Witte v. Storm

139 S.W. 384, 236 Mo. 470, 1911 Mo. LEXIS 212
CourtSupreme Court of Missouri
DecidedJuly 12, 1911
StatusPublished
Cited by7 cases

This text of 139 S.W. 384 (Witte v. Storm) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Witte v. Storm, 139 S.W. 384, 236 Mo. 470, 1911 Mo. LEXIS 212 (Mo. 1911).

Opinion

BLAIR, C.

In February, 1897, at the inception of the various transactions which resulted in this litigation, appellant was the owner of the equitable title to a tract of ground in the city of St. Louis at the intersection of Forest Park Boulevard and Kingshigh[480]*480way, designated as the Kingshighway property, and certain lots, and improvements thereon, on Jefferson Avenue in the same city.

At the time mentioned deeds of trust executed by appellant and her husband on both these properties were about to be foreclosed, the total indebtedness of all kinds against both plots being $43,305. In her extremity appellant applied to respondents, John F. Storm and J. PI. Farish, then partners in the real estate business, to assist her in devising a means to-save the properties, and the upshot of her negotiations with them was that Storm and Farish undertook to manage the property for appellant, negotiate loans thereon sufficient to discharge all existing liens and indebtedness against the two tracts, and then to collect the rents on the Jefferson Avenue property to meet interest charges, taxes, etc., and to sell enough of the Kingshighway property to pay off all liens on both parcels so that, in the end, appellant would have left a part of the Kingshighway property, on which it appears she expected to reside, and the whole of the improved Jefferson Avenue property, unencumbered.

In order tliat Storm & Farish might carry out these plans, it was agreed that the sales under the existing deeds of trust were to he -permitted to he made, and appellant executed a power of attorney authorizing Storm & Farish to negotiate new loans on the properties, from thirty to thirty-five thousand dollars on that on Kingshighway, and from ten to fourteen thousand dollars on that on Jefferson Avenue, as might he required. Storm & Farish were also authorized to “do any and all acts necessary in order to carry out the above instructions and perfect the title by the payment of any taxes or costs that may accrue. ’ ’

On the same day, February 27, 1897, appellant also executed an instrument whereby ghe appointed [481]*481Storm & Parish her sole agents to collect rents and sell both the Kingshighway and Jefferson Avenne properties, fixing therein the minimum prices per front foot at which the several portions of the Kings-highway tract were to be sold, and leaving the selling price of the Jefferson Avenne property to be determined by subsequent agreement.

The Jefferson Avenne property was sold under deed of trust on March 1, 1897, and that on Kings-highway was similarly sold April 13, 1897, the title being taken, in both cases, at the instance of Storm & Parish, in the name of E. H. Brockmeyer, collector for that firm.

The purpose of this was to facilitate the transaction of the business which Storm & Parish had undertaken for appellant, and it is affirmed by all parties that Brockmeyer held the legal title at all times until May, 1898, for appellant.

A loan of eleven thousand dollars was negotiated on the Jefferson Avenne property, and one of thirty-one thousand five hundred dollars on that on Kingshighway, Brockmeyer in each instance executing deeds of trust to secure the loan. Brockmeyer then executed to Storm as trustee a deed of trust on both pieces of property, securing a note payable to Parish for two thousand dollars. . Appellant testified that she was assured that the execution of this last mentioned deed of trust was “a matter of form,’’ and respondent Storm testified that it was executed to secure his firm for funds advanced by it in clearing up the indebtedness against the properties.

In 1896, one Leonori had obtained judgment against appellant and her husband for five hundred dollars. Appellant testified that she mentioned this judgment specifically in detailing the liens against the properties preparatory to the execution of the powers of attorney to Storm & Parish. This Storm denies.

[482]*482The rents of the Jefferson Avenne property amounted to about $1800 to $2000 per annum, according to Storm’s testimony, and to about $2400 to $2500, according to appellant’s.

In November, 1897, Brockmeyer conveyed to Richard D. Hatton a portion of the Eingshighway property, seventy feet fronting on Forest Park Boulevard, for an expressed consideration of one dollar, and January 19, 1898, Hatton conveyed this lot to John F. and Lizzie Storm. Hatton was, respondents Storm and Farish admit, a mere conduit and Storm-was the real purchaser, paying for the lot sixty-five dollars per front foot, fifteen dollars per .front foot less than the minimum price fixed by the power of attorney given his firm by appellant. In April, 1898, all the property was sold under the Leonori judgment, of the existence of which judgment Storm & Farish had been advised for over a year by the certificate of title used in procuring the loans in the spring of 1897, and the payment of which judgment they had guaranteed in writing April 16, 1897, to the St. Louis Trust- Company, from which institution the $31,500 loan on the Kingshighway property was procured.

In May, 1898, the whole of the property in controversy was sold under the $2000 deed of trust above mentioned, the note secured thereby never having been negotiated by Storm & Farish, and C. J. Kehoe, the answer admits, bought at this sale for Storm. Farish was the payee in the note, and- Storm as trustee -in the deed of trust made the sale and execnted the trustee’s deed to Kehoe. Appellant was present at the sale but the fact that Kehoe was buying for Storm was concealed from her until after this suit was brought. Storin testified that he concealed this fact from her because he “did not want her to know it.”

Immediately after this sale Storm, & Farish, wrote appellant as follows:

“The property has, as you are aware, been sold [483]*483■under the second deed of trust, and the purchaser, Mr. C. J. Kehoe, has authorized us, by reason of onr familiarity with the property, to continue to have charge of it, as his agents. We have gone over the matter fully with him, have explained the situation thoroughly, and have endeavored to impress him with your condition. That is to say, we have explained to him that you are not in a position to pay a rental that the Kingshighway property demands, and he. had said to us that hi's idea is to make the rental nominal until such time as he may be able to find a purchaser.

■He has further instructed us to say to you that for the months of June, July and August, he is willing that you should retain possession of the property, and probably longer,. at a rental anywhere from one to five dollars a month. Of course, he could not treat you more leniently in the matter than by a proposition of this kind.

He also stated that one of his reasons for so doing was that you would use your best efforts in showing the property and endeavoring to find a purchaser. Mr. Kehoe has vested us with full authority to act for him, and we would be very much pleased to have you call at the office at your very earliest convenience, and see our Mr. Storm, in reference to this matter.

Anticipating an early visit, we remain,

Yours very respectfully.”

In a short time Storm, after failing in his efforts to induce appellant to attorn to Kehoe, instituted, in Kehoe’s name, a suit'in ejectment against appellant, and prosecuted it to judgment, thereby securing in May, 1899, possession of all the property.

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Bluebook (online)
139 S.W. 384, 236 Mo. 470, 1911 Mo. LEXIS 212, Counsel Stack Legal Research, https://law.counselstack.com/opinion/witte-v-storm-mo-1911.