Cotton v. McKee

• Decision Date: 23 November 1878
• Parties: OZIAS B. COTTON, in equity, v. ELIZA J. MCKEE and CHARLES B. JORDAN.
• Court: Maine Supreme Court

68 Me. 486

OZIAS B. COTTON, in equity, v. ELIZA J. MCKEE and CHARLES B. JORDAN.

Supreme Judicial Court of Maine.

November 23, 1878

BILL IN EQUITY, praying for an order to account and to be allowed to redeem, setting out, in substance, that, April 30, 1870 the plaintiff quitclaimed the premises to the defendant Jordan, as security for the payment of $451.08 then owing and on the same day, and as a part of the same transaction Jordan gave him a bond of defeasance, on condition of payment of that sum in one year from date with interest.

The defendant, Jordan, in his answer, admitted the making and delivery of the quitclaim deed to himself, and also that, on the same day, a note was made and signed by Cotton, running to him, for $451.08, payable in one year, and that a bond was then made and signed by Jordan to convey the premises to Cotton, if the note was paid according to its terms. But the defendants say these were two independent transactions; that Jordan previously held a judgment against Cotton, as on mortgage for the premises; that Cotton quitclaimed to him to satisfy the judgment, a completed transaction; that he thereupon let the premises to the plaintiff for a year at a small rent; that afterwards, on request of Cotton, he did verbally agree with him that on payment of $400 in one year he would convey, and that this was not put in writing; but that Cotton made a note for the full amount of the judgment, and Jordan signed the bond, not as a part of the same, but as a new and independent transaction; that both bond and note were put into the hands of a third party as an escrow, the bond not to be valid unless the note was paid according to its tenor; that it never was paid, and that Jordan afterwards gave a bond for a deed to the defendant, McKee, who subsequently paid the consideration and took a conveyance from him of the premises.

The plaintiff testified that he never paid any rent and that he never agreed to.

A. P. Moore testified that the bond and note were left with him by the makers and put in an envelope and sealed, on which he made the following memorandum: " This contains a bond for a deed from Charles B. Jordan to Ozias B. Cotton, dated April 30, 1870, for one year, with note from Cotton to Jordan for $451.08, same date, payable in one year with interest, both left with me by Charles B. Jordan and Ozias B. Cotton. If note is paid on or before maturity, bond to be given up to Cotton. If not paid as above, bond to be null and void. Left April 30, 1870, due April 30, 1871." He testified that the envelope and its contents remained with him intact till November, 1875, when Cotton by Jordan's permission took the bond, which was recorded December 16, 1875.

Jordan testified that Cotton remained on the premises till fall when he abandoned them; that he paid no rent, taxes, nor anything on the note, and on April 10, 1872, he gave a bond for a deed to the defendant, McKee, on payment of $400 in four annual payments of $100 each and interest; that she finally paid...