Complainants applied to defendant for a loan with which to redeem their homestead from foreclosure, which defendant agreed to furnish for a commission of $300. Defendant neglected to procure the money until late on the last day for redemption, when, after procuring complainants to sign the notes and deed of trust therefor, he demanded that they execute two notes, for $500 each, secured by a second trust deed to him, as further consideration for his services, and refused to complete the loan unless they did so. Complainants, being unable at that time to make other arrangements, and believing that they would be unable to redeem the property, signed such notes and deed of trust, as demanded, without consideration. Held, that a bill to set aside the same, alleging such facts, was not demurrable for want of equity.
Appeal from Circuit Court, Greene County; Jas. T. Neville, Judge.
Bill by Mollie Lappin and another against A. B. Crawford and another. From a decree sustaining a demurrer to the bill, plaintiffs appeal. Reversed.
This is an action to cancel certain notes and a deed of trust securing them. It originated in the Greene county circuit court. On May 29, 1901, appellants filed the following amended petition in this cause: "Plaintiffs, for their amended bill, complain of the defendants, and say that they are husband and wife, and that for some time prior to the _____ day of March, 1900, plaintiff Mollie Lappin was the owner of the west half of the west half of section 15, and the east half of the east half of section 16, all in township
28, range 22, Greene county, Missouri, subject, however, to a certain deed of trust, payable to one John O'Day; that on the _____ day of March, 1900, said deed of trust being past due, the said O'Day formally foreclosed the same, and became the purchaser thereat, but at the same time agreed with the plaintiff Mollie Lappin that if she would pay to him on or before a certain day, to wit, March 17, 1900, the sum of six thousand ($6,000) dollars, he would permit her to redeem her property, and permit the trustee's deed to said land above described to be made directly to her. Plaintiffs further say that she had invested a large sum of money in said farm, and that the same was their home, and being very desirous to redeem said property, and to take advantage of the proposition made to her by the said O'Day as aforesaid, and not having sufficient money with which to pay him, it was necessary that she should borrow money, and that the defendant A. B. Crawford was at that time engaged in the real estate and loan business in the city of Springfield, Mo.; that plaintiff applied to said Crawford for a loan of six thousand ($6,000) on the land above mentioned, with which to redeem said land, and agreed with said Crawford that for his services in procuring for her said loan of six thousand dollars, which he agreed to do, she agreed to pay to him as a commission in full for his services in that behalf five per cent. of said amount, or three hundred ($300) dollars, which she did pay to him, and which the said Crawford agreed to accept as compensation in full for his services in that behalf. Plaintiffs further say that defendant Crawford neglected to procure for plaintiff Mollie Lappin said money aforesaid until on the 17th day of March, 1900, the same being the last day on which plaintiffs had the right to redeem their said property from the said O'Day under and by virtue of the contract which they had with him as aforesaid; that in the afternoon on said 17th day of March, 1900, said Crawford submitted to plaintiffs certain notes and deeds of trust on the land above described, to secure the loan which he had agreed to procure for her, but he, the said Crawford, being fully informed of the conditions and circumstances surrounding plaintiffs in relation to their said property as aforesaid, wickedly and wrongly took advantage of plaintiffs' situation as aforesaid, and, after they had signed the notes and deeds of trust to secure the loan aforesaid, the said Crawford, without any previous notice to them whatsoever, and before turning over any money to these plaintiffs on said loan, presented to them two certain notes, of five hundred ($500) dollars each, secured by a deed of trust on same land above described, payable to himself, and demanded of plaintiffs that they execute to him said notes and deed of trust for said sum of one thousand ($1,000) dollars. Plaintiffs protested that they did not owe him anything, and that there was no consideration for such notes and deed of trust, and that they ought not to be compelled to sign said notes and deed of trust, but, when they did so protest and refuse to execute said notes and deed of trust, the defendant Crawford threatened and declared that, unless they executed said notes and deed of trust at once, he would stop the loan to them of said six thousand ($6,000) dollars, and that they should have no money on said loan, and, there not being time to procure the money elsewhere, plaintiffs realized that unless the said Crawford permitted them to go on with said loan, and turned over to them the money which he had borrowed for them, that they would be unable to redeem their said property from the said O'Day, and that the same would be entirely lost to them. Plaintiffs further say that they believe the said Crawford was in a position to do what he threatened that he would do, and that they believe the said Crawford would have stopped said loan, and thus prevented them from redeeming said farm, unless they acceded to his unjust and illegal demand, to wit, to sign said notes and deed of trust for the said one thousand ($1000) dollars, payable to himself, and thus believing that they would be unable to redeem her said property above mentioned, and that the same would be entirely lost to them if they did not sign said notes and deed of trust last aforesaid, they did so sign said notes and deed of trust aforesaid, and which deed of trust was recorded in Book ____, at page ____, in the recorder's office of Greene county, Missouri. Plaintiffs further say that notwithstanding that plaintiffs owed the defendant Crawford nothing — notwithstanding that they had paid the commission due him under their said contract with him — he, the said Crawford, wickedly and wrongly refused to let plaintiff have the money which he had promised, with which to pay said John O'Day, and thereby redeem her said farm, unless plaintiff would accede to his demand, and execute to him the two five hundred dollar notes and deed of trust above mentioned. Plaintiffs further say that no part of said one thousand dollars was owing by them to the said Crawford, but that it was too late in the day for them to secure the six thousaid dollars from any other person or persons, with which to redeem their said property, and that they were in fear and great distress of mind, and believed that, unless they acceded to his demand to execute said notes and deed of trust last above...
