148 Minn. 224 | Minn. | 1921
In November, 1918, plaintiffs owned a lot in Minneapolis on which was situated a duplex dwelling. The property was of the value of $4,700. It was subject to a mortgage of $2,000. Defendant E. C. Pickett owned the stock and fixtures of a grocery store in Minneapolis. An agreement was made, by which Pickett agreed to give plaintiffs the stock and fixtures of the store in exchange for the equity in plaintiffs’ lot and duplex. The agreement stipulated that the fixtures were of the value of $1,200 and the stock of $1,500. There was an understanding that Pickett owed
Plaintiffs were put into possession of the store. They executed a deed of their duplex property to defendant Helen E. Pickett and deposited it with defendant Lauderdale in escrow, with instructions not to deliver it until the stock should be inventoried and if the inventory should fall below $1,500, then not until Pickett should make settlement of the difference.
The stock inventoried about $800. Fixtures of the value of $75 proved not to belong to Pickett. Plaintiffs were unable to get a settlement from Pickett. Notwithstanding this, defendant Lauderdale, in order to permit the Picketts to give a mortgage for $850 to raise money to pay the store debts, delivered plaintiffs’ deed to a party who was willing to advance the money and permitted him to record it. Thereupon the Picketts, without making settlement with plaintiffs, conveyed the duplex property without consideration to defendant Eastman, and procured her to convey it to defendant Mercantile Exchange Company in exchange for some lots. There is evidence that this company had knowledge of. plaintiffs’ rights. About the middle of December, plaintiffs first learned that their deed had been recorded. They then consulted an attorney. Plaintiff Carl tried to find Pickett, but could not. About this time he met Mr. Eiley, the representative of the Mercantile Exchange Company, and told him he was still the owner of the duplex, and Eiley told him: “Well, we will fight it.” On January 27 plaintiffs commenced this action.
The court ordered judgment that the deed to Helen E. Pickett and the other subsequent deeds be canceled; that the Mercantile Exchange • Company be decreed the owner of the stock and fixtures on condition that said defendant pay to plaintiffs $850, the amount of the mortgage placed on their property by the Picketts, and that, on failure to make such payment, plaintiffs máy sell the stock and fixtures, retaining sufficient to repay said sum of $850, the excess, if any, to be paid to the Mercantile Exchange Company.
E. C. Pickett’s fraud is admitted. None is charged against the other
As to the Picketts, plaintiffs had the undoubted right to a cancelation of their deed wrongfully delivered. As to the Mercantile Exchange Company, the same right must exist, unless it has been lost in some manner.
The court, in order to safeguard the rights of defendant Mercantile Exchange Company, disregarded all technical rules, and in a practical manner gave it all Pickett’s rights in the stock and fixtures. We think the result was as fair and equitable as possible under the proof presented.
Order affirmed.