137 Iowa 336 | Iowa | 1907
The facts in this case are numerous and complicated, and it is difficult to state them with any degree of clearness, except by tracing the various material events in the history of the controversy in their chronological order.
On January 20, 1888, one Atwood sold to the defendant Mrs. G. A. Heitman certain lots in Sioux City, Iowa, for the expressed consideration of $5,000. The deed, at the request of Mrs. Heitman, was made to Lillie M. Wood, who was her employe, and seems to have taken the title in trust for the use of said purchaser. The reason why the conveyance was made to Wood, instead of Heitman, the real purchaser, is the subject of considerable inquiry and animadversion by counsel, but the truth concerning that matter is not of great importance in determining this appeal; though we find nothing to impeach the good faith of the transaction. Soon after the purchase was made, Mrs. Heitman went into possession of the property, and occupied it until late in the year 1889. At this time the city of Sioux City was the scene of a very remarkable real estate speculation, in which the market values of property were exaggerated to an un
At that stage in the history of the proceedings Mrs. Heitman held the note of the refrigerating company for $10,000 secured by the mortgage and Tredway’s personal note for $10,000, with an additional personal note of Tred"way’s for a like amount; the latter representing no actual indebtedness and held as collateral so called. In October, 1893, Mrs. Heitman borrowed $1,500 from Burke Bros, in Chicago, and put up as collateral thereto several notes, among which were the notes we have above described, one for $10,000 executed by the refrigerating company, and the' two personal notes of O. O. Tredway for $10,000 each. On December 4, 1893, the taxes being delinquent thereon, the county treasurer sold the property in controversy at tax sale to the plaintiff herein, D. T. Gilman. On December 27, 1894, the Tredways borrowed about $10,000 from the plaintiff Gilman, and as collateral security for the debt thus contracted turned over to Gilman the three remaining $10,000' notes of the refrigerating company,.secured by the mortgage of December 29, 1891. On July 2, 1895, Elizabeth B. Tredway obtained a sheriff’s deed of the property in controversy upon a sale made thereof by virtue of an execution upon a judgment theretofore rendered against the corporation in favor of a stranger to this action. On April 9, 1898, the Tredways united in conveying the mortgaged premises to plaintiff D. T. Gilman by warranty deed, excepting from the covenants of warranty the taxes, liens, and incumbrances of record. Upon receiving said deed, the plaintiff went into and has ever since retained possession of the property. The consideration for this conveyance to plaintiff was the cancellation of the obligation which the Tredways had given to
The defendant Mrs.' Heitman takes issue upon plaintiff’s petition, asserts the existence in her favor of a lien upon the property in controversy, and asks that the same may be enforced in this action. She also denies the validity of the tax deed upon which plaintiff bases his claim of title. By way of reply to the cross-demand of the defendant, the plaintiff asserted his claim of title to the property and the validity of his tax deed, and alleges that Mrs. Heitman is not the owner of the alleged confession of judgment in her favor, but that the same has been sold under legal proceedings to a third person. This- last allegation is based upon the following state of facts: One Buckley, an attorney residing at Sloan, Iowa, took an assignment of a claim held by a third person upon an open account for goods alleged to have been sold to Mrs. Heitman, who at this time was a resident and citizen of the State of Illinois. Buckley thereupon brought an action against Mrs. Heitman before a justice of the peace in Sloan township, Woodbury county, and procured a writ of attachment which it is alleged he caused to be levied upon the judgment entered in Mrs. Heitman’s favor by confession against the refrigerating company as hereinbefore stated. Mrs. Heitman was not personally served with notice of this proceeding, nor did she appear thereto either in person or by counsel, but service was had or attempted by posting notices under the statute providing for actions in attachment against nonresidents before justices of the peace. On this service the justice rendered a judgment in rem in favor of Buckley, and issued a special execution thereon for the sale of the judgment alleged to have been levied upon. Hnder this writ, the constable offered the judgment for sale, and the same was struck off to one Atkins for the sum of $113. The good faith of this transac
As the burden is on the appellee to make good his claim, we will proceed to consider the several propositions advanced by counsel in his behalf.
Objection is also made to the sufficiency of the statement upon which the confession of judgment was made, but we think the same fairly complies with the spirit and the letter of the statute by which confessions of judgments are authorized. It is also to be remembered in this connection that judgments by confession, like other judgments, are not open to collateral attack, unless it be upon the ground of
The appellee took title to the land in satisfaction of his own lien thereon, and became, in effect, and as to other existing lienholders, the mortgagee in possession of the mortgaged property. He also took such title, as we have seen, with knowledge that this note on which the confession of judgment was made was then outstanding, contenting himself, according to his own statement, with the assurance of Tredway that he would take it up. Under such circumstances and under the express form of the conveyance by which he took the title subject to all recorded' liens and incumbrances, it is certainly equitable to hold that the tax deed had no effect to eliminate the mortgage lien securing the indebtedness to the appellant.
The condition disclosed by these holdings is such that, were the statute unchanged, we should have some difficulty in determining the correct rule to be followed, except as we might derive the same from an original construction of the language of the act, but it will be noticed that the statute .