154 P. 717 | Mont. | 1916
Lead Opinion
delivered the opinion of the court.
This action was brought by the plaintiff against the defendants, his father and mother, to procure a decree directing the cancellation of four sheriff’s deeds covering lands sold on foreclosure and execution sales belonging to the plaintiff, or permitting the plaintiff to exercise the right of redemption. The events out of which the controversy arose may be stated as follows:
On May 29, 1907, the plaintiff was the owner of several pieces of real estate which, for convenience, may be referred to as the McDonald, Diehl & Mohler, Sloan and Knudson ranches, besides two quartz lode mining claims designated as the Arizona and Standpat, all situated in Fergus county. For some years the father (hereafter referred to as the defendant, because Mary A. Hamilton is only a formal party) had held three mortgages executed to him by the plaintiff, separately covering the first three ranches named, and also two unsecured promissory notes of the plaintiff. On May 29, 1907, the defendant brought an action in the district court of Fergus county on these notes (the cause being numbered 1602), and on November 19, 1907, recovered judgment thereon in the sum of $4,661.35. On June 7, 1907, the defendant brought an action to foreclose the mortgage on the McDonald ranch, (cause 1606). On May 10, 1909, this action resulted in a decree directing the sale oí the property to satisfy an indebtedness found to be $1,163.45, with interest and accrued costs. On June 16 the property was sold by the sheriff under the decree, the defendant becoming the purchaser for $1,213.97, the full amount due, with interest and costs of sale. A certificate was issued to the defendant on that date and a duplicate thereof was filed with the comity clerk. On
The complaint contains five causes of action. The first relates to the McDonald ranch. Beciting in detail the proceedings referred to above resulting in the sale under the decree of foreclosure and the right of- redemption, under the execution in cause 1602, it alleges in substance that on June 14, 1910, the plaintiff tendered to the sheriff in cash, for the purpose of redeeming the premises, the full amount necessary to effect redemption, which included the amounts paid at both sales, with interest, costs, taxes and all legal charges, but that the sheriff refused to accept the money and to permit him to redeem; that plaintiff “then was, and ever since has been and now is, ready
The relief demanded is the following: That each -of the sheriff’s deeds and all proceedings had under each of the sales be canceled ; that if said sales be not canceled, the plaintiff be permitted to redeem, and that upon such redemption the defendants be required to convey each and all of said premises to the plaintiff; that he recover his costs, and that he have such other relief as in the premises may be just and equitable. The questions of fact presented by the pleadings and agitated at the trial are these: (1) Were the proper tenders made by the plaintiff to effect redemption? (2) Was the plaintiff misled as to the date of sale of the Sloan ranch, so that his tender made on June 14 was in time? (3) Had he up to the date of the trial held himself in readiness to pay the amounts tendered? The court found these issues in favor of the plaintiff and rendered a decree adjudging him entitled to redeem all the lands upon depositing in the hands of the clerk within thirty days from the date thereof the sum of $12,651.29; that upon such deposit the sheriff’s deeds and also the judgments under which the defendant obtained possession be canceled; and that plaintiff recover his costs to be paid to him out of the sum deposited by him with the clerk. The plaintiff made the required deposit. The cause is here on appeals by the defendants from the decree and from an -order denying them a new trial.
