18 Fla. 379 | Fla. | 1881
delivered the ¿pinion' of the court.
I. The referee properly found upon the testimony in this case that Robinson was in the first instance reluctant to become a creditor of the appellant, and became so because of the importunity of and sympathy for her on account of her embarrassments and misfortunes.
II. -We agree also that the lease, and the mortgage of August 1,1877, were not and were not intended by either party to be one instrument, or contract. The. mortgage is not a qualification of the lease, nor the lease of the mortgage, neither is dependent upon the other ; although it is probable that the lease would not have been entered into but for the mortgage indebtedness.
III. The conclusion is inevitable also that the possession by petitioner of the real and personal property, although embraced in the mortgage, was. delivered and obtained in virtue of the lease.
IV. The conveyance of January .4, 1878, was executed and acknowledged, as appears by the record, in due form of law. It was attempted by. defendant to show that the acknowledgment of Mrs. Shear was not taken by the magistrate upon a private examination of the wife separate aud apart from her husband, and that no private examination was had, but that the grantors signed the instrument and the Justice signed the certificate, only asking the wife, at the same table .and seated by her husband where they had signed the paper, whether she knew what she was doing ? She answered yes, she thought she did. The Justice then signed the certificate of acknowledgment. Mr. and Mrs. Shear testify that there was' no separate or private examl
In Heeter vs. Glasgow, the court says: “ The true rule deducible from the-authorities is, that the certificate of the Justice of the acknowledgment of a deed or mortgage is á judicial act, and in the absence of fraud or duress, conclusive as to the facts therein stated. A purchaser, bonajidei, and without notice of the fraud, is protected against it; but
In the present case Mrs. Shear does not repudiate the execution or acknowledgment of the.deed, either upon the ground of fraud, forgery or duress, and- we must give to the magistrate’s attestation its legal, effect as it stands.
V. The next and-more important. question is as to the character of,- the deed of January 4, 1878. Mrs.- Shear sought Robinson in great distress.to aid her in a small way in her pecuniary -affairs. Afterwards she sought more aid, and excited his sympathies in her behalf to the end that he made advances and assumed obligations for her to the extent of $1,590, for which he took her note payable immediately, and took the mortgage of August 1,-1877, for $2,000, consenting to make further advances up to the .latter amount. At the same time he .took- a lease for five years of her plantation and all the personal-property upon it, and entered into possession under this lease, Mrs. Shear remaining in the house with her family, and with no means of support beyond the small amount of rent. Mr. Robinson then made further advances, bey-ond the. maximum of his mortgage security,, the amount in November or December, 1877-, being $886.91- in excess of the'amount secured by the mortgage. ., : ,
. It is difficult to determine at this point which party was most, anxious to increase the amount of' petitioner’s advances, to Mrs. Shear. Now commenced the negotiations
It seems to have been concluded that Robinson should advance or pay $500 more, which, with previous advances or credits, amounted to $3,836.91, and which he says was the price agreed on for an absolute sale and deed of the entire property, real and personal. She insists that though the conveyance executed by her and her husband was in the form of a deed of conveyance, yet it was the understanding and agreement that the conveyance was made to secure him the money, and that she had the right to redeem the property at any time by paying the amount.
She says the paper in the record bearing the date of January 10 was in fact given her by Robinson the same evening the deed was executed. He says it was given some days later in response to a distinct proposition from Mrs. Shear. The paper in evidence was not the original actually signed in January, but is a substantial copy of the original, and was made by Robinson at Cedar Key in June, copied from the original which had been wet and discolored, and the original was then and there destroyed by him. In view of the entire facts of the case it is unfortunate this original paper was destroyed by him at a time when he was treating with them in the absence of counsel for important admissions, in regard to this controversy, because if it were produced it would have avoided the dispute as to the day as well as the terms of the agreement. At all events, the paper contains the essence of Mrs. Shear’s construction of the deed if it was given at the time of the execution of the deed, but if it was an independent agreement it is of no binding value as a contract for the sale of land, as it is without consideration or seal, or mutuality of obligation, a mere naked proposition.
Her position here is that she claims that the deed was a security for her entire indebtedness and the five hundred
If the deed of January 4, 1878, was the result of an absolute sale of the property, it - is difficult to conceive of any plausible reason for the foreclosure of the mortgage. If the grantors conveyed all their interest, there remained no interest to be cut off by thé-foreclosure. The foreclosure could not affect the rights of creditors or incumbrancers of any sort, because the mortgagors only are the defendants named in the foreclosure suit.
