Swallow v. Brakhage

388 P.2d 81, 153 Colo. 578, 1963 Colo. LEXIS 363
CourtSupreme Court of Colorado
DecidedDecember 9, 1963
DocketNo. 20,332
StatusPublished

This text of 388 P.2d 81 (Swallow v. Brakhage) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Swallow v. Brakhage, 388 P.2d 81, 153 Colo. 578, 1963 Colo. LEXIS 363 (Colo. 1963).

Opinion

Mr. Justice Moore

delivered the opinion of the Court.

Plaintiff in error was defendant in the trial court [579]*579and defendant in error was plaintiff. The parties will be referred to by name or as they appeared in the trial court.

The action was commenced by plaintiff under Rule 105, R.C.P. Colo., to quiet title to twenty-seven mining claims in San Juan county. Defendant moved to dismiss the complaint on the ground that plaintiff was not the real party in interest. This motion was denied. Defendant in his answer denied that plaintiff was the owner of the property in dispute; alleged that he (Swallow) held title to said property through purchase from the plaintiff; and alleged that a deed to said premises had been delivered to the defendant, which instrument had been duly recorded.

The evidence introduced upon the trial established without material dispute the following facts:

Brakhage had acquired the property in 1946. Negotiations between Brakhage and Swallow in the latter part of 1957 resulted in an arrangement whereby Swallow attempted to sell the claims to people in Chicago with whom he (Swallow) was associated. Record title at that time was in the name of H. L. Nutting. Actually, he held the title to secure loans Nutting had made to Brakhage, but Nutting approved the proposed sale and reconveyed to Brakhage in order to facilitate the sale. Swallow was aware of this situation. Pursuant to the arrangement, Swallow went to Chicago from which place he telephoned and telegraphed Brakhage in mid-February, 1958, requesting various title papers and a deed to himself, the deed being necessary to show the prospective purchasers that he had power to sell the claims and deliver a deed to them. After receiving Nutting’s approval, Brakhage, on February 17, 1958, executed a deed to Swallow and sent it to him in Chicago along with other title materials. However the sale did not take place and Swallow returned to Denver. The deed which was sent to Swallow in Chicago was returned to Brakhage unrecorded. There was received [580]*580in evidence as plaintiff’s Exhibit 2 an unrecorded executed deed from Brakhage to Swallow dated February 17, 1958, which Brakhage testified was the same deed he had sent to Swallow in Chicago and which Swallow had returned to him after the anticipated sale fell through.

From this point there was a sharp conflict in the evidence. Brakhage testified that thereafter he neither sold the claims to Swallow nor delivered a deed to him. Brakhage continued to assert ownership to the claims and gave to Nutting another deed as collateral for the money he owed him. He did not realize that Swallow also asserted ownership until in July or August 1958, when he received a letter from Swallow and later found that what purported to be a deed from Brakhage to Swallow dated February 17, 1958, had been recorded in San Juan county records on August 20, 1958. It was this recording that raised a cloud on the title of Brakhage and resulted in his filing this action.

On the other hand, Swallow testified that after his return from Chicago he had negotiations with Brakhage over a period of several months which culminated in his purchase of the claims for a total of $11,250 in cash, 25,000 shares of stock in Swallow’s Mineral Aggregates Corp., sales rights on a product being made by Swallow’s company, and a loan of $1,250 to Brakhage for payment of taxes on the claims. There was no written agreement and the cash payments were made in installments, the final payment and delivery of a certificate for 25,000 shares of stock being made July 25, 1958. As corroboration of his purchase, Swallow identified defendant’s Exhibits E and G as receipts for the $11,250 and the 25,000 shares, respectively, and Exhibit F as a promissory note for $1,250, all three allegedly signed by Brakhage. Swallow further testified that at some time during the negotiations Brakhage had executed and delivered to him both original and duplicate of a quitclaim deed dated February 17, 1958, which he' had [581]*581placed in his files and that it was either the original or duplicate which he sent to San Juan county for recording in August 1958 after making final payment. Swallow was unable to produce the instrument actually recorded, testifying that it had been sent to a man in Chicago to whom he owed $140,000 as evidence that he had spent some of the money for these claims and that he was unable to locate his creditor and recover the instrument actually recorded. However there was received in evidence as defendant’s Exhibit A a photostatic copy of a deed dated February 17, 1958, which Swallow testified was a true and correct copy of the actual deed from Brakhage to him which he had caused to be recorded on August 20, 1958.

Rowland K. Goddard, an expert witness, testified that in his opinion defendant’s Exhibit A was also a photostatic copy of plaintiff’s Exhibit 2 (the deed sent to Swallow in Chicago and subsequently returned to Brakhage.)

The authenticity of the alleged signature of Brakhage on Exhibits E, F, and G also was contested. Brakhage denied that he had signed these two receipts and promissory note while Swallow asserted that he had. Mr. Goddard testified as an expert that the signatures were forgeries and had not been made by Brakhage, pointing out differences between admittedly genuine signatures and the signatures on the questioned documents. Ruby S. Stephan, Swallow’s handwriting expert, testified that in her opinion the signatures on the questioned documents were genuine and gave her reasons.

The Findings of Fact and Conclusions of Law entered by the trial court contains the following:

“And now the Court, having heard the evidence, examined the court files and considered the briefs of counsel, and being now sufficiently advised in the premises, doth find:

“That plaintiff purchased the mining claims described in.' the' complaint in the year 1946, and his title and [582]*582possession of the property were unquestioned until August 20, 1958, when there was recorded what purports to be a deed of the property from plaintiff as grantor to the defendant C. George Swallow as grantee, who now asserts title to the property by virtue thereof.

“By clear, cogent and convincing evidence the Court finds the issues herein generally in favor of the plaintiff and against the defendant.

“Specifically the Court finds that without doubt the document in the form of a deed from plaintiff to defendant, dated February 17, 1958, recorded in the office of the County Clerk and Recorder of San Juan County, Colorado, on August 20, 1958, in Book 182 at page 63, upon which defendant bases his claim of title to the property, the subject of this action, was a photostatic copy of a deed executed at the request of defendant to further a proposed sale of the property to other parties not parties to this action, and was not intended to be used unless the sale was consummated, and that the deal was never made.

“The Court further finds that said deed (Plaintiff’s Exhibit 2) was duly returned to plaintiff by defendant, unrecorded.

“The Court finds as a matter of law and fact that the said filing of a photostatic copy of the deed by defendant was unwarranted, and was an attempted unlawful intrusion upon the title to the property in plaintiff, and should be and is held for naught insofar as a transfer of title from plaintiff to defendant is concerned.

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Bluebook (online)
388 P.2d 81, 153 Colo. 578, 1963 Colo. LEXIS 363, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swallow-v-brakhage-colo-1963.