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Contracts Keyed to Summers
Ryan v. Weiner
Facts
Robert Ryan (Plaintiff) is a sixty-nine-year-old retired laborer with a ninth grade education. In 1971, Plaintiff and his wife purchased a home for $8,600 and took out a mortgage. By 1984, Plaintiff was in arrears. The mortgage lender instituted foreclosure proceedings and obtained a default judgment against him. At that time, the fair market value of the home was $19,800 and the balance of the mortgage was $8,000. On May 13, 1984, Norman Weiner (Defendant), a licensed real estate broker, went to Plaintiff’s home unsolicited. Plaintiff believed that Defendant was offering to lend him money to pay off his arrears. Early the next morning, Defendant took Plaintiff to Defendant’s lawyer to sign several documents. The documents were not explained to Plaintiff, and Plaintiff was not advised he had the right to seek legal advice. Plaintiff believed he was signing loan documents, but in fact, he signed a deed transferring his property to Defendant. The deed stated that Plaintiff received $7,000 in consideration, but Plaintiff was not compensated for the house. Moreover, Defendant never paid off the balance of the outstanding mortgage or satisfied the default judgment against Plaintiff. Thus, Plaintiff remained personally liable for the mortgage. Plaintiff remained in the home as a tenant of Defendant’s. Although his rent was initially close to the amount of the monthly mortgage, Defendant raised it substantially over the course of seven years. By May 1991, Defendant believed he had paid more than the amount he owed Defendant and stopped making payments. Defendant commenced a summary proceeding in the justice of peace court to evict Plaintiff. The court stayed the proceeding in order for this court to determine whether the deed should be canceled.
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