Beckman v. Waters

SLOSS, J.

This is an appeal by plaintiff from an order denying his motion for a new trial. The controversy between the parties turns principally upon the effect of an instrument, in form a deed absolute, executed by the defendant Waters to plaintiff Beckman, and purporting to convey certain real estate, to wit, the island of San Miguel, containing about fourteen thousand acres of land and situated in the Pacific Ocean off the coast of Santa Barbara County. On the part of the plaintiff the claim was and is that this instrument was in fact what it purported to be, while the defendants contended below, as they contend here, that the deed was intended to be and was a mortgage. The transaction included the execution and delivery by Waters to Beckman of a bill of sale of live-stock and other personal property on the island, and the same question of mortgage or absolute transfer is presented with reference to this bill of sale.

The action was commenced on March 11, 1904. An amended complaint, filed on July 2, 1904, alleges that on or about the first day of February, 1892, Waters executed and delivered to plaintiff a deed conveying the said island of San Miguel, and on the same day executed and delivered to plaintiff a bill of sale transferring the personal property above referred to. It then alleges that on the same day, February 1, 1892, the plaintiff executed and delivered to Waters an instrument in writing whereby, after reciting the conveyance by Waters to Beckman of all the right, title, and interest of Waters in the island of San Miguel and in the personal property thereon, it was agreed that Waters, his heirs, executors, administrators, or assigns “may at any time hereafter within three years from date hereof, pay to me, my heirs, executors, administrators or assigns, the sum of $7,000, gold coin of the United States, with interest thereon at the rate of ten per cent per annum, • interest payable semi-annually, and upon the payment of the said sum and interest thereon in manner and time aforesaid I do . . . agree to' reconvey by a good and sufficient quitclaim deed and bill of sale to said William G. Waters ... all of my right, title and interest in and to the above described real and personal property and the increase thereof, excepting such personal property or products from said island that are

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sold in the mean time, and in the event of such payment in the manner and at the time hereinabove set forth with the interest at the time it becomes due, then the said W. G. Waters shall be entitled to credit for the amount of such sales upon said indebtedness.” It is alleged that on March 25, 1892, defendant Waters paid one thousand dollars on account of the purchase price of the property mentioned in said instrument; that at divers times prior to January 1, 1896, sums aggregating fifteen hundred dollars were received in part payment of said purchase price as proceeds and profits accruing from the property on the island and that on or about the first day of January, 1896, the plaintiff at the request of Waters granted said defendant further time for payment of the balance of the purchase price. Plaintiff, it is alleged, held possession of the real and personal property so transferred to him from the first day of February, 1892, to the eleventh day of May, 1896, said island being in charge and control of a manager employed by plaintiff;'said manager died on the eleventh day of May, 1896, whereupon Waters assumed charge and control of said island, and he and those claiming under him have ever since held possession of said island and property as trustees for plaintiff. On March 8, 1897, Waters sold, conveyed, and assigned unto his co-defendant, San Miguel Island Company, a corporation, his right to and interest in said island and the property thereon, and said corporation has ever since claimed an interest in said real and personal property. It is further alleged that Waters is the manager of the business of said corporation; that as such he has received rents, issues, and profits of said island for which he has not accounted, and that the defendants claim said island and the property thereon adversely to plaintiff. No payments except as above stated have been made under said agreement of purchase. Under these allegations the plaintiff prayed for the appointment of a receiver, that the defendants tie required to account, that they be restrained from disposing of the real or personal property, and that upon the ascertainment of the amount due by Waters to plaintiff under the agreement of February 1, 1892, the court order said amount to be paid to plaintiff and' in default of such payment that the interest of the defendants in the property be divested.