It is undisputed that Judge Baker, who drafted the deed and the bill of foreclosure, understood from the parties a month before the date of the deed that the transaction contemplated was an absolute sale and conveyance. He sent the draft of the deed and the bill from Orange county to Robinson, who sent them, and they were delivered, to Mrs. Shear to be examined before closing the transaction.
The introductory part of the deed reads: that “ whereas the said E. E. Shear and L. N. Shear are unable to comply with the terms of said mortgage, or to pay the said sum of money secured thereby, and they being willing and anxious to secure said payments,” therefore, in consideration of the premises and the sum now due by the mortgage, and the further consideration of $1,746.91 paid by Robinson, they granted the property in fee, &c. Then the bill of foreclosure, which was sworn to by Robinson on the. 3d of January, 1878, the day before the execution of the deed, states the execution of the mortgage to secure the note of $1,590, and that he had “ agreed to assume certain other indebtedness and to make further advances, which have since been made, amounting to the further sum of $1,746.91;” and that the defendants have never repaid any part of said indebtedness,
. An answer was also sent to Mrs! Shear to be examined and signed, already prepared-, by Robinson or his counsel^ acknowledging that she was indebted, as charged in- the bill, in the sum o.f $3,386.91, including the note ; and defendants •therefore assent to the decree as prayed for by the bill. ' This answer was signed at the same time with the’ deed, January 4th. • .
. Now, with this bill' informing Mrs. Shear that the whole amount .of the consideration of the deed was an indebtedness, claiming that the property must be sold to pay him the amount so due him, which they are otherwise unable ’to pay, .claiming a decree that this debt be paid out of the proceeds of a sale,' and that any surplus over' this amount be paid to Mrs. Shear “ to her separate úse,” and this bill sworn to by Robinson, and an answer given her to sign and swear to, and which was sworn to by her in presence of Robinson, stating that the $3,336.91'was an indebtedness ,to be paid by a sale of the mortgaged property, and that she would be entitled to any surplus after paying this amount from the proceeds of the sale, how does it lay in ■the power of Robinson to say'that-she did riot understand .the effect of the deed to be precisely -what she now claims, a security for'the whole indebtedness mentioned, for a part of which Robinson, up to the date of the deed, had no se
Again, in furtherance of the prayer of the bill and the submission in the answer that such decree be made as the bill prayed for, Robinson took a decree that the property be sold, and that he be paid the indebtedness of $8,886.91 and costs, and that the surplus, if any, arising out of the sale, be paid to the defendants. And it was further' provided in that decree that if the property should not sell for money enough to pay the $8,886.91 with interest and costs, there should be execution against the defendants for the deficiency.
What does this mean ? It is evident that Robinson’s attorneys and solicitors, who drew the deed and the bill and the answer and the decree, intended to do precisely what was done in accomplishing the purposes and establishing the rights of the parties by the most solemn and deliberate forms and methods.
The only conclusion to be drawn from all the reliable facts in the case is that the deed of January 4,1878, was in its legitimate effect and purpose, and in its execution was
The circumstance that there was no personal security-taken for the payment of the money does not make the conveyance less effectual as a mortgage. (Russell vs. Southard, 12 How., 139, 152, and citations.) Brown vs. Dewey, 1 Sandf. Ch., 56, reviews the cases and shows that the absence of personal liability of .the grantor to pay is not conclusive to determine whether the conveyance is a mortgage.
Speaking of a conveyance by the mortgagor to the mort. gagee of his equity of redemption, the court in Russell vs. Southard says: “We think that inasmuch as the mortgagee in possession may exercise an undue influence over the mortgagor, especially if the latter, be in needy circumstances, the purchase by the former of the equity of redemption. is to be carefully • scrutinized when fraud is charged, and that only constructive fraud or an unconscientious advantage which ought not to be retained, need be shown to avoid such a purchase. "* * * A mortgagee in possession may take a release of the equity of redemption. But such a transaction is to be scrutinized to see whether any advantage has been taken of the mort
VI. It is insisted that the petitioner should be relieved of his bid because he was -laboring under a misapprehension of the facts of the case. An examination of the record fails to show that he was ignorant of any material fact bearing upon the rights of the parties. The most that can be said is that he did not apprehend the legal and equitable effect of his decree, and that in bidding above the amount of the decree he' did not know that he would be, and was advised by counsel that, he would not be, required to pay the excess. This is purely a question of law; arising out of facts of which he was fully cognizant.
