Hendricks v. Calloway

Citation211 Mo. 536,111 S.W. 60
PartiesHENDRICKS et al. v. CALLOWAY et al.
Decision Date01 April 1908
CourtUnited States State Supreme Court of Missouri

sufficient to put him on inquiry. The record showed a perfect legal title in his grantor for several years prior to the purchase. Held, that the purchaser was a bona fide purchaser for value, and his title was not subject to the unrecorded equity.

13. SAME.

Where the bill alleged that a purchaser had notice at the time of the purchase of plaintiff's outstanding equities and charged the purchaser with participation in a fraud against plaintiff, and the answer denied fraud and notice and pleaded the purchaser's good faith, and plaintiff introduced no evidence of notice, and defendants introduced as much proof sustaining the answer as the nature of the case made possible, a finding that the purchaser was a bona fide purchaser for value freed from plaintiff's equities was proper.

14. SAME — GRANTEE IN QUITCLAIM DEED — RIGHTS ACQUIRED.

A grantee in a recorded quitclaim deed for value, who has no actual notice, holds a good title against a prior unrecorded deed subject to record, and holds a good title against any equity to which the recording act applies; but his deed does not bar outstanding equities not the subject of record.

15. MORTGAGES — FORECLOSURE — SALES — AGREEMENTS TO CHILL BIDDING — EFFECT.

A combination to depress bidding at a foreclosure sale leaves the land subject to redemption by the nonparticipating owners of the equity of redemption as against a purchaser who is a party to such a combination.

16. SAME.

A wife owning real estate subject to her husband's right of curtesy executed deeds of trust in which the husband joined. The real estate consisted of two tracts. After her death, the husband and a third person made an agreement for the sale of the premises under the trust deed. The agreement provided that the third person should obtain title to one tract, and that the husband should become the beneficial owner of the other tract. The value of the first tract exceeded the amount of the indebtedness secured by the deeds of trust. A sale was made pursuant to the agreement. Held, that the sale was illegal as against the minor heirs of the wife.

17. QUIETING TITLE — NATURE OF ACTION.

An action to remove a cloud from a title to real estate, based on the theory that a deed of trust is a forgery, is essentially different from an action based on the theory that the deed of trust is valid, and that the foreclosure thereof is void.

18. LIMITATION OF ACTIONS — EQUITABLE ACTIONS.

A sale under a foreclosure of a deed of trust was consummated in 1891. The heirs of the grantor in the deed of trust were at that time minors, 18 years of age. Held, that an action by the heirs to set aside the foreclosure sale, commenced in 1901, was barred by limitations.

19. MORTGAGES — FORECLOSURE — EFFECT.

A deed of trust securing a debt conveyed two tracts of land. By agreement between the surviving husband of the grantor and a third person the tracts were sold to satisfy the debt. One tract was sufficient to satisfy the debt, which tract passed to the third person on the foreclosure of the deed of trust. Held, that the third person acquired title to the tract, and the indebtedness was discharged, for equity considers that done which should have been done, though the agreement was fraudulent as against the minor heirs of the grantor.

Appeal from Circuit Court, Schuyler County; N. M. Shelton, Judge.

Action by William D. Hendricks and others against William J. Calloway and others. From a judgment for plaintiffs, certain of the defendants appeal. Reversed and remanded.

E. R. Bartlett, for appellants. C. C. Fogle and Jerry M. Jeffries, for respondents.

LAMM, J.

This is the appeal of above defendants from a final decree in equity in a cause going from Scotland to Schuyler county on change of venue. There were other parties defendant (among them, William F. Hendricks) not appealing. Plaintiffs are the surviving children of said William F. Hendricks and one Martha A. Hendricks, his wife, deceased.

The decree, nisi, vests the title of the S. W. ¼, N. W. ¼ of section 3, and the S. E. ¼, N. E. ¼ of section 4 (hereinafter, for convenience, both 40's are called tract A) and the N. W. ¼, N. W. ¼ of section 5 (for convenience, hereinafter called tract B), all in township 64, range 11, in Scotland county, out of defendants and into plaintiffs, subject to the life estate of defendant Hendricks, said life estate being an estate by curtesy found by the chancellor to be now owned by his codefendants (the Calloways and McDaniel), and subject further to the payment of $125.30 found by the chancellor to be due defendant William J. Calloway as redemption from two certain deeds of trust. To get at that result, the chancellor set aside a trustee's deed to said William J. Calloway executed to him as a successful bidder on foreclosure of one of said deeds of trust. The deed of trust foreclosed was a first lien. It was executed on tracts A and B on November 8, 1886, by said Martha A. Hendricks and her said husband. It secured a principal note of $1,100 running five years at 6 per cent., with semiannual coupons attached, and, as it will be mentioned frequently in this opinion, for convenience it will be called C. The other deed of trust bore the same date, covered the same property, was executed by the same parties,...

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    ...316, 318(6); Northwestern Portland Cement Co. v. Atlantic Portland Cement Co., 174 Cal. 308, 163 P. 47, 49(3).19 Hendricks v. Calloway, 211 Mo. 536, 559-560, 111 S.W. 60, 66(10). To the same effect, see Bradford v. Davis, Mo., 219 S.W. 617, 618(1); Lemay v. Poupenez, 35 Mo. 71, 76; Halsa v.......
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