Wadleigh v. Phelps

87 P. 93, 149 Cal. 627, 1906 Cal. LEXIS 286
CourtCalifornia Supreme Court
DecidedAugust 30, 1906
DocketSac. No. 1316.
StatusPublished
Cited by62 cases

This text of 87 P. 93 (Wadleigh v. Phelps) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wadleigh v. Phelps, 87 P. 93, 149 Cal. 627, 1906 Cal. LEXIS 286 (Cal. 1906).

Opinion

ANGELLOTTI, J.

This is an appeal from a judgment given in favor of plaintiffs in an action brought to have certain deeds of conveyance,' absolute in form, decreed to be in fact only mortgages, the amount due thereon ascertained, and conveyances of the property therein described ordered executed, upon the payment of the amount adjudged due. Other appeals taken by defendant from certain orders made after judgment, including an order denying her motion for a new trial, have heretofore been dismissed, and still other appeals shown by the transcript have been held unnecessary and fruitless, in that they were from non-appealable orders reviewable on the appeal from the judgment. (Wadleigh v. Phelps, 147 Cal. 135, [81 Pac. 418].)

The ease made by the complaint as originally first amended, *631 and upon which the case went to trial and was partially tried, was substantially as follows: On November 15, 1889, defendant’s testator, T. G. Phelps, loaned $5,500 to plaintiff Wadleigh, who gave Phelps his note for the amount, payable six months after date and bearing nine per cent interest. At the same time, as security for the payment thereof, Wadleigh and his wife gave Phelps a deed of conveyance of certain lots in San Francisco, Gal., and other property in the state of Washington. On August 1, 1890, Phelps loaned Wadleigh $1,000 more, which with the $5,500 and interest made his indebtedness $6,830, for which amount a new note, bearing interest at nine per cent per annum, and payable six months after date was given, and it was agreed that Phelps should continue to hold as security the title to the lands previously conveyed. On April 23, 1891, Phelps and Wadleigh sold two of the San Francisco lots for $2,500, $2,000 of which was credited on the note and $500 paid to Wadleigh. On November 13, 1894, there was due on said note $6,823, and Phelps claimed that Wadleigh owed him for moneys expended the further sum of $297, making a total of $7,120, for which amount a new note, bearing the same rate of interest and due six months after date was given by Wadleigh. On that date, Wadleigh was the duly appointed attorney in fact of plaintiff Anna F. Smith, and she, by her said attorney, executed to Phelps a deed of certain mining property in Nevada County of which she was the owner and holder of the legal title, but in which “said Wadleigh had an equitable estate and interest,” and of which property she and Wadleigh were the owners. This conveyance was made as further security for the payment of the indebtedness evidenced by the note. After the execution of this note, it was agreed by said Wadleigh, Smith, and Phelps, that Phelps might work said mining claim and make temporary leases of portions thereof, and that the proceeds should be applied, first, to the payment of the actual costs and expenses of such operations, and the surplus toward the payment and satisfaction of the indebtedness due Phelps. In accord with this agreement, Phelps did work said mining claim and make leases of limited portions thereof, from which he received money which plaintiffs are entitled to have credited on the indebtedness. On April 14, 1899, Wadleigh and Phelps agreed in writing to the extension of the *632 $7,120 note, for a period of two years from that date. Phelps died June 11, 1899. His will was admitted to probate July 13, 1899, and defendant was then appointed executrix. Since his death, said executrix has continued to work said mine and make leases of portions thereof. Wadleigh did not know what amounts had been received by Phelps and his executrix on account thereof. He has demanded an accounting from the executrix, but the same was refused, the executrix claiming that all of the property conveyed belonged absolutely to Phelps. On April 18, 1901, Wadleigh tendered and offered to pay the full amount due, on condition that the executrix make good and sufficient deeds of reconveyance of the various properties conveyed as security, but the executrix refused to receive such tender or offer, except as an unconditional payment, claiming that neither Wadleigh nor Smith was entitled to the reconveyance of any property upon the payment of the indebtedness. This action was commenced February 8, 1902, in the superior court of Nevada County.

Defendant filed her answer, in which she denied that any of the deeds executed by Wadleigh or Smith were given as mortgages, claiming that they were what they purported to be,— viz. absolute conveyances.

Upon the issues thus made, the case came to trial. After the trial had proceeded for some five days, plaintiffs were permitted by the court to amend their complaint, by alleging that the deed of Anna F. Smith was given not only as further security for the payment of the $7,120 indebtedness evidenced by the note, but also as security for the payment to said Phelps of the further sum of $1,500 alleged to have been paid by said Phelps to one C. W. Cross. Defendant thereupon amended her answer, admitting the allegations of the complaint as to all the conveyances except that of the mining property, but denying that the conveyance of the mining property was a mortgage, and claiming that it was an absolute conveyance of the property to Phelps. She denied the allegation of due tender, and also set up various provisions of the statute of limitations.

Upon the trial, the question as to whether the deed of the mining property was intended as a deed absolute, or as security, and the question of adverse possession by Phelps of such property, were submitted to a jury impaneled to advise the *633 court, and both questions were answered in plaintiff’s favor. The court adopted-these findings of the jury, and found the facts to be in accord with the allegations of the amended complaint. According to these findings, there was due the estate of Phelps $11,112.03 on April 18, 1901, and it was adjudged that Wadleigh make payment thereof within thirty days after the judgment becomes final; that upon his failure so to do, the property be sold and the proceeds applied to the payment of the indebtedness; that if such payment be made by Wadleigh as provided, said executrix shall make and deliver the necessary reconveyances; and that if she fails to so do, a commissioner appointed by the court for that purpose execute such reconveyances. Plaintiffs were by the judgment awarded their costs.

This somewhat elaborate statement as to the pleadings has been considered essential to a proper understanding of some of the many points made and strenuously relied on by defendant for a reversal.

1. A demurrer was interposed to the first amended complaint and this was overruled. It was stipulated that the same demurrer be considered as interposed to the complaint as amended upon the trial and overruled.

The principal contention made here as to the ruling on demurrer is that the complaint on its face showed that the cause of action therein set forth was barred by the laches of plaintiff, and that the demurrer should, therefore, have been sustained upon the general ground stated therein that the complaint failed to state a cause of action. It is settled that the defense of laches may be set up in this way, where the laches is apparent on the face of the complaint, the condition then being that the complaint does not show equity, or, in other words, does not state facts sufficient to constitute a cause of action. (Kleinclaus v. Dutard, 147 Cal.

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Bluebook (online)
87 P. 93, 149 Cal. 627, 1906 Cal. LEXIS 286, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wadleigh-v-phelps-cal-1906.