McArthur v. Goodwin

160 P. 679, 173 Cal. 499, 1916 Cal. LEXIS 438
CourtCalifornia Supreme Court
DecidedOctober 14, 1916
DocketL. A. No. 3779.
StatusPublished
Cited by22 cases

This text of 160 P. 679 (McArthur v. Goodwin) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McArthur v. Goodwin, 160 P. 679, 173 Cal. 499, 1916 Cal. LEXIS 438 (Cal. 1916).

Opinion

MELVIN, J.

One of the defendants, Will D. Gould, appeals from the judgment and from an order denying his motion for a new trial.

The action was one brought by Charlotte L. McArthur to quiet her title to lots one (1), seven (7), ten (10), eleven (11), and thirteen (13) of the Hillard Tract, in the county of Los Angeles. The original defendants were D. M. Goodwin, Will D. Gould, and certain persons sued by fictitious names. The complaint in addition to the usual allegations in such’ suits contained the averment on information and belief that the claim of defendants to an interest in the property was based upon certain tax deeds. Defendant Gould answered denying the allegations of the complaint except those which contained a statement of his adverse claim of title, and he averred that he was seised and possessed of all of the lots of land described in the complaint “as the sole owner thereof.” This answer was filed January 23, 1909. Three and a half years later, on July 15, 1912, a few days before the time set for the trial, the appellant filed and served a *501 cross-complaint and interpleader, in which he set up certain equitable matters. Charles H. McArthur answered this pleading and charged Will D. Gould with fraud in the purchase of a certain mortgage which, according to the pleading was bought by Gould (who is an attorney at law) for his own benefit while he was acting as counsel for Charles H. McArthur in an action to foreclose the mortgage. In his brief filed in the superior court, Mr. Gould disclaimed any intention of depending upon the efficacy of any tax deeds as vesting title in him. He admitted that he was Mr. McArthur’s attorney of record at a time when he compromised certain litigation to which we shall refer more fully hereafter.

In his brief before this court, however, the appellant asserts that his case presents these questions:

“1. Can a cestui que trust quiet title to the property against the trustor before the determination of the trust ?

“2. Can the title to property be quieted against a mortgage held by a joint owner or an attorney in the case who has purchased it to protect the title?

“3. Can the title to property be quieted against taxes paid by a joint owner who paid them to protect the title ? ’ ’

The land known as the “Hillard Tract” was purchased by Charles H. McArthur and Will D. Gould from Margaret A. Hillard in 1890. It was subject to a mortgage for five thousand dollars, but the court found that “it is not true that Charles H. McArthur and Will D. Gould, or either of them, assumed or promised to pay a note and mortgage for five thousand dollars, or for any other sum as part consideration of the deed executed to them by Margaret A. Hillard or otherwise. ” At the trial it was stipulated that Gould deeded to C. H. McArthur an undivided half of lot seven (7) on June 26, 1891, and that he deeded to said C. H. McArthur an undivided half of lot 10 on July 1, 1892. By an instrument dated August 2, 1897, Gould deeded an undivided one-half interest in lots one (1), eleven (11), and thirteen (13) to Mary E. Linton. It will thus be seen that he had divested himself of the record title long before this suit was instituted. It also appears that the record title is in the plaintiff Charlotte L. McArthur. At the trial appellant introduced certain tax deeds. These represented alleged tax titles bought by Gould, as he asserted, through persons representing him, to whom he advanced the money for the purchase price. How *502 ever, he failed to prove a chain of title because he began with the introduction in evidence of the deeds from the state. No deeds to the state were offered. Appellant’s chain of title depending on the tax deeds was therefore incomplete. (County Bank of San Luis Obispo v. Jack, 148 Cal. 437-442, [113 Am. St. Rep. 285, 83 Pac. 705].) Numerous other criticisms of appellant’s alleged tax title are made by respondent. These are in the form of technical objections to the sufficiency of the proceedings leading up to the execution of the tax deeds, and although they are all apparently of much force we need not examine them in detail, in view of the failure upon the appellant’s part to prove his chain of title depending upon the alleged sales of the property for delinquent taxes.

But appellant bases his claim of interest in the land mainly upon payments which, as he avers, he made to protect the interests of the plaintiff and the other adversaries mentioned in his cross-complaint. In that pleading he took the position that after he and Charles H. McArthur acquired title from Mrs. Hillard they made improvements and sold certain lots; that they paid to the mortgagee, one Albertson, $2,705 in consideration of which sum he released certain lots not here in controversy from the effect of the mortgage; that in 1894 and 1897 upon specified dates Mrs. Hillard, Charles H. McArthur, and Will D. Gould renewed and extended the note and mortgage; that Charles H. McArthur, acting for himself and the plaintiff Charlotte L. McArthur, induced Gould to convey his interest in lots one (1), eleven (11), and thirteen (13) to Mary E. Linton, as trustee for the benefit of Charlotte L. and Charles H. McArthur, in consideration of the promise of Charles H. McArthur for himself and in behalf of plaintiff, who is his daughter, and also in behalf of Mary E. Linton, his sister-in-law, that they and each of them would fully pay the note and mortgage then a lien upon the unsold portion of the Hillard Tract, Gould and Charles H. McArthur (so runs the pleading) having promised to pay the note and mortgage as a part of the purchase price of the tract; and that the promises made by Charles H. McArthur were made fraudulently and without intention of keeping them. The pleading contains further allegations substantially setting forth the failure of the grantee of Gould and the beneficiaries of the trust to pay the note or the taxes; the sale of these five lots at public auction and the purchase of the tax titles in *503 appellant’s behalf and at his expense; the eventual transfer of said titles to him; the commencement by one Knight of an action for the foreclosure of the mortgage mentioned above; and the purchase by Gould through intermediaries of the note and mortgage. It will thus be seen that the only important matter to be determined is whether or not, under the pleadings and the evidence, Gould was entitled to a lien on the land for moneys properly expended in behalf of the trustee and the beneficiaries.

Gould was attorney for Charles H. McArthur at the time when he purchased the note and mortgage and the alleged tax titles. He did these things after the action for foreclosure had been dismissed as to him. He acted in opposition to the interests of his clients and his purchases were therefore void. An attorney at law is forbidden to purchase an interest in the thing in controversy adverse to his client. (Webster v. King, 33 Cal. 348; Eoff v. Irvine, 108 Mo. 378, [32 Am. St. Rep. 609, 18 S. W. 907]; Cunningham v. Jones, 37 Kan. 477, [1 Am. St. Rep. 257, 15 Pac. 572].)

The court found that Gould did not tell Charles H. McArthur of his purchases. The assignments of the mortgage by and through Gould’s representatives, George Gould and James H.

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Bluebook (online)
160 P. 679, 173 Cal. 499, 1916 Cal. LEXIS 438, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcarthur-v-goodwin-cal-1916.