Kugler v. Scarborough

MORTON, J.,

pro

tem.

This is an appeal by plaintiff from a judgment on an action to quiet title. Defendants Ralph A. Woods and Gertrude A. Woods, his wife, executed and delivered to defendant and cross-complainant Minnie Scarborough a promissory note for $3,000, secured by a trust deed covering two parcels of real property in Los Angeles County, to wit: a house and lot in .the Los AngelesMcCarthy tract, and a lot and a half in the Redondo Villa tract. Defendant Irene Johnson was named as trustee in the deed of trust. Woods and his wife defaulted under the terms of the note and trust deed, and after some delay, the trust deed was foreclosed. Prior to the foreclosure of that trust deed a reconveyance was executed and delivered by the trustee, Irene Johnson, to Woods and his wife, describing only the Redondo Villa property, which they at once recorded. It is alleged that through the inadvertence and mutual mistake of the parties to the deed of trust that this intended partial reconveyance was made upon a

form for full reconveyance

and recited full payment of the indebtedness and release and reconveyance without warranty to the holder of the legal title when the deed of trust is executed and for the benefit of those lawfully succeeding thereto of all the estate described in the deed of trust and that this conveyance was given as satisfaction and discharge of the trust. It is further alleged that the reconveyance was made for a good and valuable consideration hut without payment of any portion of the indebtedness secured

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thereby. Plaintiff held a judgment against defendant Ralph A. Woods, by virtue of which she caused an execution to be levied on the McCarthy tract property. It was then sold by the sheriff at execution sale and bid in by plaintiff. Her attorney testified he learned of the McCarthy tract property through a searcher’s chain of title report furnished to him and that he personally examined the recorded reconveyance before he attended the sheriff’s sale and bid in the equity of Ralph A. Woods in the property for his client. After getting the sheriff’s deed he wrote Ralph A. Woods of what had occurred and that before taking legal proceedings for possession, he would be willing to arrange with him to rent the property if he desired. In response to the letter Gertrude A. Woods called at his office and subsequently made a payment of $20 to the attorney inclosed in a letter in which she stated she would send more next month. She testified this payment of $20 was on the judgment indebtedness. This property was then sold at public auction under the trust deed foreclosure and bid in by cross-complainant. No further payments were made by Mrs. Woods to plaintiff’s attorney and plaintiff then filed this suit to quiet title. All the defendants answered and defendant Minnie Scarborough filed a cross-complaint alleging the mutual mistake and asking that the reconveyance and release deed be reformed to express the true intent of the parties. Judgment was in favor of cross-complainant reforming the deed as prayed for and decreeing that Minnie Scarborough- was the owner in absolute fee simple of the premises and that plaintiff was forever barred from any and all claims of right or title to the property, or any lien thereon, or any part thereof.