Security State Bank v. Kramer

198 N.W. 679, 51 N.D. 20, 1924 N.D. LEXIS 140
CourtNorth Dakota Supreme Court
DecidedMarch 26, 1924
StatusPublished
Cited by6 cases

This text of 198 N.W. 679 (Security State Bank v. Kramer) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Security State Bank v. Kramer, 198 N.W. 679, 51 N.D. 20, 1924 N.D. LEXIS 140 (N.D. 1924).

Opinion

*25 Christianson, J.

This is an action to set aside a sheriff’s deed issued upon the foreclosure of a real estate mortgage, and to redeem the premises described in the mortgage from such foreclosure. The trial court rendered judgment in favor of the plaintiff cancelling the sheriff’s deed and permitting such redemption. The defendant moved for a new trial. The principal ground of such motion was newly discovered evidence. The motion was denied, and the defendant has appealed from the judgment and from the order denying a new trial. On the appeal from the judgment a trial de novo in this court is demanded.

The material facts are as follows: The defendant Kramer was originally the owner of the lands in controversy. The lands contained certain lignite coal deposits. In January 1919, the defendant and his wife entered into a contract with a corporation known as the Consolidated Lignite Collieries Company, whereby they agreed to sell the lands in question to said Collieries Company for the sum of $35, per acre in money, and $15, per acre in stock in such company. In such contract it was provided that $10,000 of the purchase price should be paid in cash on or before January 2d, 1920, and that the balance of the purchase price should be paid by notes to be executed by said company to the defendant, and secured by a first mortgage on the premises. In order to raise the $10,000 so stipulated to be paid to the defendant the said Consolidated Lignite Collieries Company, arranged with the *26 plaintiff bank for a loan. Said plaintiff bank agreed to loan said collieries company $10,000, and take a second mortgage on the premises as security therefor. That is, it was understood between said collieries company and the bank that the collieries company was to be permitted to execute a first mortgage to the defendant to secure the balance of the purchase price to him after the payment of the said $10,000. The undisputed evidence is to the effect that the plaintiff made the loan and turned the $10,000 over to the president and secretary of the collieries company, and that on or about January 2d, 1920, the said collieries company paid such moneys to the said defendant and executed to him notes in the sum of $9,277, due in five years with interest at 6 per cent per annum, and a mortgage upon the premises to secure payment of said notes. At the same time the defendant and his wife executed and delivered a warranty deed conveying the premises to the collieries company, reserving, however, to the defendant and his wife the right to use the surface of the land, without in any manner conflicting with the mining operations, and the right to use and occupy the farm buildings on the premises for such time as the defendant might desire, but in no event for a period longer than the life of the defendant and his wife. The deed and the mortgages to the plaintiff bank and the mortgage to the defendant were all duly recorded in the office of the register of deeds of Morton county wherein the lands were situated. Default was made in the conditions of the mortgage owned by the defendant and he thereupon caused his mortgage to be foreclosed by advertisement and the premises were duly sold pursuant to said foreclosure salo on July 9th, 1921, at which time they were struck off and sold to the defendant for the aggregate sum of $10,079, and a sheriff’s certificate of sale was issued to him in evidence of such sale, which certificate was filed for record in the office of the register of deeds of the county on July 23d, 1921. On July 7th, 1922, one TIenne, the cashier of the plaintiff bank and one Baumgartner, a director and president thereof and one Jacob Berreth came to defendant’s premises and a certain conversation was then had between them. It appears that these three parties were also interested in the coal Collieries Company. It further appears that the defendant was interested in such company by reason of his stock holdings and at one time was a director therein and for a time had charge of the mining operations. The questions involved in *27 ibis law suit depend primarily upon wbat occurred and wbat was said on July 7th, 1922.

The trial court made the following findings, as regards what’occurred during said conversation: — “That the said Ferdinand Kramer on the arrival of the said Henn, Baumgartner and Berreth at his home, greeted them first outside of his house; that Kramer stated to the parties that he was surprised that they had come out to New Salem so soon and that he did not expect them to be out there until the next week to attend to the business on which they had come.

“That on meeting Kramer outside of his house on the morning of July 7th, 1922, on the premises herein before described, the said J. P. Henn, cashier of the plaintiff bank, stated to Kramer that he had come there for the purpose of making redemption of the land which the Security State Bank of Strasburg held a mortgage on and which had been sold under foreclosure sale under the mortgage given on said land by the said Consolidated Lignite Collieries Company to Ferdinand Kramer; that there was talk between the parties in regard to redeeming the property from the foreclosure sale, and that the defendant, Kramer, then invited the said three men into the house; that there was further conversation in the house between the parties in regard to the redemption of the said premises from the said mortgage foreclosure sale.

“That the said J. P. Henn, J. J. Baumgartner and Jacob Berreth remained at the Kramer home on the morning of July 7th, 1922, for about two hours; that while there they had negotiations with the defendant, Ferdinand Kramer, pertaining to the purchase by Kramer of the mortgage on the premises held by the plaintiff bank; that during the conversation had on said day between Ferdinand Kramer and the said J. P. Henn, J. J. Baumgartner and Jacob Berreth, Kramer stated that they need be in no hurry to redeem and that he wished to make arrangements to purchase the mortgage held by the plaintiff, the Security State Bank of Strasburg on the premises, and that he thought the time for redemption did not expire until July 18, 1922; that neither the said J. P. Henn, J. J. Baumgartner nor Jacob Berreth knew exactly when the time for redemption from the Kramer mortgage expired, and that Henn and Baumgartner thought the time did not expire for at least a week after July 7th; that the said J. P. Henn, *28 J. J. Baumgartner, and Jacob Berreth believed and relied upon the statement of Kramer that the time for redemption did not expire until July 18, 1922.

“That an oral agreement was finally entered into between Jacob Berreth, J. J. Baumgartner and J. P. Henn and Ferdinand Kramer that Ferdinand Kramer was to purchase the second mortgage held on the promises by the Security State Bank of Strasburg, North Dakota, for the sum of $9,000; that said oral agreement was entered into by Ferdinand Kramer with J. J. Baumgartner and Jacob Berreth and J. P. Henn, representing the plaintiff bank, while all of said parties wore at the home of the defendant on July 7th, 1922.

“That the defendant Ferdinand Kramer on Monday, July 10, or Tuesday July 11, would meet Messrs.

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

Related

Higgins v. Trauger
2001 ND 149 (North Dakota Supreme Court, 2001)
Peterson v. Bober
56 N.W.2d 331 (North Dakota Supreme Court, 1952)
Baird v. Kensal Light & Power Co.
246 N.W. 279 (North Dakota Supreme Court, 1932)
Baird v. Kensal Light P. Co.
246 N.W. 279 (North Dakota Supreme Court, 1932)
Webster v. Ek
241 N.W. 503 (North Dakota Supreme Court, 1932)
Steinour v. Oakley State Bank
262 P. 1052 (Idaho Supreme Court, 1928)

Cite This Page — Counsel Stack

Bluebook (online)
198 N.W. 679, 51 N.D. 20, 1924 N.D. LEXIS 140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/security-state-bank-v-kramer-nd-1924.