Mitchell v. Henley

• Decision Date: 20 June 1892
• Citation: 110 Mo. 598,19 S.W. 993
• Parties: MITCHELL v. HENLEY.
• Court: Missouri Supreme Court

19 S.W. 993

110 Mo. 598

MITCHELL v. HENLEY.

Supreme Court of Missouri, Division No. 1.

June 20, 1892.

SPECIFIC PERFORMANCE — COMPROMISE — FRAUD.

1. In an action for specific performance of a contract to convey land, where plaintiff, being acquainted with her rights in the premises, had about eight years before signed a contract agreeing on a compromise with defendant, whereupon he paid her part of the compromise price agreed on, and stood ready to pay the balance, the trial court properly dismissed the petition.

2. A defendant who is not a creditor, or in privity with a creditor, of one who has fraudulently conveyed land to him, may plead such fraud in defense of an action to reconvey, where it lies yet in contract and is merely executory.

Appeal from circuit court, St. Clair county; D. P. STRATTON, Judge.

Action by Colgate D. Mitchell against Thomas Henley. Judgment for defendant. Plaintiff appeals. Affirmed.

The other facts fully appear in the following statement by SHERWOOD, C. J.:

This equitable proceeding, begun in March, 1886, seeks specific performance of the following contract: "I, Thomas Henley, of St. Clair county, and the state of Missouri, for and in consideration of seven hundred dollars to me paid, do hereby agree and bind myself to make, execute, and deliver to Wm. C. Mead a quitclaim deed in due form for the undivided one half of the northeast quarter of section 15, township 37, range 25, when the said Mead shall so request me to do so. Given under my hand and seal this 17th day of Sept., 1872. THOMAS HENLEY. [Seal.]" On which contract was indorsed the following: "I hereby assign the foregoing to C. D. Mitchell, and all benefits arising therefrom, and all rights which may accrue to me thereby. WM. C. MEAD." The answer of the defendant alleges as grounds of defense — First, that the contract in question was made for the purpose of defeating the creditors of the husband of the plaintiff; second, the statute of limitations; third, release and satisfaction. The reply, among other things, alleges that in 1878 plaintiff was ignorant of her certain rights, and made diligent effort to learn from defendant her rights, and to procure the same, and employed counsel to procure the same from defendant, and the defendant falsely and fraudulently concealed from plaintiff the fact that he had no claim on said half of said land, more than to hold the same in trust for plaintiff and her children, but fraudulently concealed the same, with intent to cheat and defraud plaintiff, well knowing that she was poor, and unable to litigate the title to said land; and defendant took advantage of the ignorance and poverty of plaintiff, and held said land to thereby induce plaintiff to sign the compromise contract and release pleaded in defendant's answer, and by such means did procure the signing of the same. The reply further alleges that defendant paid plaintiff $160 on the compromise, which she offers to repay. At the close of the evidence the court dismissed the petition.

Wm O. Mead and Houston James, for appellant. Johnson & Lucas, for respondent.

SHERWOOD, C. J., (after stating the facts.)

1. The evidence shows that, in 1871, William A. Mitchell was wholly insolvent, and had been "closed out under execution." In this state of affairs, Mitchell, who was an intimate of Mead, and often counseled with him, came to him, and, telling him he was "embarrassed financially," conveyed to him the land in question. This was done without any consideration whatever, taking from him a contract to reconvey the land, which contract was found among Mitchell's papers after his death. Mead, without any consideration, in time conveyed it to Henley, the defendant, who at that time was the owner of the other undivided one half of the same tract. The plaintiff, Mrs. Mitchell, signed and acknowledged the deed made to Mead by her husband. Mead never informed Henley at the first that he had conveyed the land to...