The presumption is that every person is acquainted with his own rights, provided he has a reasonable opportunity and capacity to know them.
Eonblanque has laid down the-general proposition that in courts of equity mere ignorance of the law shall not affect agreements, nor-excuse from'the legal consequences of particular acts; and in this he' is fully borne out by authorities. (1 Story’s Eq. Jur., § 111, 139.)
It would be superfluous to enter upon a discussion here of this question. Judge Story and the Supreme Court of the United States have so fully examined it and pronounced the rule in- view of all the -authorities, the question is no longer open.
Robinson paid the Shears on that occasion one hundred dollars, and took from them a receipt commencing “ whereas, in the purchase of W. L. Robinson from us of the land and property described in the deed of January 4, 1878, by agreement the said Robinson did retain for his protection in case he had to pay a certain claim of Dr. John S. Bond ; and, whereas, being in need of funds, we have applied to said Robinson to pay us $100, and he has paid the same to us this day,” &e.; and the paper further stipulates that they will refund the money to Robinson in case he shall pay the money to Dr. Bond.
Mr. and Mrs. Shear state in detail the reasons why they
It would be doing violence to equity and good conscience to hold them to the provisions of that paper under the circumstance in which they were induced to sign it; their ignorance of the facts, their weakness, the impressions made upon them during the several hours Robinson spent with them in the night in the absence of counsel or friends, and the legal and equitable - rights intended to be affected by it. If the Shears had an interest in the surplus money it would certainly be inequitable that Robinson should deprive them of it by any means whatever without their intelligent concurrence. 1 Story’s Eq. Jur., Sec. 128; 1 Peters, 15, 16.
VIII. Another reason given by the petitioner why he should be relieved of his bid is. that the property is not
These conclusions are the result of a careful and patient •examination of the voluminous.record laid before us and of the authorities at hand. The decree setting aside the sale must be reversed and the cause remanded, with directions that.further proceedings be had therein in accordance with this opinion and the practice of the court.
The appellee respectfully asks .for a- rehearing in this cause, and in support thereof submits the following:
I. It is held by the court that “ the only conclusion to be drawn from all the reliable facts in the case is that the deed of January 4,1878, was in its legitimate effect and purpose, and in its execution was'ibtendéd.to be, a security for the sum of $8,886.91-100 owing by the grantor to the grantee, and that as between these parties it must be given this effect. ” In this the petitioner respectfully submits there is error. Judge Baker who drew the deed says that he was employed to act for both parties in drawing an absolute conveyance; he had full consultation with them, together and separately, and each understood that an absolute sale of the property was to be made, and he prepared the paper for this p"urpose, and as an absolute conveyance. In the opinion of your Honors, prepared by the Chief-Justice, it is expressly stated that “ it is undisputed that Judge Baker who drafted the deed understood' from the parties a month before the date of the deed that the transaction contemplated was an absolute sale and conveyance. He sent the draft of the deed and the bill from Orange county to Robinson, who sent them and they were delivered to Mrs. Shear to be examined before closing the transaction.” There is no doubt, unless Judge Baker is not to be believed, and certainly I am justified by the above quotation in saying the court believes him, that both parties up to their last interview with him, or his last interview with either of them, intended an absolute conveyance, yet notwithstanding Judge Baker’s testimony as to . interviews with them together and separately, and the understanding
'Why, if Robinson' or Baker intended or understood the deed1 of January 4 as a security, was not it foreclosed in
II. With proper respect petitioner believes and urges that it is error in the court to hold that he in bidding acted under mere mistake of law. (Story’s Equity Jurisprudence, §141.) He believed as a matter of fact that the ownership of the property as against the Shears was in him. He had negotiated to this end, and believed it to be consummated. Eobinson cannot be said .to have acted solely on Mr. Bernard’s advice as to bidding. He was also acting on the belief that in bidding he was carrying out the purpose of both parties, a belief made strong by the dealings between him and the Shears, and by the opinion and advice of the chosen counsel of both-parties.
Moreover, it is not always the case that equity will refuse to grant relief against a mistake of law. If if be a mistake of law it cannot be said to arise from a mere misapprehension of the effect of the decree, for he was not relying solely on the foreclosure proceedings; in fact the foreclosure proceedings in the-light of Baker’s advice were not instituted for the purpose of having any effect as between him and the Shears. 8 Wheaton, 211-16; Kerr on Fraud and Mistake; Story Eq. Jurisprudence.
