Majority
Headnote
Action for Petition—Claim of Plaintiff Appealing—Interest Under Resulting Trust—Support of Finding Against Trust.— In an action for partition in which the plaintiff appealing claimed a greater interest than was awarded to him by the court, by virtue of an alleged interest in a resulting trust acquired from an uncle of plaintiff for the benefit of his deceased father and his aunts and their mother, where the court found upon sufficient evidence that the allegations of fact upon which said resulting trust was claimed to arise were untrue, the claim of such resulting trust cannot be sustained, and was properly abandoned upon plaintiff's appeal, he being confined to a claimed interest in a mortgage debt secured by deed.This is an action for the partition of a tract of land containing 13,316 acres, known as the Rancho los Megaños in Contra Costa County. An interlocutory order declaring the interests of the several parties and directing partition accordingly was made by the court below. The plaintiff, Charles E. Sanford, and the defendant, M. R. Jones, as administrator with the will annexed, of the estate of Harriet Sanford, deceased, moved the court for a new trial, which was denied. They appeal from the order for the partition and from the order denying a new trial.
1. The plaintiff was adjudged to be the owner of an undivided five and five-sixteenths hundredths of the land. In his complaint plaintiff alleged title to an undivided one half thereof. This claim was based upon an alleged resulting trust in the land whereby it was claimed that James T. Sanford, uncle of the plaintiff, in 1871 acquired the title to the land in trust for his mother, brother, and sisters, the plaintiff being the sole and only heir of the brother, the trust arising from the alleged fact that the purchase money belonged to the beneficiaries above mentioned. The court found that the allegations of fact upon which it is claimed that the trust arose were untrue. It is conceded that this finding is supported by sufficient evidence. The claim to an interest in the land by virtue of such resulting trust is now abandoned.
2. The claim of Jones as administrator of the estate of Harriet Sanford, deceased, is that Harriet Sanford held a mortgage upon the land to secure a debt amounting to at least three hundred thousand dollars, and he asks that said mortgage be declared a lien thereon and that its payment be
The debt, if any, which was secured by the alleged mortgage, was not evidenced by any bond or note, nor, as far as appears, by any instrument in writing whatever. The evidence shows that if such debt ever existed it arose in the state of New York while the parties resided in that state, and that if any writing was given in evidence thereof such writing was executed in that state. The deed of December 11, 1875, claimed to constitute a mortgage, and which is the foundation of the asserted right of Jones as administrator of Harriet Sanford’s estate, was executed in New York. “An action upon a contract, obligation, or liability, not founded upon an instrument of writing, or founded upon an instrument of writing executed out of the state,” is barred unless such action is begun within two years after the cause of action shall have accrued. (Code Civ. Proc., secs. 312, 339.) There is an exception in the case of a defendant who is out of the
It is claimed that the following facts are proven by the evidence without conflict and that they show that the action is not barred:
On October 12, 1881, Harriet Sanford, at the request of James T. Sanford, executed a quitclaim deed purporting to convey the land to her daughter, Harriet A. Sanford. This deed was intended and accepted as an assignment of the mortgage interest and rights claimed to have been created by the deed of December 11, 1875, from James T. Sanford to his mother. Before the execution of this deed the Savings and Loan Society of San Francisco, a corporation, and other persons holding as trustees for said corporation, had received deeds and conveyances of the land in trust to secure a debt due said Society from James T. Sanford, but the Society wrongfully claimed absolute