Stitt v. Caldwell

67 N.W.2d 63, 341 Mich. 360, 1954 Mich. LEXIS 289
CourtMichigan Supreme Court
DecidedNovember 29, 1954
DocketDocket No. 44, Calendar No. 46,103
StatusPublished

This text of 67 N.W.2d 63 (Stitt v. Caldwell) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stitt v. Caldwell, 67 N.W.2d 63, 341 Mich. 360, 1954 Mich. LEXIS 289 (Mich. 1954).

Opinion

Reid, J.

Plaintiff filed the bill in this suit to have declared a nullity the summary proceedings instituted by defendant Morris H. Gooze against her as vendee in possession under a land contract. Plaintiff further prayed that the order for possession of the property involved be set aside, and for a determination of the respective interests of the parties and. for other relief. From a decree for plaintiff, [362]*362commanding the payment of amount found due on accounting as equitable trustee, defendant Morris Gooze appeals.

The defendant, Morris Gooze, is in the real-estate investment business, buying and selling and speculating in real estate, and has interests in more than 100 land contracts. He spends a great deal of his time in the State of California, and during his absence his brother, Aubrey Gooze, looks after his interests and is his general manager for his Detroit office. Aubrey Gooze also represents Morris Gooze in dealing with land contract vendees who become delinquent in making their payments.

On July 20, 1945, Jack J. Brown, an attorney, as nominee for Morris Gooze, and using the personal funds of Morris Gooze, purchased a certain piece of property located in the city of Detroit, commonly known as 2731 and 2735 Lafayette street, the purchase being made by land contract from the owners of that property, Mary A. Peckham and Jessie G. Bebb. The purchase included 2 other parcels of land and the total purchase price for the 3 parcels was $7,500.

On December 8,1945, the plaintiff, Maggie L. Stitt, and her father purchased the parcel known as 2731 and 2735 Lafayette street from Mr. Brown by a second land contract. The price set out in this contract was $7,800.

On November 26, 1947, Jack J. Brown assigned his vendor’s interest in the contract with Maggie Stitt and her father to the defendant, Morris H. Gooze.

Prom the date of the contract between herself, her father and Jack J. Brown, until July 14, 1950, the plaintiff, Maggie Stitt, made the payments on the contract. On July 14, 1950, plaintiff, Maggie Stitt, having contracted tuberculosis, was hospitalized in Maybury sanatorium. She testified that until that [363]*363time she herself had expended $2,200 for improvements to the property and she also paid part of the cost of an additional $2,600 improvement. While the plaintiff was hospitalized at Maybury sanatorium, she executed an assignment, dated August 14, 1950, assigning her interest in the land contract with Jack J. Brown to her sister, Irene Caldwell, and her brother-in-law, Clarence Caldwell. This assignment was also executed by the plaintiff’s father, and at the time of the assignment, plaintiff’s sister told plaintiff that it would be nice for her to turn the property over to her and her husband, and that they would take care of the contract payments and also care for her children until she returned. The assignment by plaintiff and her father was with the understanding that in the event Maggie Stitt did not return from the hospital, the property would be assigned to plaintiff’s children. Mrs. Caldwell was to look after the property and the children until Mrs. Stitt returned. The assignment was executed by Mrs. Stitt while she was actually in the hospital. At the time Mrs. Stitt signed the assignment, none of the terms had been filled in but were filled in after she signed it. After Mrs. Stitt executed the assignment, her father executed it also, and on the same conditions that Mrs. Stitt had signed it. At that time, Mrs. Stitt’s father was also ill. At the time of the execution of this assignment, Mrs. Stitt was separated from her husband. After Mrs. Stitt and her father had executed the assignment, the defendant, Irene Caldwell, took the assignment to the office of Mr. Gooze in the Dime bank building in Detroit, and there she spoke to Mr. Aubrey Gooze. There she had a conversation with Mr. Gooze concerning her role in taking over these payments. Mr. Gooze then sent her down the hall to the office of Mr. Brown, the attorney. Mrs. Caldwell believes that Mr. Brown filled out the paper for her and she recalls paying him $5 for his services.

[364]*364•At the time of the assignment to the Caldwells, the property in question had an income of $190 per month, and the monthly payments were $70. At that time, the principal balance due had been reduced to approximately $3,600.

The plaintiff remained in Maybury sanatorium until October 31, 1951, a period of 15 months. During the interval, her sister, Irene Caldwell, and her brother-in-law, Clarence Caldwell, became delinquent in making payments on the land contract, with the result that on October 27,1950 an action to forfeit the contract was instituted by Morris H. Gooze in the circuit court commissioner’s court in Wayne county against Clarence and Irene Caldwell. That case was dismissed at the request of Morris H. Gooze.

On March 20, 1951 another action was instituted in this same court by Morris H. Gooze for the same purpose. A judgment was entered in that case on May 28, 1951, in the amount of $384. On June 9, 1951, the defendants, Irene and Clarence Caldwell, borrowed $454 from the defendant Rodgers Discount Corporation. It was normal business procedure for the Rodgers Discount Corporation to take assignments of land contracts to secure themselves when making loans. The Caldwells assigned the land contract to Rodgers Discount Corporation as security only to borrow the money. On June 14, 1951 defendant Gooze received a sum equal to 6 delinquent payments from Rodgers Discount Corporation, and 2 payments thereafter, also from Rodgers Discount Corporation, the last payment being made on September 12, 1951. These latter 2 payments were in addition to the amount originally borrowed by the Caldwells and were charged to the balance owing by them. The balance due Rodgers Discount Corporation from the Caldwells at the time of judg[365]*365ment of this matter was $350. According to the records of Morris H. Gooze no payments were received on the land contract from anyone from September 12, 1951 to the time of trial.

During the time plaintiff: was confined to the hospital, she was unaware that the Caldwells had assigned the contract, nor did she know of any of the circuit court commissioner’s actions. Plaintiff testified that upon being discharged from the hospital, on October 31, 1951, plaintiff returned to the premises at 2731 and 2735 Lafayette street. In November of 1951 she contacted Aubrey Gooze and asked him the condition of the contract, and he told her it was in had shape and that it was at Rodgers Discount, and also, “The man you left it with was no good.” The plaintiff upon returning from the hospital was forced to remain in bed most of the time, except for meals and a 15-minute walk each day. The plaintiff attempted to get information from defendant, Clarence Caldwell, and he told her he would turn the property over to her when he got it straightened out.

On January 11, 1952, defendant, Morris Gooze, filed an action in circuit court commissioner’s court to forfeit the contract. The only party made a defendant to this action was Rodgers Discount Corporation. The only notice of forfeiture was given to Rodgers Discount Corporation in the second and final proceedings before the circuit court commissioner (in the first and discontinued proceeding to forfeit, the Caldwells were served with notice). This second and final action finally resulted in a writ of restitution being issued on May 9, 1952, and the plaintiff being evicted from the premises in June of 1952.

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Related

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30 N.W.2d 266 (Michigan Supreme Court, 1948)

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Bluebook (online)
67 N.W.2d 63, 341 Mich. 360, 1954 Mich. LEXIS 289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stitt-v-caldwell-mich-1954.