Bullard v. A. P. Lee & Sons

1966 OK 82, 414 P.2d 237
CourtSupreme Court of Oklahoma
DecidedMay 3, 1966
DocketNo. 41067
StatusPublished

This text of 1966 OK 82 (Bullard v. A. P. Lee & Sons) 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
Bullard v. A. P. Lee & Sons, 1966 OK 82, 414 P.2d 237 (Okla. 1966).

Opinion

DAVISON, Justice.

This is an appeal by case made by Edna Cleora Bullard and four of her children, Lura B. Coppola, Carl W. Bullard, Leona B. Raper and Chester D. Bullard, from an order of the lower court adjudging The First State Bank of Edna, Edna, Kansas, was an innocent encumbrancer as to 30 [239]*239acres of land located in Craig County, Oklahoma, and that its real estate mortgage thereon was legal and valid against the claims of the above named individuals. The appealing parties will be referred to collectively as “Appellants” and the mother, Edna Cleora Bullard, (age past 80 years) will be referred to as “Edna.”

We will narrate only enough of the facts and circumstances as are necessary to an understanding of the basis and reasons for our disposition of this appeal. It appears that Edna was the owner of said land on July 12, 1960, and that on November IS, 1960, she executed a deed conveying the same to her six children, who were the four above named persons and Jesse A. Bullard and Charles L. Bullard. This deed was filed for record the same day.

On August 7, 1962,- A. P. Lee & Sons (herein referred to as plaintiff) filed suit against Edna to foreclose a materialman’s lien filed on the property, based on material allegedly bought by Charles L. Bullard, as agent for Edna, between July 12, 1960, and May 27, 1961, and amounting to $1005.36. No personal service of summons was had on Edna.

On October 10, 1962, plaintiff filed an amended petition making the six children (above named) additional parties defendant. No personal service of summons was had on the defendants, and plaintiff secured publication service based on, inter alia, inability to make personal service within the State, and filed affidavit of non-mailing of notice and petition. None of the defendants appeared or answered and on December 14, 1962, a default judgment was rendered against all of the defendants therein. An execution and order of sale was issued and the property was sold to Charles L. Bullard on February 23, 1963, for the total amount due on the judgment. The sale was confirmed and sheriff’s deed was delivered to the purchaser.

On February 12, 1963, prior to the sheriff’s sale, Edna conveyed the property by quit claim deed to plaintiff, in which she recognized the validity of the material-man’s lien and the lien foreclosure. Therein Edna also referred to her prior deed to her children as having been executed because of a misrepresentation, and that it was not her intention to sign any such conveyance. The plaintiff, in turn, then conveyed to Charles L. Bullard.

On February 25, 1963, Charles L. Bullard and his wife mortgaged the property to the said First State Bank for $1000. This mortgage is the encumbrance referred to in the order now on appeal.

Thereafter, on September 27, 1963, the appellants filed their petition to open the foreclosure judgment and to be let in to defend in a trial of the matter. The appellants also tendered a verified answer to the plaintiff’s amended foreclosure petition, denying Charles L. Bullard was the authorized agent for Edna to buy the building materials and attacking the validity of the lien foreclosure sale and the sheriff’s deed to Charles L. Bullard. Appellants were proceeding pursuant to 12 O.S.1961, Sec. 176, which provides, inter alia, that a party against whom a judgment has been rendered, “without other service than by publication in a newspaper” may at any time within three years have the same opened and be let in to defend, provided that, during the pendency of the action the party had no actual notice thereof in time to appear in court and make his defense. Notice was given to plaintiff and Charles L. Bullard, and on November 7, 1963, after a hearing thereon, the court sustained the appellants’ petition to open the judgment, stating “the defendants (Appellants) and each of them are permitted to defend said action *

After this order was made the plaintiff filed a verified reply to the appellants’ answer, alleging inter alia; the agency of Charles L. Bullard for Edna and her knowledge that the materials were being furnished; the validity of the lien and its priority over the subsequent conveyance by Edna to her children, allegedly induced by fraud or mistake or duress, as shown by tiie contents of the quit claim deed given by Edna to the plaintiff; denying appel[240]*240lants were tenants in common in the property; and reaffirming the validity of the publication service had upon the appellants prior to the foreclosure judgment.

Neither the record nor the briefs reflect that there has been any further hearing or a trial on this particular phase of the matter.

The appellants then had the said First State Bank made a party defendant to the action and filed a cross-petition against it, alleging the execution of the mortgage from Charles L. Bullard and wife to the Bank; that the mortgage was void and the Bank was not an innocent encum-brancer as to their interest in the property; that Charles L. Bullard and wife represented to the Bank that they owned the entire interest; and that the sheriff’s deed and the foreclosure judgment were void on the face of the record for the reason that the court had no jurisdiction over appellants when the judgment was rendered. Appellants prayed for cancellation of the sheriff’s deed and the judgment.

The Bank’s verified answer denied generally and specifically the allegations of the cross-petition, but admitted the execution of the mortgage to secure a note for $1000 and that Charles L. Bullard and wife represented they owned the entire interest in the property. The answer alleged the Bank was not a party to the foreclosure proceedings and that the loan was made after the foreclosure judgment and before the appellants made application to set aside the judgment, and that the mortgage was acquired in good faith and was a prior lien upon the property and paramount to any claim of the appellants.

Appellants filed a motion for judgment on the pleadings against the Bank for the reason that the pleadings show the Bank was not an innocent encumbrancer, because it acquired the mortgage within the lis pendens period and the “judgment for Sheriff’s Deed,” upon which Charles L. Bullard claimed ownership, was shown by the files and records in the case to be void.

The lower court overruled the appellants’ motion for judgment on the pleadings and adjudged that the Bank was an innocent encumbrancer and its mortgage legal and valid as against the appellants. This is the order that is the subject of appellants’ appeal.

The order does not state, but we assume that the legal basis relied upon for the order was a provision of 12 O.S.1961, Sec. 176, supra, governing opening of judgments after default on service by publication. That statute also provides as follows:

“ * * * but the title to any property, the subject of the judgment or order sought to be opened, which, by it, or in consequence of it shall have passed to a purchaser in good faith, shall not be affected by any proceedings under this section, * *

Some question has been raised by the Bank as to whether the order is an ap-pealable order, and cite Oklahoma City-Ada-Atoka Ry. Co. v. Parks, 182 Okl. 598, 78 P.2d 791, as follows:

“An order overruling a motion for judgment on the pleadings is not an ap-pealable order, and where an appeal is taken from such an order prior to the entry of a final judgment or order in the cause, such appeal presents nothing properly reviewable by this court.”

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Bluebook (online)
1966 OK 82, 414 P.2d 237, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bullard-v-a-p-lee-sons-okla-1966.