Orsen Et Ux. v. Siegle

132 P.2d 409, 170 Or. 153, 1942 Ore. LEXIS 58
CourtOregon Supreme Court
DecidedOctober 26, 1942
StatusPublished
Cited by9 cases

This text of 132 P.2d 409 (Orsen Et Ux. v. Siegle) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Orsen Et Ux. v. Siegle, 132 P.2d 409, 170 Or. 153, 1942 Ore. LEXIS 58 (Or. 1942).

Opinion

*155 LUSK, J.

This suit was filed by A. L. Orsen and Fannie Orsen, husband and wife, on March 21, 1936, against Carl Siegle and Elsie Siegle, husband and wife, and others, to have declared fraudulent and void as to creditors a conveyance of lands in Malheur county, Oregon, by Siegle and his wife to the defendant C. J. Brown. The trial was had September 10,1941. At the conclusion of the plaintiff’s case the court, on motion of the defendants, entered a decree of dismissal with prejudice from which this appeal is taken.

The deed of conveyance attacked is dated November 6, 1934. The Orsen judgment, in the amount of $10,668 and costs, was recovered in the Circuit Court for Multnomah county on February 14, 1936, in a suit to foreclose a mortgage executed by the Siegles on real property in Portland known as the Castle Rose Apartments. The sum of $1,982.75 was realized on execution April 2,1936, and the balance remains unsatisfied.

The complaint alleged that the conveyance to Brown was actually made May 13, 1935, instead of November 6,1934, the date of the deed, and was without consideration; and it is contended that it was taken by Brown with knowledge of pendency of the foreclosure suit which resulted in the recovery of a judgment against the Siegles. The defendants answered jointly denying the allegations of fraud and want of consideration. The answer contains no affirmative averments.

For a proper understanding of the case it is necessary to give an account of events which occurred several years before the transaction in dispute.

Sometime prior to 1930 the Siegles, as owners of the Castle Rose Apartments, executed two mortgages upon that property, one to the New York Life Insurance Company to secure a loan of $75,000, and a second *156 mortgage to A. L. and Fannie Orsen to secure a loan of $10,000. The Orsen loan was further secured by a first mortgage on other property in Portland (which the Siegles conveyed and with which we are not further concerned). The Siegles traded the Castle Eose Apartments, subject to these mortgages, to the DeTweed Northwestern Hypotheekbank of Spokane, "Washington, for eleven ranch properties in Oregon, Washington and Idaho, including 480 acres of farm land in Malheur county, known as the Jamieson Eanch, the property here in controversy. Under an arrangement with one J. C. Palmer, by which Palmer undertook to sell these properties, they were all disposed of prior to the year 1934, except a ranch in Idaho known as the Lick Creek Eanch and three ranches in Oregon — one in Wallowa county, one in Baker county, and the Jamieson Eanch in Malheur county. For convenience in carrying out the contract with Palmer, deeds to the various properties, dated October 31,1930, were executed and acknowledged by the Siegles with the names of the grantees left blank and deposited in escrow in a Portland bank.

The defendant Brown was engaged in the real estate, loan and insurance business in Boise, Idaho, and controlled a corporation known as the National Mortgage Company. He first met Siegle in Portland early in 1934, and at that time Siegle tried to induce him to purchase the Oregon ranch properties. Brown at that time was in poor health, and it was not until October of that year that he was prevailed upon to make the deal. In the meantime he and Siegle had met several times, evidently became well acquainted, and on two' occasions Brown lived at the Siegle home while a visitor in Portland, paying for the accommodation.

Brown, the only defendant who testified, was called as an adverse witness by the plaintiff, and it was shown *157 by Ms testimony, as well as that of Walter L. Tooze, at that time the Siegles’ attorney, that the deeds were actually delivered to Brown in October or November, 1934, over four months before the commencement of the foreclosure suit which eventuated in the Orsen judgment, although the deed to the Jamieson Ranch and deeds to the properties in Wallowa and Baker counties, wMch Brown purchased at the same time, were not recorded until May, 1935.

The consideration for the transfer of the three properties, as testified to by Brown and Tooze, was as follows: Brown gave Siegle Ms note for $2,600 payable in one year. He assumed and agreed to pay two notes of Siegle’s payable to Tony Braun, a cousin of Mrs. Siegle, one for $1,000 and the other for $500, and he assumed and agreed to pay the delinquent taxes, amounting to approximately $2,000, on property in Idaho known as the Lick Creek Ranch owned by Siegle.

Instead of executing new deeds, the old deeds which had been held in escrow under the arrangement with Palmer were sent to Brown in Boise, who himself caused his name as grantee to be inserted in the deeds to the Wallowa and Baker County properties; but, discovering that the description in the deed to the Jamieson Ranch was defective, he returned it to Siegle, who, with Ms wife, executed and acknowledged a new deed to this property, under date of November 6,1934, and forwarded it to Brown.

On March 13, 1935, the New York Life Insurance Company filed suit against the Siegles in the Multnomah county Circuit Court to foreclose its mortgage on the Castle Rose Apartments, making the Orsens parties-defendant. A balance of $49,000 was then owing on the principal of the mortgage indebtedness. On May 4,1935, the Orsens filed their answer and cross- *158 complaint praying for a judgment against the Siegles and for the foreclosure of their second mortgage. Shortly before the answer was filed, according to the testimony of David Lofgren, attorney for the Orsens, Siegle and Brown called at Lofgren’s office and were informed by him that the Orsens intended to ask for a judgment against the Siegles in the foreclosure suit, and Siegle said: “That is bad.”

The deeds to the Jamieson Ranch and the Baker County property were filed for record on May 13, 1935; that to the Wallowa County property on the next day. Brown’s reason, as given by him in his testimony, for withholding the deeds from record until that time was as follows:

“I was criticized by my attorney and doctor for monkeying with this land and obligating myself to pay $2,600.00 in cash in one year because of my heart condition. So my attorney just kept the deeds there.” (Apparently referring to his attorney’s office.)

The evidence as to payment of the consideration agreed upon is as follows: Brown testified that he paid to Braun the Siegle $1,500 indebtedness which he had assumed. He was not asked and did not state when he paid it, nor whether by cheek, in cash, or otherwise. January 14, 1935, he paid 1931 taxes in the amount of $499.32 on the Lick Creek Ranch in Idaho, and May 24, 1935, he paid the balance of the 1931 taxes on this property amounting to $564.32. The 1932 taxes were paid by a purchaser of the property, and the 1933 taxes, amounting to $564, and the 1934 taxes, amounting to $523.63, were paid in 1936 with the checks of one Grace Ballantyne, from whom Brown testified he borrowed the money.

*159 The $2,600 note which Brown gave Siegle was dated November 6, 1934, and, as stated, was payable in one year.

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Bluebook (online)
132 P.2d 409, 170 Or. 153, 1942 Ore. LEXIS 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/orsen-et-ux-v-siegle-or-1942.