Malone v. Roy

Vanclief, C. This is an action to quiet plaintiff’s alleged title to a tract of land containing 360 acres situate in the county of Del Norte, and known as the “Gordon ranch,” in which the judgment of the trial court was in favor of the plaintiff. Defendant appeals from the judgment, and from an order denying his motion for a new trial.

The plaintiff claims title to the land by a grant, bargain, and sale deed to him from the defendant, dated January 4, 1888, reciting a paid consideration of $7,532.50, which, upon its face, appears to be absolute. But the defendant contends that the deed was intended merely as security for a debt which defendant owed to plaintiff for money loaned by the latter to the former, and therefore that it is only a mortgage. The court found that the deed was not intended as security, but that it was [342]intended to be what it purports to be,— an absolute conveyance of the legal title. Does the evidence justify this finding, is the only question presented for decision.

Prior to the third day of January, 1888, the defendant did not have the legal title to the land, but had been in possession thereof several years, under a contract to purchase from one Gordon, to whom, on January 3, 1888, he was still indebted for a balance of the purchase-money, which then amounted to about $6,550. A few days prior to this date, he applied to plaintiff for a loan of money sufficient to pay Gordon, and thereby to procure a deed for the land, offering a mortgage on the land as security. Plaintiff at first consented to loan the money for two years, with interest at the rate of one and a quarter per cent per month, compounded annually; but the negotiations finally resulted in the following transactions: On January 3, 1888, plaintiff paid defendant’s debt to Gordon for balance of purchase-money, and Gordon then conveyed the land to defendant. On the following day (January 4th), defendant executed to plaintiff the deed in question, and at the same time plaintiff executed to defendant, on a separate paper, the following instrument: —

“ Crescent City, Cal., Jan. 4, 1888.

“ Whereas, George G. Eoy has this day made and executed a deed to John Malone of the Gordon ranch, in Del Norte County, Cal., consisting of the following described pieces or parcels of land, to wit [here follows description], containing 360 acres of land, with the tenements, etc., for the sum of seven thousand five hundred and thirty-two dollars and fifty cents, — now, therefore, this witnesseth, that if the said George G. Eoy shall, on or before the fourth day of January, 1889, pay to the said John Malone the full sum of seven thousand five hundred and thirty-two dollars and fifty cents ($7,532.50), then the said John Malone will reconvey the above-described premises to the said George G. Eoy; and if the payment as above specified shall not be paid on the fourth day of January, 1889, then this obligation shall