Berner v. Diamond
Berner v. Diamond
Opinion of the Court
OPINION
This was an action by Esther Berner against Leo Diamond to cancel a mortgage. Later Max Diamond filed a cross-petition for a judgment on the note and a foreclosure of the mortgage. The trial judge granted plaintiff a decree, cancelled the mortgage and dismissed Max Diamond’s answer and cross-petition.
The plaintiff alleged further that on August 4, 1936, Max Diamond executed an assignment of the mortgage to the defendant, Leo Diamond, and that this assignment' was duly recorded.
On October 25, 1941, plaintiff filed her amended petition making Max Diamond a new party defendant. The amended petition contained substantially the same allegations as the original petition.
On November 8,1941, Leo Diamond and Max Diamond filed their joint answer in which they admitted the execution of the mortgage and denied all other allegations contained in the petition.
On November 4, 1943, the defendant, Max Diamond, filed an amended answer and cross-petition in which he admitted the execution of the mortgage and denied all other allegations in plaintiff’s petition. For his cross-petition Max Diamond set forth a cause of action against the plaintiff, Esther Berner, and her husband, Harry Berner, new party defendant, on a note for $8000.00 executed on November 19, 1932 and due and payable November 19, 1937. He alleged that after the execution and delivery of said note the original instrument was lost or misplaced and after diligent search he has been unable to find the same.
The second cause of action was for a foreclosure of the mortgage securing the note.
In December, 1943, plaintiff filed her answer to the cross-petition of Max Diamond in which she denied all the essential allegations of the cross-petition.
On Jan. 5, 1944, defendant, Harry Berner, filed his answer to the cross-petition of Max Diamond. In this answer he denied the execution of any note and denied the execution of the mortgage as alleged in the second cause of action of Max Diamond’s cross-petition.
The answer of Harry Berner also contained the following:
“Further answering this defendant says that on November 19, 1932, and for some time prior and subsequent thereto,
The evidence at the trial disclosed that Harry Berner, plaintiff’s husband, and the defendant Max Diamond, were associated for some years on and after 1930 or 1931 in a large bootlegging venture. Both of them were sentenced to prison, although Max Diamond’s conviction was reversed.
It was the contention of Max Diamond that he loaned some $27,000.00 to Harry Berner. That when the partnership was about to break up he insisted on some security for a part of the loan and that accordingly he was given a mortgage on Berner’s house held in the name of Berner’s wife, Esther Berner.
It is the contention of the Berners that the mortgage was not given to secure such a loan but that on the contrary it was given as a “convenient” mortgage to prevent any of Berner’s creditors from reaching the home property to secure the
The plaintiff testified that she and her husband owned a vicious dog named “Bozo” which had bitten a numbervof people and that after they had been compelled to pay a judgment of $2000.00 as a result of a law suit filed by a small child who had been bitten they conferred with Berner’s partner, Max Diamond, who referred them to his lawyer. This lawyer suggested that a “convenient” mortgage be placed on the property in the name.of some person whom the Berners could trust. Accordingly such a “convenient” mortgage for $8000.00 running to Max Diamond was placed on the home but for the purpose stated and for no. other reason.
As to plaintiff’s right to have the mortgage cancelled, it is elementary that when the plaintiff mortgaged her' property to accomplish such an illegal purpose as above described a court of equity will not aid the plaintiff to free the property from the mortgage.
Pride v Andrew, 51 Oh. St 405; Kihlken v Kihlken, 59 Oh St 106.
This disposes of plaintiff’s claim for cancellation of the mortgage.
The stories told by Esther Berner and Harry Berner on the one hand, ahd Max Diamond on the other, are diametrically opposite. The trial judge evidently believed in the truth of the version given by'Esther Berner and Harry Berner. Clearly, if their story is believed, Max Diamond has no right to recover on the note and mortgage.
We do not consider it necessary to consider the evidence in the case in great detail beyond stating that it is a wise judge who can sift the full truth where there has been so much lying. The burden of proof rests on Max Diamond to prove the allegations of his cross-petition and it is our finding that he has failed to sustain this burden and therefore must fail in his cross-petition. In a case such as is disclosed here a court of equity can do nothing better than to leave the parties where it finds them.
Accordingly, judgment will be rendered for the defendants on plaintiff’s petition and for the plaintiff and Harry Berner on the cross-petition of the defendant Max Diamond.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.