Hood v. Webster

Facts

Through Florence F. Hood’s husbands will, sheobtained a farm. The will provided that if Florence predeceased her husband,the farm would pass to Florence’s brother-in-law, William J. Hood. When Florence obtained the farm, she lacked sufficient financial means to live on the farm. Hood agreed to pay Florence $200 eachyear during Florence’s lifetime for the farm. Thereafter, in 1913, Florence executed an unrecorded deed and an agreement with Hood. The agreement provided that Florence was to work on the farm, pay taxes on the farm, andmaintain the funds from the sales of the farm’s produce, in exchange for the $200 annual payment. Subsequently, Florence handed the deed to Hood’s lawyer to hold in escrow until Florence’s death. Later, Hood follow through with the agreement because he did not pay Florence. However, Howard A. Webster, Florence’s nephew, moved to the farm to assist Florence. In 1928, Florence executed and recorded a deed that gave the farm to Webster and Florence’s brother, Almon B. Farwell. Per the deed, the consideration was satisfied with “one dollar and other good and valuable consideration.” Upon Florence’s death, Hood recorded the 1913 deed and brought an action to dissolve the 1928 deed. The court held in Hood’s favor. On appeal, the parties conceded that the applicable law was § 291 of the Real Property Law, which stated unrecorded deed is void against a subsequent purchaser with a recorded deed, if the purchase was made in good faith and for valuable consideration. Therefore, Webster and Farwell asserted that their deed was valid under the statute, as they had purchased the farm without notice, in good faith, and for value.