Bank of Tipton v. Adair
Bank of Tipton v. Adair
Opinion of the Court
By general warranty deed, dated October 15, 1897, and on tbe same day duly acknowledged and recorded in tbe recorder’s office of Morgan connty, Sarab H. Payne, Jacob A. Payne, B. W. Payne, Sarab M. Cresap, S. P. Cresap and M. M. Payne, by tbeir attorney in fact, George E. Draper, conveyed a tract of land containing 322.78 acres situated in said county to tbe defendant, Mary J. Adair.
On December 17, 1898, tbe plaintiff obtained judgment against ber husband, tbe defendant P. D. Adair, for tbe sum of $2,743.90, execution on which was duly issued and levied on all tbe right, title and interest of said P. D. Adair in and to 240 acres of said land so conveyed to tbe said Mary J. Adair, and at tbe sale duly made under said execution, tbe plaintiff became tbe purchaser thereof, and received a sheriff’s deed therefor dated April 21, 1899, and thereafter on November 7, 1899, instituted this suit, alleging in tbe petition that tbe said P. D. Adair was on October 15, 1897, insolvent and largely indebted to tbe plaintiff; that on that day be became tbe purchaser, for a good and sufficient consideration, of tbe following described portions of said land so conveyed to tbe said Mary J. Adair, and included in said sheriff’s deed, to-wit: “tbe southeast quarter of the southwest quarter of section thirty-one, in township forty-four, of range seventeen; and tbe southeast quarter of tbe northwest quarter, and tbe south thirty acres of tbe southwest quarter of the northwest quarter of section five, and tbe east half of tbe northeast quarter of section six, in township forty-three, range seventeen.” That with tbe intent and for tbe purpose of defrauding tbe plaintiff, and preventing it from collecting tbe amount due and owing it by tbe said P. D. Adair, be caused tbe deed aforesaid to said real
The answer of defendant P. D. Adair is a general ■denial. The answer of Mary J. Adair denies all the allegations of fraud in the petition. Denies that her co-defendant P. D. Adair either purchased or paid for the land, and avers that on or about March 3, 1897, she purchased from George E.' Draper, attorney in fact for Sarah II. Payne and others, the land described in the petition, and received the deed therefor on or about October 15, 1897; that she bought and paid for said lands, and executed her obligations therefor, and that the same was done in good faith and for her own use; says that the said sheriff’s deed is a cloud upon her title, and prays that the same may be declared null and void, and for general relief.
The court found the issues for the defendants, granted the affirmative relief prayed for in the answer of defendant Mary J. Adair, and.rendered judgment against the plaintiff for costs, and the plaintiff appeals.
The grantors in the aforesaid deed to Mary J. Adair of October 15,1897, were the widow, heirs at law and devisees of Moses U. Payne, late of the State of Iowa, deceased, of whose estate the sgid George E. Draper was administrator, with the will annexed, as well as attorney in fact for said widow, heirs and devisees, all of whom were residents of the State of Iowa. The consideration expressed therein is twenty-one hundred and twenty-three dollars, and other valuable considerations; and on the same day the said Mary J. Adair and her husband, the said P. D. Adair, executed
“Versailles, Missouri, October 15, 1897.
“For good and valuable consideration it is agreed by and between Mary J. Adair and P. D. Adair, of Morgan county, Missouri, of first part, and George E. Draper, of Fremont county, Iowa, of second part, that in event that S. P. Bowman, Bruce or A. J. Vogt, or either of them, should fail to pay balance due said George E. Draper on lands purchased and secured by deed of trust on the lands purchased of Payne heirs, and said trust deeds, or either of them, should be foreclosed and the property sold should fail to pay the amount then due and unpaid of principal, interest and costs, then and in that event we are to pay said George E. Draper such deficiency as so remains unpaid.
“Mart J. Adair.
“P. D. Adair.”
And to secure the payment of said notes and the performance of said written obligation the said Mary J. Adair and her said husband executed and delivered to said Draper a mortgage or deed of trust on said lands so conveyed to her, of even date therewith, which on the same day was duly acknowledged and recorded.
The evidence tends to prove that the said Moses U. Payne for many years prior to his death was the owner of a tract of land containing about one thousand and sevehty-five acres in Morgan county. That the said P. D. Adair for a long time had been a tenant of his, living on a portion of said land, and exercising to some extent supervision over the remainder for him. That at one time the said Payne was the qwner of another, smaller tract of 60 or 100 acres, which he had conveyed to the said P. D. Adair in trust for the benefit of Mr. and Mrs. Tipton, parents of his wife, the said
In making the agreement Walter Adair acted as spokesman for his mother, who was not present, and it was distinctly stated by him and understood by all the parties that the contract or deal was with her and for her benefit. He directed Mr. Draper to draw the papers accordingly, he being compelled to leave in order to make his train for St. Louis, and Mr. Draper agreed to do so. Thereupon Mr. Draper executed general warranty deeds to Bowman and Bruce severally
‘ ‘ This agreement made this the 4th day of March, 1897, by and between Geo. E. Draper, attorney in fact for heirs and residuary legatees of M. U. Payne, of first part, and P. D. Adair of second part is to witness, that for good and sufficient consideration first party has given second party the option of purchase of the following real estate in Morgan county, Missouri, to-wit: southwest quarter section 5, south half northwest quarter section 5, northwest northwest quarter section 5, northeast quarter section 6 and east half southeast quarter section 6, all in township 43, range 17, and southeast southwest quarter section 31, township 44, range 17, until the first day of March, 1899, upon the following terms, to-wit: Second party is to pay first party, in event of purchase, as purchase price of said real estate, the sum of $5,900. One-fourth of said purchase price to be paid at the time of purchase or on or before March 1, 1899, and balance in three equal annual pay-1 ments payable respectively March 1, 1900, 1901 and 1902, with annual interest on deferred payments at rate of six per cent per annum payable annually from and after March 1, 1899. In the event said second party shall on or before March 1, 1899, elect to purchase said real estate and pay said Geo. E. Draper the said twenty-five per cent of said purchase price and shall execute and deliver his three promissory notes in amount each one fourth of said purchase price payable at Sidney, Iowa, and bearing interest each at rate of six per cent per annum from March 1, 1899, payable annually, and shall execute and deliver his trust deed to said Geo. E.*162 Draper on said real estate to secure the payment of said notes, same to be duly and legally executed in usual form thereof, then and in that event said first party shall execute and deliver a deed of said premises in form of warranty deed signed by said first party as ■attorney in fact for said heirs, to-wit: M. M. Payne, J. A. Payne and wife, S. M. Brunk and husband, and Sarah H. Payne.
“It is further agreed that time is of the very essence of this contract and that the right of the second party to purchase said property as aforesaid shall terminate on March 1, 1899, and in that event first party is entitled to possession and all rights in said premises same as though this contract had not been made. This contract and no other part thereof can be assigned by second only upon consent of first party except that he may.assign to his wife in which event his individual responsibility shall continue same as before assignment.
“It is further agreed as part of this contract that first party is to and does hereby lease to second party the aforesaid premises for the period of two- years commencing March 1, 1897, «and-as rental of said premises ■second party agrees to pay the tax of 1897 and 1898 on ■said premises and in addition h> pay first party the sum of $354 on the 1st day of March, 1898, and the sum of $354 on the first day of March, 1899, and if second party elects to purchase said premises he is to pay tax of 1899 and in event any of said rental aforesaid has not been paid same shall be added to said purchase price.
“Dated March 4, 1897.
“Gteo. E. Draper,
“Attorney in fact for widow and heirs at law of M. U. Payne.
“P. D. Adair.”
This paper seems to have been drawn after the parties had left except Mr. Draper and P. D. Adair. Mr. Draper was a citizen of Iowa, and testified in behalf of the plaintiff. After testifying that the agree
Afterwards 234 acres of tbe land was sold to A. J. Vogt, for $4,099, and on tbe 15th day of October, 1897, Mr. Draper executed to him a general warranty deed therefor, be making tbe cash payment required to Mr. Draper and giving him bis notes for tbe deferred payments secured by a deed of trust on tbe lands pur•cliased. And on tbe same day Draper executed tbe deed of that date in question to Mrs. Adair for tbe remainder of tbe lands, tbe recited consideration therein ■of $2,123 being tbe balance of the $13,000 purchase price of tbe whole tract, with accrued interest, after deducting tbe amount of tbe sale to Bowman, Bruce and Vogt. Afterwards Mrs. Adair sold 80 acres of the land deeded to her, to Thomas L. Sparks for $1,746.60, and 50 acres to her daughter, Mrs. Brewer, for $500. So that when the obligations of all tbe other purchasers have been discharged and the proceeds of these sales applied to tbe indebtedness, secured by her deed of trust to Draper, that obligation will be discharged, and she will have left 190 acres of tbe land as her profit on the whole transaction, and this is tbe land tbe plaintiff is seeking to recover in this action.
It further appears from the evidence that tbe indebtedness on which plaintiff’s judgment was rendered,
It further appears from the evidence that the Bank of Versailles held two notes of P. D. Adair, one dated August 10, 1896, for $600, signed 'by him and W. J. Adair, and one dated November 30, 1896, for $210, signed by P. D. Adair alone. That on May 24, 1897, P. D. Adair at the request of that bank executed a mortgage to secure the payment of those notes on all the interest by him held or thereafter to be by him acquired in the tract of land theretofore conveyed to.him by Moses U. Payne in trust for the Tiptons as aforesaid, and also all the interest which he then had or'might thereafter acquire in the lands described in the "written contract of March 4, 1897.
The evidence tends to prove that Mrs. Adair had-no knowledge of this indebtedness or of the execution
Case-law data current through December 31, 2025. Source: CourtListener bulk data.