Bris Realty Co. v. Phoenix Savings & Loan Ass'n

208 A.2d 68, 238 Md. 84, 1965 Md. LEXIS 631
Court of Appeals of Maryland·Decided March 12, 1965·No. [No. 158, September Term, 1964.]·Published·Cited by 19 cases

Opinion

*88 Keating, J.,

by special assignment, delivered the opinion of the Court.

The appellee, Phoenix, went into conservatorship and then into reorganization under the jurisdiction of the Circuit Court of Baltimore City. Under the plan of reorganization, as ordered by the court, claimants, whose claims against the appellee were disputed by the latter, were directed to place such disputed claims in issue before a special master in chancery who was empowered by the order of his appointment “to take testimony and make a final determination, subject to further orders of this court, on the question of whether such claims should be recognized as legal liabilities of Phoenix.” The appellants, who were claimants, pressed their disputed claims before the special master, who heard voluminous testimony and made certain final determinations in respect thereto. As to some of these final determinations, the appellants excepted and the exceptions were heard by the chancellor who overruled them and affirmed the master’s findings. The appellants assign four grounds of error:

(I). The refusal of the chancellor to permit the appellants to take testimony before him on the exceptions. The record shows that the exceptions, as filed by the appellants to the special master’s report, were general in form and failed to point out any finding of fact not supported by the testimony before the master, or any law misapplied by him to such facts in arriving at his allowance or disallowance of the respective claims.

The appellants take the position that as to matters contained in those parts or paragraphs of the master’s report to which they have generally excepted, they had the right to present testimony before the court 3e novo, citing Egerton v. Reilly, 1 G. & J. 385, and Worthington v. Hiss, 70 Md. 172, as authority. These two cases furnish no such authority. In Bgerton, this Court merely held that the lower court erred in referring a matter to an auditor before preliminary pleadings had brought the case to issue; and in Worthington, the appeal was from a decree remanding a case to an auditor with specific instructions to state an account upon principles laid down in the opinion accompanying the decree. Both sides appealed from the directions given *89 to the auditor and no procedural question with respect to testimony either before the auditor or before the court was raised, and nowhere does it appear that the trial court, in hearing exceptions to the auditor’s account before its remand, heard any testimony. The appellants also cite Sewell v. Sewell, 218 Md. 63, for the proposition that a master is not a judicial officer and therefore the court cannot delegate its judicial function to a nonjudicial officer. The short answer to this is that the Sewell case dealt with testimony taken before an examiner, not a master. The powers and duties of examiners and masters are not coextensive. The former merely records testimony for perusal of the court, see Miller, Equity Procedure, p. 262, et seq., whereas the latter, properly called an auditor and master, is an adviser of the court, makes findings, reports to the court and suggests the nature and propriety of the decree. Miller, op. cit., p. 654.

The cases of Maryland Lumber Co. v. White, 205 Md. 180, Pinkston v. Higham, 224 Md. 513, and Alexander v. Hergenroeder, 226 Md. 559, all dealing with reports of masters in chancery, clearly indicate our view that a master’s findings are prima facie correct. When exceptions to auditors’ reports are filed, they should point out the particular error or errors objected to and general exceptions cannot be considered. Miller, op. cit., p. 643; Scrivener v. Scrivener, 1 H. & J. 743; Young v. Omohundro, 69 Md. 424. We believe this is equally true of exceptions to a master’s report. One of the purposes of seeking the advice and recommendations of an auditor and master is to conserve the time of the court. If claimants had the right to offer new or additional testimony before the court, not only would there be no saving of the court’s time but, perhaps, the whole structure of the auditor’s and master’s report would be worthless, thus requiring a remand and revision. Exceptions to a report of an auditor and master will not be sustained unless his findings of fact from the evidence are clearly erroneous, or unless he misapplies the law to his findings of fact. Alexander v. Hergenroeder, supra.

(II). That the chancellor erred in affirming the action of the auditor and master in admitting the testimony of Clarence W. Sharp, Esq. The appellants’ contention is based on the fact that *90 Mr. Sharp, a member of the bar, while appearing as one of the attorneys of record for the appellee, Phoenix, before the master and after having cross-examined some of the appellants’ witnesses, struck out his appearance for the appellee and took the witness stand to testify as the sole witness for the appellee.

