Brown Et Ux. v. Cleverly Et Ux.

70 P.2d 881, 93 Utah 54, 1937 Utah LEXIS 39
CourtUtah Supreme Court
DecidedAugust 3, 1937
DocketNo. 5844.
StatusPublished
Cited by12 cases

This text of 70 P.2d 881 (Brown Et Ux. v. Cleverly Et Ux.) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown Et Ux. v. Cleverly Et Ux., 70 P.2d 881, 93 Utah 54, 1937 Utah LEXIS 39 (Utah 1937).

Opinions

HANSON, Justice.

This is an appeal by the plaintiffs from the judgment of the district court of Davis county denying plaintiffs’ application to-impose an equitable lien upon certain real property in Davis County for the amount of the judgment theretofore obtained by plaintiffs against defendants in an action to rescind a contract of purchase covering said real property and to recover as damages the amount of money paid on said contract by plaintiffs as purchasers under said contract.

Certain phases of this action have been considered heretofore by this CQurt under an application for a writ of prohibition, in pursuance of which a writ was issued and made permanent, as appears in Cleverly v. District Court of Second Judicial Dist., 85 Utah 440, 39 P. (2d) 748, 749. The facts .leading to the application for the writ of prohibition are stated in the opinion in that case, and, since they are likewise pertinent here, we quote from that opinion as follows:

*57 “It appears that on or about April 22, 1929, J. W. Cleverly and Minnie B. Cleverly, his wife, by written contract agreed to sell to Zem Brown and Emma Brown, his wife, the real estate involved in this controversy, together with certain live stock and implements on the place for the sum of $6,500, $1,500 of which was paid and the-balance payable at the rate of $50 per month. The property consisted of five or six acres of improved land located in Davis county. The Browns went into possession, and at a later date leased the premises to a Mr. Waite, who remained on the place for several months. The Cleverlys,' claiming the Browns were in default under the terms of the contract, repossessed the premises early in 1931. Thereupon [on May 28, 1931], the Browns brought suit against the Cleverlys for rescission of the contract and return of the moneys paid thereunder as damages, alleging that they had not been in default, and that the repossession of the premises by the Cleverlys had been wrongful; that the Cleverlys had by ‘fraudulent inducement, collusion and notice persuaded and induced the said Fenton H. Waite, lessee, to vacate the said premises and property.’ In that action defendants filed an answer to which plaintiffs filed a reply. The cause was fully tried on the merits and decided in favor of the Browns and against the Cleverlys. Findings of fact, conclusions of law, and decree were signed and filed and judgment entered. By the decree, the contract of sale was canceled and held for naught, and plaintiffs were given judgment for $2,488.60 as prayed for in their complaint, together with attorney’s fees and interest. Plaintiffs did not pray that an equitable lien be impressed on the property as for a purchase-money debt, and no such lien was provided for in the decree. * * * No appeal was taken, and the judgment became final. Execution was issued and returned unsatisfied. The plaintiffs thereupon obtained an order from the court requiring the defendants to appear and answer respecting their property. Defendants were examined on the 17th of September, 1932, and the matter taken under advisement by the court. On the 15th of October, 1932, the court made and entered an order wherein the real and personal property involved was held to be subject to the judgment, and the sheriff directed to sell the same on execution. Application was made in November of 1933 by the Cleverlys for modification of the order of October 15, 1932, which application was denied by the court as not having been made within time. A new execution was then issued, and, while it was outstanding, on or about the 10th day of February, 1934, the Cleverlys filed a verified petition in the district court asking for an order requiring the plaintiffs to show cause why the court should not amend its order of October 15, 1932, in certain stated respects, and recall and quash the execution. In that petition it was alleged that J. W. Cleverly *58 had been adjudged a bankrupt in the United States District Court on September 15, 1932, and that in such bankruptcy proceedings the judgment in favor of the Browns was discharged as to J. W. Cleverly and the real property herein involved set apart as Cleverly’s homestead, and further that the defendants had selected the real property involved as their homestead, and on March 14, 1932, had filed for record in the office of the county recorder of Davis county their declaration of homestead describing the identical property involved in these proceedings. This petition was also denied by the district court. A petition was then filed in this court praying for a writ prohibiting the district court from enforcing its order of October 15, 1932.”

In the opinion just quoted from we held that the court exceeded its jurisdiction in making its order of October Í5, 1932, and prohibited the enforcement of that order without prejudice, however, to the district court in proper proceedings, determining the question of homestead exemption and the effect of the discharge in bankruptcy of defendant J. W. Cleverly.

On June 28, 1935, and after a remittitur had been filed in the district court, the district court, upon plaintiffs’ motion supported by an affidavit, ordered defendants to appear and answer concerning their property and to set up any claim that they might have to a homestead right to the property in question, and to a discharge in bankruptcy from plaintiff’s said judgment. After defendants had answered this affidavit, the plaintiffs, on August 15, 1935, filed an amended affidavit and petition in which they set out the making of the contract of purchase, the payment by plaintiffs of $2,335 on the contract, the wrongful ousting of plaintiffs from the possession of said property by defendants, the bringing of the action by plaintiffs, the entry of judgment of $2,488 in plaintiffs’ favor, the return of the execution unsatisfied because of defendants’ claims of exemption and discharge in bankruptcy, and the failure of plaintiffs to obtain a repayment of their money on account thereof. It is alleged, also, that, by reason of these homestead and bankruptcy claims, said judgment has become wholly inadequate to give plain *59 tiffs relief to which they are entitled,; that defendants are without funds to repay plaintiffs the money paid by them on the purchase price and the property described is the only property held by defendant, and to permit them to obtain said money because of such claims amounts to a fraud against plaintiffs, defendants being trustees of plaintiffs as to said money. The plaintiffs prayed that defendants be required to set forth their claims of exemption by reason of their homestead and bankruptcy claim, and that the court decree to plaintiffs an equitable lien on said real property, and provide a means for foreclosing the same.

Defendants filed a general and special demurrer and a motion to strike certain portions of the amended affidavit and petition. The demurrer was overruled and the motion denied. The answer of defendants proceeded upon the theory that the judgment obtained by plaintiffs originally was for damages for breach of contract and no equitable lien was impressed by that judgment upon the property in question. There are allegations to the effect that the original judgment is void for reasons stated, but these allegations are not material to a disposition of the issues here before us. Defendants also alleged that defendant J. W.

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Cite This Page — Counsel Stack

Bluebook (online)
70 P.2d 881, 93 Utah 54, 1937 Utah LEXIS 39, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-et-ux-v-cleverly-et-ux-utah-1937.