Hentzell v. Hildebrand

• Decision Date: 23 May 1932
• Docket Number: 13072.
• Citation: Hentzell v. Hildebrand, 12 P.2d 343, 91 Colo. 91 (Colo. 1932)
• Parties: HENTZELL v. HILDEBRAND et al.
• Court: Colorado Supreme Court

12 P.2d 343

91 Colo. 91

HENTZELL v. HILDEBRAND et al.

No. 13072.

Supreme Court of Colorado

May 23, 1932

In Department.

Error to District Court, Jefferson County; S.W. Johnson, Judge.

Suit by Henry Hildebrand and another against Alfred A. Hentzell.Judgment for plaintiff, and defendant brings error.

Affirmed.

Horatio S. Ramsey, of Littleton, and Harry G. Saunders, of Denver for plaintiff in error.

H. A Hicks and H. A. Hicks, Jr., both of Denver, for defendants in error.

BUTLER J.

Henry Hildebrand and Anna M. Hildebrand obtained a judgment against Alfred A. Hentzell, canceling a promissory note and a deed of trust.Hentzell seeks a reversal of that judgment.

This is a controversy between the lender and the borrowers of money.Mitchell, a lawyer, was practically the sole owner of, and the agent for, a realty and investment company.From time to time Hentzell had dealings with Mitchell, lending money through him and purchasing secured notes from him, and in each case he employed Mitchell as his attorney to examine the abstract of title and to see that the papers were properly drawn.As a result of the business transacted for Hentzell by Mitchell, the latter became indebted to the former in the sum of $1,200 for money intrusted by the former to the latter for the purpose of making a loan--not the one involved in this suit.The Hildebrands, owners of certain land in Jefferson county applied to Mitchell for a loan of $3,000 thereon.The land already was incumbered by what is referred to in the record as a federal loan; the balance due being approximately $1,800.Mitchell submitted the application to Hentzell, who told Mitchell that he(Hentzell) would make the loan provided the title was all right, and that Mitchell would repay the $1,200 to Hentzell, or pay that amount to the Hildebrands as part of the loan.The Hildebrands knew nothing of this conversation or of Mitchell's indebtedness to Hentzell.It was understood that Hentzell would not make the loan unless the federal loan was paid off, so as to make his loan a first incumbrance on the Hildebrand land.The federal loan was to be paid out of the $3,000 that Hentzell was to lend to the Hildebrands.Mitchell obtained from the Hildebrands their note for $3,000 and their deed of trust on the representation that it was necessary for him to have them in order to protect Hentzell in advancing the money to pay off the federal loan.For the purpose...