Citizens State Bank v. Adams

91 Ind. 280, 1883 Ind. LEXIS 359
CourtIndiana Supreme Court
DecidedJune 8, 1883
DocketNo. 10,136
StatusPublished
Cited by17 cases

This text of 91 Ind. 280 (Citizens State Bank v. Adams) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Citizens State Bank v. Adams, 91 Ind. 280, 1883 Ind. LEXIS 359 (Ind. 1883).

Opinion

Bicknell, C. C.

— This was a suit upon a note and mortgage made by Ira B. Adams to Lydia Adams, which, it was alleged, after several assignments, became the property of the appellant, who brought the suit against the maker.and the alleged assignors.

The appellant obtained a judgment by default against all the defendants.

The appellee filed a complaint praying that the judgment [282]*282and the sale thereon made be set aside, and that she be permitted to appear and defend. A demurrer to this complaint having been sustained, an appeal from the judgment thereon was taken to this court, where the complaint was held sufficient, the judgment upon the demurrer, was reversed, and the cause remanded' for further proceedings, the result being that the default and judgment in the original suit were set aside as to the appellee. The appellant moved for a new trial of the question as to setting aside the default. This motion was overruled, and the appellee then answered the original complaint and filed a duly verified cross complaint.

Her ans,wer was in two paragraphs, to wit: 1st. The general denial. 2d. That on May 1st, 1875, she sold the land described in the mortgage to Ira B. Adams for $4,000, secured by his two notes for $2,000 each, which she still holds, and which are due and unpaid; that on May 4th, 1875, said Ira B. Adams made the note and mortgage described in the appellant’s complaint, but never delivered either of them to her; that she never knew of their existence until after the commencement of this suit; that she never endorsed the same, nor authorized any one to do so.

The cross complaint states in substance the same facts, and that Ira B. Adams is insolvent, and has no property subject to execution except said mortgaged land, and prays that the amount due the appellee be declared a lien upon said land, superior to the lien of said mortgage, and that upon a sale she be first paid out of the proceeds.

Demurrers to the second paragraph of said answer and to said cross complaint were overruled.

The appellant replied in denial and answered the cross complaint by a denial.

The issues were submitted to the court for trial, and, without objection, the following questions of fact were submitted to a jury for the information of the court, to wit:

1. 'Were the note and mortgage in controversy made by Ira B. Adams to Lydia Adams with her knowledge or consent ?

[283]*2832. Were tlie note and mortgage, or either of them, made by Ira B. Adams to Lydia Adams with her knowledge or consent?

3. Did Lydia Adams have any knowledge of the existence of the said note and mortgage or either of them ?

4. Were the said note and mortgage, or either of them, delivered to Lydia Adams, or any other person by her authority ?

5. Did Lydia Adams endorse said note by making her mark where her name is written on the back of said note ?

6. Did Lydia Adams endorse said mortgage by making her mark where her name is written on the back of said mortgage ?

To each of these questions the jury answered “ ISTo.”

The court found for said Lydia Adams upon the complaint and cross complaint, in the sum of $6,548, and rendered a judgment that she had a vendor’s lien therefor on the said land, superior to any lien of the appellant, and that said land be sold to pay said lien of said Lydia Adams, after first exhausting the personal'propex’ty of said Ira B. Adams, if any there be, etc.

The appellant moved for a new trial; this motion was overruled, and the present appeal was taken.

The following are the errors assigned:

1. The court erred in finding for and rendering judgment in favor of Lydia Adams upon the complaint and motion to set aside the default taken against h.er in .said cause.

2. The court erred in overruling the appellant’s motion for .a new trial of the issue formed upon said complaint to set aside said default.

3. The court erred in rendering judgment upon its finding on said issue.

4. Error in overruling the appellant’s demurrer to the second paragraph of the# appellee’s answer to the original complaint.

5. The court erred in overruling the appellant’s demurrer to the appellee’s cross complaint.

[284]*2846. The cross complaint does not state facts sufficient to constitute a cause of action.

7. The court erred in overruling the plaintiff’s motion for a new trial.

The first and third of these alleged errors present no question for consideration. Smith v. Ryan, 83 Ind. 152; Blizzard v. Riley, 83 Ind. 300.

As to the second alleged error, the reasons assigned for a new trial of the issue joined upon the complaint to set aside the default are, that the finding thereon was not sustained by sufficient evidence, is contrary to the evidence, and is contrary to law.

When this case was here before, the complaint to set aside the default was held to be sufficient. Adams v. Citizens State Bank, 70 Ind. 89. Therefore, the only question ai'ising upon this motion for a new trial is, was there evidence tending to sustain the allegations of the complaint to set aside the default?

The substance of the complaint is thus stated by Worden, J., in giving the opinion of the court in the case last above cited: “The plaintiff was an elderly woman, 67 years of age, and it may be assumed that she had but little knowledge of the world or its ways and business, as she could neither read nor write. She did not understand the summons, when it was read to her, or know what it meant, but she thought and understood that the suit was to be at the court-house at Indianapolis, and she was led to believe it was a matter in which she had no interest. Common justice,” says the judge, “ requires that the plaintiff, under the facts stated in the complaint, should be relieved of the default and judgment against her.” We think the finding of the court was right, and that there was no error in overruling the motion for a new trial of the issue now under consideration.

As to the fourth alleged error, this court in its former opinion, already referred to, said: “ It is abundantly clear that the defendant could acquire no title to the note and mortgage as against the plaintiff, by means of the forged endorse[285]*285ments, nor could it thus acquire any right as against the plaintiff to enforce the mortgage against the land, and thereby interfere with the lien of the plaintiff as a vendor. As to rights of parties to forged paper, see Edwards Bills, 190; Allen v. Sharpe, 37 Ind. 67; Huston v. Roosa, 43 Ind. 517; Huston v. Schindler, 46 Ind. 38.”

The appellant, in its complaint, claimed title under the forged endorsements; the forged endorsements passed no right as against the appellee, even to a bona fide holder for value. Esdaile v. LaNauze, 1 Younge & Collier, 394; Johnson v. Windle, 3 Scott, 608. There was no error in overruling the demurrer to the second paragraph of the appellee’s answer.

The fifth and sixth errors question the sufficiency of the cross complaint.

The appellant, in its brief, claims that the cross complaint was insufficient, because Ira B. Adams was not made a party to it.

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Bluebook (online)
91 Ind. 280, 1883 Ind. LEXIS 359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citizens-state-bank-v-adams-ind-1883.