Steel v. Hadsell

MARKS, J. This is an appeal by Alva D. McGuire from a judgment which required him to reconvey to R. J. Hadsell and Sadie J. Hadsell interests in two lots near Lake Elsinore in Riverside County, or to pay the value of the interests if he could not return the property.

Mr. and Mrs. Hadsell owned property on the banks of Lake Elsinore which they subdivided into sixty-one lots. Lot number thirty had a well and pumping plant upon it [355]which supplied water for the other lots. Lot number sixty-one was a beach lot on the lake front and was set apart for the use and benefit of all lot owners. Bach deed and conditional sales contract conveyed, or agreed to convey, with each lot an undivided l/59th interest in lot thirty, the well, pumping plant, tank and water distributing system, together with a like interest in lot sixty-one for the purpose of permitting the purchasers to enjoy the “hunting, fishing, bathing and boating” incident to it.

Hadsell became indebted to B. R. Bailey in the sum of $103. He and his wife executed a promissory note to Bailey in that amount which they secured by a deed to their interest in lots thirty and sixty-one. The deed was dated June 22, 1932, and was duly recorded. The note was fully paid on April 9, 1933, and was surrendered to Mr. and Mrs. Had-sell. Bailey did not reeonvey the security to them.

The complaint in this action was filed on March 29, 1935. Appellant McGuire was one of the attorneys for plaintiffs and acted as the notary before whom the complaint was verified. Among other things plaintiffs sought cancellation of the deed from the Hadsells to Bailey on the grounds that it was executed without consideration and to defraud plaintiffs out of their interests in lots thirty and sixty-one. After a motion for judgment on the pleadings was granted judgment was rendered for defendants. No appeal has been taken from that judgment.

Mr. and Mrs. Hadsell filed a cross-complaint against their codefendant Bailey and also against McGuire seeking to compel them to reconvey the interests in lots thirty and sixty-one which they (the Hadsells) had conveyed as security to Bailey, or the value of these interests if they be not returned. McGuire was joined as cross-defendant because Bailey and his wife had on April 13, 1935, conveyed their interests in the two lots to McGuire. It should be here observed that the deed to McGuire was executed fifteen days after he had, as attorney for plaintiffs, filed a complaint in which it was alleged that the deed to his grantor was fraudulent and without consideration. Any title which he might assert must of necessity flow through this same deed.