Greenwood v. Bean

179 P. 91, 106 Wash. 118, 1919 Wash. LEXIS 634
Washington Supreme Court·Decided March 12, 1919·No. No. 14967·Published

Opinion

Parker, J.

The plaintiff, Mrs. Jessie P. Greenwood, commenced this action in the superior court for Spokane county, seeking the foreclosure of a mortgage executed by the defendants, Kate H. Bean and husband, to secure the payment of a note executed by them in part payment of the purchase price of a lot which was purchased by them from H. E. Prickett, and upon which the mortgage was given, Mrs. Greenwood being now the owner of the note and mortgage.

The defense was rested upon the ground that Prickett, through his agent, falsely represented to Bean, who was acting for himself and wife in purchasing the lot, that it was a corner lot; that, relying upon such false representations, they were induced to purchase the lot; that they were thereby damaged more than the balance due upon the purchase price, which [119] is now represented by tbe note sued upon; and tbat Mrs. Greenwoqd is not an innocent holder of tbe note for value, but tbat it is subject to tbe same defenses as if it were in tbe bands of Prickett. Mrs. Bean and ber husband offered to reconvey tbe lot upon repayment to them of tbe amount they bad paid on tbe purchase price, or to waive damages upon tbe cancellation of tbe note and satisfaction of tbe mortgage, and prayed for relief in their answer accordingly.

Trial upon tbe merits resulted in findings and decree in favor of Mrs. Bean and ber husband, cancel-ling tbe note and decreeing tbe mortgage fully satisfied, tbe trial court manifestly proceeding upon tbe theory tbat Mrs. Bean and husband bad suffered damages by false representations as to tbe lot being a corner lot, inducing them to purchase it, in an amount at least equal to tbe amount of tbe note sued upon, and tbat they were entitled to have such damages offset against Mrs. Greenwood, tbe present owner of tbe note. Prom this disposition of tbe case, Mrs. Greenwood has appealed to this court.

Tbe property here in question is lot 11, in block 12, of Nosier’s addition to Spokane. According to tbe official plat of tbe addition, of record in tbe county auditor’s office, tbe east boundary of blocks 12,13, and 25 of tbe addition is also tbe east boundary of tbe addition, there being no street along tbe east boundary within tbe addition. Tbe lots in those blocks front north and south, each block containing twelve lots, numbered 1 to 6 from east to west in tbe north half, and 7 to 12 from west to east in tbe south half of each block; so tbat lots numbered 12 are tbe southeast corner lots of each of those blocks, while lots numbered 11 are tbe ones next west, and are therefore not comer lots. At tbe time of tbe sale of lot 11, in [120] block 12, by Prickett to Mrs. Bean and husband in 1910, Pacific avenue, upon which the lot fronts, was improved by grading and the construction of curbs in such manner as to indicate upon the ground that there was a street lying along the east boundary of lots 2 and 11 in each of blocks 12, 13, and 25, which, if such were the fact, would eliminate lots 1 and 12 in each of those blocks, and make lots 2 and 11 in each of them corner lots. There was, however, no street improvement outside of the side-lines of Pacific avenue. Unofficial maps of that portion of the city, commonly used by real estate men, also indicated the existence of a street along the east boundary line of lots 2 and 11 in each of those blocks, and did not show any lots numbered 1 or 12 in either, of those blocks, though such unofficial map showed every other block in Nosier’s addition to contain a lot numbered 1, and every other full block to contain a lot numbered 12, the addition containing twenty-five Hocks, of which thirteen were full blocks. There does appear, upon the unofficial maps commonly used, a street called Garfield street along the east line of blocks 12, 13, and 25 of Nosier’s addition; but apparently it was platted as a street in the adjoining addition. This record seems to suggest that the notion that there were in fact no lots numbered 1 and 12 in blocks 12, 13 and 25, of Nosier’s addition, comes from a belief on the part of some one, as evidenced by the unofficial maps in common use, that those blocks were in fact short upon the ground one tier of lots on the east side of the addition,' thus eliminating lots 1 and 12 in each block on that side. It was, however, determined in 1913, by litigation then concluded, that this was not so, but that lots 1 and 12 of those blocks did exist upon the ground, thus confirming the correctness of the survey of the plat of Nosler’s addition, as officially recorded.

[121] On March 9, 1910, H. E. Prickett, being then the owner of lot 11 in block 12, sold and conveyed it to respondents Mrs. Bean and husband, the agreed sale price being $3,500, of which $1,750 was paid in cash, the balance being evidenced by two promissory notes for $875 each, executed and delivered by them to him, which notes were also secured by the execution and delivery of a mortgage upon the lot. One note, falling due one year after date, was paid. The other note, falling due two years after date, was not paid. This is the note upon which recovery is here sought. It has become the property of plaintiff and appellant, Mrs. Greenwood. For present purposes, we shall assume that she is not an innocent holder thereof for value, and that it is subject to all the defenses it would be subject to in the hands of Prickett, as if he were here attempting to recover thereon the balance due upon the purchase price of the sale of the lot by him to Mrs. Bean and husband.

Negotiations looking to the sale of the lot were commenced in February, 1910, between F. J. Boot, representing Prickett, and Victor E. Piolett, representing Mrs. Bean and her husband. Boot was then engaged in the real estate business and Piolett was also engaged in the real estate business as the partner of Mr. Bean, the latter being one of the oldest and most experienced real estate men in Spokane. Piolett’s testimony was, in part, as follows:

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Greenwood v. Bean, 179 P. 91, 106 Wash. 118, 1919 Wash. LEXIS 634 (Wash. 1919).

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