Ridge v. Greenwell

53 Mo. App. 479, 1893 Mo. App. LEXIS 90
CourtMissouri Court of Appeals
DecidedApril 4, 1893
StatusPublished
Cited by1 cases

This text of 53 Mo. App. 479 (Ridge v. Greenwell) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ridge v. Greenwell, 53 Mo. App. 479, 1893 Mo. App. LEXIS 90 (Mo. Ct. App. 1893).

Opinion

Biggs, J.

— The plaintiffs are second mortgagees. The action is in equity against the assignees of the indebtedness secured by the first mortgage for the purpose of obtaining a, decree for the cancellation of that indebtedness, and the release of the real estate from the lien of the first mortgage. The note secured by the first mortgage had been assigned to the defend[480]*480ant, Hiram Grreenwell, and by him assigned to his co-defendant Broughton as collateral. The contention of the plaintiffs is that the money paid by Hiram for the note belonged to Greorge W. Grreenwell, the mortgagor.

We find the following facts: In 1886 Gleorge W. Grreenwell, the father of Hiram, failed in business. At the time Dr. Dysart held his note for $1,000, dated in 1884. The plaintiff Ridge was a surety on this note. Jacob L. Crow also held his note for $2,500, dated in 1886. Grreenwell also owed D. H. Moss $1,000 and the plaintiff Parsons $480. On the nineteenth day of August, 1886, Grreenwell and wife delivered to Crow a mortgage on one hundred and eighty acres of land (hereinafter referred to as the Crow land) to secure the note held by him. On the next day he delivered to Dysart and Parsons a second mortgage on the same land to secure their indebtedness. In this mortgage was included forty acres not covered by the first mortgage. About the same time he secured Moss by a third mortgage on one hundred and sixty acres of land, hereinafter designated as the Moss land.

In the fore part of the year 1887, Moss sold under his mortgage, and he became purchaser of the land. After paying off other incumbrances, the land, together with ten acres not included in either mortgage, cost him $2,600, not including a small balance due on his own debt.

In 1887 Moss rented his land to Hiram and his brother, Josiah, who continued to cultivate it until February, 1890. During the time they raised large crops of corn and fed it to cattle, hogs and horses. In 1887 Hiram, who was then under age, had a horse, cow and calf and thirty-five hogs; Josiah was married and lived on his own farm in the immediate vicinity, and owned considerable stock. They were sensible [481]*481and industrious boys with no bad habits. In the spring of 1888 Hiram contracted with Mr. Worland for sixteen head of two-year old steers, for which he agreed to pay $380. The trade was closed up in the name of Josiah, who executed his- note, secured by chattel mortgage on the cattle for the purchase money.' The reason assigned for this is that at that time Hiram was not quite twenty-one years old. These cattle were fed and cared for by Hiram until the fall of 1889, when he shipped them to Chicago for sale. At the same time he shipped and sold some hogs which he had raised and fattened on corn grown on the Moss land. The net proceeds of the sales amounted to between $1,400 and $1,500.

During this time the mortgages on the Crow land were not foreclosed, and the mortgagor was permitted to remain in possession of the land. When Hirain returned from Chicago he bargained with Moss for his land, agreeing to pay for it $3,256. At the same time he was negotiating for the Crow note, which James F. Crow, the agent of his father, J. L. Crow, agreed to transfer to him for the Moss land. In making the trades Hiram used $900 of the money received from the cattle and hogs, and borrowed $2,256 from his co-defendant Broughton, to secure which he assigned the Crow note as collateral. Moss made the deed directly to Crow, and in this way the matter was finally closed. The plaintiffs’ contention was that George W. Greenwell furnished all the money to purchase the Crow note, and that it was assigned to Hiram and by him assigned to Broughton for the purpose of defrauding the second mortgagees.

On the hearing the court submitted the following issue to a jury, to which an affirmative answer was returned:

[482]*482“Did the defendants, George W. Greenwell and Hiram Greenwell, in the purchase of the prior incumbrance, combine together for the purpose of wrongfully hindering or delaying Joseph R. Ridge in the collection of his surety debt against George W. Greenwell, or any part thereof 1” The court adopted the finding of the jury, and in the decree found that the money paid by Hiram for the Crow note, except the amount loaned by Broughton, belonged to George W. Greenwell, and that the assignment to Hiram was for the purpose of defrauding the plaintiffs. The court also found that there had been paid on the note held by Broughton against Hiram about $700, which was also the money of George W. Greenwell. Foreclosure of both mortgages was ordered, with directions to pay from the proceeds the costs, next the amount due on the Broughton note, then the amounts due on the Dysart and Parson’s debt pro rata, and the remainder, if any, to be paid to Hiram Greenwell. The defendants have appealed.

In the purchase of the Crow note Hiram used $900, a portion of the proceeds from the sale of the cattle and hogs in Chicago. The remainder was used in paying the Worland note, which was then held by Broughton. The simple question is, did the $900' paid by Hiram at the time of the purchase of the Crow note and the subsequent payments made to Broughton, amounting to $460, belong to George W. Greenwell. If so, then the plaintiffs, who are the beneficiaries in the second mortgage, were entitled to have the amounts credited on the prior incumbrance, it appearing that Ridge had paid the Dysart debt.

The trial judge found that the money paid by Hiram for the Crow note, outside of the amount loaned by Broughton, belonged to his father. It was uncontradicted that the amount paid at the time of the [483]*483transfer was derived from the sale of the cattle and hogs shipped to Chicago. He also found that the money subsequently paid to Broughton belonged to George W. Greenwell. Hence, we must infer that it was the opinion of the court that Hiram, in renting the Moss land and in purchasing the cattle from 'Worland and in raising the hogs, acted for his father. On these issues the direct and positive evidence -greatly preponderates against the finding of the court.

■Of course in the trial of causes involving fraud, direct testimony may be overcome by impeaching circumstances.. Such criminating facts, however, must be of a character to lead a reasonable and fair-minded person to infer a fraudulent and dishonest purpose, in spite of the sworn statements of the witnesses. If the evidence relied on to prove the fraud leads to no definite result, but only tends to cast suspicion on the transaction, then the finding must be against the alleged fraud. Waddingham v. Loker, 44 Mo. 132; Priest v. Way, 87 Mo. 16; Bernecker v. Miller, 44 Mo. 102; Dallam v. Renshaw, 26 Mo. 544. Or if such facts may as well consist with an honest as a dishonest purpose, the presumption is against the party alleging the fraud. Funkhouser v. Lay, 78 Mo. 458; Page v. Dixon, 59 Mo. 43; Rumbolds v. Parr, 51 Mo. 592; Henderson v. Henderson, 55 Mo. 534; Webb v. Darby, 94 Mo. 621.

Now let us examine the evidence. It stands uncontradieted that Hiram and Josiah rented the Moss land for three years, and that their father was not known in the transaction and had nothing whatever to do with the cultivation of the land. Moss testified that he rented it to the boys; that their father had nothing to do with it; that it was cultivated by them; that they paid the rent, and that he (Moss) had nothing to do with their father.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Darnell v. Lafferty
88 S.W. 784 (Missouri Court of Appeals, 1905)

Cite This Page — Counsel Stack

Bluebook (online)
53 Mo. App. 479, 1893 Mo. App. LEXIS 90, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ridge-v-greenwell-moctapp-1893.