1. It is argued that the plaintiff is not entitled to redeem because he has waived the benefit of any tenders made, and the right to redeem, by attacking the validity of the sales on the ground of irregularity and insisting upon their invalidity
2. It is contended that the statute relating to redemptions
The case of Thomas v. Thomas, 44 Mont. 102, Ann. Cas. 1913B, 616, 119 Pac. 283, cited by counsel, does not suggest anything contrary to the case of Kent v. Laffan, but merely holds that the sheriff derives his power to make a sale on foreclosure, from the decree and not from the order of sale, and that such an order need not possess the formalities of the writ of execution provided for in section 6817 of the Revised Codes. Neither is the case of Parker v. Lacres, 130 U. S. 43, 32 L. Ed. 848, 9 Sup. Ct. Rep. 433, in point. It does hold that the legal right of redemption is statutory. It also holds that the mode of exercising it pointed out by the statute must be pursued. There is nothing in either of these holdings applicable to the ease in hand. Furthermore, in their answer the defendants aver that plaintiff owned the right to redeem the lands covered by the mortgages from the date of each of the sales until July 21, 1909, when the several rights were sold under execution in cause 1602, and
3. Section 6837 of the Revised Codes declares: “Property
The California section has been amended in the particular referred to and is now identical with ours. (Cal. Code Civ. Proc., sec. 700.) We have not been referred to any decision construing it. Doubtless the court would not give it a construction in harmony with our view. But be this as it may, if the debtor’s interest is subject to execution, it is because it is an interest in the real estate. If it be such, the conclusion cannot be avoided that the sale of it must also be subject to redemption (Russell v. Fabyan, 34 N. H. 218); otherwise, again, the provision quoted from section 6839 is without purpose or meaning. The use of the expression, “successors in interest,” in section 6837, does not furnish the basis for an inference to the effect that the right of the debtor may be taken by involuntary sale. It can mean nothing more than that one who has succeeded to the title to the property, or has been substituted to the rights of the debtor or redemptioner, has the same rights as has he. When, for illustration, property is subject to a mortgage, or judgment, or attachment lien, it is still the property of the debtor. A judgment creditor may become his successor by purchase at execution sale from which there has been no redemption, as was the case in Pollard v. Harlow, 138 Cal. 390, 71 Pac. 454, 648; but this is fundamentally a different case from that of an attempted sale under execution of the statutory right of redemption. The distinction between this right and what was
4. The next question presented is, whether the evidence is sufficient to support the findings. It is so voluminous that it will be impossible to quote and examine it in detail. There can be no question but that it amply justifies the court’s conclusion that on June 14, 1910, the plaintiff tendered to the sheriff, at the Fergus County Bank in Lewistown, amounts respectively sufficient to effect redemption of the McDonald, Sloan and Knudson ranches and the mining claims, including the amount bid at the alleged sale of the right to redeem, made of the former on July 22 and of the latter on September 7, 1909, with statutory interest at twelve per cent per annum on the principal sums (Rev. Codes, sec. 6838), together with the taxes, assessments and charges paid by the defendant, with interest on them at eight per cent per annum. At that time the plaintiff, accompanied by his wife and his attorney, Mr. Marshall, was at the bank, and Mr. Marshall having previously ascertained and cast up the separate amounts required, the plaintiff tendered them separately in gold coin to Mr. Tullock, the under-sheriff, who had come in at the request of Mr. Waite, the president of the bank. Uncertain whether the exact amounts ascertained by
As to the tender made on June 2 to redeem the Diehl & Mohler ranch, the evidence is not entirely satisfactory, but, in our opinion, it is sufficient to sustain the conclusion that it was made on that date as alleged. In brief, it appears that having previously ascertained through his attorneys from the return of the
5. Counsel argue that the tenders were ineffective because they did not include the balance of the judgment in cause 1602,
The question, then, arises whether the provision quoted above from section 6839 imposes upon the judgment debtor an additional obligation. It must be borne in mind that the two sections were enacted at the same time and as the provisions by which the privilege granted by section 6837 was to be made available. As section 6838 declares the obligation to be discharged by the judgment debtor and the first redemptioner, so section 6839 is primarily concerned with the rights and obligations of successive redemptioners. It declares particularly when and how and within what time each redemptioner may acquire the right of his predecessor, what payments he must make and what notice he must give to the sheriff to protect his rights. It further declares when the purchaser or the redemptioner may obtain a deed, 'with the proviso that the judgment debtor shall have the entire year in which to redeem. Then follows the provision quoted above, which counsel insist adds to