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48 Cal. 369

Patterson v. Donner

California Supreme Court

Decided July 1, 1874

California Supreme Court · decided 1874-07-01

Action to enforce a mortgage given by the .defendant Donner to the plaintiff, on the 15th day of March, 1862, on an undivided five sixths of the fifty-vara lot No. 39, at the corner of Folsom and Second streets, San Francisco. Donner claimed the lot by a grant made to him by Hyde, Alcalde of San Francisco,on the 19th day of July, 1847, and had commenced an action against several persons who were in possession of it to recover possession.

Good law ✅— No negative treatment on recordhow we know

Decided 1874-07-01

How this case has been cited

Cited by 32 later decisions — most recently July 1996 · most notably 11 Cal. 4th 274 - Trope v. Katz (1995), 25 Cal. 3d 891 - Consumers Lobby Against Monopolies v. Public Utilities Commission (1979)

1 district · 29 state decisions

1001874188018901900191019201930194019501960197019801990decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

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Rhodes, J., dissenting:

¶1The principal question to be determined in this case is, what is the real nature of the transaction .between Donner and Yontz on the one side, and Lander and Swazy on the other? Donner and Yontz wished to procure two witnesses to testify to a certain fact, and it was agreed between all the parties that, if the witnesses should be procured by Swazy, Donner and Yontz would pay therefor the sum of two thousand five hundred dollars, and that the money would be paid to Lander, as Swazy was indebted to him.. In order to secure the payment of the money, an instrument, in form a deed of conveyance, was executed to Lander by Donner and Yontz; and thereupon Lander executed to Donner and Yontz the instrument in evidence, which may be called a defeasance. It is therein recited that Lander had received from Donner and Yontz the deed of conveyance as security for the payment of the sum of two thousand five hundred dollars, to be paid as therein mentioned, provided that he (Lander) should procure the two witnesses before mentioned, and that if he should not procure such witnesses, then the deed should be null and void. These two instruments are to be read together, as forming parts of one transaction; and when so read, they clearly constitute a mortgage. The nature of the transaction is not *381changed by the fact that Donner and Tontz did not make an absolute promise to pay the money. If “A.” agrees with “B.” to perform a certain act, and “B.” agrees that upon the performance of the act he will pay “A.” a certain sum of money, and executes a conveyance to secure the payment of the money, there is no doubt that the instruments will be construed between the parties as a mortgage. And if “A.” promises to pay the money if “B.” shall perform the act, the construction is the same. In other words, the question whether an instrument amounts' to a mortgage does not depend upon whether the mortgagor absolutely or conditionally promises to make the payment.

¶2In ascertaining whether the transaction amounts to a mortgage, the real nature of the stipulations between the parties must be looked into, and therefrom the intent of the parties is to be ascertained. And if the instrument, which is in form a deed of conveyance, was in fact intended to secure the performance of an agreement on the part, of the maker of the instrument, or of some person for whom he undertook to be responsible, it will be held to be a mortgage. So in this case Bonner, and Tontz promised to pay two thousand five hundred dollars should the two witnesses mentioned be procured, and the deed was given to secure the performance of that undertaking. When an instrument is once determined to be a mortgage, the familiar rule applies: “Once a mortgage, always a mortgage.” In determining whether it be a mortgage, the question is not whether the conditions are legal or illegal. It may be admitted that the agreement on the part of Lander or Swazy to procure the two witnesses was contrary to public policy, but that fact does not change the character of the instrument and make a deed of conveyance out of a mortgage. The question of the legality or illegality of the condition is important only when it is attempted to enforce the instrument as a mortgage. It may readily be admitted that if a condition in a deed of conveyance be illegal, the deed will take effect without regard to the condition; but that principle is not involved in this case. If the transaction be found to amount to a mortgage, there is no principle of law, *382so far as I am aware, that will convert.it into a deed, by striking out the defeasance, because it contains an illegal condition. I am therefore unable to concur in the opinion of Mr. Justice McKinstry.

¶3Mr. Chief Justice Wallace, having been of counsel, did not participate in the decision of this case.

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