167 P.2d 634 | Kan. | 1946
The opinion of the court was delivered by
Speaking generally, it may be said that this action
In his petition plaintiff alleged that he was the owner of an undivided one-fourth interest in a certain eighty acres of land in McPherson county; that in 1933 he borrowed from defendant Laura Jones the sum of $300. There was no written evidence of the debt which was to be repaid at his convenience without interest. As a part of the same transaction he executed and delivered to Laura Jones a deed conveying to her his interest in the real estate, it being the intention and understanding of both parties that the deed, though absolute in form, was in fact a mortgage to secure repayment of the debt. The deed was duly recorded. Thereafter Laura Jones and her husband, and other owners, executed an oil and gas lease, and as a result of development sometime in 1939 Laura Jones began to receive proceeds arising under the lease. In December, 1940, Laura Jones represented to plaintiff that she had received $360 as his interest in oil royalties from the land, and it was then agreed between them that she should pay him the $360 and he would execute his note to her for the $300 previously borrowed, and that she and her husband would reconvey his one-fourth interest to him, reserving a life estate in the real estate as security for the $300 debt which should be repaid out of one-half of his interest in the oil royalty proceeds and Laura Jones and her husband would account and pay to plaintiff his other one-half thereof, and that pursuant to the agreement Laura Jones paid him the $360 and he executed and delivered his note to her for $300, and Laura Jones and her husband executed their warranty deed conveying the undivided one-fourth interest in the real estate to Charles Curtis Jones and Alice Mary Jones, children of the plaintiff. The deed contained the following clause:
“Subject however to a life estate in said property which is hereby retained*286 and reserved by said grantors. By this is meant that during the life of either or both of said grantors that all income of rents and royalties or all income of any nature whatsoever from said premises is hereby retained by said grantors.”
This deed was duly recorded. From time to time after execution of the above instruments Laura Jones made payments to plaintiff purporting to be his full share of the oil royalties or his share less sums applied on his note, a schedule of the payments being attached to the petition as an exhibit. After October, 1943, Laura Jones refused to pay him any part of his share of the oil royalties and he charged that she had not fully and truly accounted to him from the time the oil royalties commenced up to October, 1943. He further alleged that his share of the oil royalties received and retained by Laura Jones had long since fully paid his indebtedness to her; that at all times mentioned he had been the equitable owner of the interest in the land; that the defendants had no right or claim to the reserved interest other than a mortgage lien thereon and that the mortgage debt having been paid he was entitled to have the reservation canceled and to have the defendants barred from all right, title, interest and claim to the undivided one-fourth interest in the real estate. His prayer was he be declared the owner of the interest reserved and that the defendants be barred.
The defendants’ demurrer to the petition having been overruled, they filed separate, but substantially like answers. Only hers will be reviewed.
In her answer Laura Jones denied all allegations of the petition except as admitted to be true, and for her second defense she alleged that she and defendant Charles Jones had been husband and wife for over forty years and that plaintiff was their son; that prior to 1933, the plaintiff owned the one-fourth interest in the real estate, and that it was not a valuable piece of land and his interest was not worth over $250; that in 1933, and during the depression, plaintiff came to their home in Marion county and endeavored to sell his interest for $300, and she agreed to purchase it; that he made her a deed which was duly recorded; that when the deed was made there was no agreement by or between plaintiff and his parents that the deed was to be considered as a mortgage to secure the loan to him of $300, or that they would reconvey to plaintiff upon payment of $300 to Laura Jones, and that after delivery of the deed plaintiff paid no attention to the land, paid no taxes, nor exercised any dominion or control over
At the trial, each of the defendants filed demurrers to plaintiff’s evidence and these demurrers being overruled, they offered their evidence in defense. The trial court made findings of fact, including
“Durham, Kansas
July 26, 1941
Contract
Between Orval Jones and Laura Jones
Orval Curtis Jones agrees on this day to refrain from all arguments, dissatisfaction, law suits or making any disturbance now or forever regarding his or his children’s oil or Royalty checks the amount of each months check being one half of what Laura Jones receives. Orval C. Jones is to pay his share of any and all taxes, attorney fees and any just expense pertaining to the royalty. (signed) Orval Jones
I the undersigned, Laura Jones agree with the above contract and agree t,o send him his check each and every month
(signed) Laura Jones
I hereby witness the contract.
