137 P. 919 | Cal. | 1913
A hearing in Bank was ordered after judgment in Department One. The court was, and still is, entirely satisfied with the disposition by the department of every point, save one, arising on the appeals. The hearing in Bank was ordered to enable the court to give further consideration *709 to the one question which it regarded as doubtful, viz., whether the plaintiff, under the facts, was precluded from obtaining a decree quieting her title against the outlawed mortgage of the defendant bank, without offering to pay the amount of such mortgage. Except for its discussion of this question, and so much of the judgment as rests on such discussion, the following opinion adopts the precise terms of the department opinion, which was prepared by Mr. Justice Angellotti.
Plaintiff, on October 1, 1907, commenced this action under the provisions of the act of June 16, 1906, generally known as the McEnerney Act, to establish and quiet her title as against all persons to a parcel of real property in the city and county of San Francisco, fronting fifty feet on Mission Street, one hundred and seventy feet on Fourth Street, and one hundred and twenty-five feet on Minna Street. In her complaint, verified by herself, she alleged that she owned an estate of inheritance in said property and that her estate, title, and interest therein is the ownership thereof in fee simple absolute. She further alleged herself to be in the actual and peacable possession of all of said property. She filed with the complaint her affidavit sufficiently stating the matters required to be stated in an affidavit to be filed with the complaint by section 5 of said act, with the single exception that there was no statement in terms therein that she was or ever had been in actual possession of any of said property. Publication of summons was had in the manner required by the act. No one appeared to contest the claim of plaintiff except defendant Hibernia Savings Loan Society, hereinafter referred to as the defendant. Defendant by its answer filed in January, 1908, resisted the claim of plaintiff only as to a portion of the property described in the complaint, viz., a lot fronting twenty-five feet on Minna Street by seventy feet in depth. As to this it denied that plaintiff was the owner of any interest whatever. It alleged a mortgage lien thereon by virtue of a mortgage given on August 24, 1888, by Charles O'Neill and Elizabeth O'Neill, predecessors in title of plaintiff, to secure the payment of their promissory note of the same date of one thousand four hundred dollars and interest, due one year after its date, which mortgage was duly recorded September 4, 1888, on which note no part of the *710 principal had been paid, and none of the interest from April 24, 1893. It was asked that the mortgage be restored and re-established of record and that the decree declare that any interest in said property found to be in plaintiff is subject to the lien thereof. In its amended and supplemental answer filed in March, 1908, it omitted its previous allegations as to the mortgage constituting a lien on the premises and set up title in fee simple absolute in itself, by virtue of a sale by itself as mortgagee on March 14, 1908, to one John A. Grennan for three thousand two hundred and forty dollars, under a power of sale contained in said mortgage, and a transfer by said Grennan to it on the same day. It further alleged that on the same day, it entered into possession of said property, and ever since has been and now is the owner in fee simple absolute thereof, in the actual physical possession of the same. It therefore asked that it be decreed to be such owner and that its title as such be restored, as well as for such other relief as to the court might seem just.
The findings of the trial court upon the ultimate facts of ownership and want of interest on the part of defendant were in favor of plaintiff, but the probative matters alleged in the answer, including possession since March 14, 1908, were found to be as alleged. Judgment was given thereon awarding plaintiff the relief sought by her and declaring that defendant has no right, title, claim, or interest in or to the property claimed by it, or any part thereof, or any right to the possession of the same. It was further ordered thereby that plaintiff "have and recover from the said defendant her costs incurred herein, amounting to the sum of $_____" Judgment was given March 17th and entered May 9, 1910. On March 21st, plaintiff filed a memorandum of costs, amounting to twenty-eight dollars and twenty-five cents. A motion was made by defendant to tax the costs at five dollars only, and on April 18, 1910, this motion was denied. We find in the record no notice of appeal from the order denying defendant's motion to retax the costs, but it appears to be conceded by the stipulation of the parties attached to the transcript that such an appeal was taken. There is an appeal by the defendant from the judgment in so far as it affects the portion of the property described in the mortgage, and also in so far as it adjudges that plaintiff recover from *711 defendant her costs, and there is also an appeal by defendant from the order denying its motion for a new trial.
