Brackett v. Banegas

48 P. 90, 116 Cal. 278, 1897 Cal. LEXIS 538
CourtCalifornia Supreme Court
DecidedMarch 12, 1897
DocketL. A. No. 120
StatusPublished
Cited by22 cases

This text of 48 P. 90 (Brackett v. Banegas) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brackett v. Banegas, 48 P. 90, 116 Cal. 278, 1897 Cal. LEXIS 538 (Cal. 1897).

Opinion

Searls, C.

This is an action to foreclose a mortgage. Plaintiff had a decree. Defendants appeal from the judgment and from an order denying their motion for a new trial. The prominent facts are as follows:

On the 5th of January, 1891, plaintiff brought an action in the superior court in and for the county of San Diego, to foreclose a mortgage executed by the defendant, Manuel Banegas, to secure the payment of a prom[282]*282issory note made by him, the said Banegas, for seventeen hundred dollars.

Before bringing such action, plaintiff, as was the general practice, applied to an abstract company for a search of the records, and received a report that the only encumbrances on the mortgaged property, other than plaintiff’s mortgage, was a judgment lien in favor of one J. M. Lucas. There was, in fact, at the time of such search of record, a declaration of homestead made by defendant, Manuel Banegas (who was a married man, and resided with his family on the premises), upon the 'mortgaged premises. This was not discovered by the abstract company, and plaintiff, having no knowledge thereof, made Manuel Banegas and J. M. Lucas parties defendant in said action, and did not make Nievas Banegas, who is and was the wife of Manuel Banegas, a party defendant.

A decree of foreclosure was rendered in said action; the mortgaged property was sold thereunder and purchased by plaintiff. The time for redemption was, by agreement between plaintiff and Manuel Banegas, extended for six months, upon the expiration of which time, and no redemption having been had, plaintiff obtained a writ of assistance.

Thereupon, and in April, 1892, defendant moved the discharge of said writ, and set up the homestead record as a cause therefor. This was the first knowledge which plaintiff had of the homestead proceedings. The writ was discharged.

Thereupon plaintiff moved the superior court for an order setting aside the decree in the case and all proceedings subsequent thereto, and for leave to file an amended and supplemental complaint bringing in the wife, Nievas Banegas, as a party defendant.

This motion was granted, but on an appeal therefrom to this court, and from an order refusing to set aside said first order, the orders were reversed, upon the ground that more than six months having expired between the date of the decree and the order setting the [283]*283same aside, the court was not, under section 473 of the Code of Civil Procedure, authorized or empowered to make said order. (Brackett v. Banegas, 99 Cal. 623.) Thereupon plaintiff instituted this action to foreclose the same mortgage, making the wife a party defendant, and setting out in extenso the foregoing facts as ground of equitable relief in addition to the ordinary statement of a cause of action in foreclosure.

The prayer of the complaint also asked that the former judgment, and all subsequent proceedings thereunder, be set aside, which prayer was granted.

The mortgaged property having been made a homestead, the action to foreclose and the decree rendered therein were void as against the wife, who was not made a party thereto. (Watts v. Gallagher, 97 Cal. 47.) In Revalk v. Kraemer, 8 Cal. 66, 68 Am. Dec. 364, it was held that where a mortgage was executed by the husband alone upon the homestead, a judgment of foreclosure in an action in which he alone was defendant, neither the rights of the husband or wife were affected by the proceedings. As the homestead rights of the husband and wife can only be foreclosed in an action in which both are made parties, the plaintiff acquired no title under his purchase in the action against the husband alone.

Had plaintiff a right under these circumstances to maintain another action against Manuel Banegas and wife to foreclose? Jones, in his work on Mortgages, at section 1679, enunciates the rule as follows: “If the owner of the equity has, through mistake, not been made a party, the mortgagee who has purchased at the sale may maintain a second action to foreclose the equity of such owner, and for a new sale, but he cannot recover the costs of the previous sale.” The author cites the cases of State Bank v. Abbott, 20 Wis. 570, Stackpole v. Robbins, 47 Barb. 212, and Shirk v. Andrews, 92 Ind. 509, in support of the doctrine. The author adds in the same section: “Although a new action is the proper remedy for a foreclosure imperfect through failure to [284]*284make all persons interested in the equity of redemption parties to the suit, the courts have allowed the original suit to be reinstated upon an amended petition, even after an interval of several years.” (Loftin v. Strow (Ky., Apr. 14, 1887), 4 S. W. Rep. 180.)

Courts of equity will not, save in exceptional cases, in a separate action relieve a party from errors of law, but will grant such relief in the original action upon motion or supplemental bill. (Goodenow v. Ewer, 16 Cal. 461; 76 Am. Dec. 540; Boggs v. Hargrave, 16 Cal. 560; 76 Am. Dec. 561.) In this case, however, the mistake is not one of law, but of fact. The mistake consisted not in the legal effect of the homestead, but in its existence. In such a case, the original decree having been void for the want of jurisdiction of the court below to enter it without the presence of the wife, or, what is the same thing, such service upon her as required her to appear and defend, if any defense she had, no good reason is perceived why an independent action may not be had to adjust the equities of all the parties. Manuel Banegas is not injured by the institution of the second action. The original judgment against him was for two thousand four hundred and forty-nine dollars and eight cents, with costs. The present judgment is for the two thousand four hundred and forty-nine dollars and eight cents, without the cost of the original action and without the conventional interest, or any interest thereon, from the date of the original judgment in 1891 until the entry of the judgment herein in 1894, a period of over three years.

Appellant contends that a counsel fee was allowed in the case against the defendant. The mortgage provided for a counsel fee; but we cannot determine from the record that one was allowed.

In Ede v. Hazen, 61 Cal. 360, which was a bill in equity for relief against a judgment, brought within five months after the entry of such judgment, the court said: “The assistance of equity cannot be invoked so long as the remedy by motion, exists; but when the time [285]*285within which a motion may be made has expired, and no laches or want of diligence is imputable to the party asking relief, there is nothing in reason or propriety preventing the interference of equity. Bibend v. Kreutz, 20 Cal. 109, is to like effect. (See, also, California Beet Sugar Co. v. Porter, 68 Cal. 369; Lapham v. Campbell, 61 Cal. 296; Baker v. O’Riordan, 65 Cal. 368.)

We are of opinion there was no such laches or want of diligence imputable to plaintiff as will preclude his maintaining the action.

Concede that the mistake of the abstract company was his mistake, and it only proves, as was said in Sidener v. Coons, 83 Ind.

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Bluebook (online)
48 P. 90, 116 Cal. 278, 1897 Cal. LEXIS 538, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brackett-v-banegas-cal-1897.