Hill v. Fricke

California Supreme Court Feb 10, 1936 No. Sac. 4900Published

Before: Waste

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Holding. The court held that a written agreement between co-owners of real property, which established a lien to secure repayment of advances made for the property's maintenance, was supported by consideration and enforceable through foreclosure. The court further held that the provision for repayment upon a 'sale or other disposition' of the property included involuntary sales, rendering the foreclosure action timely.

Issues

Whether the written agreement creating a lien on the property was supported by sufficient consideration.
Whether the agreement should be interpreted as a mortgage.
Whether the foreclosure action was prematurely instituted based on the maturity terms of the debt.

Disposition. affirmed

Quotations verified verbatim against the opinion

“There is no merit in the contention that the lien and the written agreement declaring the same are unsupported by a consideration.”

“The sole purpose of the agreement was to charge the property in writing with the repayment of the sums advanced by Edwin.”

“The advances had been made and were immediately due and were payable upon a “sale or other disposition” of the property, whether voluntary or involuntary.”

[321]

WASTE, C. J.

This is an appeal from a decree foreclosing a lien on real property.

The evidence discloses that during his lifetime Doctor Richard Fricke owned a ranch in Napa County, where he lived in retirement with his second wife, the defendant Pearl Huyck Fricke. Financial reverses, coupled with the fact that the ranch was not self-supporting, caused Doctor Fricke, over a period of time, to borrow various sums of money from his son, Edwin H. Fricke, one of the defendants herein. These sums were applied to the operation and maintenance of the ranch. At no time did the defendant and appellant, Arthur R. Fricke, also a son, advance any money to his father or contribute to the maintenance of the ranch. The relation of trust and confidence that existed between father and son caused Edwin to refuse his father’s offer to transfer the property to him or to execute a mortgage thereon in his favor to secure him for the advances and loans so made. Subsequently, and after informing his wife and son Arthur of the advances made by Edwin, and of his desire and intention to impress a charge or lien on the ranch to secure same, Doctor Fricke executed a gift deed to the ranch, naming his wife and two sons as grantees. This deed was delivered to Edwin with the understanding that the other two grantees named therein should recognize the indebtedness of the grantor as a charge upon the property.

Upon the death of his father approximately three years thereafter, Edwin paid all bills incidental to the last illness and burial and continued to make advances for the maintenance and operation of the ranch. The appellant Arthur continued to contribute nothing. In view of developments, Edwin sought an agreement with his brother and stepmother, cograntees with him in the deed from his father, fixing the amount of the advances he had made, before and after the father’s death, and declaring the total to be a lien against the real property. Accordingly, an itemized statement of moneys advanced by Edwin was prepared, totaling $11,938.74, and brought to an attorney’s office by Gene Hill, plaintiff and respondent herein, who is the business associate of Edwin, who is blind. The appellant Arthur, who was informed that he was free to bring his attorney with him, and the defendant Pearl Fricke met with Hill at the attorney’s office and

Hill v. Fricke

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WASTE, C. J.

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