(signed) Orlie Frances Jones”
The court further found that through the years 1941 and 1942, Laura Jones sent Orval Jones approximately one-half of the oil royalty payments received by her, less the amounts applied on his note and less the $360 paid him in December, 1940. Orval Jones received no payments after October, 1943. One-half of the
As a matter of law the court made seven conclusions: (1) The deed to Laura Jones was intended as security for Orval Jones’ debt and. was a mortgage and she acquired no title to the interest in the real estate but merely a lien. ' (2) Orval Jones had not divested himself of his equity of redemption. (3) Having no title to the one-fourth interest, Laura Jones and her husband could not and did not, by the reservation in the deed to Orval Jones' children, create for themselves any title to the reserved interest. (4) The effect of the reservation of a life estate was the retention by Laura Jones of her lien on the rents and royalties. (5) Orval Jones was not estopped by any conduct to assert his equity of redemption. (6) Orval Jones’ debt to Laura Jones, secured by his deed to her, had been fully paid and neither she nor her husband had any interest in the land described in Orval Jones’ deed to her. (7) Orval Jones was entitled to a decree that at the commencement of the action he was owner of the life estate excepted and reserved by Laura Jones and her husband in the deed to the children of Orval Jones, and barring Laura Jones and her husband and each of them from any right, title or claim thereto. Charles Jones died after these findings and conclusions were prepared but before they were filed.
In due time after the findings were filed, Laura Jones filed her motion to set aside certain findings of fact on the variously, asserted grounds there was no evidence to support the finding, or it was immaterial, or it was not in harmony with the evidence. She also filed a motion to strike each conclusion of law, a motion for judgment notwithstanding the findings of fact and conclusions of law and a motion for a new trial. These several motions were presented to the trial court and each was denied. The plaintiff’s motion for judgment in accordance with the findings of fact and conclusions of law was allowed and judgment was rendered accordingly, except that there was no judgment barring Charles ¡Jones. In due time Laura Jones perfected her appeal to this court. She specifies error in ten particulars which are grouped for discussion in her brief and which will be noticed in the order presented.
Appellant’s first and perhaps principal contention is that the trial court erred in overruling her demurrer to the petition, the allegations of which have been reviewed heretofore and need not be repeated. First, it is contended that Orval Jones, having made the deed to Laura Jones in 1933 and knowing that she and her husband, with other co-owners, had leased the real estate for oil and gas purposes, accepted the sum of $360 from Laura Jones and thereby estopped himself “from ever questioning the deed he now seeks to have set aside or any other deed the appellant Laura Jones and her husband may have made.” The contention is further stated that one who knowingly receives benefits flowing from an instrument cannot question the instrument; that acceptance of the $360 was a ratification of the title in Laura Jones when the lease was made, and that the instrument of '1933 could not be a deed in one instance and a mortgage in another, and that Orval Jones is contending that to be the case — a thing which may not be done. The premise for the above argument ignores other allegations which are part and parcel of the situation disclosed by the pleadings, and the legal consequences arising therefrom. It needs no demonstration that when the deed of 1933 was delivered by Orval Jones to Laura Jones and made a matter of record, that to the world at large it was just what it purported to be notwithstanding any understanding or agreement between the parties to it, and when she executed the oil and gas lease, he was bound by it as to all persons who did not know, of the agreement between him and his mother that the deed was intended to be security for a loan and not an absolute conveyance. Although appellant makes some argument that the agreement the conveyance was a mortgage is within the statute of frauds and therefore unenforceable, it has been held repeatedly in this state that such an agreement may be shown by parol testimony. See, e. g., Moore v. Wade, 8 Kan. 380; Miller v.
Appellant urges as a stronger reason that Orval Jones was es-topped, the fact that in his petition he alleges that in December, 1940, he “induced” Laura Jones and her husband to execute the deed to his children in which the grantors reserved a life estate, under the clause previously quoted, and that by so doing he recognized his parents as owners of the fee and not as holders of a lien. In an attack on the petition, it may hardly be said the allegations warrant any conclusion Orval Jones induced his mother to make the deed. The pleading is that his mother told him she had $360 as his share of oil royalty then received by .her, and it was then agreed that he would give her a note for his existing debt to her of $300 and that she would execute .the deed reconveying his interest, reserving a life interest as security, to be surrendered when his note was paid out of one-half of his share of the oil royalty. The allegations continue that the note was given and the new deed was made to the children of Orval Jones, with the reservation above mentioned, and that Laura Jones paid Orval Jones the $360. We recognize the rule contended for by appellant that where one having the right to accept or reject a transaction accepts, he is bound and cannot thereafter take an inconsistent position (21 C. J. 1206, 1210) and that one who claims an instrument in form a deed is in reality a mortgage, may lose his right of redemption by having his grantee convey to some third person (see 41 C. J. 371; Ann. Cas. 1913 B 407, 413; Sauer v.
