Stewart v. Rice

BABNABD, P. J. The plaintiff brought this action to quiet her title to a parcel of land. The defendant Bice answered and also filed a cross-complaint by which he sought to have title to the land quieted in him. The court found in all respects in favor of the plaintiff and from a judgment quieting her title the defendant Bice has appealed.

Briefly summarized, the material facts out of which this action arose are as follows: On February 2, 1922, one Jonathan Watson, who then owned the land in question, conveyed it to his daughter, Winifred Stoner, with the understanding that she was to pay him $3,000. On or about that date Watson received $3,000 which was borrowed from a bank in Orange, the note being signed by Watson, Mrs. Stoner and her husband. Shortly thereafter Mr. and Mrs. Stoner borrowed $1,000 and $400 from this bank, giving their notes therefor, which notes were not signed by Watson. A little later these two notes were renewed by a note for $1400 which was signed by Mr. and Mrs. Stoner and also by Watson. On July 18, 1923, Mr. and Mrs. Stoner gave to Watson a note for $4,400, secured by a trust deed on the land in question, which trust deed was recorded on July 28, 1923. It seems perfectly clear that this trust deed was given either to cover the $3,000 which Mrs. Stoner had agreed to pay for the land, plus the $1400 note to the bank which had been signed by Watson, or to cover the liability assumed by Watson in signing the $3,000 and $1400 notes held by the bank. Be this as it may, the evidence shows that Watson paid the $3,000 and the $1400 notes held by the bank on April 9, 1924, by giving [337]to that bank a note for $4,400 signed by himself alone, which note he later paid. On October 23, 1926, Watson assigned the $4,400 deed of trust given him by the Stoners to C. R. Stewart. Stewart gave notice of default and the land was sold to him at trustee’s sale and he received a trustee’s deed therefor on October 23,1931, which deed was recorded. Two days later he conveyed the property by deed to Katherine G. Stewart, the respondent, who is his mother.

In August, 1923, the appellant Rice drilled a well for the Stoners on other property owned by them, which was not covered by the deed of trust above referred to. On September 1, 1923, he was given a note for $1740 signed by the Stoners for his work on the well. At some later date this indebtedness was reduced to a judgment, an attachment being levied on the land here in question on April 6, 1927. Nothing further was done until January 10, 1933, when an abstract of this judgment was recorded. At an execution sale the Stoners’ interest in the land was sold to the appellant Rice, his certificate of sale being recorded on October 2, 1934. About a year and a half later, when the respondent attempted to sell the property, she discovered the existence of the appellant’s claim and this cloud upon her title, and this action followed.