the obligation imposed upon the judgment debtor by section 6838, the further obligation to discharge all prior liens held by the purchaser. Evidently this was not the purpose of the legislature in inserting this provision. It cannot be supposed that after it had defined and distinguished the respective obligations of the ’ j udgment debtor and the redemptioner, it deliberately concluded to annul the distinction and put both in the same category. Looking at the preceding provisions of the section, it seems clear that the intention was to declare that if the judgment debtor redeem from a redemptioner, he must make the payments which have been made by the redemptioner. That this is so is suggested by the clause immediately preceding, “but in all cases the judgment debtor shall have the entire period of one year from the date of sale to redeem the property, ’ ’ and also the one immediately following, “if the debtor redeem, the effect of the sale is terminated and he is restored to his estate.” The first of these serves to put beyond question the right of the debtor to redeem from a redemptioner at any time
We have not been referred to any case which has expressly construed such a provision; but the supreme court of California, in Campbell v. Oaks, 68 Cal. 222, 9 Pac. 77, has by implication given the provision the same purport we have given it above. In that case the purchaser at the sale was a member of a co-partnership which held a judgment lien prior to that of the judgment creditor at whose instance the sale was made. The purchase had been effected on behalf of the firm and with firm money, the purchaser holding the title in trust for the firm. Within the period of redemption the judgment debtor tendered to the sheriff the amount of the purchase with interest, etc., in order to effect redemption, and demanded a certificate, which was refused. Action was brought by the debtor to compel the issuance of the certificate. The trial court denied relief, but the supreme court reversing the judgment, said: “We cannot see how the firm obtaining a judgment against the same defendant in the superior court could have been prejudiced by a redemption from the sale under the second judgment, as the lien of the first judgment was in no manner affected thereby. It was simply an attempted redemption by the judgment debtor whereby the sale under the second judgment would have beeen wiped out.” The court evidently regarded the firm as a purchaser having a prior lien. Hence, since sections 702 and 703 of the Code of Civil Procedure of California are substantially identical with sections 6838 and 6839, supra, the decision is directly in point; for the conclusion stated cannot be justified upon any theory other than that the provision relied on by counsel does not relate to the obligation due from the debtor to the purchaser, but to that due from him to the redemptioner.
6. The evidence discloses that the plaintiff did not deposit the amounts tendered or retain them in his possession in readiness
7. The contention that the plaintiff forfeited his right to relief by reason of his delay in bringing the aetion is without
Several other contentions made by counsel are not of sufficient merit to require special notice. The judgment and order are affirmed.
Affirmed.
Rehearing
On Motion for Rehearing.
delivered the opinion of the court.
In their petition for a rehearing in this ease, counsel insist that the court in the consideration of sections 6838 and 6839 of the Revised Codes fell into error in making this statement found in paragraph 5 of its opinion: “It must be borne in mind that the two sections were enacted at the same time and as the provisions by which the privilege granted by section 6837 was to be made available.” From an exact historical point of view the . criticism of counsel is justified. Section 6838 was first enacted by the territorial legislature in 1867 as section 231 of the Civil Practice Act (Laws 1867, p. 181), whereas section 6839 was first enacted in 1877 as section 331 of the new Code of Civil Procedure (Laws 1877, p. 129). Sections 6837, 6838 and 6839 were all included in this Code, and, in the opinion of the court, taken together with the preceding and following sections, were intended to cover the whole subject of redemption from sales under execution and foreclosure, and to make definite and certain not only the privileges conferred by section 6837, but also the mode by which it could be exercised. Hence we concluded that, whatever may have been the provisions on the subject theretofore, sections 6838 and 6839, having been incorporated in the same Act, are to be considered as enacted at the same time to be interdependent and to be construed accordingly. From this point of view the criticism of counsel is without merit.
It is further insisted that the court erroneously decided, in paragraph 4 of this opinion, that the judgment debtor is not entitled to possession after sale and during the period of redemption. The court did not so decide. It merely noted, in passing, the fact that there is no express provision in the statute declaring this right, whereas section 6843 seems “to imply that the judgment creditor (who has become the purchaser) is entitled to
The other contentions of counsel were all made in oral argument and in their briefs. Upon due consideration they were overruled. After further consideration we do not think a rehearing upon them would induce us to change our conclusion.
The rehearing is denied.