title thereunder in trust for its benefit and that James T. Sanford had no right or interest in the land. The Society was in possession. On May 1, 1882, James T. Sanford and Harriet A. Sanford began an action in the United States circuit court against said Society for an accounting and to redeem the said land. Harriet A. Sanford and James T. Sanford both signed the complaint in said action. Therein they averred that the indebtedness of James to his mother on December 11, 1875, was more than $172,500, that the deed of that date, executed to Harriet Sanford by James T. Sanford, was given as security for said indebtedness then due, that the quitclaim deed of October 12, 1881, by the mother to Harriet A. Sanford, assigned and transferred to Harriet A. Sanford all the rights and interests of. the
mother acquired by the deed aforesaid to her from James T. Sanford, and they prayed that the Savings and Loan Society, upon payment to it of the amount found due to it from James T. Sanford, be required to convey or cause to be conveyed the said rancho to Harriet A. Sanford. On April, 1884, James T. Sanford gave and signed his deposition as a witness in said action. Therein he testified that the said deed by his mother to his sister Harriet A. Sanford was made for the reason that his mother was too ill to commence or carry on the action against the Savings and Loan Society, which was then in contemplation, that the reason that the conveyance was not made to himself was that he did not wish to disturb the security that that deed carried with it and that the deed to his sister was made without any other consideration. It is claimed that the complaint and deposition in said action constitute written acknowledgments of the existence of the debt and mortgage to Harriet Sanford, taking the same out of the operation of the statute of limitations. Harriet Sanford died on October 11, 1883. Her will was probated in New York on December 26, 1886, and Harriet A. Sanford was appointed executrix thereof. James T. Sanford died on May 3, 1885. His will was probated in New York and Harriet A. Sanford was there appointed executrix thereof. By Harriet Sanford’s will a legacy of one hundred and fifty thousand dollars was given to her daughter Josephine L. Sanford, some small legacies were bequeathed to others and the residue equally to the four children, Charles B. Sanford, Harriet A. Sanford, James T. Sanford, and Josephine L. Sanford. Charles B. Sanford died on January 29, 1896. The plaintiff is his son and only heir. Harriet A. Sanford died testate on January 12, 1888. Her will gave all her property to her sister Josephine L. Sanford. On February 13, 1888, said will was admitted to probate and said Josephine was appointed administratrix of her said estate, and on October 6, 1890, the said estate, including all the interest of Harriet A. in the lands in controversy here, was finally distributed to said' Josephine. On May 21, 1887, Josephine was appointed administratrix of the estate of James T. Sanford. His will gave all his property to his said sisters Harriet and Josephine. On May 12, 1888, his estate was distributed to Josephine, one half in her own right and one half as sue
cessor to her sister Harriet A. Josephine then represented all the interests concerned in the prosecution of the action in the United States circuit court. In her. dual capacity as the representative of the respective estates of her brother and sister as aforesaid, she obtained a revival of said action against the Savings and Loan Society and others and on December 31, 1889, was duly substituted as plaintiff therein. Thereafter until her death on September 12, 1897, the prosecution of said action was continued by her, individually, and as administratrix of the respective estates of James T. and Harriet A. Sanford. Final judgment in the action to redeem was rendered on February 27, 1897, and the action was appealed to the circuit court of appeals. On May 1, 1900, the administrators of the estate of Josephine were substituted in her stead as plaintiffs in said action and on the same day the appeal was determined in their favor and the judgment became final.
