Heller v. Levine

437 P.2d 983, 7 Ariz. App. 231, 1968 Ariz. App. LEXIS 358
CourtCourt of Appeals of Arizona
DecidedFebruary 27, 1968
Docket1 CA-CIV 472
StatusPublished
Cited by8 cases

This text of 437 P.2d 983 (Heller v. Levine) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heller v. Levine, 437 P.2d 983, 7 Ariz. App. 231, 1968 Ariz. App. LEXIS 358 (Ark. Ct. App. 1968).

Opinion

CAMERON, Chief Judge.

This is an appeal by the defendant, Charlene Heller, in a mortgage foreclosure action. From a jury verdict and judgment in favor of the plaintiffs, and from the denial of the defendant’s motions for new trial and judgment notwithstanding the verdict the defendant appeals.

Although the defendant sets forth eight “questions presented for review” we believe that there are primarily three ques *233 tions that this Court is called upon to consider :

1. Were the note, mortgage, and escrow instructions “delivered” and properly admitted in evidence?
2. Is the evidence sufficient to show an equitable mortgage?
3. Was the court correct in giving an instruction on confidential relationship, and correct in refusing to give defendant’s requested instruction on forgery to the jury?

Paul Heller was and is the ex-husband of the defendant Charlene Heller. As part of the divorce decree Charlene Heller retained possession of the family house which was, at the time in question, in need of repair. Paul Heller continued to manage the affairs relating to a water company which was owned by the Hellers and in the process of being sold. In September of 1962 Paul Heller went to the plaintiff, Louis Levine, who was in the business of lending money, and negotiated a loan of $7,500.00 to be secured by a second mortgage on the house. An escrow was opened at Phoenix Title and Trust Company to handle the matter. Paul Heller took escrow instructions, note, and mortgage to the home of Charlene Heller and had her sign the documents. Charlene Heller testified that Paul Heller rushed into her home with a large stack of papers which he told her involved the water company. Charlene Heller further testified that she relied on Mr. Heller’s representation and signed the documents without ascertaining what they were. She admitted she signed the note, mortgage, escrow, and collection instructions. On the following day Mr. Paul Heller took the mortgage with appellant’s signature on it to a former employee (of Paul Heller) who was a notary public, and Charlene Heller’s signature on the mortgage was acknowledged. Paul Heller then delivered the documents to the escrow agent at which time he obtained a check in the amount of $6,940.51 made payable to Charlene Heller.

The check was endorsed by Charlene Heller payable to her husband. She alleges that Paul Heller told her to sign the check that way, and that she did not know what the money was to be used for. She testified that she received none of the money from these transactions, although it is admitted that the repairs in question were made upon the house.

A letter was sent to Charlene Heller by the Collection Department of the title company on 17 September 1962 giving details of the mortgage transactions and the payments to be made. Charlene Heller denied receiving this letter. On 23 August 1963 a letter was sent to Charlene Heller indicating that the final payment was due 10 September 1963, and on 20 May 1964 the title company, by letter, notified Charlene Heller that the documents were withdrawn from their files and turned over to the plaintiff, Mr. Levine. Charlene Heller denies receiving any of these letters. Charlene Heller denied making any mortgage interest payments on the second mortgage, and it would appear that any payments made were made by defendant Paul Heller.

Plaintiff filed a complaint in three counts: Count One alleging a duly and properly executed mortgage; Count Two alleging a mortgage by estoppel; and Count Three for specific performance of a contract to mortgage under § 33-437 A.R.S. The answer of the defendant Charlene Heller admitted the signatures on all these documents, but denied that the mortgage was acknowledged before a notary public. Defendant also filed a counterclaim seeking to cancel the note and mortgage.

After various pleadings and depositions the plaintiff withdrew the first cause of action and at trial relied on the second and third causes of action in the complaint. The matter was tried to a jury and the jury returned a verdict in favor of the plaintiffs Louis Levine and Esther Levine, his wife. From this verdict, judgment, and motion denying new trial and motion for judgment notwithstanding the verdict, Charlene Heller brings this appeal.

*234 I. WERE THE INSTRUMENTS “DELIVERED” AND PROPERLY ADMITTED IN EVIDENCE?

Appellant contends that the documents in question were never delivered according to the legal definition of that term. The statute in effect at the time this transaction took place defines “delivery” as follows:

“6. ‘Delivery’ means transfer of possession, actual or constructive, from one person to another.” § 44-591 A.R.S. And the Uniform Commercial Code defines “delivery” as follows:

\ “14. ‘Delivery’ with respect to instruments, documents of title, chattel paper or securities means voluntary transfer of } possession.” § 44—2208 A.R.S.

In the instant case it is apparent that the defendant Charlene Heller, after admittedly signing the documents, transferred possession of them to Paul Heller who placed them in escrow. Our statute at the time stated:

“ * * * And where the instrument is no longer in possession of a party whose signature appears thereon, a valid and intentional delivery by him is presumed until the contrary is proved.” § 44—416 A.R.S.

By statute (§ 44-416 A.R.S.) in Arizona at the time, and by general case law, the burden of showing an improper delivery of the documents in question rests on the defendant:

“In her special defense, the defendant alleges that the mortgage deed was improperly executed and that it had never been delivered by the decedent or her agents to the plaintiff. The burden of proving these affirmative defenses rested on the defendant. Bell v. Bloom, 146 Conn. 307, 309, 150 A.2d 300; First National Bank of Bridgeport v. National Grain Corporation, 103 Conn. 657, 662, 131 A. 404. * * * Possession of the deed by the grantee and the execution of the attestation clause are prima facie proof of delivery. Bell v. Bloom, supra, 146 Conn. 308, 150 A.2d 300, and cases cited. The defendant did not sustain her burden of proof with respect to these special defenses.” Molk v. Micklewright, 151 Conn. 606, 201 A.2d 183, 185, (1964).

We hold there was sufficient evidence from which the jury could find that there was delivery within the meaning of § 44—591 A.R.S. in effect at the time the transaction took place as well as within the meaning of § 44-2208 A.R.S., being the Uniform Commercial Code enacted by our legislature in 1967.

It is admitted by all parties concerned that the mortgage was not acknowledged, and the plaintiff had withdrawn the first cause of action alleging a properly executed note and mortgage. We believe that the instruments were properly admitted in evidence under the theory of the case espoused by the plaintiff.

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Bluebook (online)
437 P.2d 983, 7 Ariz. App. 231, 1968 Ariz. App. LEXIS 358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heller-v-levine-arizctapp-1968.