Salter v. Baker

Department No. 1, Ross,. J.: In 1866, plaintiff and the defendant Baker purchased, for their joint benefit, the lands mentioned in the pleadings—the two contributing equally to the payment of the purchase-money. By mutual agreement between the parties, conveyances of the property were executed to Baker, who afterward, with plaintiff’s knowledge and acquiescence, obtained from the defendant, the Savings and Loan Society, loans to the amount of $19,000, [142]which were expended in the improvement of the property, and which were secured by trust deeds thereon executed by Baker to the defendants Burr and Dean, with power in them to sell, upon default in the covenants, to satisfy the debt, charges, etc., to make deeds to the purchasers; and providing for the payment of the surplus, if any, to Baker.

In addition to the sum above mentioned, Baber also obtained from the Savings and Loan Society, upon the same security, four thousand five hundred dollars; without plaintiff’s knowledge, which he appropriated to his own use. Two of the trust deeds have been satisfied, and two have not. Those remaining in force were executed January 16th, 1871, and November 17th, 1871, respectively, and when executed were duly recorded.

On the 26th of September, 1874, Baber executed to the defendant, the Bank of California, in consideration of loans made to him by the bank, a note for $10,000, together with a mortgage upon the same premises, to secure its payment, which mortgage was at the time properly recorded. The plaintiff at no time exercised "any control or authority over the property, nor was his interest therein evidenced by any writing. On the contrary, the property was assessed to and the taxes thereon paid by Baker, and the latter, from the time of the conveyance to him in 1866, until after the commencement of this action, always claimed and dealt with the property as his own. The bank had no notice of any interest in plaintiff, and made the advances to and accepted the note and mortgage from Baker •upon the faith of his asserted and apparent title, and under the belief that he was the sole owner of the property.

The action being brought to obtain a sale of the property, and a distribution of the proceeds among the parties, entitled thereto, the Court below decreed a sale, and directed that out of the proceeds, after paying costs and expenses, and the amount due the Savings and Loan Society, the Bank of California should be next paid the amount of its note and mortgage, thus postponing the plaintiff to the bank.