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New York Court of Appeals - 271 N.Y. 57
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The case involves a dispute over the ownership of a farm land. The plaintiff claims ownership based on a prior deed held as an escrow, while the defendants claim ownership based on a subsequent deed that was recorded first. The court held that the defendants have the burden of proving that they are purchasers in good faith and for a valuable consideration, as required by section 291 of the Real Property Law. The court clarified that previous cases do not contradict this ruling and that the burden of proof can refer to either the burden of establishing the proposition in issue or the burden of producing evidence. The court also noted that the burden of proof is on the holder of an unrecorded conveyance when a subsequent deed first recorded acknowledges receipt of a consideration sufficient to satisfy the statute.
The dissenting opinion in a real property case disagrees with the lower courts' decision to grant the farm to the plaintiff without requiring him to pay the money he owed to the estate. The Real Property Law in New York states that a conveyance must be recorded to be valid against subsequent purchasers in good faith and for valuable consideration. The burden of proof should rest with the person who asserts the invalidity, even when it comes to valuable consideration. The plaintiff received the farm from the deceased widow in exchange for a promise to pay her $200 a year, but he never paid her anything and owed her $4,000 at the time of her death. The agreement between the plaintiff and Florence Hood required her to work the farm and pay all taxes and upkeep out of its produce, which she did. In exchange, the plaintiff agreed to pay her $200 per year during her lifetime and was given a $1,200 mortgage on a Nebraska property. The deed executed by Florence Hood in 1913 stated that William J. Hood agreed to pay her $200 per year during her lifetime, in addition to any income she derived from the farm, in exchange for the deed and other covenants and agreements expressed in the instrument. The agreement provided Florence Hood with a sense of financial security.
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