The first written acknowledgment of the debt and mortgage by James T. Sanford was the aforesaid complaint filed by him on May 1, 1882, more than six years after the mortgage was made. As the alleged mortgage secured a debt which said complaint declared was due at its date, it follows that the debt was barred three times over when the acknowledgment -was made. At that time, therefore, the mortgage had already become extinguished by the lapse of time within which an action could be commenced upon the debt which it secured. (Civ. Code, sec. 2911; San Jose etc. Bank v. Bank, 144 Cal. 574 , [ 78 Pac. 5 ]; Wells v. Harter, 56 Cal. 343 ; Jeffers v. Cook, 58 Cal. 152 ; Henderson v. Grammar, 66 Cal. 336 , [ 5 Pac. 488 ]; Ward v. Waterman, 85 Cal. 505 , [ 24 Pac. 930 ]; Hughes v. Cannedy, 92 Cal. 387 , [ 28 Pac. 573 ]; Newhall v. Sherman, 124 Cal. 512 , [ 57 Pac. 387 ].) When a written acknowledgment of a debt is made after the statute of limitations has begun to run, but before the statutory period has expired, the effect is to keep the original obligation alive, and a suit may be maintained on the original contract, after the expiration of the original period and within the new period initiated by such acknowledgment. (Rogers v. Byers, 127 Cal. 528 , [ 60 Pac. 42 ], and cases there cited.) But if the new promise or acknowledgment is not made until after the debt has become barred, the original contract is practically extinguished, and the suit can only be maintained upon
In avoidance of this conclusion, the appellants contend that the complaint in the redemption suit was more than a mere acknowledgment. They say that it was an assertion by James T. Sanford that on May 1, 1882, when the complaint was filed, the said mortgage was then a subsisting, valid lien on the property to secure the existing debt, and that the debt was not then barred, nor the mortgage lien extinguished: that this assertion necessarily implies that there had been successive renewals or acknowledgments of the debt, from time to time within the period of limitation, whereby both the debt and the mortgage had been kept in existence as continuing obligations until that' date, and that this averment in the complaint is the equivalent of proof of the renewals necessary to accomplish that end. It will here be observed
It is said that the filing of that complaint to redeem from the prior mortgage, the mortgagor and second mortgagee joining therein, with a prayer that the second mortgage be protected by the decree, was a continuing declaration by the mortgagee and his successors in the suit, repeated in effect every day during the pendency of the action until the final judgment therein, that the second mortgage was a valid and subsisting lien to secure the payment of the debt for which it was given, and that this prevented the running of the statute of limitations during the pendency of that action. It is also claimed in the same connection, that so long as the mortgagor and his successors were engaged with the mortgagee and her successors in prosecuting the action to redeem the prior mortgage, for the purpose, among others, avowed in the complaint, therein, of protecting and preserving the estate so that the lien of the said second mortgage might be effectual thereon, such mortgagor and his successors are estopped, so far as the beneficiaries under the second mortgage are concerned, to assert that the statute of limitations had been running in their favor or that by that means the mortgage lien "had been extinguished.
It may be conceded that there is some force in these three propositions respecting the effect of the complaint and depositions and the joinder in the prosecution of such action. We are not disposed to enter upon a discussion Of the questions presented thereby, but will, for the purposes of the case, concede all that the appellants claim in respect thereof. We are of the opinion, notwithstanding these propositions, that the action to foreclose the mortgage is barred.
Final judgment of the essential fact in dispute in the action to redeem, the right of the said plaintiffs to redeem at
