Patterson v. Beauvell

GRIFFIN, J. Defendants and respondents Thomas L. Preston and wife, as joint tenants, owned property in Banning, where they resided. Plaintiffs and appellants, husband and wife, purchased and held the Prestons’ promissory note secured by a second trust deed thereon. The unpaid balance in August, 1954, was $2,007.94, payable at $50 per month. The San Gorgonio Building and Loan Association held a prior trust deed on said property, executed by the Prestons and secured by a promissory note, and the sum of $2,606.49 was due thereon on January 1, 1954, payable about $34 per [412]month. Three years delinquent taxes were then unpaid, totaling $328.79.

It is alleged in the complaint that the property was of the value of $7,000; that plaintiffs called to the attention of Preston the delinquent taxes and payments past due on the note and trust deed and notified him that they could proceed to sell the property; that Mr. Preston informed plaintiffs he did not have sufficient funds for his family and was unable to support them and pay the debts owing, and that he would be unable to make payments on plaintiffs’ trust deed; that for the purpose of enabling the Prestons to reside on the property, plaintiffs offered to pay all taxes and payments due on the first trust deed if the Prestons would pay plaintiff $65 per month instead of $50, as of September 1, 1954, and that plaintiffs would allow them a credit of $2.00 for every dollar paid in excess of the $65 per month; that the Prestons asked plaintiffs if they (Prestons) would pay $1,000 would they give the Prestons credit for $2,000 on the amount due, and that the plaintiffs orally.agreed to this; that a writing was signed by plaintiffs that they would accept one-half of $2,007.94, or $1,003.97, as payment in full for their note and trust deed if paid before September 1, 1954; that by said agreement plaintiffs meant that only defendants Preston could take advantage of this offer. It is then alleged that defendants Preston made the offer known to defendants Jack Beauvell and wife, and the Prestons proceeded to negotiate for a sale of said property to them without the knowledge of plaintiffs; that about August 31, 1954, the Prestons informed plaintiffs they had $1,003.97, and if plaintiffs would go to the office of the building and loan association it would be paid over to plaintiffs by the Prestons; that the parties there met and apparently some escrow arrangements were made concerning the financing and payment of the $1,003.97; that Beauvell asked that plaintiffs make an assignment of their note and trust deed to him, which plaintiffs refused to do under a claim that they had agreed with the Prestons that it was to be their money that paid off the note and trust deed and not that of the Beauvells; that plaintiffs refused to assign the note and trust deed to them in connection with any sale; that in accepting the lesser amount plaintiffs intended the remittance of the remainder to be a gift to the Prestons and at the same time allow them to retain title subject to the first trust deed; that defendants Beauvill knew of this agreement and fraudulently took advantage of the