The record shows that Mr. Sharp had gained a thorough and unique knowledge of the voluminous and intricate dealings between the appellants and the appellee, he having acted as an assistant to the counsel for the court’s conservator during the period of the appellee’s conservatorship; that after the reorganization of the appellee was authorized and the instant proceedings before the master were instituted, the appellee engaged Mr. Sharp, because of his familiarity with the books, records and dealings of the appellee with the appellants, to act as co-counsel in representing its interest; that he assisted in preparing the appellee’s answers to certain pretrial interrogatories and sat at the trial table before the master with his co-counsel before the latter became ill, and thereupon did cross-examine some of the appellants’ witnesses. The appellants complain that as he must have known that he was expected to testify for the appellee, it was improper for him to take part in the trial as counsel, citing Snyder v. Hammer, 180 Md. 690 (decision reported without opinion), 23 A. 2d 653, 655 (opinion reported in full), wherein it was said “this Court expresses agreement with the chancellor’s disapproval of the practice of counsel’s giving testimony to support the cases in which they are engaged except when the need of so doing has not been foreseen.” While we affirm our pronouncement in Snyder, we point out two things: the practice is looked on with disfavor except in unusual circumstances, but such testimony is not inadmissible, Jones, Evidence (2d ed.), § 754, 58 Am. Jur., Witnesses, § 152; and, in the instant case, Mr. Sharp was former assistant to counsel for the court’s conservator, and thus his testimony was based upon information gained as an officer of the court. We see no abuse of discretion in allowing him to testify.

(III). That the chancellor erred m affirming the toaster’s disallowance of the appellants claims for certain deficiencies m mortgage foreclosure proceedings.

Free access — add to your briefcase to read the full text and ask questions with AI

Bris Realty Co. v. Phoenix Savings & Loan Ass'n, 208 A.2d 68, 238 Md. 84, 1965 Md. LEXIS 631 (Md. 1965).

208 A.2d 68 (Bris Realty Co. v. Phoenix Savings & Loan Ass'n) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

100 Harborview Drive Condominium Council of Unit Owners v. Clark
119 A.3d 87 (Court of Special Appeals of Maryland, 2015)
Lemley v. Lemley
649 A.2d 1119 (Court of Special Appeals of Maryland, 1994)
James v. James
625 A.2d 381 (Court of Special Appeals of Maryland, 1993)
In Re Formal Inquiry Concerning Judge Bennett
483 A.2d 1242 (Court of Appeals of Maryland, 1984)
Litzenberg v. Litzenberg
469 A.2d 1279 (Court of Special Appeals of Maryland, 1984)
Anthony Plumbing of Maryland, Inc. v. Attorney General
467 A.2d 504 (Court of Appeals of Maryland, 1983)
Dobrow v. Dobrow
439 A.2d 596 (Court of Special Appeals of Maryland, 1982)
Cottonwood Estates, Inc. v. Paradise Builders, Inc.
624 P.2d 296 (Arizona Supreme Court, 1981)
Wenger v. Wenger
402 A.2d 94 (Court of Special Appeals of Maryland, 1979)
Police Commissioner v. Dowling
379 A.2d 1007 (Court of Appeals of Maryland, 1977)
Rand v. Rand
365 A.2d 586 (Court of Special Appeals of Maryland, 1976)
Matter of Anderson
321 A.2d 516 (Court of Appeals of Maryland, 1974)
Christensen v. State
320 A.2d 276 (Court of Special Appeals of Maryland, 1974)
Bar Ass'n v. Marshall
307 A.2d 677 (Court of Appeals of Maryland, 1973)
Robinson v. Brodsky
298 A.2d 884 (Court of Appeals of Maryland, 1973)
Phoenix Savings & Loan, Inc. v. Striner Enterprises, Inc.
288 A.2d 902 (Court of Appeals of Maryland, 1972)
Republic Realty Co. v. Phoenix Savings & Loan Ass'n
243 A.2d 858 (Court of Appeals of Maryland, 1968)
Republic v. PHOENIX S. & L. ASS'N
243 A.2d 858 (Court of Appeals of Maryland, 1968)