It is claimed preliminarily that by reason of defects in the affidavit filed with the complaint the trial court never acquired jurisdiction of the subject matter of the action, and that the judgment must therefore be declared null and void. Neither of the alleged defects was ever suggested in the lower court, and the point was made for the first time in defendant's opening brief in this court. So far as defendant possibly could waive such an objection, it has undoubtedly done so, voluntarily appearing and answering and submitting its own claim in relation to the property to the trial court for adjudication. As we have before stated, we are satisfied that the affidavit sufficiently complied with the requirements of the law except in the single matter of a showing of possession. It may well be contended that the affidavit taken by itself alone failed to affirmatively show actual possession of the property by plaintiff, as is required by section 5 of the McEnerney Act. [Stats. 1906 (Ex. Sess.) p. 80].(Soher v. Cabaniss,
As, in view of what we have said, the question of the effectiveness of the judgment as one against all persons under the McEnerney Act is not involved, we express no opinion thereon. *713
Defendant's claim of title, as we have noted, was based upon its attempted exercise of the power of sale contained in its mortgage, and the deed made to it by the grantee at the sale made thereunder. The mortgage given to defendant by Charles and Elizabeth O'Neill on August 24, 1888, to secure the payment of their promissory note for one thousand four hundred dollars of the same date and due one year after its date, contained, after the provision for ordinary foreclosure by suit, the following: "and the mortgagors hereby empower the mortgagee to sell and convey said mortgaged property at any time after default made in the payment of said promissory note, or the interest thereon, or after the breach of any obligation for which this mortgage is security. Any such sale may be public or private, at the option of the mortgagee, and may be made after such notice and for such price and on such terms as to payment or otherwise as the mortgagee may deem proper. At any such sale the mortgagee, in its own name, or in the name of any person, shall have the right to purchase, and any recitals contained in any conveyance of the mortgaged property which may be made by the mortgagee must be deemed conclusive evidence of the facts recited. The proceeds of such sale must be applied to the payment, in whole or in part, of the expenses of the sale, and of the amount due to the mortgagee upon this mortgage, and upon said promissory note, and upon any such sale counsel fees shall be allowed as a part of the expenses, at the rate of two per cent upon the amount of the debt, and the mortgagors and mortgaged property are hereby made liable to the mortgagee for such counsel fees." The property then stood in the name of Elizabeth O'Neill, to whom it had been conveyed on April 7, 1869, by James and Lizzie Wainwright, by deed of grant, bargain, and sale. It was subject to a homestead duly declared by the O'Neills on November 7, 1874. Mrs. O'Neill died intestate on March 24, 1890. Her estate was regularly probated, and in the probate proceedings the property in question was set apart to Charles O'Neill, the surviving husband, as a homestead regularly selected during the lifetime of the spouses. Although due notice to her creditors was given in said probate proceedings, defendant never presented to the administrator any claim on said note or on said mortgage. Said Charles O'Neill *714
continued to occupy the property as a homestead until his own death on January 18, 1894. He left a will, which was admitted to probate on March 27, 1894, and one R.S. Thornton was appointed executor. Thornton immediately qualified as executor, and continued to act as such until after April 22, 1901, to which time he was in actual possession of this property. In the mean time, — namely, on August 24, 1892, defendant sued said Charles O'Neill on said note, and obtained personal judgment against him thereon on February 5, 1894. Thornton, as executor, was substituted as defendant on the death of O'Neill, and appealed from the judgment to the supreme court. This judgment was reversed (
From what we have said it is obvious that at the time defendant attempted to execute the power of sale, not only were both the mortgagors dead, but the debt, note, and mortgage had many years prior thereto become barred by our statute of limitations, and any lien created by the mortgage had been extinguished, section
It follows from what we have said, that the attempted sale under the power was ineffectual for any purpose, and that defendant acquired no interest in the property by its deed from the purchaser at such sale.
Defendant claims that even if it did not obtain title to the property by reason of such sale, and the conveyance from the purchaser, yet by virtue of its entry into actual possession thereunder it has become a mortgagee in possession, and is entitled to retain such possession until the debt of plaintiff's predecessors in title, the O'Neills, is satisfied by payment. No rule is more firmly established in this state than the one to the effect that notwithstanding "the lien of a mortgage is `extinguished' by the barring of the debt by the statute of limitations, the mortgagor of real property cannot, without paying his debt, quiet his title against the mortgagee, or maintain ejectment against his mortgagee in possession." (SeePuckhaber v. Henry,
It is however claimed that even if defendant is not a mortgagee in possession, nevertheless, under the rule we have referred to, plaintiff should not have been allowed to obtain a judgment quieting title against the mortgage, so long as the debt to secure the payment of which it was given remains unpaid. The judgment given does so quiet the plaintiff's title against the mortgage, and it is urged that a reversal must be had for this reason. As is said in an earlier part of this opinion, it is the settled rule that notwithstanding the lien of a mortgage is extinguished by the barring of the debt by limitation, the mortgagor cannot, without paying his debt, quiet his title against the mortgagee. (Booth v. Hoskins,
In the present case, however, the plaintiff acquired the land by purchase for a consideration after the lapse of the time within which an action to foreclose the mortgage could have been brought — after, indeed, it had been decided in this court that there was no right of foreclosure. The plaintiff was not personally liable for the debt, and was under no moral obligation to discharge it. When she bought the land, the records showed that the lien of the mortgage had become extinguished. (Civ. Code, sec.
None of the decisions in this state, or elsewhere, so far as we are advised, has denied relief to a plaintiff seeking to quiet his title against an outlawed mortgage by which neither he, nor his land, was equitably bound. On the other hand, Kingman v.Sinclair,
We are of the opinion that the general provisions of our Code of Civil Procedure relative to costs are applicable to proceedings under the McEnerney Act as against persons contesting the plaintiff's claim. It is unnecessary in this case to determine whether such a proceeding is governed by the provisions of section
There was no merit in defendant's motion for a new trial on the ground of newly discovered evidence.
The judgment is affirmed. The orders denying a new trial and the motion to retax costs are affirmed.
Beatty, C.J., does not participate in the foregoing. *723