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Stearns v. Mathews

December 14, 1972

STEARNS, RESPONDENT,
v.
MATHEWS ET AL, RESPONDENTS, PAULSON, APPELLANT



Appeal from Circuit Court, Clackamas County. Winston L. Bradshaw, Judge.

Robert N. Gygi, Portland, argued the cause and filed briefs for appellant.

John C. Anicker, Jr., Oregon City, argued the cause and filed a brief for respondent Stearns.

William E. Hanson, Portland, argued the cause for respondents Mathews. With him on the brief were Dardano, Mowry & Hanson and David W. Dardano, Portland.

Denecke, Justice. O'Connell, Chief Justice, and Holman, Tongue, Howell and Bryson, Justices.

Denecke

Plaintiff brought this quiet title suit to establish the priority of her interest in property she purchased from the defendants Mathews over an asserted mortgage lien claimed by the defendant Paulson. The trial court found for plaintiff and Paulson appeals.

The transaction was extremely involved; however, many of the complexities can be bypassed.

The defendants Mathews' son entered into an agreement with Garden Miracles to purchase a distributorship for a patented draft beer dispenser and to buy 160 dispensers for a total of $55,200.

The sales agreement provided:

"2. Buyer hereby agrees to purchase 160 Beer Boy dispensers at a price of $345.00 each, making a total of $55,200.00. Garden Miracles, Inc. hereby acknowledges receipt of a one hundred and ten day note in the amount of $55,200.00 secured by a mortgage in the same amount, said note being signed by the Buyer and the Buyer's parents, Thomas J. Mathews and Hallie C. Mathews, for deposit on the distributorship for the State of Texas and for payment of 160 Beer Boy dispensers. Said deposit amounts to 100% of the purchase price of said 160 Beer Boy dispensers. "Upon delivery of one or more dispensers, the Buyer is to immediately pay for them at the price of $345.00 which said amount shall be deducted from

the balance due on the note referred to herein until such time as the entire note is paid.

"In the event Buyer fails to make payment of the note, as required, or for each dispenser or dispensers as they are delivered, then the Seller may declare the note due and payable and if necessary foreclosure upon the property retaining any amount obtained ...


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