New York Store Mercantile Co. v. Thurmond

85 S.W. 333, 186 Mo. 410, 1905 Mo. LEXIS 326
CourtSupreme Court of Missouri
DecidedFebruary 15, 1905
StatusPublished
Cited by8 cases

This text of 85 S.W. 333 (New York Store Mercantile Co. v. Thurmond) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New York Store Mercantile Co. v. Thurmond, 85 S.W. 333, 186 Mo. 410, 1905 Mo. LEXIS 326 (Mo. 1905).

Opinion

MARSHALL, J.

— This is a bill in equity to set aside for fraud a deed from defendant Jones, as trustee, to defendant Shelton, and also a deed from said Shelton to defendant Gibson, to the north half of the northwest quarter of section twenty, in township sixteen, range seven, in Dunklin county, and to have a deed of trust from defendant Thurmond to the plaintiff, on said land, and other lands, declared a lien on said land, superior to defendant’s claim thereto, and to have plaintiff’s deed of trust aforesaid foreclosed and the land sold to satisfy the plaintiff’s lien.

The petition alleges that on December 14,1896, the defendant Thurmond was the owner of the land, and that on that day he gave a deed of trust thereon to defendant Jones, as trustee, to secure to defendant Shelton a note for three hundred and seventy-five dollars, which deed was duly recorded in said Dunklin county; that afterwards on September 25, 1897, said Thurmond executed to plaintiff a second deed of trust on the land, to secure a note for $463.73, which was also duly recorded; that at the time Thurmond gave plaintiff said deed of trust, he promised to protect plaintiff’s interest by paying off the first deed of trust, and in the event Shelton should press the first deed of trust and he, Thurmond, was unable to pay it, he would notify the plaintiff so that it could protect itself in the premises and that plaintiff believed and relied on Thurmond’s said promise and he failed to keep the same; that the land was of sufficient value to pay both of said debts and was good security therefor; that in December, 1899, and January, 1900, Thurmond, Shelton, and the defendant Gibson, “colluded together with intent to hinder, delay and defraud the creditors of said Thurmond, and especially the plaintiff, of its lawful action, [417]*417forfeiture, debt, demand and lien, and did cause tbe defendant Ligón Jones to advertise said property and real estate for sale under the deed of trust of said W. F. Shelton without advising this plaintiff of their proceedings in that behalf and plaintiff had no actual notice or knowledge thereof, and did, afterward, on the eighth day of January, 1900, at an unusual hour of the day, with intent to suppress bidding and prevent competition in bidding in that behalf and to get title to said real estate free and shorn of plaintiff’s lien .and demand,” sell the land to Shelton for the sum of one hundred dollars, when it was fairly worth one thousand dollars, and immediately thereafter Shelton sold it'to Gibson, by a general warranty deed, for three hundred and eighty-four dollars and twenty-seven cents, and that Gibson is a son-in-law of Thurmond and held a confidential relation to him; that plaintiff’s debt is due and unsecured, except by the second deed of trust, and that Thurmond is wholly insolvent; that immediately thereafter Thurmond and Gibson left the State, so that the ordinary process of law could not be served upon them; that upon being informed of the premises, plaintiff demanded of Thurmond, Shelton and Gibson to be allowed to redeem the land by the payment of the amount due Shelton, so that it could be sold at a fair price, but defendants refused so to do. The prayer of the petition is that the sale under the first deed of trust and the trustee’s deed to Shelton, and the deed of Shelton to Gibson, be declared fraudulent and set aside, and that plaintiff’s claim and lien be declared superior to the claims and liens of defendant “by reason of the undue advantage sought to be accomplished by the means and in the manner herein mentioned; that plaintiff’s mortgage and deed of trust be fully foreclosed and carried into full force and effect ; that said real estate be sold under the order and ■decree of this court, and that plaintiff’s demand and [418]*418costs be first fully paid and satisfied, and the remainder, if any, may be paid over to the defendants according to their rights,” and for further relief.

The answer of the defendant Gibson is a general denial, coupled with the plea that he had no knowledge or notice of plaintiff’s agreements with Thurmond, if there were any such agreements, and had nothing to do with the foreclosure of the Shelton deed of trust, and did not know either Shelton or Jones prior to the sale under the deed of trust, and had no conversation with either of them prior to said time; that he is an innocent, bona fide purchaser of the land from Shelton, for a valuable consideration.

The other defendants answered jointly, in the shape of a general denial, with a special plea that the sale of the land was legally and fairly made, and that the land is now the property of defendant Gibson.

The decree of the court set out the first deed of trust to Shelton, and the second deed of trust to plaintiff, and then finds that at the time Thurmond gave the second deed of trust to plaintiff, he, Thurmond, “undertook to protect the interests of plaintiff under its said deed of trust or fully advise plaintiff of any demand which he could not meet or a foreclosure of said deed of trust to W. F. Shelton in the premises. And that afterward the said Ligón Jones on the eighth day of January, 1900, having duly advertised said real estate for sale under said first deed of trust to W. F. Shelton, sold the same to W. F. Shelton, of all of which plaintiff had no actual notice of the proceedings in that behalf, and that said J. A. Thurmond wholly failed to protect plaintiff’s interests or to advise plaintiff of said proceedings and sale, but procured defendant J. T. Gibson, his son-in-law, to attend the sale under said deed of trust on the eighth day of January, 1900, and to pay off the demand due said W. F. Shelton on the day of the sale of said premises, and buy in the same and take a deed therefor in his own name from the [419]*419said W. F. Shelton, the beneficiary in said deed of trust; and the court doth find that the said purchase by the said J. T. Gibson was for and in behalf of said J. A. Thurmond, and the said J. T. Gibson now holds the said real estate in trust for the said J. A. Thurmond.’*

The decree then finds that Thurmond is indebted to the plaintiff in the sum of $517.83 and declares it to be a lien on the land by virtue of the second deed of trust “and under this judgment,” orders an execution to issue and the land to be sold, and if it does not bring' enough to satisfy plaintiff’s debt that the execution be levied upon the other goods, chattels and real estate of Thurmond. The decree then finds in favor of the defendants Shelton and Jones. Prom this decree the defendants Thurmond and Gibson appealed.

As this is a suit in equity, the facts will be stated and discussed in the course of the opinion.

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Cite This Page — Counsel Stack

Bluebook (online)
85 S.W. 333, 186 Mo. 410, 1905 Mo. LEXIS 326, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-store-mercantile-co-v-thurmond-mo-1905.