III. In regard to the transactions at Cedar Key, Eobinson and the Shears differ in'their statements as to some features, but looking, to the testimony of-Lutterloh, who was with' them for two hours, and to its statements of facts as contradistinguished . from mere • opinions, wfe find that Eobinson ‘ there claimed that he had form
As to the Shears having “ had no counsel or advisers,”
Robinson’s conduct in going to a Justice of the Peace on his getting to Cedar Key is alluded to by the court. In transacting the business there he had either to do it secretly or openly. Had he introduced no witnesses to such -transactions the secrecy native to fraud would have been imputable to him. Had he, when the -witnesses were present,
IV. We respectfully submit that the court has erred as to the value of the land and property as shown by the testimony. The great weight of the testimony is with Robinson in asserting the property is not worth the bid. Pearce and Houstoun do not get square down to the question as to what this land >is worth. Pearce says the committee agreed not to put a fixed value on it, and what he would take for his own land. Houstoun’s idea is that land which brings so much is worth so much. The fact that Robinson refused to accept the Williams bid of $7,900 is taken hold of by the court as a strong circumstance of his valuation of the property. The testimony shows that Robinson regarded his agreement of January 10th as one to be kept; that he was regarding it in his bidding, and that it was his duty
In consideration of the premises, your petitioner prays that he may be fully reheard upon the points above stated, and to that end and that full justice may prevail your Honors will grant a rehearing, and, as in duty bound, your petitioner will ever pray.
Geo. P. Raney,
Solicitor for Petitioner.
The appellee petitions for a rehearing upon several grounds.
1. It is insisted that our conclusion “ that the deed of January 4, 1878, was, in its legitimate effect and purpose, and in its execution was intended to be, a security for the sum of $3,386.91, owing by the grantor to the grantee, and that as between these parties it must be given this effect,” was erroneous and not supported by the law and the facts.
It cannot be expected that we shall recapitulate all the salient points of the testimony in deciding upon this petition.. In the opinion already given we announced the conclusions arrived at upon a view of all. the facts upon the equitable rights of these parties.
Upon a patient review of all the testimony we have failed to reach any different conclusion. The testimony of Bolling Baker leads to the conclusion that, according to his understanding of the parties, the Shears were to give Robinson a deed conveying to him a title in' fee simple. Robinson says that was the intention of the parties. Mrs. Shear insists from first to last that the purpose of the deed was, whatever the form of the conveyance, to relieve herself from the embarrassment of her situation, to provide that her other creditors should be paid, that Robinson should be paid, and that whenever the property should be sold she might have the benefit of any advantageous sale. Baker’s last interview with the parties resulted in his drawing up and forwarding to Mr. Robinson the deed and the bill of foreclosure. These papers, after Robinson had made oath to the bill, were sent to Mrs. Shear to read, and these papers are, as they bear upon each other, when signed, the highest evidence of the agreement of the parties. The peculiar language reciting the consideration of the deed of convey
What avails it that- there had been an agreement to sell the entire property for the amount due him ? Here is the entire agreement between the parties reduced to writing and sworn to by both parties. • What was in her mind on reading and signing these papers except that they expressed her intention, and his at the moment of the consummation, and without forgetting what she says was the first intimation as to a “ bill of sale ” in the early part of the interview, the true character of the contract as closed by the signatures and oaths of both parties, agrees with her testimony in the case.
The paper signed by Robinson only agreeing to sell the property to Mrs. Shear, and which seemed to satisfy her at the time, if not a part of the transaction is of no moment for reasons before stated. The foreclosure of the mortgage may have been intended as one of the agencies for “ perfecting the title,” but if the title was conveyed by the deed we fail to discover the object of foreclosing and obtaining by the oaths of the parties a decree judicially establishing the fact that the expressed consideration of the deed was still a subsisting indebtedness. This cannot be a matter of fraud, accident or mistake.
The suggestion that Mrs. Shear, when she left Tallahassee, made no arragements to have her interests looked after at the sale goes to show that she did not regard her. self as having any interest in the property. Her situation at Cedar Key is shown by the testimony, as is also her capacity for transacting this kind of business. Whether she knew of the time and place of the sale we do not know, but it seems some one informed her afterwards.
All which means that he was bidding under ah impression that the Shears had no interest, while his decree informed him that he was enforcing a subsisting indebtedness, and that his deed was a security for the money. We do not see that he was ignorant or misinformed of any fact whatever upon which his whole conduct or action was based.
