Harlin v. Nation

• Decision Date: 09 July 1894
• Citation: 27 S.W. 330
• Parties: HARLIN v. NATION et al.
• Court: Missouri Supreme Court

27 S.W. 330

HARLIN v. NATION et al.

Supreme Court of Missouri, Division No. 1.

July 9, 1894.

SALE UNDER TRUST DEED — INADEQUACY OF CONSIDERATION — DUTIES OF TRUSTEE.

1. The price of $100 for property worth $500, sold under a trust deed, is not so grossly inadequate as to raise the presumption of fraud.

2. A trustee in a trust deed is under no duty to make efforts to procure bidders for the property, when a sale is contemplated, other than to advertise the property for sale, nor to give the grantor personal notice of the sale.

3. Though a trustee should inform himself as to the property, to determine whether it should be sold in a lump or in parcels, and to determine whether the sale should be adjourned or not, failure of a trustee to so inform himself is no ground to set aside the sale where the property consisted of one lot, and could not have been sold otherwise than as one parcel.

Appeal from St. Louis circuit court; D. D. Fisher, Judge.

Action by William Harlin against David Nation and another to set aside a sale made under a trust. From a judgment for plaintiff, defendants appeal. Reversed.

Christian & Wind, for appellants. P. J. Taaffe and Jas. P. Maginn, for respondent.

BLACK, J.

On the 19th November, 1883, William Harlin conveyed a lot in the city of St. Louis to George W. Nation, in trust to secure three notes of that date, made by Harlin, and payable to David Nation; one for $100, due in one year, and the others being semiannual interest notes of $4 each. Harlin paid these interest notes. The principal note was renewed by giving interest notes annually up to the fall of 1890. Harlin then made default in the payment of interest, and continued in default up to the 26th December, 1891, at which date the trustee sold the property, and David Nation became the purchaser at the price of $100. In February, 1892, Harlin brought this suit to set aside the trustee's sale and to redeem. The trial court gave a decree according to the prayer of the petition. The petition is broad enough to admit the evidence hereinafter mentioned. The witnesses placed the value of the lot at the date of the trustee's sale from $380 to $800. The reliable evidence, based on sales made in the same vicinity, shows that the lot had a value of $500, and we think this was its full cash value. Daniel B. Brennan negotiated the loan for Harlin and for Nation. He collected the interest notes up to the fall of 1890. At that time Harlin had made default in paying the interest, and asked for further time. Brennan says he then told Harlin he could not give him further time; to go and see Nation, and make his arrangements with Nation; and that Harlin came back the next day, and said he had made it all right with Nation. Brennan says he refused to have anything more to do with the matter; that he thereafter saw Harlin and Nation, but not in relation to these notes. Harlin, the plaintiff, agrees with Brennan in this: that at the conversation had in the fall of 1890 Brennan said he would have nothing more to do with the notes, but he says he did not ask Brennan for further time. He says he then saw Nation, and asked him for his interest note, and Nation said Brennan had the notes. It seems Brennan did not always have the interest notes when he received the interest, but on such occasion gave Harlin a receipt, and subsequently gave him the interest note or notes. According to Harlin's evidence, he asked for one of these paid interest notes at the conversation had with Nation in 1890. He says he did not then ask Nation for further time; that he did not see Nation again until after the property had been sold; that he quit paying interest because it took all of his money to support his family; and that he did not offer to pay interest to Nation or to Brennan from 1890 to 1892. With respect to the conversation held in 1890, David Nation says Harlin came to him at a shop where he was working, and asked for an extension of time. He says he then told Harlin the note had been running long enough; that he must have his money, and, if not paid, he would sell the property. George Nation, the brother of David, and trustee in the deed of trust, says he heard the conversation. His evidence is to the same effect as that of David. David testified further that he did not see Harlin from that time until after the date of the trustee's sale. The evidence as to the subsequent transactions is to the following effect: The property was advertised for sale in a newspaper, according to the requirements of the law and terms of the deed of trust, and was sold, as before stated, on the 26th December, 1891. George Nation, the trustee, testified that he did not give Harlin personal notice of the sale; that he did not know Harlin; that he made no effort to secure bidders other than to advertise the property and offer the same at public sale at the proper time and place; that David was the only bidder, though persons were going in and out of the courthouse while he was selling the property; that he...