Lorton v. Henderson

158 P.2d 373, 159 Kan. 697
CourtSupreme Court of Kansas
DecidedMay 5, 1945
DocketNo. 36,306; No. 36,307; No. 36,308
StatusPublished
Cited by1 cases

This text of 158 P.2d 373 (Lorton v. Henderson) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lorton v. Henderson, 158 P.2d 373, 159 Kan. 697 (kan 1945).

Opinion

The opinion of the court was delivered by

Harvey, C. J.:

These were separate actions brought by the executrix of the estate of James Lorton, deceased, on three promissory notes and to foreclose real estate mortgages given to secure the payment of the respective notes. The parties and the legal questions argued are the same in each case. The appeals are from orders of the court overruling plaintiff’s demurrers to defendants’ answers.

[698]*698Each of the petitions, filed April 9, 1943, so far as here pertinent, alleged that on May 28, 1941, the defendants, Ralph F. Henderson and his wife, made and executed their promissory notes to James Lorton by which they promised and agreed to pay him the sum of $5,242.58 in the note sued on in case No. 36,306, $27,140 in the note sued on in case No. 36,307, and $8,000 in the note sued on in case No. 36,308, and at the same time they executed and delivered to James Lorton their separate real estate mortgages upon certain land owned by them to secure the payment of the respective notes. Copies of the notes and mortgages were attached to the petitions and are in the form frequently used in making real estate loans. Each of the notes recited that it was due May 28, 1946, that it was given “for value received,” that the amount of the note should bear interest at the rate of 4% percent interest, payable semiannually, according to interest coupons which were attached, and that if there was default in payment of the interest or of any of the conditions of the mortgage securing it, then the holder of the note, at his option, might declare the principal sum with accrued interest due, and that the same might be collected immediately; and further recited:

“This note is given for an actual loan of the above amount, and is secured by a mortgage, of even date herewith, which is a first lien upon the property therein described.”

It was alleged that the plaintiff was the owner and holder of the note and mortgage and that there had been default in the payment of certain interest coupons, by reason of which the principal of the note with accrued interest had become due. In addition to other pertinent matters the mortgage contained the recital that the mortgagors “are justly indebted unto” the mortgagee in the sum stated in the note, “being for a loan thereof” made by the mortgagee to the mortgagors and payable according to the tenor of the note. It also contained a provision for the acceleration of- the due date of the principal sum secured by the mortgage upon default of the payment of interest or taxes.

The prayer was for judgment against both defendants for the amount of the note, with interest, and for the foreclosure of the real estate mortgage.

Other than the necessary differences in describing the separate notes sued upon and the separate tracts of land described in the mortgages the petitions were identical; except that in suit No. 36,308, by appropriate allegations, plaintiff sought to bar the title [699]*699or rights which might be claimed by G. M. Smith under a deed purporting to convey an undivided one-half interest in and to the oil, gas and other minerals in and under and that might be produced from the land described in the mortgage, which deed had been executed by Ralph F. Henderson and wife to G. M. Smith and filed for record August 3, 1942; and further sought to recover a large, well built “race horse” barn situated on the mortgaged property at the time the mortgage was executed and recorded and which the defendant, Ralph F. Henderson, later moved and placed on a tempo.rary foundation on land not described in any of the mortgages in suit and on which land Henderson later attempted to obtain, or obtained, a mortgage from the P. H. Albright Farm Loan Company, in the course of which Henderson agreed with Lorton to procure from that mortgagee a letter stating that the mortgage he was placing thereon did not include the race horse barn, which letter was procured and delivered to Lorton or his attorney on or about October 6, 1942.

An answer was filed in each case which contained a general denial of material allegations of the petition not specifically admitted ; admitted the residence and postoffice address of the parties; the appointment and qualification of plaintiff as executrix of the estate of James Lorton, deceased; that Neva L. Henderson is and was at all times mentioned in the pleadings the wife of Ralph F. Henderson, and that Henderson was and is the owner of the real property described in the respective mortgages subject to certain oil and gas leases of record, and further admitted that the defendants signed the notes and mortgages sued on; that the mortgages were duly recorded and the registration fee and tax paid thereon.

Defendants further alleged that the notes and mortgages were executed under the circumstances and because of the promise and agreement of James Lorton, later mentioned, and would not have been executed otherwise. In the further summary of the answers the word “defendant” means Ralph F. Henderson unless otherwise indicated. The answers alleged that defendant’s father had been a patron of the Winfield National Bank, of which James Lorton was president and the chief managing officer for many years, and about twenty-five years ago introduced defendant to Mr. Lorton and expressed the hope that Lorton would deal with defendant in the same manner as he had dealt with the father, which Lorton assured defendant he would do; that by reason of these circumstances he had [700]*700confidencet in the bank and Lorton and immediately began transacting business with the bank, many of which transactions were carried on in the name of Lorton; that beginning early in 1931 Lorton urged defendant to borrow money from him or the bank for the purpose of purchasing livestock to be grazed and fed upon the farm and pasture Jand owned by defendant; stated the bank or Lorton would loan the money on the security of the livestock if defendant, when he sold the same from time to time, would remit the proceeds to the bank or Lorton, and that he, Lorton, would keep an accurate account of money received and give defendant proper credit therefor; that relying thereon defendant purchased large numbers of livestock from time to time, gave Lorton notes for money with which to make such purchases and to purchase feed for the livestock, executing mortgages on his real estate to secure the payment of the moneys borrowed, and that he sold livestock, feed, grain and hay from time to time and leased land for oil and gas and sold royalty interests, and some of the land was condemned for highway purposes, and that the proceeds of these sales, leases and condemnation moneys were paid to Lorton to apply upon defendant’s indebtedness; that notwithstanding these payments the “notes constantly grew bigger and bigger, as the same were renewed from time to time”; that upon oral complaint of defendant at such renewals Lorton would state that the amounts specified in the notes were what the books showed; that he would check up and see if there had been any mistake, and if so it would be corrected so defendant would not have to pay more than was actually due; that on some occasions when notes were renewed the old notes would not be delivered to defendant,. Lorton stating that he desired to keep the old notes as memoranda in checking up proper credits, and that the same would be delivered to him, but'that this was never done.

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Related

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164 P.2d 105 (Supreme Court of Kansas, 1945)

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Bluebook (online)
158 P.2d 373, 159 Kan. 697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lorton-v-henderson-kan-1945.