Bertram v. Moore

1932 OK 442, 15 P.2d 589, 160 Okla. 78, 1932 Okla. LEXIS 679
CourtSupreme Court of Oklahoma
DecidedJune 7, 1932
Docket20948
StatusPublished
Cited by9 cases

This text of 1932 OK 442 (Bertram v. Moore) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bertram v. Moore, 1932 OK 442, 15 P.2d 589, 160 Okla. 78, 1932 Okla. LEXIS 679 (Okla. 1932).

Opinion

GBLLISON, J.

Plaintiff, Tom Moore, filed suit in the district court seeking to foreclose a vendor’s lien upon certain real property located in Coal county, Okla., and from a judgment favorable to plaintiff, defendants appeal. The parties will be referred to as they appeared in the trial court.

The record discloses that Patsy Grennan and wife owned certain real property in Coal county, Okla. In the year 1918 they mortgaged a portion of said real property to the. Conservative Loan Company in the amount of $1,500, which said mortgage was sold and assigned by the Conservative Loan Company to Neva Baker one of the defendants .herein. On the same date Grennan and wife mortgaged other and additional real property to the Conservative Loan Company for $2,000, which said mortgage was sold and assigned by the Conservative Loan Company to W. C. Bertram, one of the defendants herein. After giving said mortgages, Grennan and wife conveyed the land to one Bosley, who in turn conveyed the same to one Morris, who in turn conveyed to the plaintiff, Tom Moore. Tom Moore sold the land to J. A. Dillehay and reserved a vendor’s lien for the purchase price of said property, in the amount of $2,800, evidenced by two notes, each dated January 8, 1921, one of which became due on January 1, 1922, and the second note became due on January 1, 1923. Each of said notes stated that the same was given in part payment of the purchase price of the land in question, which was described in said notes.

The deed given by Tom Moore to Dillehay recited that part of the purchase price of said property, to wit. $2,800 thereof, was represented by two notes of $1,400 each. The payments on the mortgages given by Gren-nan and wife covering the property under consideration were not made when due, and Bertram and Baker, the owners and holders of said mortgages, instituted foreclosure proceedings to foreclose their respective real estate mortgages. In the foreclosure of said real estate mortgages, plaintiff, Tom Moore, was not made a party defendant in either of said foreclosure suits. In each of the foreclosure suits, judgment was rendered favorable to the owner and holder of the mortgage, the property sold thereunder, and Bertram and Baker bought in the; property covered by their respective mortgages. On April 11, 1928, Tom Moore (plaintiff) filed the case at bar seeking to foreclose Ms vendor’s lien against tbe property sold to Dille-hay, which is the same property as that covered by Bertram and Baker’s sheriff’s deeds.

The case was tried to the court and at thq conclusion of the evidence the court found favorably to plaintiff and rendered judgment for plaintiff for the amount of the purchase price remaining unpaid, to wit, $2,800, as represented by the two notes, the basis of plaintiff’s suit, with interest and attorney’s fees, and decreed the same to be a valid lien upon the land in controversy.

In the appeal, to this court, defendants contend that plaintiff's cause of action was barred by the statute of limitations. In the consideration of this question, we observe the following vital factors in said record: The basis of- plaintiff’s cause of action is the vendor’s lien retained by plaintiff when he sold the land to Dillehay on January 8, 1921, and on said date Dillehay made and executed Ms two certain vendor’s l'ien notes in favor of the plaintiff herein (Tom Moore) in the amount of $1,400 each. The first of said notes became due on January 1, 1922, and the second note became due on January 1, 1923. Plaintiff’s cause of action was filed in the district court on April 11, 1928, more than five years after the last note became due.

Plaintiff pleaded that Dillehay, the maker of said notes, had resided without and beyond the limits of the state of Oklahoma since the date said notes were executed, and claimed that this tolled the running of the statute of limitations. The exact case presented herein for determination has never-been passed upon by this court. The question is whether the fact that Dillehay was. without the borders of the state of Oklahoma from and after the date said notes became due was sufficient to toll the statute of limitations in regard to the vendor’s lien against the real property situated in Ooal county, Okla.

Section 7424, C. O. S. 1921, is as follows:

“A lien, is extinguished by the mere lapse of the time within which, under the provisions of civil procedure, an action can be brought upon the principal obligation.”

The above section is the only guide we have in determimng the ease at bar. We ob *80 serve that said section provides that a lien is extinguished by the mere lapse of the time within which, under the provisions of civil procedure, an action can be brought upon the principal obligation. This statement, that a lien is extinguished by the mere lapse of time within which an action can be brought upon the principal obligation, means that the lien lapses if no proceedings are instituted to enforce the same upon the expiration of the length of time that the statute of limitations would run against the obligation.

What was the limitation on plaintiffs cause of action? The same was represented by two notes. The statute of limitations on a note is five years. The second note in the ease at bar became due on January 1. 1923, and on January 1, 1928, the statute of limiations had run against plaintiff’s cause of action on said note, unless there was some saving feature to prevent the running of the statute of limitations. Plaintiff pleaded that Dillehay had been absent from the state so as to toll the running of the statute of limitations. Does the absence from this state of the maker of the vendor’s lien notes extend the time in which the vendor could foreclose his lien on the land to subject said land to the payment of the unpaid balance of the purchase price?

We observe that it was the intention of the Legislature in passing the statute such as under consideration to meet the very situations as presented by the case at bar. The record discloses that Dillehay was a resident of the state of Texas at the time the contracts under consideration were made and has been ever since. There was no good reason why he should come to the state of Oklahoma and permit himself to be sued. Good judgment dictated that he remain within the state of Texas and save himself. Under our statutes, so long as he remains without the state the statute of limitations would not run as against him on the notes. Under the circumstances in this case we see no reason why he should come into the state of Oklahoma and thereby start the statute of limitations to running. If he remains without the state and the statute of limitations did not run against the lien as contended' by plaintiff, then the lien would continue indefinitely.

As a matter of public policy it is expedient that titles to real properly be kept in a good merchantable condition and for that reason it is the intent of section 7424 to cut •off such liens within the statutory time provided for enforcing the same, thereby clearing said property from ihe effect of said lien where the holder of the lien fails to enforce the same -útliin the reasonable time allowed him by statute.

We further observe that where the holder of a note seeks judgment on the note, he seeks a personal judgment against the maker of the note, which necessitates personal service.

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Cite This Page — Counsel Stack

Bluebook (online)
1932 OK 442, 15 P.2d 589, 160 Okla. 78, 1932 Okla. LEXIS 679, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bertram-v-moore-okla-1932.