Occidental Building & Loan Ass'n v. McGrew

126 N.W. 382, 86 Neb. 694, 1910 Neb. LEXIS 34
CourtNebraska Supreme Court
DecidedMay 5, 1910
DocketNo. 15,976
StatusPublished
Cited by2 cases

This text of 126 N.W. 382 (Occidental Building & Loan Ass'n v. McGrew) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Occidental Building & Loan Ass'n v. McGrew, 126 N.W. 382, 86 Neb. 694, 1910 Neb. LEXIS 34 (Neb. 1910).

Opinion

Reese, C. J.

It is difficult to conceive of a more complicated and involved case than this. The chronological order of events deemed material to the consideration of this case, as drawn from the statements contained in the briefs and made upon the arguments, appears to be about as follows: On and prior to the 25th day of June, 1900, the Mc.Orews were the owners of lots 13, 14, 15 and 10, in block 1, in "Woods and.Kelly’s first addition to College Yiew, all of which Avere vacant. That block is composed of 48 lots, 24 of AA’hich, numbering from 1 to 24, inclusive, are upon the north side of the block fronting on Prospect street, the other 24 fronting to the south. On the 5th of March, 1900, the McG-reAVs executed a mortgage to plaintiff on lots 15 and 10 of said block to secure the payment of the sum of $700, and thereafter «rected a dwelling-house upon [696]*696said lots, as they then supposed, but which was by mistake erected on lots 17 and 18, to which they liad no title. On the 25th day of June, 1906, they sold and conveyed by warranty deed lots 15 and 16 to defendants Fairs for the expressed consideration of $3,050, all parties believing that the conveyance included the dwelling-house, which was supposed to be on said lots, the deed being recorded June 29, 3906. The Fairs took possession of the house, and later paid the $700 mortgage to plaintiff. On the 14th day of August, 1906, the McGrews executed to plaintiff another mortgage on lots 13 and 14 to secure the sum of $800, which is the mortgage the foreclosure of which is sought in this action. The McGrews constructed a dwelling-house and barn upon those, lots, as they supposed, but by another mistake placed the same upon lots 15 and 16, the title to which were in the Fairs. Defendant Sullivan, under a contract with the McGrews, furnished material to the said McGrews for the construction of this house and barn, and later, on November 28, 1906, filed his statement for a mechanic’s lien on lots 13, 14, 15 and 16, amounting to the sum of $481.45. After this second house was about completed McGrow, discovering the mistake he had made, called upon the Fairs, and informed them of the fact and agreed that he would procure the title to lots 17 and 18,. upon which the house stood, and the Fairs could then reconvey the title to lots 15 and 16 to him. Later on he informed the Fairs that he could not obtain such title. It seems that McGrew’s brother had purchased the lots. As to the good faith or fraud on the part of the McGrews in this purchase by the brother we now have nothing to do. Upon the discovery of the mistake, Fair took counsel with a reputable attorney as to his rights, and was advised that as he was the owner of lots 35 and 16, his title being of record, he should take possession of his lots and the improvements thereon, which he did, and abandoned his possession of lots 17 and 18. The house on lots 15 and 16 not having been quite completed, Sullivan removed his unused material, and [697]*697furnished no more. Fair furnished material, finished the work at an expense of $200, and retained his possession. Lots 13 and 14, upon.which no improvements have been made, and which are yet vacant, are of little value, not sufficient to meet the demands of any defendant.

Upon the discovery of the errors and mistakes above enumerated, plaintiff, the building and loan association, instituted this action for the foreclosure of its mortgage, making the McGrews, Fairs, and Sullivan parties defendant. The McGrews did not answer or otherwise plead, and default was entered against them. The pleadings are quite lengthy and voluminous, and the transcript is padded to an unnecessary extent, the original and amended pleadings being set out at length. Transcripts could be very much diminished in size and volume, as well as in costs, if counsel would guard against the inclusion of unnecessary files and papers, by giving specific directions to the clerk as to wlmt should be certified. The averments of plaintiff’s amended petition (substituted for the original) contain the facts of the execution of its n >te and mortgage, according to the usual form of pleading in suits for foreclosure, setting out a copy of the mortgage, showing it to be upon lots 13 and 14, and further alleges that defendants McGrews were at the time of the execution of the note and mortgage the owners and in possession of lots 13 and 14, and in possession and occupancy of lots 15 and 16, and had commenced the erection and construction of a dwelling-house on lots 15 and 16, and that at that time the McGrews represented that the money then borrowed, and to secure which the mortgage was given, was for the erection of the dwelling-house on lots 13 and 14, and, plaintiff believing that said improvements were being constructed upon said lots, accepted the mortgage thereon; that the parties to the mortgage were mutually mistaken as to the location of said improvements, and, instead of being upon lots 13 and 14, they were upon lots 15 and 16, and that the money so furnished by plaintiff was to be, and was, used in the [698]*698construction of said, improvements. The facts herein above stated as to the mistakes of the McGrews and the Pairs as to the location of the house on lots 17 and 18, as well as to lots 15 and 16, are alleged, and need not be herein restated. Further allegations are that during all of the time in which the house was being constructed on lots 15 and 16 the Fairs had full knowledge of what was being done, and were using and occupying lots 17 and 18 and the dwelling-house thereon, asserting ownership thereof, and they also knew that the improvements being made were made with and by the use of the money furnished by plaintiff for that purpose, but gave no notice of any claim of- title or ownership of said lots 15 and 16; that they paid nothing toward the construction of the improvements; that after the completion of said dwelling-house they, with knowledge of all the facts, took possession and asserted ownership, claiming the property to be free and clear of the lien of plaintiff’s mortgage. It is alleged that by reason of the then known mistakes, the silence of the Fairs, and the expenditure of the money furnished by plaintiff in the improvements, the Fairs are estopped to assert any right to or interest in said buildings or the lots on which they stand. Practically the same facts are made to apply to the claim of Sullivan for the enforcement of his mechanic’s lien, and it is alleged that it had been agreed by and between plaintiff and Sullivan that plaintiff’s lien should be considered, and was, prior to the lien of said Sullivan, if any existed; that lots 13 and 14 are of no value; that the McGrews and Fairs are insolvent, and the only means for the collection of the money due plaintiff is by the application of the property in question to the payment thereof. The prayer is for a reformation of-the mortgage, by causing it to include lots 15 and 16 with the improvements thereon, and that it be foreclosed as to lots 13 and 14, 15 and 16, and for general relief.

Defendant Sullivan filed- his answer and cross-petition, in which the averments of the petition as against the other defendants are, in the main, admitted, closing with [699]*699a general denial of all facts not admitted.

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Related

Central Construction Co. v. Keefer
152 N.W.2d 117 (Nebraska Supreme Court, 1967)
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178 N.W. 922 (Nebraska Supreme Court, 1920)

Cite This Page — Counsel Stack

Bluebook (online)
126 N.W. 382, 86 Neb. 694, 1910 Neb. LEXIS 34, Counsel Stack Legal Research, https://law.counselstack.com/opinion/occidental-building-loan-assn-v-mcgrew-neb-1910.