Trusty v. Ray

249 P.2d 814, 73 Idaho 232, 1952 Ida. LEXIS 236
CourtIdaho Supreme Court
DecidedOctober 31, 1952
Docket7883
StatusPublished
Cited by14 cases

This text of 249 P.2d 814 (Trusty v. Ray) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trusty v. Ray, 249 P.2d 814, 73 Idaho 232, 1952 Ida. LEXIS 236 (Idaho 1952).

Opinions

PORTER, Justice.

Appellants filed this action to quiet title to 115.47 acres of land located in Bannock County. All the defendants defaulted except respondent, D. C. Ray. Doctor Ray filed answer to the complaint and, as a defense thereto, alleged that he is the owner and holder of a valid mortgage upon the real estate in question; that said mortgage secures a note in the amount of $700; that said mortgage was duly filed of record in the office of the County Recorder of Bannock County, Idaho; and that plaintiffs knew and were advised of said loan at the time of taking possession of the premises in question. As a further defense, said respondent alleged that he is the owner of the premises in question and that plaintiffs had notice of his ownership when they took possession thereof. He prayed that it be decreed that he is the owner of a valid unpaid mortgage upon the premises and that he is owner of said premises.

The cause was tried to the court sitting without a jury. The court found the issues in favor of respondent Ray, refused to quiet title in appellants and quieted title in respondent to an undivided one-half interest in the premises. From such judgment, appellants have appealed to this court.

The record discloses without dispute that respondent Ray is the owner and holder of a real estate mortgage on the premises in question given by Ambrose M. Barrett and Mandy Barrett, his wife, under date of April 28, 1926, to secure the payment of a promissory note in the sum of $700 due one. year after date; that said mortgage was duly filed for record on April 30, 1926; and that such note has never been paid.

Appellants are the son-in-law and daughter of Ambrose M. Barrett and Mandy Barrett. They have been married about ten years. Appellant, George W. Trusty, is a building contractor in Pocatello. In the year 1948 he guaranteed and paid certain bills for materials procured for the use of his father-in-law in building a home. Appellants received a deed to the property from the Barretts on June 20, 1949. Mr. Trusty testified that the total consideration for the deed was “somewhat over $4,000”; and that, “those bills that were a part of the exhibit here are materials which I procured for Mr. Barrett, [235]*235and he had no way of paying mej and it was agreed finally that I should take the property, paying him more consideration, in addition to those bills, and call the bills square.” The reasonable value of the property is not affirmatively disclosed by the evidence.

Doctor Ray testified at the trial that in the year 192/ the Barretts had their attorney prepare a deed to the premises in favor of Doctor Ray in which the consideration was stated to be the release of the note and mortgage and the additional payment of $200 to the Barretts. That the Barretts presented this unsigned deed to Doctor Ray but that he did not accept the deed and the same was never executed. That he loaned $200 to the Barretts. He testified as to- the conversation that took place at that time as follows:

“Q. Just state to the Court what that conversation was with reference to the deed and why it was not accepted. A. Mr. Barrett and his wife came into the office. They needed some money, and they had seen Mr. Jeffery and had him make out a deed to release the mortgage, so it wouldn’t cost anything to release it, and I said, ‘Now, Ambrose, you took up that land and I helped you with it,’ I says, T would like for you to get out what you put in it as well as myself. If you will keep up the taxes I will get a deed before the mortgage closes, — before the time for the mortgage to close, and if we sell the property we will divide it fifty-fifty.’
“Q. And what did Mr. Barrett say then? A. He said that was perfectly all right with him.”

The record also discloses that the taxes on the premises for the year 1926 in the sum of $13.15 were unpaid and that on February 16, 1931, the County Treasurer of Bannock County deeded the premises to Bannock County for the consideration of the delinquent taxes. On April 23, 1931, Bannock County issued a purported redemption deed to said property to Doctor D. C. Ray which was filed for record on May 20, 1931.

We will not discuss separately the numerous assignments of error made by appellants, but will consider the questions raised by such assignments. Appellants contend that they are the purchasers of the premises for value and without notice. That at the time of their purchase, the note and mortgage to D. C. Ray were outlawed and barred by the statute of limitations. And that they are entitled to quiet title against such mortgage. Respondent Ray contends that appellants being in privity with the mortgagors, are barred from quieting title against the unpaid mortgage. The trial court found as a fact that appellants had full knowledge of such note and mortgage and that the same were unpaid at the time of the purchase of the premises. A careful examination of the [236]*236record shows there is sufficient evidence to sustain such finding by the court.

The general rule is that a mortgagor or his successor in interest cannot quiet title against a mortgagee, while the secured debt remains unpaid, although the statute of limitations has run against the right to foreclose the mortgage. Note 164 A.L.R. 1393. In Gerken v. Davidson Grocery Co., 50 Idaho 315, at page 321, 296 P. 192, at page 193, we said:

); “There is no more firmly established rule than that the liability to pay a mortgage debt rests upon the mortgaged land as well as upon the mortgagor. A mortgagor cannot without paying his debt quiet title as against the mortgagee; and the same rule applies to the grantee of a mortgagor, who takes the land while it is still burdened with a lien for the security of a debt.”

See also, Mendini v. Milner, 47 Idaho 439, 276 P. 313; Miller v. Monroe, 50 Idaho 726, 300 P. 362.

Appellants contend, however, that one who purchases real estate upon which there is a mortgage barred by the statute of limitations at the time of the purchase is not bound to satisfy the. mortgage debt in order to secure decree quieting his title to the property. Note 164 A.L.R. 1396-1397. Such seems to be the holding in Faxon v. All Persons, etc., 166 Cal. 707, 137 P. 919, L.R.A.1916B, 1209. However, an examination of such case discloses that the predecessor in interest of the plaintiff purchased the property for a consideration at an executor’s sale. There was no privity between the mortgagor and the plaintiff. Fontana Land Co. v. Laughlin, 199 Cal. 625, 250 P. 669, 48 A.L.R. 1308. Moreover, there was no showing in such California case that the plaintiff had any knowledge of the mortgage other than the notice given by the recording thereof.

In Yarlott v. Brown, Ind.App., 132 N.E. 599, 602, 133 N.E. 613, the court quoted from and followed Faxon v. All Persons, etc., supra, but specially pointed out the lack of knowledge by the appellee as follows :

“The only knowledge appellee had of the existence of appellant’s mortgage was such knowledge as was disclosed by the mortgage record. This record did not show whether the debt for which the mortgage had been given was paid or unpaid. It did show that appellant’s right to foreclose was barred. She purchased the land with reference to the title as disclosed by the record. No part of the purchase price was withheld from the seller for the purpose of paying appellant.”

It would appear that the evident purpose, intent and meaning of Section 55-817, I.C.

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Trusty v. Ray
249 P.2d 814 (Idaho Supreme Court, 1952)

Cite This Page — Counsel Stack

Bluebook (online)
249 P.2d 814, 73 Idaho 232, 1952 Ida. LEXIS 236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trusty-v-ray-idaho-1952.