45 Neb. 373 | Neb. | 1895
William F. Havemeyer and W. F. R. Mills (the latter as receiver of the Hamilton Loan & Trust Company) brought this suit in equity in the district court of Douglas aounty, making William J. Paul, the Phenix Loan Association, George J. Paul, Fred Reumping, the Midland State Bank, George B. Christie, George L. Green, William D. Mead, Jr., and a large number of other persons whose connection with this case is immaterial here, parties defendant. Said William J. Paul had executed two mortgages to the Hamilton Loan & Trust Company, and it had assigned one of said mortgages to Havemeyer. The suit was brought to foreclose these two mortgages. The record does not disclose, nor is the inquiry material here, why or upon what theory Havemeyer and the receiver of the loan and trust company brought this action jointly. The action was brought on the 8th day of January, 1894, and a summons was issued for all the parties made defendants. This
In Hapgood v. Ellis, 11 Neb., 131, it was held: “In a foreclosure suit where several parties are made defendants as lien-holders, subsequent purchasers, or lessees of the mortgaged premises, their several answers claiming rights as such lien-holders, subsequent purchasers, or lessees may
In Cockle Separator Mfg. Co. v. Clark, 23 Neb., 702, the rule was thus stated: “While all parties to an action are bound to take notice of pleadings properly filed within the time required by law, yet where a party in default obtains leave of court to file a pleading affecting other parties, the parties so affected should be notified of the filing of such pleading.”
Carlow v. Aultman, 28 Neb., 672, was a suit brought by one Curtis against Carlow to foreclose a mortgage. Aultman & Co. was made a party defendant and service obtained upon it by publication and the answer day fixed for May 17. Carlow was personally served with a summons, and the answer day for him fixed on May 10. On the 17th of May, Aultman & Co. appeared and filed its answer in the nature of a cross-bill, asking for affirmative relief against Carlow. It was urged in this court that the judgment or decree pronounced in favor of Aultman & Co. against Carlow was erroneous because no notice of the filing of its cross petition by Aultman & Co. was given to Carlow, but the court, speaking through the present chief justice, said: “When a defendant in an action files his answer and cross-petition within the time fixed by law, he is not required to give to the other parties to the suit any notice of the filing of such pleading.”
These authorities then established this rule: That a party made defendant to an action and duly served with process is charged with notice of whatever answer any of his co-defendants may file in the action only when such answer is filed by such co-defendant within the time required by law. If Mead and others had been served with the summons that was served upon Paul, and had filed their answers on or before February 12, or if, on or prior to that date, they had obtained from the court an order extending the time for them to file their answers and had filed them within the time given, then doubtless Paul would have been charged with notice of the averments in such answers. If Mead and others had been served with notice of this suit by publication and had filed their answers
*385 “Execution Docket 1, page 258.
Parties. Date of Judgment. Amt. Received. Amt. of Costs. Total Amt. of Judgment, Int. & Costs.
Fred Iieumping v. William J. Paul. County Court Douglas Co. Dee. 4, 1890. Interest 10 % $496.20 $3.15 - .75 Inc. L. C. - .50 file pd. - .10 “ - 2.00 Ex. &ret. -
“ 1890, Dee. 27. Filed transcript. Filed prsecipe for •execution. Issued execution.
“June 17. Execution returned indorsed as follbws, to-wit:
“Received this writ December 27, 1890, and, not being able to find any property of the within named defendant in Douglas county on which to levy, the same is returned wholly unsatisfied. John F. Boyd, Sheriff,
“ By Henry -Grebe, Deputy.
“Fees, $1.10.
“ Execution Docket 1, page 258.”
It would seem that Reumping owned a judgment against William J. Paul and he claimed that such judgment was .a lien upon the real estate in controversy in this action. If we assume that he filed an answer, as the decree of the district court indicates, setting out this judgment, the evidence offered in his behalf did not prove the averments of his cross-petition or answer. (Burge v. Gandy, 41 Neb., 149; Morrison v. Boggs, 44 Neb., 248.) A judicial record of this state may be proved by the producing of the original, or by a copy thereof, certified by the clerk or the person having the legal custody thereof, authenticated by his seal of office, if he have one. (Code of Civil Procedure, sec. 413.)
Gregory v. Hartley, 6 Neb., 356, was decided under the-old statute. In that case the note appears to have drawn interest at the rate of seven per cent per annum, payable semi-annually, until maturity, and ten per cent thereafter. The district court by its decree awarded the plaintiff below interest thereon at the rate of twelve per cent, and on error-proceedings to this court the decree was reversed, the court holding that there was no authority under the statute to render a decree drawing twelve per cent interest, except in cases where the debt upon which the decree was predicated was drawing that rate of interest. But the court did not decide, so far as the recorded opinion shows, what rate of interest the district court should have awarded the complainant in the decree.
In Weyrich v. Hobelman, 14 Neb., 432, the note drew interest at ten per cent per annum from date until maturity, and contained a provision that if not paid at maturity it should draw interest at twenty-four per cent per annum thereafter. The court construed the provision for twenty-four per cent per annum from maturity as a penalty, and held that the holder of the note was entitled to a judgment for the face of his note with interest thereon at the rate of
In Kellogg v. Lavender, 15 Neb., 256, the note drew interest at the rate of twelve per cent per annum from date. The district court gave the holder of the note interest at twelve per cent from its date to maturity; from maturity to June 1, 1879, the date of the taking effect of the present interest law, ten per cent; and from June 1, 1879, seven per cent. On appeal this court modified the decree of the-district court and gave the holder of the note interest thereon at the rate of twelve per cent per annum from the-date of the note to the date of the decree. What rate of interest the decree should draw does not appear to have-been made a question in the case, nor is any opinion expressed by the court as to what rate of interest the decree should draw.
In Hager v. Blake, 16 Neb., 12, the note drew interest at the rate of twelve per cent per annum from date until paid, and contained a provision that overdue interest should draw interest. The question presented by the case was whether the provision for compound interest made the note-usurious. The court, after disposing of that question by holding that such provision did not render the contract, usurious, cites Kellogg v. Lavender, 15 Neb., 256, as an-authority for the proposition that the contract rate mentioned in the note continues until the payment thereof, and said: “The rate of interest agreed upon in a written contract, not in excess of that allowed by statute, continues-until payment.”
In Upton v. O’Donahue, 32 Neb., 565, a case decided.
In Richardson v. Campbell, 34 Neb., 181, the construction of the present interest law was again before the court, .and in the first point of the syllabus it is said: “Where money has been loaned at a specific rate of interest, as ten per cent, and the note contains a provision that if not paid at maturity the maker shall pay twelve per cent thereafter, the higher rate is in the nature of a penalty and the contract rate will continue as before the maturity of the note.” This last case lays down the rule that where a note draws interest at six per cent per annum from date to maturity and a higher lawful rate of interest afterwards, the higher rate is to be regarded as a penalty and not enforceable, and that the rate which the note drew from its date to maturity is to be regarded as the contract rate fixed by the parties. It is to be observed that the rule here announced is predicated on Weyrich v. Hobelman, 14 Neb., 433, but in that case the rate of interest which the note drew after maturity was twenty-four per cent, oran unlawful rate, while in Richardson v. Campbell, supra, the rate of interest after maturity was a lawful one. It may be that if a promissory note provides for the payment of an unlawful rate of interest after its maturity the courts would regard such unlawful rate of interest as a penalty and refuse to enforce it, but no reason exists for refusing to enforce the lawful contracts of parties in the absence of fraud, mistake, or their being
Section 3, chapter 44, Compiled Statutes, 1893, provides,, in substance, that all decrees and judgments for the payment of money shall draw interest at the rate of seven percent per annum from the date of the rendition thereof until paid, but if such judgment or decree is founded upon-a contract, by the terms of which a greater rate of lawful-interest shall have been agreed upon, then such judgment or decree shall draw the same rate of interest which the-contract on which such judgment or decree is based drew. In the case under consideration, as already stated, the bond drew interest at the rate of six per cent per annum from date until maturity and ten per cent after maturity. We-conclude that the contract rate between the' parties to the-bond was six per cent per annum to its maturity and ten-per cent thereafter, and that the decree rendered thereon should draw interest at the rate of ten per cent. The construction placed on said section 3 by the court is: Where parties to a contract for the payment of money have not contracted for any rate of interest, or contracted for a rate less than seven per cent per annum, a judgment based on such contract will draw interest at the rate of seven per cent per annum from the date of its rendition. Where the parties to a contract for the payment of money have agreed upon a rate of interest lawful greater than seven per cent per annum, the judgment based on such contract will draw the contract rate of interest. The precise question is this: What rate of interest does a judgment draw based on a.
For the other errors mentioned the entire decree is reversed and the cause remanded to the district court for further proceedings, and with instructions to tax the entire costs of this case, including the costs of this appeal, to Havemeyer, Mead, Jr., Green, Christie, Phenix Loan Association, and Reumping, in such proportions as the court may deem just, and to require each of said parties to pay the amount of costs taxed against him as a condition precedent to such party’s right to be further heard in this case.
Reversed and remanded.