Price v. Reed

38 Mo. App. 489, 1889 Mo. App. LEXIS 490
Missouri Court of Appeals·Decided December 2, 1889·Published·Cited by 1 cases

Opinion

Smith, P. J. —

This was an action brought by the plaintiff against the defendant in the circuit court of Audrain county, upon a promissory note executed by one Walker to the plaintiff, to secure which, it is alleged in the plaintiff’s petition, Walker undertook to execute a deed of trust on certain real estate, which through the mistake of the scrivener was inaccurately described; that subsequently Walker sold said real estate, and by deed of general warranty conveyed’the same by a correct description to defendant, and that, as a part of the consideration thereof, defendant assumed the payment of said note to plaintiff; that afterwards defendant sold said real estate. The answer denied the assumption of the payment of the note sued upon, but admitted that the defendant had sold said real estate, and that he had conveyed the same by a deed of general warranty.

The answer further alleged that one R. S. Pearson, administrator of the estate of J. Y. Pearson, deceased, had sold said real estate in 1877 without authority of law and in violation of the rights of the widow and minor children of the deceased; that said Walker held said real estate under said administrator’s sale, and that the only title he had was derived theréfrom; that the said widow and children were the owners of said real estate,' and that there' was a failure of Walker’s warranty to him. The prayer of the answer was that plaintiff be restrained from attempting to recover the purchase price of said land until he indemnified defendant against loss by reason of the failure of title, etc. The replication by way of estoppel set forth the title to [495] said real estate, the defendant’s knowledge of the plaintiff’s equitable lien, the conveyance to an innocent purchaser for a full consideration for the purpose of defeating plaintiff, and the extension of time given him by plaintiff at his request.

The court submitted to a jury the following issue: “ Did defendant as a part of the purchase price of the land pi’omise and agree to pay the note for twelve hxxndred dollars made by Walker to plaintiff?”

The facts disclosed by the evidence were substantially these: In December, 1883, C. R. Walker borrowed twelve hundred dollars from the plaintiff, and undertook to execute a deed of trust on the land he owned ixi Audrain county, Missouri, to secure the payment of the note he executed and delivered to the plaintiff. The scrivener made a mistake in the description of the land. This error was first discovered by the defendant, Reed, in March, 1887, by the plaintiff in July, 1887, and by Walker, January 1, 1888. Walker paid nothing on the note, and, in the fall of 1885, plaintiff insisted on a sale of the land under his deed of trust or the payment of interest. Walker, in order to pay the debt to plaintiff, negotiates a trade with defendant Reed,' telling defendant of the deed of trust and that his sale of the land was for the purpose of paying it. Defendant received a deed of general warranty from Walker in October, 1885. Before settlement with Walker.he calculated the amount due on plaintiff’s note and retained that much of the agreed purchase price and agreed ’with Walker to pay it to plaintiff. Plaintiff spoke to the defendant about the matter a shoxd time befox’e his purchase, and was told by defendant that he had agreed to pay the note, but that he was needing the moxxey, and indulgence for a short time would be a great accommodation. Plaintiff, considering defendant’s “promise as good as the money,” agreed to an extension of time. In the spring of 1886 he again [496] asked for the money, and defendant promised to get it, but desired a farther extension if possible. Plaintiff got other money sufficient for his purposes, and granted a further extension of time. In March, 1887, defendant had an abstract of title to the land made, and then discovered the error in the deed of trust to plaintiff, and what he considered a flaw in the title. Without saying anything to any one of his discoveries he sold, and by deed of general warranty conveyed the land to one Laura D. Steele for thirty-five hundred dollars, in July, 1887. She executed a deed of trust to one Maddex, and the filing of these deeds attracted the attention of EL F. Woodward, who wrote the deed of trust. He discovered the error and informed the plaintiff.

Plaintiff then went to defendant concerning the matter, and defendant admitted that he had agreed to pay plaintiff’s note, but said he had “learned something since,” and refused to pay. On the witness stand defendant said the reason he did not pay was he had discovered a flaw in the title; that he thought the title was bad when he sold to Mrs. Steele, and was still of the same opinion, but that he said nothing to Mrs. Steele about it.

The facts concerning the title, as developed 'in the evidence on the trial, were that, in 1868, one John Y. Pearson and wife, then living on the land, executed a deed of trust thereon to secure payment of a note' for eight hundred dollars, bearing ten per cent, compound interest; that said Pearson died on the land in 1874, not having paid anything on the note,' and his estate did not pay more than thirty-five cents on the dollar. He left surviving him a widow and three minor children, all of whom are still living, as one family. Of the children, one, a daughter, is past eighteen; another, a son, is now (October, 1888) nearly, if not quite, twenty-one, and the third, a son, is now over seventeen years of age. A few weeks after her husband’s death, the widow left the land, and moved to the town of Mexico, where she [497] has ever since resided. She rented the farm and. attended to the collection of the rents herself. In 1877, the land being encumbered by the deed of trust of 1868 for more than its value, she went before the probate court and prayed the court to set-off to her, in lieu of homestead and dower in this land, certain other specified unencumbered real estate belonging to her husband’s estate. The court made an order setting aside the real estate to her as prayed, and ordered the administrator to sell the encumbered land. The widow executed an agreement with the administrator to convey, by deed, to the purchaser at his sale, all her right, title and interest. The administrator sold the land under the direction and approval of the probate court, and with the proceeds satisfied the deed of trust.

Walker held by mesne conveyances from the purchaser at the administrator’s sale. The widow and children have never made any claim to homestead or other rights in the land. The purchaser at administrator’s sale went into possession in September, 1877, a short time after his purchase, and he and his grantees have held uninterrupted and undisturbed possession ever since.

Defendant took possession of the same under his deed from Walker, and delivered possession to Mrs. Steele when he sold to her.

The jury, under the instructions, which it is unnecessary to set forth here, found the issue for the plaintiff. The defendant, after an unsuccessful motion to set aside the finding of the jury, and the rendition of j udgment, prosecuted his appeal to this court.

I. The answer contained an equitable defense, and converted the whole action into one in equity. Hodges v. Black, 8 Mo. App. 389; Hodges v. Black, 76 Mo. 537.

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Price v. Reed, 38 Mo. App. 489, 1889 Mo. App. LEXIS 490 (Mo. Ct. App. 1889).

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