Rabsuhl v. Lack

• Decision Date: 31 October 1864
• Citation: 35 Mo. 316
• Parties: HENRY RABSUHL, Respondent, v. JOHN A. LACK, Appellant.
• Court: Missouri Supreme Court

35 Mo. 316

HENRY RABSUHL, Respondent,

v.JOHN A. LACK, Appellant.

Supreme Court of Missouri.

October Term, 1864.

Appeal from Franklin Circuit Court.

Respondent instituted this suit to recover a sum of money, alleging in his petition that he was indebted to appellant in two sums of money, secured by deed of trust upon certain real estate, and upon which property also a mechanic's lien existed, the whole amount of indebtedness being about $2,000. That being about to remove from Franklin county, where he then resided, to another locality for greater convenience, should a sale be effected, he agreed with appellant that respondent and wife would make to him an absolute deed, upon the condition that appellant would take up the mechanic's lien, complete the house, and selling the property, pay himself for all advances, and account to plaintiff for the excess; that, subject to this understanding, they conveyed, and appellant had sold the property to one Ruge for a valuable consideration of about $4,000, and respondent prayed for judgment for excess.

The answer admits the several allegations of indebtedness, and that appellant paid off the mechanic's lien and received the absolute deed, but denies that it was upon any conditions, and avers that the deed was, as it purported to be, an absolute sale; and that appellant, treating it as such, had gone on and made other valuable improvements; that upon a settlement had between them at the date of the conveyance, respondent was indebted to appellant in the sum of $59.14, for which he executed his note, and this note appellant set up in counterclaim.

Respondent replied to this counterclaim, that appellant had sued upon it and obtained a judgment before a justice. The case was submitted to the court as a jury, and judgment for $250 rendered in favor of plaintiff. Appellant moved for a new trial, which being overruled, he excepted and appealed.

At the request of plaintiff the court gave the following instructions:

1. If it is in proof that the conveyances from Rabsuhl to Lack for the Washington property were intended by the parties thereto as security for the amount due to Lack from Rabsuhl, although absolute upon their face, they are in fact mortgages, and must be treated as such in the settlement of the controversy.

2. If it is in proof that by the agreement of the parties the deeds were executed by Rabsuhl and wife to Lack for the purpose of securing Lack in his advances, and for the further purpose of enabling him to dispose of the conveyed property to pay himself, and hand over the balance or overplus to Rabsuhl, Lack must account for said balance remaining, after deducting his debt and the cost of finishing the main building.

3. Lack is entitled to deduct from the amount received from the sale to Ruge, the amount expended by him in finishing the main building for sale.

The defendant asked the following instructions of which the court gave the 5th, and refused the others:

1. That if the court, sitting as a jury, should believe from the evidence in the case, that the deed from Rabsuhl to Lack for the property in controversy was an absolute deed, then the court will find the issue for the defendant.

2. That if the court, sitting as a jury, should find from the evidence that the alleged agreement or contract between Rabsuhl and Lack was not to be performed within one year from the date of its execution, then said supposed agreement or contract ought not to be enforced.

3. That if the court should find from the evidence, that Rabsuhl at no time ever made a demand upon Lack for the money sought to be recovered, then the court should find the issue for Lack.

4. That the receipt offered in evidence, and the giving of the note by Rabsuhl to Lack, after the sale and transfer of the property from Rabsuhl to Lack, is presumptive evidence of settlement between them, and that Lack owed him nothing, and that plaintiff was indebted to Lack for the amount of said note; and in absence of any evidence of a subsequent indebtedness to Rabsuhl, the court should find the issue for Lack.

5. That the circumstances of Lack finishing the Rabsuhl building and repairing the old buildings, directing a new building of such great value on said premises, and that Rabsuhl at no time prior to the commencement of this suit ever having made any demand upon Lack for any balance of supposed purchase money, as well as Lack's continued, open and avowed acts of entire and absolute ownership of property, are strong circumstances to repel the idea that the deed was ever intended to be a mortgage from Rabsuhl to Lack.

6. That if the court, sitting as a jury, should believe from the evidence that more than five years have elapsed since making of the deed from Rabsuhl to Lack, up to the commencement of this action, then the claim is barred by the statute of limitations, and plaintiff ought not to recover in this action.

7. That if the court, sitting as a jury, shall believe from the evidence that Rabsuhl has by his delay and acquiesence in the transactions of Lack, and in his permitting Lack to treat the property as his own, and erect costly and valuable improvements on the property sold, and by lapse of time Lack has been deprived of the testimony of important witnesses by death or otherwise, in that event it is inequitable and unjust for the court now to interfere and grant the remedy sought in this case, and in that event the court should find for Lack.

Jones, for appellant.

I. There is no equity or law in the bill of complaint.

II. The deed from Rabsuhl to Lack was absolute, and designed to be so.

III. If it was intended to be different and not to be absolute, and Lack was to repair and improve the buildings at his own expense, and for an indefinite period of time and expense, then such a contract should have been reduced to writing.

IV. There is no contract in writing purporting to show that any such improvements were to be erected by Lack, and that the property should afterwards enure to the benefit of plaintiff.

V. There is no tender to defendant by plaintiff, either of the money advanced by Lack to him, or for improvements erected by Lack on the property sold.

VI. This is no mortgage, and not intended to be; for a mortgage contemplates payment by the mortgagor and redemption of the mortgaged property. In this case, there is no pretence that Rabsuhl ever expected to pay Lack the money advanced by Lack; and, therefore, the whole theory upon which the plaintiff expects to recover is swept away, and plaintiff is not entitled to recover upon his own statement.

Again, parol evidence is not admissible to prove that an absolute deed was intended as a mortgage. (Hogel v. Lindell, 10 Mo. 483; Montanay v. Rock, 10 Mo. 506.) Parol evidence not admissible without an allegation of fraud or mistake. (Marshall v. Cox, 7 J. J. Marsh. 133.) In Hale v. Jewett, 7 Maine, 435, it is decided that parol proof to show that a deed of conveyance absolute on its face, was only intended as a security for money lent, is not admissible. (Stanton v. Commonwealth, 2 Dana, 397; Alexander v. Lane, 21 Mo. 536; Slowy v. McMurray, 27 Mo. 113.)

A. J. P. Garesché, for respondent.

I. The deed from Lack and wife to Roge by which he disposed of the property, the subject matter of the...