Baum v. Trantham

23 S.E. 54, 45 S.C. 291, 1895 S.C. LEXIS 41
Procedural entryThis page is a short order in Baum v. Trantham. Read the opinion of the Court — 42 S.C. 104
Supreme Court of South Carolina·Decided October 5, 1895·Published

Opinions

The opinion of the Court was delivered by

Mr. Justice Pope.

[301]*3011 [300]*300This cause comes before us on the appeal of the plaintiffs in the above entitled action, which was heard in the Court of Common Pleas for Kershaw County, in this State, by his Honor, Judge Aldrich, at the summer, 1894, term of said Court, and who filed his decree some time in July, 1894. The facts are few and uncontradicted, and may be summarized as follows: The defendant, W. D. Trantham, became indebted to the firm of Patterson, Renshaw & Co., who sued their claim to judgment on the 20th day of December, 1891; but prior to this, said Trantham, being indebted to B. F. Creighton & Son, in February, 1888, was sued to judgment by said firm; and also the said Trantham, being indebted to Herman Baum, on the 28th day of April, 1888, executed'to him a mortgage on a certain tract of land. There was no' execution lodged with the [301]*301sheriff in the cuse of Creighton & Son v. W. D. Trantham, but Patterson, Renshaw & Co. issued execution on their judgment against Trantham, on the 12th day of December, 1892, and on that day the sheriff thereunder levied upon the tract of land that Trantham had mortgaged to Herman Baum, who had assigned his said mortgage to Baum Bros. This Baum mortgage had been recorded in the office of the register of mesne conveyánce of Kershaw County, within the forty days after its execution. The plaintiffs, on the 13th day of December, 1892, began their action to foreclose the mortgage executed by Trantham, and to this suit made all persons, holding encumbrances junior to that held by the plaintiffs, parties to their action. Amongst others thus made parties were Patterson, Renshaw & Co.; and on the same day, the 13th day of December, 1892, the plaintiffs filed the usual notice of lis pendens. However, Patterson, Renshaw & Co. persisted in their effort to sell this tract of land now in controversy, and it was sold on salesday in January, 1893, by the coroner for Kershaw County (the sheriff being disqualified to act in the premises), the said J. T. Hay being the purchaser at said sale, and he was made a party to the present action as a subsequent purchaser. In his answer he contended that plaintiffs could not foreclose their mortgage so as to defeat his rights as owner of said lands, because, he alleged, the plaintiffs’ mortgage had been discharged as a lien upon the land through its sale by the coroner — the proceeds of the sale having been applied to the older lien of the judgment held by Creighton & Son. In a very carefully prepared decree,'Judge Aldrich sustained the defense of Hay, and adjudged that plaintiffs’ action be dismissed, and, as we before remarked, the plaintiffs now appeal from that decree. Let this decree and plaintiffs’ exceptions thereto appear in the report of the case. We confess that this question, as presented, is interesting of itself, and has been made more so by the circuit decree and the argument of counsel. It seems to us that the defendant, J. T. Hay, was very properly made a party [302]*302to this action. Not only does the provision of our Code of Civil Procedure — sec. 143 — fully sustain such a position, but also the judgment of this Court in Ex parte Mobley, in re McAfee v. McAfee, 19 S. C., 337.

2 But this is not the question in this cause. There are a line of our decisions that go very far in the direction,' that a purchaser at a sheriff’s sale, where land is sold under the execution of a judgment junior in lien to a mortgage thereon, may yet refer for the security of his title to any judgment against the judgment debtor, which was senior in lien to the mortgage, whether there was any execution issued under such senior lien or not. Reference is made to the cases of Ex parte Mobley, supra; Henderson v. Trimmier, 32 S. C., 270; Garvin v. Garvin, 34 S. C., 398; Woodward v. Woodward et al., 39 S. C., 259, as authority for this position. A review of these cases, in order'that we may understand the extent of the doctrines therein established, is necessary. As to Ex parte Mobley, supra, the contention arose as follows: Mobley had signed as surety the bond of McAfee, as administrator of some estate; this administrator, when brought to account before the judge of probate, was decreed to pay some $2,000; failing to pay this money, an execution was issued against McAfee’s property, which was being proceeded with in its enforcement by a sale; but it seems that after this levy upon McAfee’s property, the holders of mortgages, who were his near relatives, began their actions to foreclose the two mortgages thereon, and filed a notice of lis pende7is in each action; the property was sold after these notices of lis pendens had been filed, and at such sale Mobley, to protect himself as surety of the administrator, purchased the property. And after his purchase, exhibited his petition to be made a party to each of said actions for foreclosure of mortgage, alleging that each of said mortgages were fraudulent and pretensive. The Circuit Judge denied Mobley’s right to be made a party, and when Mobley appealed to this Court, it was adjudged that he had the right of being made a party, and [303]*303contesting the legality of such mortgages. In the reasoning of the Court, considerable comment was indulged in as to the effect of the notice of lis pendens, and also reference was made to the principles of law underlying the protection of a purchaser at a sheriff’s sale. As to this last, position was taken that a purchaser at a sheriff’s sale had the right to invoke in his protection, not only the levy, but the judgment itself. It must be apparent, therefore, that the principles of that case are not the same as those here involved. The judgment debtor, under whose judgment McAfee’s property was sold, was not a party to the actions of foreclosure. While in the case at bar he is, and has been all the time, a party to the action. Again, the question before the Court in Ex parte Mobley, was alone as to his (Mobley’s) right of being made a party to the action. It would seem that the solution of that question — and we admit that such judgment was correctly made — did not necessarily involve the reasoning employed to enforce it. The writer of this opinion may be allowed to drop the plural, and say that, so far as I am concerned, I am prepared to justify the judgment of the Court in Ex parte Mobley, upon what seems to me a plainer ground than that adopted by the majority of the Court in establishing such judgment; for it seems to me that Mobley had an equity which entitled him to be made a party, which equity might have been jeopardized by staying his hands and allowing a judgment in foreclosure to be made, and a sale thereunder take place, while he remained silent. Besides, the section of the Code of Civil Procedure— section 143 — fully justified the judgment of this Court, in allowing him to be made a party to the contest over the validity of a mortgage upon land to which he had acquired title since the suit of McAfee v. McAfee in foreclosure had been begun.

Net us next examine the case of Henderson v. Trimmier, supra. It seems that in this case, while there was still a balance due upon a judgment to one Cooley from Henderson, P. M. Trimmier, in 1876, loaned to said Henderson [304]

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Baum v. Trantham, 23 S.E. 54, 45 S.C. 291, 1895 S.C. LEXIS 41 (S.C. 1895).

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