46 Wash. 196 | Wash. | 1907
The appellant brought this action to. foreclose a certificate of delinquency issued foxv delinquent taxes assessed upon certain real property in the county of Clallam. The complaint in foreclosure was in the statutory form, and contained the usual notice to the effect that application would be made to the superior court of Clallam county on a date named for a judgment foreclosing the lien of the certificate. Of the several parties defendant, all defaulted except R. K. Brown and wife, who answered by general denials, and by a statement of new matter in the form of a cross-complaint. In the cross-complaint, after the formal allegations, it was alleged that on and prior to July 18, 1899, the defendant Union Savings and Loan Association was the owner of the property covered by the certificate of delinquency, and on that date conveyed the same to the defendant Edwax’d A. Baldwin, without any consideration, and as a result of conspix’acy entered into between the officers of the defendant association to defraud the corporatioxx’s creditors and obtaixx its property for the benefit of its officers, of whom the defendant Baldwin xvas one. That at the time of the conveyance mentioned, the answering defendant was a creditor of the association, and shortly thereafter obtained a judgmeixt against it for some $2,500; that an execution was issued thereon and the property sold to him, said sale taking place in December, ,1902. That prior to the sale last mexxtioned, Baldwin and wife had conveyed the property without coixsidex-ation to the defendant the Co-operative Investment Company, that sale also being a part of the scheme to cheat axxd defraud the cx-editox’s of the Savings Association. That after purchasing the property at his own execution sale, the respondent Brown began an action against the Co-operative Investment Company and the other conspix;ators, to set aside the conveyances from the Savings Association to Baldwin and from Baldwin to the Co-operative Investment Company, against which Baldwin and the Co-operative Investment Company alone defended, the other defendants therein making de
It is further alleged in the cross-complaint that Baldwin and other officers of the Savings Association organized, in 1900, under the laws of Oregon, another corporation known as the Tax Title Company, the same being organized to better carry out the conspiracy to absorb the property of the Savings Association; that this corpoi’ation had no assets or business, and was used by Baldwin as a means of concealing his identity, and disguising his transactions; that in pursuance of the conspiracy to defraud the creditors of the Savings Association, Baldwin paid the taxes on the property in question here on March 23, 1902, for the years 1897 to 1900 inclusive, but instead of taking a receipt therefor, he represented that the payment was made by the Tax Title Company and procured the treasurer of Clallam county to issue a certificate of delinquency therefor to the Tax Title Company; that the Tax Title Company never had possession of the certificate, but the same was retained by Baldwin; that Baldwin paid the taxes on the land for the years 1901, 1902, 1903, and 1904<, as the same became due, but took a receipt for the year 1901 only in his own name (the receipt for the- year 1902 being taken in the name of the Tax Title Company, that for the year 1903 in. the name of the. Cooperative Investment Company, and that for. the year 1904 in the name of the appellant M. G. Solberg) ; that all of said taxes were paid while the lands were in the possession of Baldwin and his tenants, who were collecting the rents and revenues of the same; the 15th and 16th paragraphs of the cross-complaint being as follows:
“That on or about the 1st day of May, 1905, the said Baldwin knew that the said suit numbered 1939 to vacate and
“That the said E. A. Baldwin and wife and the Co-operative Investment Company are nonresidents of the state of Washington and have no property therein, and if the said R. K. Brown and wife are compelled to pay said taxes and interest they will have no remedy against the said Baldwin and wife and the Co-operative Investment Co. to recover the rents and profits and thereby recoup themselves for said taxes.”
The prayer was that the plaintiff take nothing by the proceeding, and for costs.
To the cross-complaint the appellant Solberg demurred on the grounds, (1) that the court had no jurisdiction of the subject-matter of the action set out in the cross-complaint, and (£) that the cross-complaint did not state facts sufficient to entitle the cross-complainants to the relief demanded, or to any relief. The demurrer was overruled by the court, whereupon the appellant elected to stand thereon and refused to plead further. Judgment was thereupon en
Of the errors assigned for reversal, the first proper
It is next suggested that no defense can be pleaded against the appellant that could not be pleaded against the state itself. But conceding this to be true, it does not aid the appellant here, for as we construe the answer, it is a plea of payment, and payment can be pleaded against a foreclosure to recover supposed delinquent taxes even when the suit is by the state.
The contention that a tender of the taxes should have been made is met by the same objection. The taxes were paid at a time when the payor had money that rightfully belonged to the respondent which remained unaccounted for at the time this action was instituted. There was, therefore, no legal or moral obligation on the part of the respondent Brown to repa}r them to the appellant, who is confessedly but a dummy acting for the payor.
Again, it is said that it is lawful for one having a doubtful title to strengthen himself by procuring a tax title. Granted that this be true, there is no “evidence in this record that such was the purpose of Baldwin. For the facts of the case, we must look to the respondents’ answer, which the appellant confesses to be true. It is there alleged that Baldwin paid the. taxes and took the receipts and certificates for the purpose of cheating and defrauding the respondent Brown, not for the purpose of strengthening his own title. This question therefore has no place in the case. It is the same with the contentions that it was Brown’s, duty to pay the taxes, that the appellant was not a party to the judgments set out in the answer, and that no credit is offered for the amount of the taxes on the judgments obtained against Baldwin. The record does not disclose any facts by which these contentions become pertinent.
The judgment is affirmed.
Hadley, C. J., Crow, Root, Mount, and Dunbar, JJ., concur.