Whitney Loan & Trust Co. v. Brown

172 N.W. 875, 42 S.D. 95, 1919 S.D. LEXIS 80
South Dakota Supreme Court·Decided June 17, 1919·No. File No. 4482·Published·Cited by 4 cases

Opinion

POLLEY, J.

This action was brought -to foreclose a mortgage on 200 acres of land in Minnehaha county. The execution of the mortgage and the indebtedness the mortgage was given to secure are admitted, but the defendants claim that there was a material alteration made in the mortgage after its execution and without the knowledge or consent of the mortgagors, and that, therefore, the mortgage was wholly void, and they ask judgment dismissing the action.

The mortgage, as it appeared at the commencement of the action, purported to be a mortgage on the whole of the 200 acres of land described therein, while defendants claim that, when the mortgage was executed, it purported to be a mortgage on only an undivided one-fourth interest in said land. Upon this issue the trial court' found that, at the time of the execution of the note that was to be secured by the mortgage, the defendants agreed to execute and'deliver to the payee of the note a mort[98] gage on an undivided one-fourth interest in the land in question, and that, pursuant to said agreement, they did execute a mortgage on an undivided one-fourth interest in the land, but that, after the mortgage was executed and delivered to the mortgagee, and without the knowledge or consent of the defendants, or any of them, it /was intentionally, fraudulently, and materially altered while in the possession and under the control of the mortgagee or his duly authorized agent, by striking out of the description of the mortgaged premises in said mortgage the words “an undivided one-fourth interest in,” and that, by said alteration, said mortgage was intentionally fraudulently, and materially so changed as to make it purport to be a mortgage upon the whole of said land; and that said mortgage, as received in evidence, bears upon its fact evidence of such alteration, and of an intent and design to conceal the fact of the making of said alteration. Pursuant to this finding, judgment was entered canceling and discharging said mortgage and directing that it 'be canceled and discharged of record. Plaintiff moved for a new trial upon the ground of newly discovered evidence and the insufficiency of the evidence to sustain the findings of fact; and, from, an order overruling such motion, it appeals to this court.

[1] The (question of the sufficiency of the evidence needs only passing notice. The mortgage was drawn in the First National Bank of Madison. It was not executed at the time it was drawn, but was taken from the bank by 'Clive Brown, one of the mortgagors, and afterwards executed and acknowledged by all of the mortgagors at Hartford. There were present in the bank at the time the mortgage was drawn C. E. Olstad, president of the bank; E. M. Bourne, the mortgagee; CliYe Brown, one of the mortgagors; Clive Brown’s brother, Paul Biown; and Mabel Nelson, a bank clerk who wrote out the mortgago. The defendant 'Clive Brown and his brother, Paul Brown, testified that the words “an undivided one-fourth interest in” were in the description of the mortgage when it was prepared and when it was taken from the bank; and all of the 'defendants testified that said words were in the mortgage when they executed and returned it to the bank. Mr. Olstadi and the mortgagee (Bourne) testified that the words “an undivided one-fourth interest in” had been erased from the mortgage before it was taken from [99] the bank by Clive Brown. Mabel Nelson was not called as a witness. That the words “an undivided one-fourth interest in” had been written in the mortgage at the time it was drawn and afterwards erased by some one is conceded by all parties concerned. At the time the mortgage was drawn, there was also prepared by the said Mabel Nelson a deed, conveying to the mortgagors an undivided one-fourth interest in the land described in the mortgage. It is a fact that the mortgage was given as security for the payment, or part payment, of this undivided one-fourth interest, and the mortgagors testified that it was not their intention, nor agreement, to mortgage any other interest in the land than that that had been conveyed to them by this deed; that they did not intend to mortgage the other three-fourths interest in the land; and that they would not have executed the mortgage in question had it been for more than an undivided one-fourth interest. Upon this testimony it cannot be said that the funding of fact above set out is not supported by the evidence, and certainly such finding is not against the preponderance of the evidence. A finding of fact by the trial court based upon evidence so conflicting and of so positive a nature will not be disturbed by this court on the ground that such finding is not ’supported by the evidence.

[2] The matter now urged by appellant as constituting newly discovered evidence is set forth in an affidavit made by the said Mabel Nelson. In this affidavit she states that she recollects the occasion of drawing the mortgage, and that she made the change therein at the time the mortgage was written; that the change was made at the instance of the parties concerned, and was made before the mortgage was executed. If this is true, it completely disposes of the defense; and, if her absence from the trial is sufficiently excused, it is sufficient ground for a new trial. But the granting of a new trial upon the ground of newly discovered evidence is a matter that is so largely vested in the discretion of the trial court that the granting or refusal of a new trial on that ground will not be disturbed by this court, unless it clearly appears that the trial court has abused this discretion.

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Whitney Loan & Trust Co. v. Brown, 172 N.W. 875, 42 S.D. 95, 1919 S.D. LEXIS 80 (S.D. 1919).

172 N.W. 875 (Whitney Loan & Trust Co. v. Brown) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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