Reit v. Driesen

237 N.W. 325, 212 Iowa 1011
CourtSupreme Court of Iowa
DecidedJune 20, 1931
DocketNo. 40842.
StatusPublished
Cited by1 cases

This text of 237 N.W. 325 (Reit v. Driesen) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reit v. Driesen, 237 N.W. 325, 212 Iowa 1011 (iowa 1931).

Opinion

Morling, J.

On May 14, 1920, Wynia, who was then the *1012 owner of the mortgaged, premises under deed by which he had assumed payment of the mortgage in suit, and Ver Burg and Koopmans made a contract by which Wynia sold the mortgaged quarter section to Ver Burg and Koopmans for $70,000, of which $2500 was paid in cash, $12,500 was to be paid March 1, 1920 (1921?), $5,000 March 1, 1926, $24,000 by assuming the first mortgage held by plaintiff. The contract, provided that deed and possession would be given March 1, 1921, and second mortgage given for the balance of $26,000 due March 1, 1936. Ver Burg acquired Koopmans’ interest and later .sold a half interest to Bonthuis. Wynia made out deed for his original vendees for the whole 160 acres, deposited it with the bank and directed second mortgage to be prepared as called for by the contract. After negotiations, which will be referred to later,. Wynia on March 16, 1921, executed to Ver Burg a warranty deed for the east eighty, excepting from the covenants “a first mortgage of $24,000 now of record covering this and other lands — and $12,000 of which grantee assumes and agrees to pay as follows,” (setting out the payments as called for by the mortgage to plaintiff). Wynia, at the same, time executed an identical deed to Bonthuis for the west eighty, .wherein Bonthuis assumed $12,000 of the mortgage. Wynia pleads that Ver Burg orally requested him as an accommodation to convey the west eighty separately to Bonthuis and the east eighty separately to Ver Burg; that as an accommodation Wynia did so convey,, but received no consideration- for conveying the eighty to Ver Burg separately; that Wynia is principal only as to the plaintiff and surety as- to Ver Burg, and Bonthuis; that the market value of the mortgaged premises is less than -the amount of plaintiff’s mortgage and the market • value of the east eighty is much greater than that of.the west eighty; that when the deeds were made it was orally agreed that the contract should not be changed or abandoned as to the liability of Ver- Burg on plaintiff’s mortgage and that such' liability should remain in full force. Wynia prays that the court fix the. order of liability of defendants to plaintiff as to prineipalship and suretyship; that the mortgaged premises be sold en masse; that if a deficiency remains general execution, issue against Ver Burg. Wynia testifies he executed deed to Ver Burg and Blankespoor (Koopmans?) and deposited it with the State Bank; that he *1013 had the cashier prepare a mortgage and left it for the vendees to sign; that Ver Burg did not say anything about paying .up until March 16th, when “Ver Burg wanted to know- what I wanted to do in regard to the price of the land. * * * I felt disposed to throw off. * *■ * We finally agreed to $400 per acre * * * Ver Burg wanted a new contract drawn. * * * I told him I would not do it. I wanted that old contract to stand. * * * Because * * * I was looking toward them that is, Pete Ver Burg and Blankespoor (Shopmans?) for the $24,000 mortgage. Q. What did he say ? * * * Why he wanted two deeds. Q. What did you say to that? A. I told him I didn’t have to give two deeds, my contract called for one. * ? * and I wouldn’t give him two deeds. * * * Because I was looking toward them. If I would give, two deeds I was afraid I would lose my rights on the contract because I was looking toward him for the $24,000 mortgage. * * Finally I told him I would give him two deeds but I was looking toward Ver Burg and Blankespoor for the $24,000. . We then talked about the payments. I told him that was-between them to settle. I hadn’t sold to Bonthuis. Then they left the room. After we decided on' two deeds, he -said, ‘Now we better draw a new contract.’ I told him I would not do it. They were gone a little while and when they came-in they said they would give me a mortgage of $10,500 on the eighty and a $5,000 first mortgage on the 91 acre Lem’s land. (Mortgage held by Bonthuis on an independent tract.) I wanted to know if it was the best he could do. He said I would have to take that, it was all he could pay. He said he would pay around $3,000 cash. * * * Bonthuis gave me the $10,500 mortgage on the west eighty, the $5,000 Lem’s mortgage and Ver Burg was to give me an $8,000 first mortgage on 40 acres in Lyon county, a $5,500 second. mortgage back on the east eighty and the balance in cash. They paid me $8,500 in cash. I do not know how they divided it. I reduced the consideration from $70,000 to $64,000.' Q. And how about this $24,000 moi'tgage. Was that deducted from the purchase price? A. Yes, sir. No part of it was paid. There is no doubt about that. The $24,000 mortgage, the $2,500 cash when the contract was made, the $8,000 Ver Burg mortgage, the $5,500 Ver Burg mortgage, the $10,500 Bonthuis mortgage, the $5,000 Lem’s mortgage and the $8,500 cash .made up the $64,000 total. * * * Q. Well, now, *1014 after you had agreed upon the payment as you have detailed what did Ver Burg say to you again! A. He still wanted a new contract. I didn’t do it and we then left the bank. That evening Ver Burg came to the house and told me he had a second or third mortgage for $4,339.00 and he would give me a note for' $1,200 to be paid in three years which I accepted and gave him back his unrecorded second mortgage on the -East 80. I told them I didn’t care how they settled the $24,000 mortgage between them. * * * I never executed and delivered a deed to Blankespoor and Ver Burg on the whole quarter. * * * I told Ver Burg I was looking toward him for the $24,000 mortgage on the contract.” Wynia also testifies: “Ver Burg was over to the shop several times and talked about the matter. I told him I was ready to settle, all the papers were at the State Bank. * * I did not expect Bonthuis at the First National Bank when I went there to settle. * * * These talks were short, they would ask me what I wanted to do in regard to the land deal and I told Peter Ver Burg that the deed and mortgage were at the State Bank and he could go over and settle up any time he wanted to. * * * We tallied about the abstract a day or two before the settlement but did not then talk about how much I would throw off.”

McGill, an attorney and vice president of the bank, testifies that:

“As I remember it, Ver Burg wanted a new contract. * * * I remember that there was objection on the part of Wynia to making a new contract and none was made to my knowledge. * * * I cannot remember what he said about it but I do remember he was reluctant to making the two deeds. He was afraid he might be losing some rights under his contract between himself, and Mr. Ver Burg. * * * When I went there (to Bonthuis’ home in 1926) to see him about the $10,500 mortgage * * * I took back a second mortgage on the 300 acres for about half the $10,500 mortgage and released that.”

Dykstra testified:

“They agreed to make it $400 instead of $437.50 per acre. # # «= Ver Burg wanted a new contract and John Wynia said he won’t have anything to do with that. 'I have got a contract and I will stick to that.’ * * * Ver Burg asked for two deeds.
*1015

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26 N.W.2d 401 (Supreme Court of Iowa, 1947)

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Bluebook (online)
237 N.W. 325, 212 Iowa 1011, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reit-v-driesen-iowa-1931.