Golden Prague Building, Loan & Savings Ass'n v. Crimi

Sloan, J., delivered the opinion, of the Court. By a deed dated May 30th, 1923, The Golden Prague ²⁴⁰ Building, Loan and Savings Association of Baltimore conveyed a lot of ground in Baltimore, known as No. 2002 East Eager Street, to Frank Magri and Matilda Magri, his wife, for five dollars and other considerations. The same day, the Magris, together with Paul Crimi and Sophia Crimi, his wife, executed a mortgage to the building association to secure the sum of $2,700, giving as security No. 2002 East Eager Street and No. 918 North Luzerne Avenue, which the Crimis had owned since December 4th, 1913. Sophia Crimi is the sister of Frank Magri.

The Crimis had no interest in the purchase of the Eager Street property, and joined in the mortgage for the purpose of securing the payment of the purchase money. While the mortgage appears to be the unconditional promise of all the mortgagors to pay the entire mortgage debt, interest, taxes and other charges, in the manner and at the times therein set forth, the Crimis contend that their agreement with James F. Klecka, the attorney for the association, was. that their property should be released upon the payment of $350 of the mortgage debt, and, more than this sum having been paid on account of the principal, they filed a bill of complaint to compel the building association to execute such a release, and from a decree requiring it so to do the association appeals. Frank Magri and Matilda Magri were made defendants, but no relief was prayed against them. The evidence is that one James F. Kline and Mary Kline, his wife, in 1923 were the owners of a house and lot No. 2002 East Eager Street in Baltimore, and on May 1st, 1923, they conveyed the property to the Golden Prague Building and Loan Association.

Mrs. Kline, who testified for the plaintiffs, said she had not heard, until testifying, of the Golden Prague Association; that they sold to James Klecka for $2,000, receiving from him a check for $1,350, the balance to be paid to another association in settlement of their mortgage. She said, except for the printed matter, the deed was blank. She questioned the propriety of this at the time when “one of ²⁴¹ them (Klecka or another whom the witness did not know) spoke up and said, “That is all right. Everything will 'be O. K. as long as you get the check,” her husband adding, “Don’t worry as long as we get our'Si.” This is important only as showing, with what follows, the signing of instruments in blank was 'a custom of Klecka’s.

The property was then sold by Klecka to Frank Magri and his wife, Matilda, and it is what happened between them and the plaintiffs that resulted in this suit. The Magris wanted to buy a home and they only had one hundred dollars. One day in May, 1923, Frank came home and told his wife, Matilda, that he had found a place that would suit them, No. 2002 East Eager Street, which could be had for $2,800, but the owner wanted $450 cash. The record does not disclose everything that was said and done, but the upshot of it all was that Paul and Sophia Crimi were asked by the Magris to have their property, No. 918 North Luzerne Avenue, stand as security for $350.

They agreed to it. The next step in the negotiations appears to be an agreement for the purchase and sale, which in part is as follows: “This agreement, made this 23rd day of May, nineteen hundred and twenty-three, between Edward F. Peroutka, agent for James F. Klecka, of the first part, Frank Magri and Matilda Magri of the second part. Witnesseth, that the said part of the first part do hereby bargain and sell unto the said part of the second part, and the latter doth hereby purchase from the former the following described property, situate and lying in Baltimore City known as No. 20.02 East Eager Street subject to ground rent of $36.00. At and for the price of Twenty-Seven Hundred and Seventy-Five Dollars, of which Twenty-Five dollars -Dollars have been paid prior to the signing hereof and the balance is to be paid as follows: Seventy-Five Dollars to be paid on May 24, 1923, and a First mortgage for $350.00 to ²⁴² be given, on property 918 North Luzerne Street within 30 days of contract, May 23, 1923.” Signed, “Edward F. Peroutka (Seal) Agent for James F. Klecka (Seal) Frank Magri (Seal) Matilda Magri (Seal) Test: Payment of $75.00 paid on May 24, 1923.

Edward F. Peroutka, Agent for James F. Klecka.” Mrs. Magri says she never saw anyone except James F. Klecka in any of the meetings or transactions; that her husband brought this agreement home for her to sign. The Crimis did not sign it, so that it cannot be excluded from the evidence on the ground that it was merged into or rescinded by the mortgage. It was only admitted at the trial as to the Magris, but later Paul Crimi was cross-examined at length with respect to it without any restrictions, and through him the facts recited in the agreement are as. fully in evidence against the association as the paper itself. If Klecka is to be regarded as the attorney of the association, then the agreement was admissible against it.

On May 30th, 1923, the deed to Frank Magri and Matilda Magri from the Golden Prague Building, Loan and Savings Association was executed by Emil K. Skrabek, its president. He testified: “We never owned the house.” “I signed it for Jim Klecka.” “Mr. Klecka came in and brought a deed to sign and I said, ‘What is it?’ and he said, ‘Sign it for me’ ”. “Q. Who gave you this deed to sign? A. Mr. Klecka. Q. Did you say anything to Mr. Klecka at that time about the signing of this deed?

A. I told him I don’t know what it is—I say, “What is it” ? He said, “This is. the deed I put in the building association.” The evidence is that the association had nothing to do with the purchase. Klecka bought it from ²⁴³ the Klines and sold it to the Magris at a net profit to himself of between six and seven hundred dollars. Instead of two mortgages, one from the Magris and one for $350 from the Crimis, they executed a joint and several mortgage of both properties to the Golden Prague Building Association for $2,700, at Klecka’s home.

Their testimony is that it was signed in blank; that there was nothing on the paper but the printed matter, no script or typewriting. When Paul and Sophia Crimi had signed the paper, after