Wells v. Derrickson

211 S.W. 773, 184 Ky. 384, 1919 Ky. LEXIS 63
CourtCourt of Appeals of Kentucky
DecidedMarch 11, 1919
StatusPublished
Cited by5 cases

This text of 211 S.W. 773 (Wells v. Derrickson) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wells v. Derrickson, 211 S.W. 773, 184 Ky. 384, 1919 Ky. LEXIS 63 (Ky. Ct. App. 1919).

Opinion

Opinion of the Court by

Judge Sampson

Affirming,

Appellee, John IT. Derrickson, was the owner of a tract of land of about 75 acres, situated on Sinking Fork of Millers creek, in Lee county, and on September 20, 1913, he sold the same to George Boothe for $240.00; $5.00 in hand paid, $120.00 to be paid in twelve months from date, and the balance in twenty-four months. Boothe executed to-Derrickson two notes for the unpaid purchase money — one for $120.00 and the second for $115.00. Derrickson executed and delivered to Boothe the following title bond:

“Torrent, Ky., Sept. 20, 1913.
“I have on this day sold and conveyed to Geo Booth all of the land I owned on the Sinking Fork of Millers creek running with Tom Boothe line; then with Brown Low Smith’s line; then with the Clay City Bank’s line, for two hundred and forty dollars, one hundred and twenty [385]*385dollars to be paid in twelve months, and one hundred and twenty dollars in twenty-four months. Party of first part to make deed.
“John H. Derrickson/'

Boothe immediately took actual possession of the land, placed a tenant on it from whom Boothe collected rents and through whom he exercised control over the lands. When the first note became due, in September, 3914, Derrickson went to see Boothe and insisted upon payment, but Boothe was unable to pay and so informed Derrickson, and arranged for additional time. The second note fell due on September 20, 1915. Boothe failed to pay either of the notes in full. On April 22, 1914, Derrickson gave an order on Boothe for $38.19, in which order it was stated by Derrickson: “I will let it be applied on the last note I hold on the land. ’ ’ This order was duty accepted by Boothe and paid in merchandise from Boothe’s store. Boothe also paid some small sums on interest on the notes. Derrickson wrote Boothe several letters with relation to the past due notes. In the meantime Derrickson transferred the first note to J. P. Crain, and Crain placed it as collateral to other notes at the Hargis Commercial Bank in Jackson. Some time in 1915 Derrickson, who lived at Jackson, went for the third time to see Boothe with reference to the payment of the notes. He found Boothe on the lands in controversy and they talked the matter over. Before that Boothe' had offered to surrender the lands to Derrickson and cancel the trade, but Derrickson did not want the lands back and insisted upon having the money. On this last visit Boothe again told Derrickson that lie did not have-the money to pay the notes and offered to surrender the-title bond and possession of the land to Derrickson if Derrickson would surrender to him the two notes, but Derrickson explained that one of the notes had been transferred to Crain and that Crain had placed it with the bank and that he could not surrender that note to Boothe. It was finally agreed, however, that Boothe would make a final effort to borrow the money at Beattyville, and if he could so do would pay the notes, and Derrickson ivas to convey the lands to Boothe by deed. But if Boothe was unable to obtain the money with which to pay the notes he was to go to Jackson and surrender the title bond and posession of the land to Derrickson, and allow him to sell the land to another, and thus obtain the [386]*386money which Boothe was unable to pay. Boothe attempted to obtain the money but was unsuccessful. He did not go to Jackson to see Derrickson, but he wrote Mm a letter, the contents of which are the subject of dispute in this controversy.

The letter is lost. Boothe contends that he wrote Derrickson that he was willing to surrender the title bond and. possession of the land to Mm if Derrickson would bring and deliver to Boothe his two notes, executed for the purchase money of the land. Derrickson «did not and does not claim to have delivered or offered -to deliver the notes to Boothe, but he claims he acted .-directly upon Boothe’s letter, which he says was in substance as follows:

“Torrent, Ky.
“I have been to Beattyville trying to get the.money to pay these notes off that I owe you. I have been un-able to get the money at Beattyville or anywhere else, .and you can go ahead and sell the land to Crain or any cne else that you want to as I am unable to pay off the notes.”

Mrs. Derrickson received the letter from the post office and took it to appellee, J. P. Crain, who exhibited it to his brother’, M.S. Crain, and they and Derrickson testify concerning its contents. Acting upon the letter, Derrickson sold and conveyed the land to J. P. Crain in consideration of $120.00,which was the amount of the first note given by Boothe to Derrickson, and transferred by Derrickson to J. P. Crain. This deed, while dated September 3, 1915, was acknowledged by Mrs. Derrickson before M. S. Drain, notary public, on October 13, 1915, and by John PI. Derrickson on February 7, 3.916. It was recorded, in the office of the clerk of the Lee county court on January 15, 1917. At the time of the execution of the deed to J. P. Crain, Boothe was in possession of the land by a tenant, but it had been agreed between Boothe and Derrickson that in case Derrickson accepted the land the tenant whom Boothe had placed on the land was to be permitted to remain on the lands for the balance of the term for which Boothe had rented it, and should respond to Derrickson. • Derrickson did not come to see Boothe .any more after the execution of the deed, but Boothe claims to have written Derrickson several letters with reference to the land and to have offered to pay the notes. To these several letters Derrickson made no reply. [387]*387He does not contend that lie accepted Boothe’s proposition by letter or otherwise, except that he acted upon the letter and without further communication with Boothe deeded the land to Crain. It is also admitted by Boothe ■as well as by appellant, Jack Wells, that the making of the deed by Derrickson to Boothe and its recordation was common talk in the community where they lived and that they each had such information before Wells bought the lands. Matters drifted along until 1917, when oil was discovered in the vicinity of this land, and the land began to appear to have considerable value, and on. August 30, 1917, George Boothe and wife transferred to appellant, Jack Wells, the title bond, executed to Boothe by Derrickson, by the following indorsement on the back of the bond: “For and in consideration of five hundred dollars I assign all the right, title and interest of the within bond to Jack Wells.

“This Aug. 30th, 1917.
“Dixie Boothe,
“Geo. W. Boothe.”

The real consideration for the assignment to Wells, as appears from the evidence of Wells and Boothe, was $535.00, $300.00 of which was paid to Boothe by Wells, and Boothe assumed the payment of the two notes of $235.00 to Derrickson.

While Boothe and Wells both knew of the deed of Derrickson and wife to J. P. Crain, and that it was of record on the 30th of August, 1917, it is equally true that J. P. Crain knew that George Boothe had purchased the land in question and held a title bond therefor, at the time Crain purchased of Derrickson, on September 13,. 1915, and J.P. Crain at the time held, or at least had held,, one of the Boothe notes given to Derrickson for the purchase price of the land, of which the title bond was the evidence of transfer.

This action was instituted by Wells against J. H.

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Bluebook (online)
211 S.W. 773, 184 Ky. 384, 1919 Ky. LEXIS 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wells-v-derrickson-kyctapp-1919.