Sykes v. Waring

293 N.W. 14, 228 Iowa 1047
CourtSupreme Court of Iowa
DecidedJune 18, 1940
DocketNo. 45271.
StatusPublished
Cited by3 cases

This text of 293 N.W. 14 (Sykes v. Waring) 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
Sykes v. Waring, 293 N.W. 14, 228 Iowa 1047 (iowa 1940).

Opinion

Stiger, J.

In 1935 J. P. Thompson executed and delivered to plaintiff a real-estate mortgage in which the granting clause is as follows: “* * * sell and convey * * * the following described real estate in Woodbury County, Iowa, described as follows, to wit: [real estate described] and also all the rents, issues, uses, profits and income therefrom, and all the crops at any time raised thereon from the date of this assignment until the terms of this agreement are complied with and fulfilled.”

The granting clause constituted a valid chattel mortgage on the rents. Bankers Life Company v. Garlock, 227 Iowa 1335, 291 N. W. 536; Equitable Life Insurance Company v. Brown, 220 Iowa 585, 262 N. W. 124.

Goldie Hughes, of Onawa, Iowa, inherited the real estate from her father J. P. Thompson. On March 1, 1939, she leased the property from March 1, 1939, to March 1, 1940, to Gilbert Wirth. In January 1939 Mrs. Hughes, through her real-estate agent, G. A. Mellinger, of Omaha, Nebraska, entered into a contract with Mark Mattison (whom plaintiff claims is a fictitious person) for the exchange of her 360 acres in Iowa for a ranch in Nebraska containing 960 acres. The contract provided that Mrs. Hughes was to pay the owner of the ranch the sum of $1,500 in addition to conveying the 360 acres. The contract was to be performed when Mary M. Crooker obtained *1049 title to the Nebraska ranch through foreclosure proceedings on her first mortgage. Robert B. Waring of Geneva, Nebraska, was, according to plaintiff’s testimony, attorney for Mrs. Crook-er and Mattison.

After making several unsuccessful efforts to secure the money Mrs. Hughes was obligated to pay under the contract, Mellinger obtained a loan of $1,500 from intervenor, W. A. Ehlers, in March 1939 through the following arrangement: Mellinger had Mrs. Hughes and her husband execute a note secured by a mortgage on the Nebraska land payable to Mattison which instruments were held by Mellinger until Mrs. Crook-er obtained title through the foreclosure proceedings. As additional security for the loan, Waring agreed to give intervenor one fourth of the proceeds of a resale of the Iowa land by Mellinger. In March the exchange of the lands was completed in the office of Mr. Waring. Mrs. Hughes received deeds to the Nebraska land from the receiver in the foreclosure suit and Mrs. Crooker. Mellinger, representing Mrs. Hughes, delivered to Waring a deed to the Iowa land from Hughes to Mattison and at the same time produced a deed from Mattison to Waring which he delivered to Waring. At the same time Mellinger delivered thé note and mortgage on the Nebraska land, purporting to be endorsed in blank by Mattison, to intervenor. Thereupon intervenor delivered his check for $1,500 to Mel-linger who endorsed it to the receiver in the foreclosure proceedings. The cheek was paid. The record does, not disclose why Mellinger made Mattison a party to the contract and grantee in the deed instead of Mrs. Crooker who executed and delivered her deed to the Nebraska land to Mrs. Hughes and, so far as shown by the record, received no consideration for her deed. The contract is not before us and the only knowledge we have of its contents is from fragmentary references to it in the evidence. According to intervenor’s. testimony, Waring, as owner of the real estate,' demanded, when the deeds were exchanged, the lease from Mr. Hughes, who stated he did not have it with him.

When it became apparent that Mellinger could not resell *1050 the Iowa land and pay intervenor one fourth of the proceeds of the sale because of the impending foreclosure of plaintiff’s mortgage, intervenor demanded of Waring additional security for his loan of $1,500 to Mrs. Hughes. He and Waring then went to the home of Mrs. Hughes in Onawa in July 1939 and Waring, as owner of the real estate, demanded and secured from her an assignment of the lease and then reassigned it to intervenor as security for the loan.

Plaintiff brought this suit to foreclose her real-estate mortgage and for the appointment of a receiver. Mr. Ehlers, intervenor, alleged in his petition that Mrs. Hughes had leased the premises to Gilbert Wirth from March 1, 1939, to March 1, 1940; that Mrs. Hughes sold the land and assigned the lease to Waring; that Waring assigned and sold the lease to intervenor for a valuable consideration and asked that his rights to the land under the lease be declared superior to plaintiff’s rights under her chattel mortgage.

Plaintiff in answer to the petition of intervention alleged that Mr. Waring procured the lease from Mrs. Hughes by fraud and without consideration; that he had actual and constructive notice of the chattel mortgage; that the assignment of the lease from Waring to intervenor was without consideration and made with the fraudulent purpose of defeating plaintiff’s rights under her mortgage; that intervenor had actual and constructive knowledge of plaintiff’s lien.

In an amendment to her answer plaintiff alleged that Mark Mattison, grantee in the deed given by Mrs. Hughes, was a fictitious person and that the conveyance was of no force or effect and void; that the alleged deed from Mattison to Waring was void and that neither Waring nor intervenor had any rights under the lease; that the deed from Mrs. Hughes to Mattison was pursuant to a conspiracy between Mellinger, Merten, the notary public who took the acknowledgment to the deed and assignment of the mortgage, intervenor, and Waring; that Mrs. Hughes intended to enter into a contract with Mattison and did not know that he was a fictitious person; that Waring *1051 procured the assignment of the lease from her under his statement that he was the owner of the property.

I. We are inclined to the view that Mattison was a fictitous person. Mr. and Mrs. Hughes testified that Mellinger and Waring stated that they represented Mattison and that they would not have signed the deed if they had known that no such person existed.

Ehlers, intervenor, who lived in Omaha, testified Mellinger told him Mattison was a real-estate broker living in Omaha; and that he had never seen or heard of him.

Mr. Underhill, of counsel for plaintiff, testified that Mel-linger told him Mattison lived in Geneva, Nebraska; that after the petition of intervention was filed he had a conversation with Mellinger in Omaha. Mr. Underhill testified for plaintiff:

“I said to him, ‘It looks to me like this man Mattison is a straw man.’ Mr. Mellinger just simply laughed at that and didn’t say yes or no. Mellinger gave the impression that he was around Omaha.”

A witness for plaintiff testified that she had been a resident of Geneva, Nebraska, a town of 1,800 inhabitants, for the past 47 years and stated:

“I know Robert B. Waring. He is a lawyer there. I never heard of Mark Mattison. To the best of my knowledge there has never been anyone living there or the surrounding country by the name of Mark Mattison.”

Mr. Underhill made an investigation of Mattison at Omaha in 1939 prior to the commencement of this litigation. Real-estate brokers who had been residents of Omaha many years stated that they had never heard of Mattison. His name did not appear in the Omaha telephone directory, the city directory or on the polling list. Mr.

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Bluebook (online)
293 N.W. 14, 228 Iowa 1047, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sykes-v-waring-iowa-1940.