and the balance in one and two years. On the first of January, 1860, Johnson conveyed the lands to Gonder, receiving $25,000 in cash, and retaining a lien for the unpaid purchase money, which was evidenced by two notes for $25,000 each, due in one and two years.

Before the notes fell due, Gonder made large payments on them; after which he discovered that the lands were incumbered by a prior mortgage, given by Johnson to Albert Rust, to secure a debt of some $50,000, and which mortgage was recorded before he bought the land.

Immediately on discovering this, he applied to Johnson to remove the incumbrance, which he promised to do.

Rust had, in the meantime, assigned his mortgage to Mrs. Cabell, as security for a debt which he owed her. She had died, and Iiartsook had qualified as her executor in Virginia, -where she lived and died. •

That in January, 1861, Johnson requested Gonder to pay the balance of the money due him, to enable him to extinguish the Rust m oi’tgnge, and after some negotiations between all the parties, it was agreed that the balance due from Gonder should be paid by him to Rust and Hartsook, upon which the mortgage should be released and canceled. That in April, 1861, he paid about $10,000 to Rust, which he agreed to credit on the mortgage debt; whereupon Rust agreed that if Gonder would pay him the balance due to Johnson — about $12,000 — by January 1, 1862, he would release the mortgage. Still further negotiations seem to have been made, and on the nineteenth of April, 1861, Rust empowered his attorney to enter satisfaction of the mortgage if Gonder would pay the $12,000 by the twelfth of May, 1862. In pursuance of this agreement Gonder, on the third of May, 1862, sent the $12,000 to Hartsook, who acknowledged its receipt, and according to directions applied it as a credit both on Johnson’s debt to Rust, which Hartsook held by transfer, and upon Rust’s debt to Mrs. Cabell’s estate.

The bill further sets forth that in April, 1861, Johnson executed a second mortgage to Rust, on certain lands in Pulaski county, Arkansas, to secure the original debt to Rust, and which last mentioned mortgage was received by Rust in substitution of the mortgage on the lands in Desha county. Further, that other payments had been made by him (Gonder) to other parties, for Johnson, and that the various payments made, fully extinguished his indebtedness to him. That Johnson died in February, 1862; that the proper credits had never been entered on his notes, which were held by Martin, Johnson’s administrator.

On the two grounds of the substitution of the Pulaski mortgage for the Desha mortgage, and payment, he prays, that the Desha mortgage be decreed to be satisfied — that his notes to Johnson be canceled and delivered up to him— and for general relief.

Hartsook, as well as Rust and Martin, answered the bill.

It will only be necessary to notice tlie answer of Hartsook, as Rust subsequently went into bankruptcy and ceased to have any interest in the suits, and his assignee was never made a party ; and Martin, the administrator of Johnson, withdrew from the defense of the suit about the same time.

And we remark here that, for the determination of the questions presented, we pass over and refrain from any mention of a great part of the pleadings of various parties drawn into the controversy from time to time in this protracted litigation, but whose interests in the suit have ceased, or are immaterial to the present inquiry.

Hartsook, in his answer, denies that he ever authorized the payment of the $10,000 to Rust by Gonder, or that he made any agreement for the release of the Desha mortgage, or that Rust had any power to make any such agreement for him ; denies that the mortgage on the Pulaski lands was accepted as a substitute for the mortgage on the Desha lands, hut consented that it might be regarded as additional security for Rust’s debt.

He makes his answer a cross-bill against Gonder and his co defendants in the original bill, and prays that both mortgages might be foreclosed.

This answer and cross bill was filed on the seventeenth of June, 1868. After the suit had been long pending, to-wit: on the ninth of May, ^876, Hartsook filed an amended and supplemental answer aud cross-bill, making the occupants and subsequent purchasers of the Pulaski lands, parties, with a view to a more specific claim on them as cumulative security.

It turned out in the hearing, that these Pulaski lands, when Johnson mortgaged-them, were subject to prior liens for purchase money, and that the claim against the occupants and purchasers was barred by limitation.

Several interlocutory decretal orders, on demurrer to the cross-bill, and in reference to the complicated state of the pleadings, were made, in the progress of the suit, by the chancellor, which are not important to be noticed now by us.

G-onder and Rust have both died in the meantime, and after long delays, their legal representatives were brought in as parties in their stead.

So the suit dragged its weary length along until the month of June, 1877, ivhen, after everybody who could be supposed to have any interest possible in the controversy had been brought into it, final decree was rendered.

The chancellor decreed that Martin, the administrator of Johnson, should bring into court, and deposit with the clerk, to be canceled, the notes of Gonder given for the purchase money of the Desha lands, and that they be adjudged to be fully paid and satisfied, and that the administrator was entitled to a credit for the same against his inventory in his settlement with the probate court, and that he or his successor as administrator, be perpetually enjoined from proceeding to collect said notes, or any part thereof.

Further, that as to all other matters, the original bill be dismissed for want of jurisdiction.

Further decreed, that so n^uch of the cross-bill of Hartsook as seeks to foreclose the mortgage on the lands in Pulaski county be dismissed for want of equity, and that as to said lands in Pulaski, the decree be final as between Hartsook and the parties to the suit claiming the lands. Then the decree proceeds as follows : “It appearing that this court has no further jurisdiction of this cause to proceed therein, and to make any decree with regard to the lands in Deslia county involved in this suit, the said cross-bill of ITartsook is dismissed without prejudice of any of the rights, interests or defenses in or to the said lands in Desha county brought, into controversy in this suit; but, with regard to said lands in Desha county, to stand as if this suit were never brought,” etc.

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Bluebook (online)
34 Ark. 410, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estes-v-martin-ark-1879.