Stephan v. Obersmith

SCOTT (R. H.), J. pro tem. From judgment for plaintiff in an action to cancel an option agreement covering certain property and to quiet title thereto defendant appeals.

The evidence shows that plaintiff’s husband died May 31, 1937, and she decided to sell her house and furniture. When [200]she returned from work on June 15, 1937, tired, hungry and still suffering from the shock of her husband’s death, she was persuaded to sign an agreement giving defendant an option to purchase them, for which defendant paid her $10. Prior to that time she had never met defendant and knew nothing of the legal effect of such an option. The sale price in the option agreement was $2750, although plaintiff valued the house at $3500 and the furniture at $400. Defendant at the time assured her that the option really meant nothing and had no legal effect, and that defendant would pay her $3500 for the house and furniture notwithstanding the lower figure contained in the option agreement. Because of plaintiff’s mental and nervous condition she was induced and persuaded to sign the agreement without intending or expecting thereby to become obligated to divest herself of her small estate for an inadequate consideration. It may have been indicative of plaintiff’s state of mind that she signed her name not with ink but with blueing. The next day defendant had a notarial acknowledgment affixed to the document and two days later had it recorded.

Defendant returned to plaintiff’s home on the evening of June 16 and announced her intention to exercise her option. Thereupon plaintiff protested that she had made no agreement to sell, and could not even identify the document as being the one she signed, at least in the form and containing the terms as above indicated. Defendant then remarked to a friend of plaintiff who was present: “I am willing to give this lady $3500 for the property.” This declaration, however, may have been induced by the fact that this friend, a lady of some 84 years of age, on learning of the terms of the option agreement grabbed defendant by the neck, called her a “crook” and threatened to throw her out of the house. On June 18, when defendant again called at the house, plaintiff handed her the $10, which upon its refusal by defendant fell to the floor. Eleven days later defendant told plaintiff over the telephone that she had decided to take her money out of escrow and that she did not want the property. Shortly thereafter plaintiff’s written notice of rescission was served on defendant.

The trial court’s determination favorable to plaintiff is supported by sufficient evidence. The complaint and findings are assailed by defendant as being insufficient and conflicting.