Harris v. Hirsch

121 A.D. 767, 106 N.Y.S. 631, 1907 N.Y. App. Div. LEXIS 1902

This text of 121 A.D. 767 (Harris v. Hirsch) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris v. Hirsch, 121 A.D. 767, 106 N.Y.S. 631, 1907 N.Y. App. Div. LEXIS 1902 (N.Y. Ct. App. 1907).

Opinions

Ingraham, J.:

This action was brought to have a deed, absolute on its face, executed on the Ith of July, 1891, declared to be a mortgage to secure the'sum of $500, to ascertain the amount due upon said mortgage' and to redeem. The court lias found that the conveyance was absolute, executed for a good and valuable consideration, and that the title to the property in fee simple was conveyed to the grantee. The plaintiff insists that this finding is against the weight of. evidence. The trial took place in-1906, about fifteen years after' the execution and delivery of the deed,, and the evidence relied upon to prove the fact that the deed was a mortgage was the witness’ recollections of conversations and admissions of the defendants’ testator, given more than fifteen years after the conversations and admissions took place. The plaintiff was a sister of the defendants’ testator. On the 21st day of October, 1884, the property-in question was conveyed to her, the consideration-being $335. By a conveyance dated the Ith of July, 1891, the plaintiff for the expressed consideration of $500, conveyed the property to the defendants’ testator, who continued in possession of the property, paying all taxes and assessments upon it, down to the 13th of July, 1901, when he died a resident of the county of New York, leaving a last will and testament in which he bequeathed $2,5.00 to the plaintiff. Ho claim, was made by the plaintiff that this conveyance was a mortgage or that [769]*769the plaintiff had any interest in the property during the life of the defendants’ testator, or until April 5, 1905, almost four years after his death. In the meantime the plaintiff had received the legacy of $2,500 from the estate of the defendants’ testator, and at various times between the execution of this conveyance and the death of the defendants’ testator she had received various legacies, without offering to repay the loan or making any arrangement in relation to the indebtedness.

A sister of the plaintiff testified that she recalled in the spring of 1891 a conversation between the defendants’testator and others with respect to a money transaction between himself and the plaintiff; that there were present their mother, the defendants’ testator and the plaintiff; that the defendants’- testator went abroad that year on the twenty-eighth of May,-and before going he said to the plaintiff, “You need $500;” the plaintiff said, “I do, very badly.” When he said, “Very well, I will lend it to you;” that the plaintiff then said that she had a piece of property in the Bronx which she wished the defendants’ testator to take as security; that he said, “Very well,” . that this property was the property of the plaintiff any time that she had $500 and wished it back, “ and anything it brings, if I should sell it, above $500 is yours; ” that she subsequently heard the defendants’ testator tell his mother that he wanted her to know that this property belonged to the plaintiff and that any time plaintiff had $500 she could have it back ;. that the defendants’ testator at several times stated to the witness that this property belonged to the plaintiff. The $500 was paid to the plaintiff prior to Hay 28,1891; the conveyance of the property to the defendants’ testator was dated the seventh of July, and the testator died on the 13th day of July, 1901, more than ten years thereafter.

Other members of the family testified, to conversations -between the defendants’ testator and his relatives before the deféndants’ testator went to Europe in 1891, and subsequently, in which he stated that he was making a loan to the plaintiff and had accepted this property as security; that the- property belonged to the plaintiff and whenever she could spare $500 she could have it, and that if he sold it at any time, anything that he received above the $500 belonged to the plaintiff. The plaintiff’s son testified that he heard ' [770]*770the defendants’ testator speak of this property about a year and a half before his death; that at that time he wanted the.witness to ask the plaintiff whether she wanted to sell the property or not; that if she did, he would attend to the sale of it for her; that the defendants’ testator said to' the plaintiff on Christmas day, 1900* that the property was going up considerably, It was also proved, by a clerk in the employ of the defendants’ testator that at the request of the defendants’ testator he obtained the tax bills upon this property and paid the taxes; that on several occasions he shid that the property belonged to the plaintiff and that he was paying the taxes and caking care of the property, because she was unable to handle it herself; that he would like to sell the .property and make some niioney for her. There was evidence that this -property in 1891 was worth “not over $750 if you could.get a purchaser; ” that, there was very little market at that time; “you could find purchasers but not readily;” that the property is now worth about $9,000; that the most marked improvement had occurred within the last two years. It was further proved that the property was assessed for taxation in the year 1891 at $250, which remained without change until 1897, when' it was assessed at $700; in 1899- it was assessed at $1,200 ; in 1900 at $1,500, which continued until 1903,-¿when it was assessed at-$3,500, and in 1905 at $7,000, and at the time of the trial $8,500. It further appeared that- during this entire period the defendants’ testator paid the taxes on the property.

■ - The disposition of this case depends entirely, upon the original arrangement that was made between the plaintiff and the defendants’ testator. The fact that the defendants’ testator intended to give to the plaintiff any profit that was realized upon the final sale of the property, while . evidence bearing upon the original arrangement that wás made,;would not of itself justify a finding that the transaction was in fact a loan and not a conveyance of the property. 1 do not think it -can be said upon this evidence that a .finding would have been’justified that the sum of $500 .was not a fair price for the property at the time it was conveyed to the defendants’testator. The' opinion -of the real estáte expert that it" was worth $750 if he could find a purchaser, but that purchasers of property in this locality were difficult to obtain* would not justify a finding that $500 was not the fair v-alue-of the property.

[771]*771The trial court, who had the advantage of seeing these witnesses and hearing them testify, had to determine whether recollections of these conversations and admissions many years before the testimony was given and many years before any question was raised as to the ownership of the property, furnished the clear and satisfactory evidence which is required to turn an instrument, absolute on its face, into 'a mortgage for the securing of a lóan of money. The testator is dead, and it is impossible to obtain his version of the transaction.

The rule to be applied in the disposition of such a case is stated in Ensign v. Ensign (120 N. Y. 655) : “ The burden of establishing an oral defeasance to such a deed is-an onerous one resting on whoever' alleges it, and its existence, and also its precise terms, must be established by clear and" conclusive evidence, otherwise the strong presumption that the deed expresses the entire contract between the parties to it is not overcome.

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Bluebook (online)
121 A.D. 767, 106 N.Y.S. 631, 1907 N.Y. App. Div. LEXIS 1902, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-v-hirsch-nyappdiv-1907.