Virtue v. Stanley

151 P. 270, 87 Wash. 167, 1915 Wash. LEXIS 1074
CourtWashington Supreme Court
DecidedSeptember 1, 1915
DocketNo. 12602
StatusPublished
Cited by9 cases

This text of 151 P. 270 (Virtue v. Stanley) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Virtue v. Stanley, 151 P. 270, 87 Wash. 167, 1915 Wash. LEXIS 1074 (Wash. 1915).

Opinion

Holcomb, J.

Plaintiff’s action against the Stanleys and Mrs. Harris, former wife of Frank M. Stanley, was to recover $4,047.85 on a promissory note against Stanley and his former wife, and to foreclose a real estate mortgage upon lots 7, 8 and 9, in block 93, Lake Union Shore Lands, in King county. There was no dispute as to the execution of the note and mortgage nor any plea of payment.

By way of defenses and cross-complaint, respondents interposed five affirmative defenses. In each affirmative defense and cross-complaint, it was averred that George A. Virtue was the true and equitable owner of the note and mortgage, and that the same were taken in the name of the plaintiff, E. J. Virtue, for the sole use and benefit of George A. Virtue and to prevent the setting up of defenses to the mortgage. The first affirmative defense was want of consideration for the note and mortgage; the second, fraud in the procurement of the note and mortgage; the third, a failure of consideration; the fourth, a counterclaim of $2,132.71, based upon covenants of title in the deed, of which the note and mortgage represented a part of the purchase price; and the fifth, upon a contract in writing set forth therein, upon which respondents claimed specific performance.

Plaintiff filed a motion to strike certain parts of the answer and to require the defendants to elect between the matters set up in the first, second and third affirmative answers, and the fifth affirmative answer and cross-complaint, upon the ground that the last affirmative answer and cross-complaint was inconsistent with the other defenses. Albertson, Judge, before whom the motion came, denied same, except that the defendants were required to elect as between the affirmative defense of settlement and the other defenses mentioned. Reserving their exception to that order, defendants elected to proceed upon their fifth affirmative defense and cross-complaint, thereby eliminating, for the purposes of trial, all the affirmative defenses except the fourth [170]*170and fifth. After trial, the trial judge dismissed the fourth affirmative defense and gave judgment for respondents on their fifth affirmative defense and cross-complaint, decreeing the specific performance of the settlement contract. From this decree, plaintiff appeals, and defendants appeal from the required election of affirmative defenses and the denial of the fourth affirmative defense.

The trial court ordered George A. Virtue and wife to be made parties as cross-defendants, which was done, and they appeared and answered the cross-complaint. Issues were joined on the pleadings and, among other things, appellants admitted that the note and mortgage sued on were held in trust by E. J. Virtue for George A. Virtue, her brother, who was the real owner; admitted the execution of the deed to the mortgaged premises, and that, when the deed was given, the ownership of the premises described in the deed as shore lands was in the state of Washington, but alleged that such conveyance carried the preference right to purchase the same, which fact was known to respondents. The reply of plaintiff to the cross-complaint further affirmatively alleged certain fraudulent representations on the part of Frank M. Stanley which induced the making of the contract relied on by respondents, and alleged that, upon his subsequent discovery of the facts, and upon their failure to perform the contract set up by respondents, on August 8, 1913, appellant George A. Virtue gave respondents notice of rescission of the contract.

This is the settlement contract set up in respondents’ fifth affirmative defense and cross-complaint, and of which specific performance was decreed:

“This agreement, made this 29th day of May, 1913, between Frank M. Stanley and Mabel M. Stanley, his wife, of Seattlej Washington, as parties of the first part, and George A. Virtue, of the same place, as party of the second part,
[171]*171“Witnesseth: That whereas, heretofore on the 22nd day of September, 1906, the said Frank M. Stanley and his then wife, Bessie M. Stanley, made, executed and delivered to the said party of the second part, their certain mortgage to secure the payment of $2,500 with interest thereon, which mortgage is on lots 7, 8 and 9, in block “B” Westlake Boulevard addition to the city of Seattle, in King county, state of Washington, and is recorded in vol. 359 of mortgages, page 469, records of said King county, and
“Whereas, on the 25th day of January, 1909, said Frank M. Stanley and his then wife, Bessie M. Stanley, made, executed and delivered to E. J. Virtue their certain mortgage to secure the payment of $4,047.85, with interest thereon, which mortgage is on lots 7, 8 and 9 in block 93 of Lake Union Shore Lands in the city of Seattle, county of King and state of Washington, recorded in vol. 434 of mortgages, page 263, records of said King county; no part of either of above mentioned sums having heretofore been paid, and,
“Whereas, special assessments on the above described property (of which said property said parties of the first part are the owners) for Westlake Avenue Condemnation, under Ordinance No. 17,629 of said city of Seattle, have heretofore become delinquent and certificates of purchase therefor have been issued to one Chas. Crowley and one H. P. Kennedy, and the time of redemption therefrom expired on the 22nd day of May, 1913, and
“Whereas, the said parties of the first part, on the 21st day of May, 1913, made, executed and delivered their certain promissory note in the sum of $523.00, payable to the order of Jasper Compton one year after date, with interest from date thereon at the rate of 8% per annum, and at the same time made, executed and delivered their certain mortgage on the east half of the southwest quarter of the southeast quarter of section four, township eight north, range twenty-four east W. M., containing twenty acres, more or less, situate in Benton county, state of Washington, to secure the payment of said note, in consideration of the promise of the said second party to make the redemptions on the 22nd day of May, 1913, hereinabove set forth, and which said note and mortgage have been assigned to the party of the second part, and,
“Whereas, the said party of the second part, on the 22nd day of May, 1913, paid to the treasurer of the said city of
[172]*172Seattle the sum of $525.30 and redeemed the said first hereinabove described property from the sale thereof for the said special assessments, and as evidence thereof there was issued on said date to the said party of the second part receipts of said treasurer’s office No. 6417 and No. 6418.
“Now therefore, in consideration of the premises, it is hereby mutually agreed by the parties hereto as follows, to-wit:
“1.

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Cite This Page — Counsel Stack

Bluebook (online)
151 P. 270, 87 Wash. 167, 1915 Wash. LEXIS 1074, Counsel Stack Legal Research, https://law.counselstack.com/opinion/virtue-v-stanley-wash-1915.