It was stated in the opinion that as a general.rule equity would not relieve from the legal consequences of acts under a mistake or ignorance of law. True we did not state that there are exceptions to this rule in so many words, but said in the language of the books that the presumption is that every person is acquainted with his own rights, provided he has a reasonable opportunity to know them. (1 Story’s Eq. Jur., §111.)
In Cullen vs. Ready, 2 Atk., 591, Lord llardewick says: “ It is said they might know the fact, and yet not know the consequence in law, but if parties are entering into an agreement and the very will out of which the forfeiture arose is lying before them and their counsel tvhile the drafts are preparing, the parties shall be supposed to be acquainted with consequence of law to this point, and shall not be relieved under a pretence of being surprised, with such strong circumstances attending it.”
Chancellor Kent, in Storrs vs. Baker, 6 Johns. Ch., 169,
There is a class of cases citel in Story’s Eq. Jur. and in Kerr on Fraud and Mistake, p. 399, et seq., where persons have entered into agreements and there was a mutual mis. apprehension or ignorance of legal rights; or where one party had imposed upon another by misrepresenting or concealing the existence of legal rights; or where a person supposing himself liable, through ignorance of law, had assumed a liability; or where one gave up a good security for another which was void ; or where a sister, being ignorant of her rights under a settlement, released her rights to a brother; or where a daughter accepted a legacy and released her orphanage which was much more valuable; and like cases, the result of imbecility or gross improvidence or imposition, each case depending upon its peculiar circumstances, equity has given relief.
“Upon a close survey,” says Story, (1 Eq. Jur., §120,) “ many, although not all of the cases, [where the party, knowing all the facts, has acted upon a mistake of the law,] will be found to have turned, not upon the consideration of a mere mistake of law, stripped of all othér circumstances, but upon an admixture of other ingredients, going to establish misrepresentation, imposition, undue confidence, undue influence, mental imbecility, or that sort of surprise which equity uniformly regards as a just foundation for relief.” And where an instrument was acknowledged to have been entirely misunderstood by both parties to it, equity may afford relief. 8 Wheaton, 216.
As to the transaction at Cedar Key we think, upon a review of the testimony, that the conclusion of the court were correct. The signing of the paper there by the Shears was, considering their condition and all the circumstances preceding it, not such an act of deliberation and freedom from the influence of their peculiar condition as to commend it to the conscience of the court as one determining any material, legal or equitable rights. Several hours of the night were spent by Robinson with them before they were induced or persuaded to assent to the signing of a pa7 per prepared in advance for them by his counsel, and not as the result of a conference in which they should have had the aid of prudent counsel. Nor was any one present with them, but after the long private conference in which they agreed to sign the paper the magistrate and witnesses were admitted and the paper then signed and attested as stated in the former opinion. And we perceive no reason for refusing to believe the testimony of Mr. and Mrs. Shear and for giving credence alone to that of Robinson as to what transpired between them alone.
TV. The fourth point made is in regard to the value of the land and other property. As to the value of the land, while some of the witnesses did not fix any definite money value, yet their comparison of it with other lands in the vicinity and their value give a fair means of estimating it. Taking in this connection the house, outbuildings, farming tools, wagons, carriages and appurtenances, pictures, books, ornaments and furniture, Mr. Robinson’s estimate of the value at the time of the sale, refusing to let it go at $7,900, is a better criterion by which to judge of it.
If his desire was that Mrs. Shear should have the benefit of the market value of the property, over and above the amount due and interest and value of his improvements, there and then was the opportunity to befriend them by selling for a good price property which he now says he did not consider worth the amount of that bid. His expressed desire was to be reimbursed, and that Mrs. Shear might be benefited by the opportunity to purchase, or to find a purchaser on the terms named in the memorandum. The opportunity presented itself, and he declined to give them the benefit which he admits they were equitably entitled to.
While the case was pending on petition for rehearing there was a motion for the appointment of a receiver of the property, but it was denied.
The following decree was entered: (2 Daw. Ch. Pl. & Pr., Cooper’s Ed., 1,282; Harding vs. Harding, 4 Mylne & Craig, 514; Saunders vs. Gray, ib.; Tanner vs. Radford, ib., 515, 524.) The appellee having by leave of the court filed his petition for a rehearing of this cause, and the court having duly considered the same, it is ordered that the said petition be denied. And thereupon it is ordered, adjudged and decreed that the order and decree made by the referee in this cause setting aside the sale of the mortgaged premises, be and the same is reversed and set aside, and that this cause be remanded to the Circuit Court for the county of Leon, with directions that a decree be entered in said cause that the said William L. Robinson, within