Bobbitt v. Ogg

731 S.W.2d 258, 1987 Mo. App. LEXIS 3853
CourtMissouri Court of Appeals
DecidedMarch 31, 1987
DocketNo. WD 38377
StatusPublished
Cited by4 cases

This text of 731 S.W.2d 258 (Bobbitt v. Ogg) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bobbitt v. Ogg, 731 S.W.2d 258, 1987 Mo. App. LEXIS 3853 (Mo. Ct. App. 1987).

Opinion

CLARK, Chief Judge.

Appellants, Henry and Myerlyne Ogg, were sued in unlawful detainer by respondent, Richard Bobbitt, for possession of residential real estate respondent purchased at a sale in foreclosure of a mortgage on the property. After a jury trial, judgment was entered for respondent and this appeal followed. The principal issues on appeal are whether respondent was entitled to the remedy of unlawful detainer and, if so, whether the trial court erred in refusing to submit appellants’ defense of fraudulent conduct between respondent and the mortgagee associated with the foreclosure sale.

The property in question was purchased by appellants in 1967 at which time they assumed the unpaid balance on a note secured by a deed of trust held by North American Savings Association. Appellants borrowed additional sums thereafter, also secured by trust deeds. Among these was a loan made by Broadway National Bank for $90,000.00 in 1976. That note was assigned to Commercial National Bank in 1979, apparently under a refinancing arrangement to permit appellants to redeem the property from a foreclosure sale held May 23, 1979.

In September, 1983, appellants defaulted in payments due under the note held by Commercial, the balance then being approximately $88,000.00. The following February, they also defaulted under the debt held by North American with a balance of about $18,000.00. To protect its secured position as a junior lien holder, Commercial purchased the note from North American, took an assignment of their position as first mortgagee and commenced foreclosure under that deed of trust.

The trustee’s sale was held May 15,1984. The only bidder was respondent who offered $95,000.00. The money was paid and a trustee’s deed was issued. Appellants were given a notice to vacate and upon their refusal, this action in unlawful detain-er was commenced in the associate circuit court. There, appellants filed an answer, counterclaim and third party petition. The gist of the affirmative claims was that respondent and Commercial had conspired together to deprive appellants of their right to redeem the property under § 443.410, RSMo.1986. A motion to dismiss the counterclaim and third party claim with prejudice was sustained.

The case was eventually transferred to the circuit court for trial. There, appellants filed an amended answer raising by way of defense essentially the same matters pleaded in the dismissed counterclaim and third party claim. The trial court refused to admit appellants’ evidence on issues of fraud and unfair dealing. The jury found in favor of respondent on the claim for unlawful detainer, awarded $1500.00 damages to respondent for loss of rents and set the monthly rental value at $750.00. Judgment was entered accordingly-

In their first point, appellants say the trial court erred in submitting the claim for possession of the property under the form of an action for unlawful detainer and that respondent should have been required to proceed in ejectment. In support of this argument, appellants note that unlawful detainer is a special statutory action authorized and defined by § 534.030, RSMo.1986, and unless respondent qualifies according to the terms of the statute, he is put to another form of action and may not maintain unlawful detainer. Appellants say that the only claim respondent has to support unlawful detainer is the fiction that they are tenants of respondent, a relationship disavowed by the “lien theory of mortgages.”

To the extent applicable here, § 534.030, RSMo.1986 defines unlawful detainer as occurring “[wjhen any person shall willfully and without force hold over any lands, tenements or other possessions, after the termination of the time for which they [260]*260were demised or let to him, or the person under whom he claims * * For the remedy of unlawful detainer to be available to respondent in this case, it must therefore be shown that a prior relationship of landlord and tenant existed between respondent and appellants. Cusumano v. Outdoors Today, Inc., 608 S.W.2d 136, 139 (Mo.App.1980).

The deed of trust involved in the subject foreclosure was dated June 1, 1966 and was assumed by appellants when they bought the property in 1967. Under the deed of trust, the property was conveyed in trust to the trustee and was let back to the mortgagors under the following language:

“The said Trustee hereby lets the premises to the said Grantors until a sale be had under the foregoing provisions, or until default be made in the performance of the agreements herein contained, upon the following terms and conditions, to wit:
The said Grantors and every and all persons claiming or possessing such premises or a part thereof, by, through or under them, shall and will pay rent therefor during the said term at the rate of one cent per month payable monthly upon demand and shall and will surrender peaceful possession to said premises after default or after sale under said provisions, immediately upon the execution and the delivery of the Trustee’s deed hereunder and without notice or demand therefor.”

When appellants purchased the property from the original mortgagors, they succeeded to the rights and assumed the obligations of their grantors under the deed of trust and, in like manner, when respondent purchased the property from the trustee at the sale, he assumed the trustee’s position. Under the language of the deed of trust quoted above, the landlord-tenant relation, at least in formal terms, existed between respondent and appellants.

Appellants argue, however, that the nominal conveyance under a deed of trust is no more than a fiction which is rejected under current Missouri case law adopting the lien theory of mortgages. They cite R.L. Sweet Lumber Co. v. E.L. Lane, Inc., 513 S.W.2d 365 (Mo. banc 1974), Tipton v. Holt, 610 S.W.2d 659 (Mo.App.1981) and Quirk v. Sanders, 673 S.W.2d 850 (Mo.App.1984). They admit that none of these cases involves a mortgage foreclosure and candidly acknowledge no authority in the reported cases has been found directly supporting their contention that unlawful detainer will not lie to aid a purchaser at a sale under a deed of trust.

No significant change has been made in the statutory designation of parties entitled to bring unlawful detainer since 1853 nor has the form of the action been materially altered. Quirk v. Sanders, supra at 854. The case of Sexton v. Hull, 45 Mo.App. 339, 345 (1891), discussed exactly the contention made by appellants here, that is, whether under the traditional language used in deeds of trust, the trustee is invested with legal title so that a tenancy is created in the mortgagor. The court concluded that it was and that the grantee of the trust could maintain an action in unlawful detainer. The law as announced in Sexton has never been questioned in any reported case in Missouri for more than ninety years. See also, Wishart v. Gerhart, 105 Mo.App. 112, 78 S.W. 1094, 1095 (1904).

The cases relied on by appellants do adopt the view that a deed of trust is in fact a lien which is not recognized as an estate in lands.

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Cite This Page — Counsel Stack

Bluebook (online)
731 S.W.2d 258, 1987 Mo. App. LEXIS 3853, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bobbitt-v-ogg-moctapp-1987.