And finally, in connection with her demurrer to the'petition, Laura-Jones contends the petition is defective in that there is no allegation that she or her husband ever signed any written memorandum in which they or either of them agreed to reconvey the involved interest in the real estate to Orval Jones, and that on the contrary an oral agreement was pleaded. Appellant directs our attention to that portion of the statute of frauds appearing as G. S. 1935, 33-106, and to a statement from Riffel v. Dieter, 159 Kan. 628, 638, 157 P. 2d 831, that if the original contract is required to be in writ-, ing in order to be enforceable, any substantial modification of it must likewise be in writing and signed by the party to be charged. This contention may be sustained only if it be held that the agreement the deed made in 1933 was a mortgage was within the statute of frauds and had to be in writing and signed by Laura Jones in order to be enforceable. Appellant contends that under the last cited case payments subsequent to the agreement of December, 1940, do not take the case out of the statute. We have previously directed
Appellant also contends the trial court erred in not sustaining her demurrer to plaintiff’s evidence. The argument in support of this contention is in part that made in connection with the demurrer to the petition. A specific point urged is there was no evidence that when the 1940 deed was made Laura Jones agreed to convey to Orval Jones the reserved life estate when his note to her was paid. The legal question has been discussed earlier. If the 1933 deed was a mortgage, it was implicit in the agreement that when the debt secured was paid, the real estate would be reconveyed. The effect of the 1940 deed was to release a part of the security, and in a sense was a carrying out by Laura Jones of her duty to reconvey. However that may be, when it was proved that the reservation of a life estate by the 1940 deed was only security for the payment of Orval Jones’ note to Laura Jones, it followed as a matter of law that upon payment by Orval Jones there must be reconveyance to him. As bearing on this phase of the matter see G. S. 1935, 67-309, and cases cited in the annotations thereto. It required no express agreement that when the debt was paid to the mortgagee the security for its payment was to be reconveyed to the former mortgagor. Failure to prove the particular matter just discussed did not render plaintiff’s evidence demurrable. Another reason asserted why the demurrer should have been sustained is that Orval Jones testified the
Appellant contends the trial court erred in overruling her objection to a so-called self-serving declaration contained in a letter written by Orval Jones. Without going into detail, Laura Jones was asked if she had received a letter dated May 19, 1941, a copy of which was shown her. She answered that to her recollection she did not.
Under another head, appellant contends the trial court erred in making certain findings of fact, which are criticized as not being findings of ultimate facts but mere recitals of evidence. This particular criticism is unwarranted. After directing attention to Winston v. Burnell, 44 Kan. 367, 24 Pac. 477, 21 Am. St. Rep. 289, where it was held that upon the issue that an instrument in form an absolute conveyance was intended as a mortgage, the fact must be proved by a clear preponderance of the evidence, appellant states she thinks this court not only has the right but it should examine the record to see whether the plaintiff sustained that burden. It is well established that the trial court, not this court, has the duty of determining whether the evidence is clear and convincing, and that on appeal it is of no consequence there was much contradictory evidence offered, which, if believed, would have compelled entirely different findings of fact and an entirely different judgment. (Bruington v. Wagoner, 100 Kan. 439, 164 Pac. 1057.) The rule that the evidence to prove an instrument in form a deed was intended as a mortgage must be clear and convincing, is a rule for the guidance of the trial court, and on appeal this court assumes it knew and applied that rule. (Klusmire v. Dixon, 150 Kan. 871, 96 P. 2d 634.) Neither have we overlooked appellant’s argument that the proof shows the plaintiff testified falsely- with reference to his conduct toward his mother and therefore he should be wholly disbelieved. Just what weight should have been given to Orval Jones’ testimony was the duty of the trial court. Appellant condemns his testimony strongly, but the fact remains that as to much of it there is support not only by his mother and father, Laura Jones and her husband, but they admitted writing certain letters and produced certain writings which, to a very considerable extent, corroborated Orval Jones’ version of what transpired. We have examined the record fully and without detailing the evidence, a good deal of which has been previously mentioned, we are of opinion that the- findings of fact are amply supported by the evidence.
And finally, appellant contends the trial court erred in not sustaining her motion for judgment in her favor notwithstanding the findings of fact and conclusions of law and her motion for a new trial. Except as to the matter hereafter discussed, the argument is a restatement of what has been heretofore considered. The trial court did not err in its rulings on these two motions.
Appellant directs our attention to two parts of the judgment, one that “neither of the defendants has had any title ... to said reserved and excepted interest since the commencement of this action” and the other that defendants are adjudged to pay the costs, and argues that since Charles Jones had died after trial and before judgment, no such judgments should have been rendered. As to the first phase, it may be noted that notwithstanding the statement
The judgment of the trial court is affirmed in all its parts except as against Charles Jones for costs, and the cause remanded with instructions to set aside that part of the judgment.