Kenyon v. Welty

Norton, J. delivered the opinion of the Court—Field, C. J. and Cope, J. concurring. The controlling facts in this case are these: The defendant Welty purchased a piece of land in the City of Sacramento at Sheriff’s sale, under an execution issued upon a judgment rendered by the Superior Court of the City of San Francisco against one C. L. Ross, who was owner of the land. Welty conveyed a portion of the land so purchased to one Morris Holán, who executed a mortgage upon it to the plaintiff Kenyon, as security for a loan of one' thousand dollars. Afterwards, Welty procured a conveyance from Boss of all his title to the premises so bought at the Sheriff’s sale, and including the portion sold to Holán, and by him mortgaged to Kenyon. Shortly after the purchase, the decision of the Supreme Court of this State was made, in the case of Meyer v. Kalkmann, that the Superior Court of the City of San Francisco had no jurisdiction to issue process to run outside the limits of the City of San Francisco. After this decision, an agreement was entered into between Kenyon and Welty, in pursuance of which Kenyon transferred to Welty the mortgage of Holán, in consideration of Welty’s procuring ,a deed from his brother, in whom the title from Ross had become vested, to Kenyon, of a portion of the premises covered by the mortgage, and which portion was to be discharged from the lien of the mortgage. Some time after this agreement was carried into effect, the Supreme Court, in the case of Hickman v. O'Neil, overruled the former decision in the case of Meyer v. Kalkmann. [641]This action is brought to have this agreement set aside, upon the ground that it was made under a mutual mistake of the parties.

In the case of Goodenow v. Ewer (16 Cal. 461) this Court, speaking of mistakes of law, says: “ Indeed, the weight of authority in the United States is, that the mistake, unless accompanied with special circumstances, such as misrepresentation, undue influence, or misplaced confidence, constitutes no ground of relief.” The Court then quotes: “ It may be safely affirmed,” says Mr. Justice Story, “ upon the highest authority, as a well established doctrine, that a mere naked mistake of law, unattended with any such special circumstances as have been above suggested, will furnish no ground for the interposition of a Court of Equity; and the present disposition of Courts of Equity is to narrow, rather than to enlarge, the operation of exceptions.”

The only mistake that existed in this case, if there was any mistake, was one of law. The parties supposed that the Nolan mortgage was invalid, and that the title derived through the conveyance from Ross was valid. But this supposition rested wholly upon their supposition as to the condition of the law. They knew what the law was before the decision in the case of Meyer v. Kalkmann, and they knew of that decision, and they exercised their judgment as to the effect of that decision. There was no mistake or want of knowledge as to any fact that now appears in the case. Under the rule laid down in the case of Goodman v. Ewer, this is therefore not a case in which relief can be granted, unless it be characterized by some special circumstance of the nature above suggested as constituting an exception.