Overton v. Schmitt

THE COURT.

Appeal by defendant Amy I. Schmitt from judgment for plaintiffs.

This action was brought by plaintiffs to quiet their title to an 828-acre tract of land in Stanislaus County known as the “Hatmark Ranch”, conveyed to them by deed of Mark and Hattie 0. Page dated July 8, 1931, recorded November 12, 1932. Defendant Amy I. Schmitt, who is the sole appellant and claimant to ownership of said property, filed herein an answer and also a cross-complaint alleging that title had vested in her by virtue of a sheriff’s deed dated February 6, 1934; that said conveyance to plaintiffs by the Pages bore a false date; that it was voluntarily made without consideration, at a time when the Pages were insolvent or in contemplation of insolvency, and in pursuance of a secret agreement to hinder, delay and defraud appellant, as their creditor. (Secs. 3439 and 3442, Civ. Code.) The prayer of the cross-complaint was that the transfer be declared fraudulent as against appellant and that she be decreed the owner in fee of the ranch.

The history of conveyance of the ranch te plaintiffs is shown by the record in substance as follows: In December, 1930, the Pages purchased the Hatmark ranch, subject to outstanding reclamation bonds constituting a $58,000 lien thereon. The estimated value of the property, over and above said indebtedness, was about $40 an acre, or $33,120. Being unable to finance the operation of the ranch and' bond payments, the Pages soon entered into negotiations with plaintiff, Major W. S. Overton, for sale of an interest

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to him in return for advancement of $5,000. Between December 6, 1930, and March 30, 1931, Major Overton had advanced

$7,629.27;

by July 8, 1931, his advancements aggregated $13,305.75 and additional funds were needed. He hesitated to make any further investment, particularly as his duties required him to be absent from the United States a great part of the time. Finally it was agreed that he should accept a conveyance of the entire ranch, in consideration of the sums already advanced. In pursuance of this agreement, the Pages, on July 8, 1931, duly executed a deed transferring the property and within a day or two thereafter it was delivered by the notary public to plaintiffs. Thereafter plaintiffs invested in the ranch further funds as needed and the Pages occupied and operated it as their tenants and agents. By December 23, 1931, the disbursements of plaintiffs had increased to $18,427.35, and at time of trial of this action in June, 1934, they aggregated $28,759.97, in addition to various expenditures for stock and equipment. Recordation of the deed of July 8, 1931, was withheld until November 12, 1932, in order to facilitate Major Overton’s purchase of certain of the outstanding reclamation bonds.