Meserve v. Hansford
| Decision Date | 08 July 1898 |
| Citation | 53 P. 835,59 Kan. 777,97 Kan. 450 |
| Parties | MESERVE v. HANSFORD. |
| Court | Kansas Supreme Court |
Error from district court, Wyandotte county; Henry L. Alden, Judge.
Action by James Hansford against W. S. Meserve, as guardian of John H. Stevens, to compel the cancellation of a mortgage, and quiet his title to certain real estate. From a judgment in favor of plaintiff, defendant brings error. Affirmed.
Reed & Reed and C. S. McLane, for plaintiff in error.
Mills Smith & Hobbs, for defendant in error.
The Gossard Investment Company was a corporation for the loan of money, handling of securities, and for acting as agent for investors. Nathaniel Stevens, of New Hampshire, was a patron of the company. He made investments through it, and it acted as his agent for the collection of moneys due upon his securities, payment of taxes for him, etc. He died, leaving John H. Stevens, a minor son, as an heir. The plaintiff in error was appointed by a probate court in New Hampshire as guardian of the minor. The Nathaniel Stevens estate had $5,000 in the hands of the Gossard Investment Company. The administrator of the estate allowed this sum to the plaintiff in error as a portion of the distributive share due his ward John H. Stevens. Upon application of Mrs. Lilly D. Gregory made to the Gossard Investment Company, and forwarded to the plaintiff in error, he authorized the investment company to loan the money in its hands for him as guardian. This was done, security taken in the name of the investment company and by it forwarded to the plaintiff in error. He kept these securities in his possession, but, shortly before the maturity of interest coupons thereon, forwarded them to the investment company for collection. The company remitted the interest at maturity, except in a few instances, when payment was delayed. The amount loaned to Mrs. Gregory was secured by two different mortgages upon different places of property. One piece of this property was sold and conveyed by her to the defendant in error soon after the making of the loan upon it. He assumed the mortgage, and thereafter made the interest payments upon it. Before the maturity of the principal debt, he made two payments upon it, aggregating $1,900. These payments were made to the Gossard Investment Company. The defendant in error was unaware that the company had sold the mortgage securities, but supposed it to be still the owner. These payments of principal were not remitted to the plaintiff in error, and he was ignorant of the fact that they had been made. At the maturity of the principal debt, the defendant in error tendered the unpaid balance, and demanded a surrender and cancellation of the mortgage. This was refused, whereupon he instituted an action to compel its cancellation, and to quiet his title against the claim of mortgage lien. The...
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