Tedlock v. Torbert

1923 OK 232, 215 P. 196, 89 Okla. 218, 1923 Okla. LEXIS 1049
CourtSupreme Court of Oklahoma
DecidedMay 1, 1923
Docket11128
StatusPublished
Cited by1 cases

This text of 1923 OK 232 (Tedlock v. Torbert) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tedlock v. Torbert, 1923 OK 232, 215 P. 196, 89 Okla. 218, 1923 Okla. LEXIS 1049 (Okla. 1923).

Opinion

COCHRAN, J.

This action was commenced by plaintiffs in error for the possession of lot 7, block 16, in the town of Miami, Okla., and to set aside a deed executed on a mortgage foreclosure sale made under a power contained in the mortgage. Judgment was rendered for the defendants in error, and the. plaintiffs in i-itok. have prosecuted this appeal. The parties will hereinafter be refoired to as plaintiffs and defendants, as they appeared in the trial court.

The question presented here is the validity of a sale made under a power of sale contained in a mortgage executed November 29, 1901. At the time the mortgage was executed the property was owned by R. E. Pursl-ey and wife, and the mortgage was executed to B. F. Younger to secure the payment of a promissory note for $135 due November 29, 1903. This mortgage contained the following power of sale:

“The said grantee, or his assignee, agent or attorney in fact, shall have power to sell said property at public sale to the highest bidder for cash at the corner of Fourth and Main streets in the town of Miami, Indian Territory, public notice of the time and *219 place of said sale Raving been first given thirty days by advertising in some newspaper published in said town or by ten printed or written handbills posted in ten public places in said town, at which sale the said grantee or his agent, assignee or attorney in fact, may bid and purchase as any third person might do, and we hereby authorize said grantee or his assignee to convey said property to anyone purchasing at said sale, and the recitals of his deed of conveyance ' shall be taken as prima facie true, and the proceeds of said sale shall be applied, first, to all costs and expenses attending said sale; second, to the payment of said debt and interest; and the remainder, if any, shall be paid to said grantor.”

On December 22, 1906, Pursley conveyed bis equity in this property to John Tedloc-k, and on March 24, 1915, Tedlock died inte--tate, leaving as heirs the plaintiffs in this case. The property was rented by J. S. Howard, administrator of the estate, of John Tedlock, deceased, to John W. Torbert, and John W. Torbert went into possession under this rental contract. On November 6, 1916, Torbert purchased the Pursley note and mortgage from B. P. Younger, and, the mortgage being in default, immediately proceeded to post notices of the sale of the mortgaged premises. At a sale held January 22, 1917, the said John W. Torbert purchased the property and executed to himself a deed to said property. The notice under which the sale was made provided that the sale would be made on the 22nd day of January, 1917, at 2 o'clock p. m., to the highest bidder for cash, at the corner of Fourth and Main streets in the town of Miami, Ottawa county, state of Oklahoma, and', after reciting the description of the property and execution of the mortgage, and the assignment thereof to John W. Torbert, stated:

“That the conditions and covenants of said mortgage have been broken and that by virtue of the power therein granted the mortgagee or his assignee have the right and power to sell said real estate for condition broken; that there is now past due and unpaid thereon the sum of $203.25, that said proceeds of sale will be applied on the costs of sale and the above named indebtedness and the overplus paid to the mortgagors, if any.”

The mortgage deed contains the following recitation as to the sale of the property and the purchase price therefor:

“Whereas, pursuant to the terms of said mortgage and public notices given, the said assignee of said mortgage, John W. Torbert, in Miami, Oklahoma, at public venue, for the highest bidder for cash, on the 22nd day of January, 1917, at 2 o’clock p. m. and at said sale the highest aiid best bid was made for the benefit of the assignee of the mortgage. John W. Torbert, by his agent, and being five hundred dollars less the accrued taxes tñereon amounting to four hundred and thirty-eight and 70/100 dollars and that said property was stricken off and sold to John W. Torbert for said sum less said taxes, viz., sixty-one and 30/100 dollars.'
“Whereas, 1, John W. Torbert, the as-signee of the said mortgage, under and by virtue of the power given the said mortgagee, his successors and assigns, and by virtue of the facts as they appear in the premises, I hereby transfer, grant, bargain, sell and eonv'ey all the right, title, and interest of said R. E. Pursley and Maryetta Pursley. said mortgagors, to John W. Torbert, in and to the following described real property, to wit: lot number seven (7) in block number sixteen (16) in the town of Miami, Ottawa county, Oklahoma, as shown by the original plat thereof filed with the secretary of the Interior of the United States, for and in consideration of the said sum of $61.30, receipt whereof I hereby acknowledge in full, the said sum being the highest and best bid at said sale.”

The plaintiffs attack the sale on numerous grounds, but all of the objections to the sale are based primarily upon the holding of the Supreme Court of Arkansas in (he case of Littell v. Grady et al., 38 Ark. 584, in which the court said:

“Deeds of trust and mortgages, with powers to be executed in pais, belong to a class of instruments which are watched with much jealousy by courts of chancery. Those who make them are often, indeed _ most generally, under a pressure for money or credit, and somewhat at the mercy of those who afford accommodations. They cannot, as we think this case well illustrates, always protect themselves against oppressive, unjust, and unfair executions of the power, which may be within the letter of the trust, and which, amongst parties dealing on equal terms, would not amount to actual fraud. Parties who execute these "powers are properly held to .‘uberrima fides’, in view of the danger of oppression, and the courts of chancery have been used to interfere to prevent any unnecessary sacrifice, or unfair disregard of the rights of the debtor. Where the trustees or beneficiaries do not wish to become the subjects of this jealousy, and are diffident of enduring the test, they may always invoke the aid of equity, and foreclose under its supervision. It is always the safe plan for all parties. ‘Sales under powers,’ says Mr. Perry (Trusts, sec 602, X), ‘in deeds of trust, or mortgages, are a harsh mode of foreclosing the rights of the mortgagor. They are scrutinized by courts with great care, and will not be sustained unless conducted with 'all fairness, regularity, and scrupulous integrity. Upon very slight proof of fraud, or unfair conduct, or of any departure from the terms of the power, they *220 will be set aside.’ * * * It will be readily seen that in all cases the trustee will best subserve the interest of the creditor .by making such sale, as would be in price, most advantageous to the debtor. Incidentally, and to the extent of the debt only, the creditor is a cestui que trust under the power. Beyond that, and generally, the person entrusted with the power of sale owes a fiduciary duty to the real owner of the land to secure to him all advantages reasonably within his power, consistent with his trust. It is the plain, sensible dictates of a spirit of fair dealing between man and man.”

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Bluebook (online)
1923 OK 232, 215 P. 196, 89 Okla. 218, 1923 Okla. LEXIS 1049, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tedlock-v-torbert-okla-1923.