This section is from the book "The Law Of Land Contracts", by Asher L. Cornelius. Also available from Amazon: Michigan Law Of Land Contracts.
Moore & Veale Real Estate Corporation.
(Signed) By S. J. Moore, Secretary and Treasurer.
(The vendee in the above contract, Thomas B. Townsend, assigned his interest to Saul H. Meister on Jan. 29, 1916, who agreed to carry out the agreements and covenants therein contained.)
(d) Answer and Cross-Bill.- (Caption.) Said defendants answering the bill of complaint in the above entitled cause say:
1. Defendants have no knowledge of the matters stated in paragraphs 1, 2, 3 and 4 of said bill, but are informed and believe that said allegations are true.
2. Defendants admit the allegations of paragraphs 5, 6, 7, 8 and 9 of said bill of complaint.
3. Defendants admit as alleged in paragraph 10 of said bill of complaint that defendant Meister entered into negotiations with Daniel B. Foley, attorney for plaintiff, for the reinstatement of said contracts, and say that said negotiations resulted in an agreement that said contracts were to be reinstated on payment by defendant Meister to said Foley of all the arrears on said contracts, the taxes paid by plaintiff, including mortgage tax, the cost of said suit and a reasonable attorney fee for plaintiff's attorney; that in pursuance of said agreement, defendant Meister tendered to said Foley the sum of $435 or thereabouts, being the total amount of said arrears, taxes and costs, and offered to pay such further sum of (as might be reasonable) dollars as attorney's fee; that said Foley refused to accept the amount so tendered, demanding an attorney fee of one hundred dollars, which defendant considered unreasonable and refused to pay; that no objection to said tender was made except as to the amount of attorney fee and that said negotiations were terminated by such disagreement as to the amount of attorney fee and for no other reason.
4. Defendants admit as alleged in paragraph 11 of said bill that defendant Meister, through Attorney Thomas W. Thompson, attempted to reopen negotiations for the reinstatement of said contracts and that said Thompson exhibited a Quit-Claim Deed from defendant Meister to defendant Lefton.
5. Defendants admit the allegations of paragraph 12 of said Bill of Complaint.
6. Defendants deny the allegations of paragraphs 13, 14 and 15 of said bill in so far as it is alleged that said deeds were in any way fraudulent or that said deeds and the interest of said Lefton thereunder were concealed from plaintiff for any fraudulent or wrongful purpose.
Defendants, answering said paragraphs 13, 14 and 15, say that said Quit-Claim Deeds were given by defendant Meister to defendant Lefton as security for an indebtedness justly due from said Meister to Lefton, and that said deeds were given as security for the reason that said Lefton had prior to August 14, 1917, the date said deeds were executed, entered the military service of the United States, and it was desired to protect his interests so far as possible during his absence in such military service; that at the time said Quit-Claim Deeds were executed, said Meister was not in default in his payments under said contracts, but continued his payments for several months thereafter; that said deeds were recorded before notice of forfeiture of said contracts was served on said Meister; that said Meister did not set up the rights of said Lefton under said deeds in the proceedings before the Circuit Court Commissioner or in the negotiations for settlement because he expectd to be able to redeem or reinstate his rights under said contracts and thus to reinstate the security of said Lefton created by said deeds. And defendants deny that either of said defendants is attempting or has attempted to defraud or injure any person by means of said contracts.
7. Defendants have no knowledge of the matters set forth in Paragraph 16 of said Bill of Complaint and leave plaintiff to its proofs, but say that if such sale was made, the purchaser, as defendants are informed and believe, would have had notice of the rights of said Lefton under said Quit-Claim Deeds and consequently of the rights of said Meister by reason of the record of said Quit-Claim Deeds, if not otherwise informed of such interests.
8. Defendants deny that plaintiff is entitled to the relief prayed in said Bill of Complaint or any other relief in the premises.
Defendants by way of Cross-Bill say:
1. That defendant Meister has paid under said contracts a large sum of money, to-wit: the sum of one thousand and eighty-eight dollars; that after the judgment rendered by the Circuit Court Commissioner as set forth in said Bill of Complaint, defendant Meister entered into an agreement with the plaintiff substantially as set forth in the Bill of Complaint and hereinbefore in the answer for the reinstatement of said contracts, by the payment of the amounts in arrears on said contracts, taxes paid by plaintiff, costs of suit and a reasonable attorney fee, and that he tendered to the attorney for the plaintiff the amount so agreed upon, including a reasonable attorney fee, but that the attorney for plaintiff refused to accept said tender claiming an unreasonably large attorney fee.
2. That defendants are willing and have at all times been willing and since the time of said agreement have been able to pay the amount so agreed upon and all payments subsequently accruing upon said contracts, and said defendants hereby agree to pay to plaintiff in consideration of the reinstatement of said contract all sums in arrears upon said contract Including all taxes paid by plaintiff, costs of suit before Circuit Court Commissioner and any other costs and expenses including attorney fees which this court may find to be reasonable and proper.
Defendant therefore prays:
1. That the court may take an accounting of the amount due on said contract for principal and interest and taxes paid by plaintiff, and of all other costs and expenses including attorney fees reasonably due to said plaintiff from defendants, and may fix and determine the amount justly due from said defendants to plaintiff.
 
Continue to: