86 Neb. 694 | Neb. | 1910
It is difficult to conceive of a more complicated and involved case than this. The chronological order of events deemed material to the consideration of this case, as drawn from the statements contained in the briefs and made upon the arguments, appears to be about as follows: On and prior to the 25th day of June, 1900, the Mc.Orews were the owners of lots 13, 14, 15 and 10, in block 1, in "Woods and.Kelly’s first addition to College Yiew, all of which Avere vacant. That block is composed of 48 lots, 24 of AA’hich, numbering from 1 to 24, inclusive, are upon the north side of the block fronting on Prospect street, the other 24 fronting to the south. On the 5th of March, 1900, the McG-reAVs executed a mortgage to plaintiff on lots 15 and 10 of said block to secure the payment of the sum of $700, and thereafter «rected a dwelling-house upon
Upon the discovery of the errors and mistakes above enumerated, plaintiff, the building and loan association, instituted this action for the foreclosure of its mortgage, making the McGrews, Fairs, and Sullivan parties defendant. The McGrews did not answer or otherwise plead, and default was entered against them. The pleadings are quite lengthy and voluminous, and the transcript is padded to an unnecessary extent, the original and amended pleadings being set out at length. Transcripts could be very much diminished in size and volume, as well as in costs, if counsel would guard against the inclusion of unnecessary files and papers, by giving specific directions to the clerk as to wlmt should be certified. The averments of plaintiff’s amended petition (substituted for the original) contain the facts of the execution of its n >te and mortgage, according to the usual form of pleading in suits for foreclosure, setting out a copy of the mortgage, showing it to be upon lots 13 and 14, and further alleges that defendants McGrews were at the time of the execution of the note and mortgage the owners and in possession of lots 13 and 14, and in possession and occupancy of lots 15 and 16, and had commenced the erection and construction of a dwelling-house on lots 15 and 16, and that at that time the McGrews represented that the money then borrowed, and to secure which the mortgage was given, was for the erection of the dwelling-house on lots 13 and 14, and, plaintiff believing that said improvements were being constructed upon said lots, accepted the mortgage thereon; that the parties to the mortgage were mutually mistaken as to the location of said improvements, and, instead of being upon lots 13 and 14, they were upon lots 15 and 16, and that the money so furnished by plaintiff was to be, and was, used in the
Defendant Sullivan filed- his answer and cross-petition, in which the averments of the petition as against the other defendants are, in the main, admitted, closing with
The defendants, David L. Fair and Ruth A. Fair, his wife, for their answer to the amended petition of plaintiff, admit the corporate character of plaintiff, and that the note and mortgage were made by Mc.Grew and wife, but deny that plaintiff furnished McGrow the full sum of $800, the amount named in the mortgage, or that that amount is due thereon, and require strict proof thereof. They .deny that either the ownership or possession of lots 15 and 16 was in the McGrews from or after the 29th of June, 1906, when their deed of the 25th of that same month was -recorded, and allege that from that date they have ever been and now are the owners of said lots, and also deny that they ever were the owners of lots 17 and 18, or that they in any way purchased either of them or that the defendants McGrews ever owned them. They allege the fact of the existence of the $700 note and mortgage of March 5, 1906, and that as a part of the purchase price of lots 15 and 16 they paid the same on the 26th day of June, .1906, and received a receipt, release and satisfaction of the same, and that the release was recorded in the proper records of the county on the 29th day of June, 1906, and that at the time of the payment plaintiff knew that they had purchased said lots, were the owners thereof, and were paying said note and mortgage as a part of the consideration and purchase price thereof. The facts of the mistakes in the location of the buildings, as hereinbefore stated, are set out at length, and it is averred that the McGrews represented to tluun that the house on lots 17 and 18 was on lots 15 and 16, which representations were relied upon, they not knowing the lines of said lots; that when the McGrews discovered that the said house was on lots 17 and 18, instead of on lots 15 and 16, said McGrews had partially erected a house on lots 15 and 16, believing they had erected it on lots 13 and 14, and they then refused to complete • the house on lots 15 and 16,
Plaintiff, for reply to the answer of the Fairs, submitted a general denial of allegations not admitted, admitted the execution by the McGrews of the first mortgage on lots 15 and 16, but avers that it was given to secure the payment of money furnished by plaintiff to said McGrews for the erection and construction of the dwelling-house erected by them on lots 17 and 18. The averments of the mistake of the McGrews in the location of that house are repeated, and it is alleged that, when the McGrews sold the house on said lots 17 and 18 to the Fairs, th'e Fairs assumed and agreed to pay the debt as a part of the purchase price thereof, all parties believing that said house was located on.lots 15 and 16, the property included in and bound by said mortgage. The Fairs, for their answer to the cross-petition of Sullivan, deny generally all unadmitted facts, and specifically deny that Sullivan furnished any lumber or material of any kind or under any contract to be placed in the building on lots 15 and 16, and deny the existence of any lien thereon in favor of Sullivan. Substantially the same facts as to the mistakes in the location of the buildings, the purchase and conveyance to them of lots. 15 and 1.6, the recording of their deed
The cause was tried to the court, and extended findings of facts and decree were entered sustaining the validity of the mortgage of plaintiff and the mechanic’s lien in favor of defendant Sullivan. It is ordered by the decree that, unless the defendants pay the several amounts found due (to plaintiff $700, and to defendant Sullivan $453.45, each with interest), the plaintiff is authorized to enter upon lots 15 and 16 with necessary assistance and remove the dwelling-house, with the foundation walls and cellar walls, and place the same on lots 13 and 14 in as near the identical situation as it now occupies on lots 15 and 16 as possible, with cellar and all Avails as now existing on lots 15 and 16, and that after said removal the defendants’ equity of redemption be foreclosed as to lots 13 and 14, and that an order of sale issue for the sale of said lots, and that they be sold and the proceeds be applied, first, to pay plaintiff $700, with accruing interest, together with the money necessarily expended in the removal of the house, foundation and cellar walls; second, to pay defendant Sullivan $453.45, with accruing interest; third, to pay the Fairs the sum of $200, with accruing interest. We find no provision in the decree for the payment of the costs of the foreclosure proceedings, nor for the restoration of defendants’ lots to their former condition, by filling the cellar or other excavations made in the improvments by the McGrews, which Avould appear to be in harmony with the idea of placing the parties in the position
The cause has been extensively briefed by the parties to the suit, each brief showing commendable and careful research, and the citation of many cases and authorities in support of the various claims. We will find it impossible to review” the authorities cited, owing to their great number, and will have to be content with the statement of the facts, in part above detailed, followed with our vícav of the principles of equity to be applied.
It is shoAvn by the evidence contained in the bill of exceptions that the defendants, the Fairs, removed and settled in the city of College YieAV in April, 1906, being before that time strangers and having no knoudedge as to the platting or subdivision thereof. Prior to their arrival defendants McGrews had executed a mortgage to plaintiff on lots 15 and 16, block 1 of the addition referred to, and had constructed, or were then constructing, the dvelling-house thereon, as was supposed, but viiich Avas in fact, constructed on lots 17 and 18, to Avhich the Mc-GreAAs had no title.. This was the joint mistake, of plaintiff and the McGrews, and for wdiicli the Fairs Avere in no Avay responsible, nor liad they jn any Avay entered into or in any sense been a party thereto. Mr. Fair testified that both plaintiff and McGreAv represented to him that the house was situated on lots 15 and 16. Acting upon such representations and in the belief that the representations so made were true, he purchased lots 15 and 16 for the sum of $950. The purchase Avas made on June 25, 1906. The naked, unimproved lots (15 and 16) Avere of the value of $100. A warranty deed Avas executed by the McGrews to the Fairs on that date, conveying lots 15 and 16, for the expressed consideration of $1,050. Plaintiff then held a mortgage on 15 and 16 given to secure the sum of $700, bearing date March 5, 1906, which the Fairs had assumed and agreed to pay, and did pay to plaintiff, thereby clearing the title to lots 15 and 16? they not kh')AV
While agreeing with plaintiff’s counsel that it is within the province of courts of equity to correct mutual mistakes in furtherance of justice, and administer the remedy according to the Aery right of the thing, Ave are wholly unable to see Avliere or how the decree in this case can be said to meet the demands of equity. In any event, should this mortgage be foreclosed, common fairness and justice would say that, as a condition precedent thereto, plaintiff should be required to refund to the Fairs the money received from them in payment of its first mortgage, which was paid upon the representation by plaintiff that they were receiving that for Avliich it was so paid. However, as Ave vícav the case, plaintiff is entitled to have its mortgage foreclosed on lots 13 and 14, and is entitled to no relief as against the Fairs. We must not forget that this is not a case where any mistake has been made by a scrivener or person preparing or forming any written instrument. All deeds and mortgages have been draAvn •just as the parties to them intended. The mistakes are as to the location of the properties, the correct descriptions of which have been stated in the writings, and therefore the Iuav of the reformation of contracts or writings can have no application.
We are next to consider the rights of defendant Sul
In Rust-Owen Lumber Co. v. Holt, 60 Neb. 80, the real estate upon which a dwelling-house was erected belonged to a married woman. The contract for furnishing the material for the construction of the dwelling-house was made with her husband. The building was erected with the knowledge of the wife, and after its completion she, with her husband, occupied it as the family residence. In an opinion written by Judge Holcomb it was held that there was no proof that the husband acted as the agent
There having been no semblance of a contract .between Sullivan and the Pairs for furnishing the material used in the construction of the house,' and there being no higher equities in favor of Sullivan than the Pairs, it is believed that Sullivan is not entitled to a lien, but must depend upon his judgment against the McGrews for the payment of his claim.
The decree of the district court is reversed and the cause remanded, with directions to dismiss the suit as to the defendants David L. Pair and Ruth A. Pair and Dan SulliAan, and to enter a decree of foreclosure in favor of plaintiff and against Charlie H. McGrew and Edna I. McGrew, foreclosing plaintiff’s mortgage on lots 13 and 14 in block 1 of Woods and Kelly’s first addition to College View, and such further proceedings as may be necessary to conform to this opinion.
Reversed.