The final decree of May 1, 1900, fully settled the rights of all the parties, and then, if not before, there was an end to those relations between them which, it is claimed, suspended the operation of the statute of limitations and estopped James T. Sanford and his successors from invoking it. Nothing then remained to be done, except to pay the debt declared to be due to the Savings and Loan Society. James T. Sanford and his successors had, by that decree, which was final, obtained all the relief that was possible in that action. Thenceforward his successors and representatives were not asking any relief on behalf of the successors of Harriet Sanford or Harriet A. Sanford, as mortgagees, nor were they constructively repeating any written declaration in the complaint that the deed of December 11, 1875, was in effect a mortgage. If the beneficiaries under that instrument had any rights thereunder at that time, such rights had then accrued and matured and were at once enforceable by foreclosure suit against the interests of the successors of James T. Sanford, and there was nothing in the relations between them which should have prevented such foreclosure, if it were necessary in order to keep the mortgage alive. Charles E. Sanford had then full knowledge of all the facts upon which the claim that such mortgage existed was based. He was at liberty to procure letters of administration upon his grandmother’s estate and begin such action without delay. The want of an administration upon an estate does not suspend the statute of limitations upon a mortgage in favor of such estate. (Grattan v. Wiggins, 23 Cal. 28 ; Tynan v. Walker, 35 Cal. 634 , [ 95 Am. Dec. 152 ]; Hibernia etc. Soc. v. Conlin, 67 Cal. 178 , [ 7 Pac. 477 ].) Conceding, therefore, that the statute was suspended
Furthermore, the record shows that there was, prior to that decree, an abandonment and repudiation by Josephine L. Sanford of. the original plan to have the Harriet Sanford mortgage of 1875 kept alive, and that this was known to Charles B. Sanford and his attorneys; so that it cannot be said that they were relying on the good faith of Josephine L. Sanford or her successors. The decree of 1893 in the redemption suit declared the right of redemption, which was the vital question, but it did not follow the prayer of the complaint by providing for a conveyance of the land to the successors of Harriet Sanford, the alleged mortgagee, or of Harriet A. Sanford, the alleged successor and trustee of Harriet Sanford. Josephine L. Sanford, then the sole complainant,. was the administratrix of the respective estates of the two original complainants, and thus represented both interests. But instead of procuring a decree providing for a conveyance to her as representative of Harriet A. Sanford’s interest, she obtained a decree declaring that upon redemption a conveyance should be made to her as the personal representative and successor in interest of James T. Sanford. Here was a distinct repudiation of the claim that the old mortgage of December 11, 1875, then remained a subsisting lien or right. Neither the final decree of 1897, nor that of 1900, specified or stated the capacity in which the complainant was to receive such conveyance. They merely followed the original decree of 1893 and did not purport to change or modify it in that particular. Josephine L. Sanford executed her last will on May 3, 1897, in which she disposed of the Rancho los Megaños in terms showing an intent to dispose of the entire estate in fee simple and inconsistent with any other intention., She was not on friendly terms with Charles E. Sanford, as he well knew. She did not mention nor dispose of any interest in the estate of her mother, but treated the entire estate as her own and as composed of said land and certain goods and chattels. This will was filed for probate on September 20, 1897. Charles B. Sanford filed a contest thereof, but it was admitted to probate on September 14, 1898. The inventory of her estate
The judgment and order are affirmed.
Sloss, J., Henshaw, J., Angellotti, J., and Melvin, J., concurred.
Rehearing denied.
Cases cited
- Toby v. Oregon Pacific Railroad 98 Cal. 490 p. 45
- People v. Worth 33 Pac. 913 p. 45
- Cobb v. Doggett 142 Cal. 142 p. 45
- Cortelyou v. Jones 132 Cal. 131 p. 45
- Iowa & California Land Co. v. Hoag 132 Cal. 627 p. 45
- Tyler v. Mayre 95 Cal. 160 p. 45
- Bagley v. Cohen 50 Pac. 4 p. 46
- Davis v. Drew 58 Cal. 152 p. 46, p. 51
- McLeran v. Benton 73 Cal. 329 p. 46
- Pearsall v. Smith 149 U. S. 231 p. 46
- Abraham v. Ordway 158 U. S. 416 p. 46
- Blochman v. Spreckels 135 Cal. 662 p. 46
- Scott v. Hickman 112 U. S. 150 at 161, 5 p. 47
- Weinberger v. Weidman 134 Cal. 599 p. 47
- Bauserman v. Blunt 147 U. S. 647 at 658, 659, 13 p. 47
- San Jose Safe Deposit Bank v. Bank of Madera 144 Cal. 574 p. 49, p. 51
- Pico v. Sepulveda 66 Cal. 336 p. 51
- Heilbron v. Campbell 24 Pac. 930 p. 51
- Sweeney v. Meyer 124 Cal. 512 p. 51
- Rodgers v. Byers 127 Cal. 528 p. 51, p. 52
- Tynan v. Walker 35 Cal. 634 p. 55
- Hibernia Savings & Loan Society v. Conlin 67 Cal. 178 p. 55
- Norton v. Bassett 154 Cal. 411 p. 57