Murphey Sanitarium v. Trustees of Property of Protestant Episcopal Church

265 P. 717, 33 N.M. 284
CourtNew Mexico Supreme Court
DecidedMarch 2, 1928
DocketNo. 3035.
StatusPublished
Cited by2 cases

This text of 265 P. 717 (Murphey Sanitarium v. Trustees of Property of Protestant Episcopal Church) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Murphey Sanitarium v. Trustees of Property of Protestant Episcopal Church, 265 P. 717, 33 N.M. 284 (N.M. 1928).

Opinion

OPINION OF TPIE COURT

PARKER, C. J.

This suit was instituted by Meta Murphey against W. T. Murphey, the Murphey Sanitarium, a corporation, hereinafter styled Sanitarium, and the Trustees of the Property of the Protestant Episcopal Church of New Mexico, a corporation, hereinafter styled Trustees. The amended complaint upon which the case came to trial was filed May 10, 1923. The object of the bill was to compel the specific performance of two contracts — one between Sanitarium and Trustees, and the 'other between W. T. Murphey, individually, and Trustees. The former was a contract for the sale of all the properties of Sanitarium to Trustees. The latter was a contract by W. T. Murphey, individually, to purchase all of the capital stock of Sanitarium, dissolve the corporation, acquire a $50,000 promissory note which was to be given by Trustees to Sanitarium as part of the purchase price, and after thus acquiring said promissory note create a trust and endowment in favor of Trustees. The purchase price of the sanitarium properties was $70,000, and the assumption by Trustees of an existing mortgage on part of same for $20,000. The time and manner of payment and mode of securing the notes called for were fixed by the contract of sale at $2,500 in cash on the execution of the contract of sale; $7,500 in form of noninterestbearing promissory note, payable on or before March 15, 1922; $10,000 in form of noninterest-bearing promissory note, payable on or before September 15, 1922; and $50,-000 interest-bearing promissory note, payable on or before September 15, 1965 — all of said promissory notes to be secured by deed, of trust on all of the property sold by Sanitarium to Trustees. The contract of sale is dated September. 21, 1921, but was not executed by Trustees until November 4, 1921.

A great number of pleadings were filed in this case. Each of the defendants’ filed an answer to the complaint, and also a cross-complaint praying affirmative relief. In addition, there were answers to cross-complaint and replies. It will be necessary to consider these pleadings in order to align the parties in the relief they sought.

The plaintiff, Meta Murphey, claimed an interest in the $50,000 promissory note and sought specific performance by all of the parties defendant of the two contracts, the “agreement to sell Sanitarium,” and the “agreement to create trust.” Additional relief was asked, but the same is immaterial to this review.

The defendant Trustees in their answer to the complaint specifically joined in the relief sought by plaintiff and then filed a cross-complaint wherein it prays specific performance by Dr. W. T. Murphey, Sanitarium and Receiver of Sanitarium, of both agreements as part of one contract.

The defendant Sanitarium and several of the stockholders thereof joined in an answer to the complaint and denied all of the allegations set forth therein and prayed for dismissal of same. They also joined in an answer to Trustees’ cross-complaint, and after denying much thereof and setting forth new facts, prayed in effect that Trustees be compelled to specifically perform the “agreement to sell Sanitarium,” and also for reformation of the $50,-000 promissory note so as to conform to the terms of “agreement to sell Sanitarium” and for such further relief as will insure the complete performance of said agreement to sell. Sanitarium also filed a cross-complaint, consistent with its answer, but praying for reformation of the $50,000 promissory note and the deed of trust, so that the same will comply with the terms of the “agreement to sell Sanitarium”; for judgment against Trustees in the sum of $5,600 and interest thereon; and unless said Trustees shall pay such judgment within 90 days, the court will order the property described in the “agreement to sell Sanitarium” to be sold to pay such judgment, as in' case of foreclosure. It will be noted that the foregoing language is not a prayer for a foreclosure of the mortgage lien, but is simply a prayer to sell property in satisfaction of the judgment as in case of foreclosure.

Defendant Dr. W. T. Murphey files an answer to cross-complaint of Trustees wherein he denies the material allegations of same and alleges facts similar to those alleged by Sanitarium in its cross-complaint, and then prays dismissal of cross-complaint of Trustees. He does not answer the cross-complaint of Sanitarium.

It thus appears that the plaintiff, Meta Murphey, and Trustees were seeking the same general relief against Sanitarium and Dr. W. T. Murphey, and that the two latter were in harmony in their defense.

We find, however, that plaintiff’s complaint was dismissed by the trial court and plaintiff has not joined in this appeal; that Trustees voluntarily dismissed their own cross-complaint prior to final judgment, but without prejudice, as in nonsuit; that Dr. W. T. Murphey does not appear in this court either as appellant or appellee. The pleadings to be considered by this court are, therefore, cross-complaint of Sanitarium, answer of Trustees to such cross-complaint, and reply of Sanitarium.

Let us consider what issues are presented by the three foregoing pleadings.

The cross-complaint of Sanitarium, in substance, tenders the following issues: That Sanitarium and Trustees entered into one and only one agreement concerning the sale of the properties of Sanitarium, which was dated September 21, 1921, and ,is designated, ‘.‘Agreement to Sell Sanitarium.” That Sanitarium has fully complied with and carried out all of its obligations under such “agreement to sell.” That Trustees have failed to carry out such agreement in that, instead of giving the $50,000 promissory note and deed of trust, as provided in said agreement, it gave a $50,000 promissory note and deed of trust conditioned upon and subject to a certain agreement, to create a trust, between Dr. W. T. Murphey, individually, and Trustees, to which latter agreement Sanitarium was not a party. That the deed of trust and promissory note were given in such changed form without authority and without knowledge or notice to Sanitarium and in violation of the terms of the “agreement to sell Sanitarium,” and without legal authority, Trustees well knowing that neither it nor Dr. W. T. Murphey had any authority to make said changes. That such changes first came to the knowledge of Sanitarium about August 9, 1923. That Sanitarium has received no benefit under such deed of trust and promissory note, nor has it ratified same or the changes therein, but now specifically repudiates same and tenders the same for reformation so as to conform to the “agreement to sell Sanitarium.” That Trustees have failed to pay the sum of $5,600, the balance of the down payment evidenced by the $10,000 promissory note.

Cross-complainant then prays' for correction an’d reformation of the $50,000 promissory note and the deed of trust, so that they will comply with and conform to the terms of the “agreement to sell Sanitarium”; for judgment against Trustees in the sum of $5,600 and interest, and upon failure to pay such judgment within 90 days, for the sale of the property described in the “agreement to sell Sanitarium,” as in case of foreclosure; and for such other, further, additional, and different relief as may be justified under the allegations and proofs thereof.

The answer of Trustees to cross-complaint of Sanitarium alleges, in substance:

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Related

Casna v. White
1934 NMSC 009 (New Mexico Supreme Court, 1934)
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273 P. 917 (New Mexico Supreme Court, 1928)

Cite This Page — Counsel Stack

Bluebook (online)
265 P. 717, 33 N.M. 284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murphey-sanitarium-v-trustees-of-property-of-protestant-episcopal-church-nm-1928.