In re Weed

68 P. 1115, 26 Mont. 507, 1902 Mont. LEXIS 48
Montana Supreme Court·Decided May 26, 1902·No. No. 1,744·Published·Cited by 6 cases

Opinions

ME. JUSTICE PIGOTT

delivered tlie opinion of tlie court.

Disbarment. Original. This is a proceeding for tlie disbarment of Elbert D. Weed, Esquire, instituted on November 23, 1901. On January 13, 1902, objections to tlie several accusations were sustained, with leave to amend tlie petition and attach proper verifications within 20 days. (In re Weed, 26 Mont. 241, 67 Pac. 308.) An amended petition was filed on January 23, to which the accused answered by filing objections to the sufficiency of each accusation. His objections to the first four accusations, being without merit, were overruled. The objections to the fifth and last accusation were sustained, and that accusation dismissed. An answer to the merits was filed on February 18, 1902, and on March 2Y and 28 the cause was tried by the court.

1. We are not satisfied with the truth of the material allegations constituting; the fourth accusation, and therefore dismiss it as not proved. There remain for consideration three accusations.

2. The first accusation charges the accused with the commission of acts necessarily involving deceit (whether the deceit [509]*509was an independent crime wo do not decide), and also a violation of Section 200 of tbe Fourth Division of the Compiled Statutes of 1887. Briefly stated, the averments are these: On December 7, 1894, Weed, who then was, ever since has been, and now is, an attorney and counselor of this court, entered into a written contract of sale with one Mayer, whereby, “for and in consideration of $125.00 paid by said Mayer to said Weed, the latter agrees to’ and with said Mayer to sell and convey eighty (80) acres of land in a square tract off the southwest corner of the southeast quarter (%) of section 7, T. 11 N., E. 3 W., at the rate of ten dollars per acre, to be paid as follows: $125.00 down, the receipt whereof is hereby acknowledged; $200.00. on or before January 15, 1895; $175.00 on or before March 1, 1895; $300.00' oar or before December 1, ’95.” This contract was not recorded. Weed was then the owner in fact, as well as by the record, of the land, which lies in Lewis raid Clarke county, Montana. On or about April 17, 1895, Mayer paid to Weed $200 as part of the purchase price, which should have been paid on January 15, and the further sum of $175 as the installment which was due on March 1, 1895. Before these payments were made; and on April 2, 1895, Weed, well knowing that he was not, and would not be, able to convey title to Mayer, knowingly, and with intent to defraud Mayer, and feloniously, for a valuable consideration, granted to one Luther F. Smith, by deed of conveyance of that date, the land already sold to Mayer, which deed to Smith was duly recorded on April 15, 1895. At the time of the grant to Smith, Mayer was not residing on the land, nor was there anything to put Smith c-n notice that any person other than Weed had an interest in it. The deed to Smith invested* him with the fee-simple legal title, without any reservation or exception whatever; and thereafter Weed had no interest in the land, nor contract by which he could ever obtain title to it. Weed did not inform Mayer that he intended to grant, or that he had granted, the land to Smith, and did not notify Smith that he had theretofore agreed to sell to Mayer. Because of his implicit confi-' [510]*510deuce,in the integrity of Weed, Mayer omitted to examine tlie records to ascertain tire condition of the title. The transfer to Smith was falsely and fraudulently made with intent on Weed’s part to defraud Mayer of the land and of the money he had paid upon the contract. Weed knowingly and fraudulently concealed from Mayer the fact of the transfer to Smith, with the deliberately planned purpose and intent to cheat and defraud Mayer and induce l:im to pay the remainder of the purchase price, and thus to defraud him of all payments which he might thereafter make. Weed was and is utterly insolvent. In August, 1895, Mayer tendered to Weed the remainder of the purchase price, and demanded a deed, but Weed then and afterwards falsely and fraudulently stated to Mayer that he could not at the time comply wilh the demand, for the reason that the title was involved in an estate in Wisconsin, in which several minor heirs were interested, but expected to make title in a few days. Mayer did not learn of the transfer to Smith until September, 1901, when the daughter and grantee of Smith demanded possession of the land. Since April 2, 1895,- Weed has been a stranger to the title. He is unable to convey to Mayer, has had no control over ¡he land, and no means or device whereby he could or can obtain title. The statutes of limitation bar any criminal action against Weed. lie refuses to reimburse Mayer or. return the money received, but offers a note for $250 in full satisfaction.

By his answer the accused denies that any of the sums paid by Mayer were paid after April 2, 1895; denies every allegation of fraud and deceit; pleads that at the time the contract was made the land was mortgaged to Luther F. Smith, a resident of Wisconsin, which mortgage' was of record, and that the accusesd explained fully to Mayer at the time the fact of the incumbrance, and that Mayer accepted the contract subject to the mortgage; that he at all times expected, and still expects and intends, to discharge the mortgage, and to execute a deed to Mayer conveying a perfect title upon payment of the remainder owing by the latter; that subsequently, and on April [511]*5112, 1895, without his fault, and on account only of depreciation in values, and business reversals beyond his control, the accused was unable to pay the amount secured by the mortgage when it became due, which was prior to the 1st day of April, 1895, and Smith, being about to begin a suit to foreclose, the accused, under compulsion of the threatened suit, and only to save the expense thereof, was compelled to give to Smith a deed to the land and other lands covered by the mortgage ; that at the time of the execution of the deed there was a full, complete, and binding agreement between Smith and the accused, by the 'terms of which Smith was to reconvey to the accused upon payment of the amount which might then be due from him to Smith.

At the trial the following facts were either admitted or proved beyond a reasonable doubt to exist: In 1884 the accused made liis interest-bearing note to Smith for $4,400. Payment of this note was secured by a mortgage made by the accused of certain lands owned by him, including the 80 acres afterwards contracted for by Mayer. The mortgage was of record. On December I, 1894, the contract between Weed and Mayer was entered into, and $125 paid down by Mayer. A few'months thereafter, on April 2, 1895, Weed conveyed by deed of bargain and sale to Smith the foil legal title to all the land mortgaged, the deed Doing silent as to the contract with Mayer. The negotiations for a settlement were carried on between Smith’s counsel at Helena and Weed, and covered a period of several rears. These finally resulted in an agreement whereby, in satisfaction and discharge of the mortgage, Smith was to take the property at a valuaxion of $8,100, and a note of the accused for $3,300, — the debt then amounting to $6,400. The accused was hopelessly insolvent. In the language of Smith’s counsel: “The amount was a large amount of money, something over $6,000. It'liad been running for ten years, and every one was very anxious to have it settled up. You [the accused] and I had numerous meetings and negotiations, covering a long period of time, possibly three or four years; and finally the best we [512]

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In re Weed, 68 P. 1115, 26 Mont. 507, 1902 Mont. LEXIS 48 (Mo. 1902).

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