147 Iowa 608 | Iowa | 1910
Plaintiff G-. W. Ridings is and at all times material to our inquiry has been a resident of the city of Chicago. The other plaintiff, P. M. Ridings, was a resident and citizen of Iowa county, this state. The latter was a customer of the defendant bank and a large borrower therefrom. Shortly before the deed in question was made, P. M. Ridings was largely indebted to the bank, both on notes and overdrafts, and the cashier of said bank was anxious to get these loans paid or secured and the account put on a different basis. It is claimed that G. W. Ridings, who is a brother of P. M. Ridings, was asked to come to Marengo, Iowa, to help straighten out P. M.’s account; that he went there in March of the year 1903, and with the cashier of the bank made an arrangement whereby, among
Defendant denies that the deed was intended as security, and insists that it should not be declared to be a mortgage. It says that the land was taken in satisfaction of $7,000 of the indebtedness of F. M. Ridings to the bank, that it was taken at practically the full value of the land, and that the only collateral agreement with reference there
And in arriving at a proper solution of the issues presented the most important questions to be considered are: (1) Was there a continuing obligation on the part of the grantor to pay a debt which it is claimed the deed was made to secure? (2) What was the value of the land as compared with the indebtedness which the deed was made to extinguish or secure? (3) How have the parties treated the conveyance ? (4) In what form are the written evidences in the transaction? (5) What .sort of testimony is relied upon to show that the deed was intended for and accepted as security for a loan or existing indebtedness? These propositions are so fundamental that there is no need of citing authorities in their support. Indeed, the only serious questions in the case are of fact. We have read and reread the record with care and from a perusal thereof conclude: (1) Just prior to the making of the deed E. M. Ridings was indebted to the bank in the sum of nearly $44,000, and the officers of the bank were anxious to have this indebtedness reduced, paid, or secured. G. W. Ridings authorized his brother, E. M., to use the North Dakota land in adjusting this indebtedness. E. M. appeared be
Plaintiffs’ testimony as to the debt secured or intended to be secured is very uncertain and unsatisfactory. In their pleadings and according to some of the testimony the deed was given to secure all of F. M. Ridings’ indebtedness. If that be true, there is no need to further consider the case, for the reason that according to the undisputed testimony Ridings’ indebtedness at this time amounts to many times the present value of the remaining land after giving them credit for everything to which they, under any theory of the ease, would be entitled. The hank treated the deed as absolutely extinguishing $7,000 of F. M. Ridings’ indebtedness, and, as no sale was made by either of the plaintiffs, except as part of the land was exchanged for the property at Rowley, their rights to this remaining property have been fully extinguished. According to the better testimony the land was not worth more than the -bank agreed to give for it. Gr. M. Ridings himself testified that, when the deed was made to the bank, the land was not worth to exceed $12,500. This is what the bank took it for,' and there is nothing in
The conduct of the parties after the execution of the deed is strongly relied upon by plaintiffs, and this is the only thing in the case which gives any color to their claims. When it is remembered that plaintiffs or E. M. Ridings were given the management of the farm and one year within which to sell the land, most, if not all, of the circumstances relied upon by plaintiffs as showing that the deed was intended as a mortgage become clear, and are not inconsistent with the thought that the conveyance was intended as an absolute one. It is true that plaintiffs had the management of the land for one year, and that they received the rentals for the years 1903 and 1904, but, as plaintiffs represented to the bank that the land was wild and unimproved and none of the officials knew anything to the contrary, the fact that plaintiffs received the rentals for the years stated should not be regarded as controlling. In a letter written by E. M. Ridings to the cashier of defendant bank under date of March 15, 1905, he stated: - “I understood that up to March 1, 1905, we-had exclusive sale and management of the land referred to, and after March 1st the management went to you, and, unless I hear to the contrary at once, will understand that you want us to push a sale or trade of this property as rapidly as possible. It would be only natural for us to await your advice and instructions after March 1st. We must have some idea as to your wishes in the matter, viz.: If you will trade for flat property — residence or store buildings, price of land, etc.— we must have some outline in the matter.”
We have already referred to-the exchange of the south half of the section of land. That was negotiated by the plaintiffs or by E. M. Ridings, but the deed was, of course, made by the defendant bank. The title to the property received in the trade was taken in the name of the bank, but plaintiffs took possession of the goods received, and finally
Tho testimony adduced by plaintiffs is not of that satisfactory character which is required in such cases. Even if G. W. Ridings were present when the transaction was consummated, which is very doubtful to say the least, and we' take his testimony as to the agreement had at' that time, we should be constrained to hold that plaintiffs are not entitled to the relief demanded or to any other relief which would be of any advantage. G. W. Ridings says that the deed was given as security for all of E. M. Ridings’ indebtedness. If that be true, then, as it appears without contradiction that E. M. Ridings is now indebted to the bank for a sum very much greater than the value of the north half of the land, and there is no offer on plaintiffs’ part to take up the whole of this indebtedness, but merely to pay $3,500 or less of the claim against E. M. Ridings, they are' not entitled to the relief demanded.
We are satisfied with the decree of the trial court, and it is affirmed.