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Draper v. Draper

24 N.Y.S. 1127 Court N.Y. Gen. Term Decision date 1893-09-23 English

Delivered by PARKER, J.

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p. 1127
DRAPER v. DRAPER et ux.
(Supreme Court, General Term, Fourth Department.
September 23, 1893.)

Headnote

What Constitutes a Mortgage.
Plaintiff conveyed to defendant land incumbered to the amount of $6,000, for an expressed consideration of $500, though nothing was in fact paid. Defendant gave plaintiff back a written agreement that, whenever plaintiff should pay him the amount of the claims against the place, he would re-convey. Held a mortgage, and not a gift on condition.
Appeal from special term.
Action by George W. Draper against Horace S. Draper and Mary, his wife, for an accounting and for other relief. From a judgment in favor of plaintiff, defendants appeal.
Affirmed.
On March 12, 1879, the plaintiff conveyed certain premises to his brother, the defendant Horace S. Draper, by a deed, absolute- on its face, and for the expressed consideration of $500. Such premises were subject to about $6,000 of incumbrances thereon, and nothing was in fact paid by the defendant for such conveyance. On receiving such conveyance, he gave back to the plaintiff the following written agreement: “I hereby agree that whenever, after this date, George W. Draper pays to me the amount of claims (principal and interest) against the place transferred this day by him to me, that X will transfer the same back to him without further cost to him. Geddes, March 12th, 1879. [Signed] Horace S. Draper.” This action is brought for an accounting by the defendant of the amounts paid by him upon the incumbrances against the premises, and of the rents and profits received by him therefrom, and for a reconveyance upon payment to him of the balance so found to be due him.
p. 1128
Upon the trial at special term, the court held that the conveyance and paper taken hack should be construed together, and constituted a mortgage; that the defendant stood in relation to the plaintiff as a mortgagee in possession of the premises, and was liable to account as such, and to reconvey the premises upon being paid the amount due him as such; and ordered an interlocutory judgment to that effect.
Argued before HARDIN, P. J., and MERWIN and PARKER, JJ.
Homer Weston, for appellants.
Stone, Gannon & Pettit, for respondent.

The appellants contend that the deed executed to the defendant, and .the written agreement taken back by the plaintiff, should not be.construed as a mortgage, because at the .time the relation of debtor and creditor did not exist between the parties, and the defendant did not assume any obligation to pay or advance anything for the plaintiff; that, for -such reason, he was not in a situation to require any security from the plaintiff, and therefore the idea that the deed was intended as a mortgage is effectually rebutted. His claim seems to be that the transaction was a voluntary gift of the premises- to the defendant, with the privilege of repurchasing them upon paying thé amount of the liens then existing against them. It is utterly incredible that the plaintiff ever agreed to give the property to his brother, and purchase it back for something over $6,000, still covered with the incumbrance upon it. From the whole evidence it is manifest that the defendant was to advance the amount due upon the incumbrances, or at least so much of it as was necessary to keep the creditors quiet, and prevent a sale of the property, and hold the title as a security for the advances so made. In this case there was no sale from the plaintiff to the defendant. There is nothing in the writing taken back that indicates a resale was intended, but everything indicates that security for advances to be made was intended. It does not require the citation of authorities to show that, under such circumstances, the relation of mortgagee and mortgagor must exist between the parties. Rogers v. Land Co., 134 N. Y. 197 , 32 N. E. Rep. 27 . Simon v. Schmidt, 41 Hun, 318 . None of the authorities to which we are referred by the appellants’ counsel contradict such a conclusion. Assuming that the defendant is a mere mortgagee in possession of the plaintiff’s property, there will be no dispute but that he is liable to account, and to reconvey upon being paid his debt. Horn v. Keteltas, 46 N. Y. 607 ; Simon v. Schmidt, above cited.

It is further contended that the complaint is not sufficient to warrant the judgment ordered by the special term. Every fact necessary to establish the relation found to exist between these parties is averred in the complaint. When an answer is served, and a trial had, any relief may be granted that is consistent with such averments. Rogers v. Land Co., 134 N. Y. 219 , 32 N.

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