City Loan System, Inc. v. Nordquist

165 A. 341, 35 Del. 371, 5 W.W. Harr. 371, 1933 Del. LEXIS 18
CourtSuperior Court of Delaware
DecidedFebruary 14, 1933
DocketNo. 431
StatusPublished
Cited by7 cases

This text of 165 A. 341 (City Loan System, Inc. v. Nordquist) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City Loan System, Inc. v. Nordquist, 165 A. 341, 35 Del. 371, 5 W.W. Harr. 371, 1933 Del. LEXIS 18 (Del. Ct. App. 1933).

Opinion

Rodney, J.,

delivering the opinion of the Court:

It is readily found as a fact that Anna Bergquist did not sign the note in question containing the warrant of attorney upon which the judgment was entered and also that her name was not placed on said note by her authority.

There is no testimony whatever upon which a different finding could be based unless it be the mere circumstance that Anna Bergquist was living with her husband and that he presented the note to the bank and received the proceeds.

That, of course, is not sufficient to overcome the direct and positive denials.

It is also found that Anna Bergquist is not barred by estoppel from denying her signature to the note and warrant of attorney from a reliance upon the forgery thereof.

It is not necessary to consider the various elements entering into an estoppel. There is one necessary element without which an estoppel cannot exist and which is lacking-in this case. There can be no estoppel unless the party claiming its benefit and seeking its enforcement should have been misled into or kept from some action so that he will suffer injury if the estoppel be not declared. The party seeking the estoppel must have been induced to alter his position in such a way that he will be injured if the other person is not held to the representation or attitude on which the estoppel is predicated. 10 R. C. L. 697.

In the present case the plaintiff suggests that the attitude or promises of Anna Bergquist induced it to refrain from collecting its note from either the real estate held by Anna Bergquist and her husband jointly and also from the personal property owned by Theodore Bergquist.

We shall consider them separately. As far as the realty is concerned it is only necessary to observe that the estate by [376]*376entireties and any legal ownership of Theodore Bergquist was conveyed on June 13, 1932, before Mrs. Bergquist had any knowledge at all of any note or notes bearing her signature and before any representations were made or any attitude assumed by her with relation to them and the real estate is still held by her.

The suggestion that the plaintiff refrained from collecting the note from the personal property of Theodore Bergquist because of Mrs. Bergquist’s payments on her forged note and, therefore, she should be estopped from denying her signature is not borne out by the facts. It clearly appears that Bergquist was insolvent; that all the personal property he had was a few things in his tailor shop and that these were levied on and sold for rent in arrears and that the proceeds were insufficient to pay the rent. This rent would have had priority over the note in any event.

One question of interest yet remains. The plaintiff contends that notwithstanding the fact that the signature of Anna Bergquist to the note and warrant of attorney may have been a forgery, yet it contends it had been ratified and adopted by her and is,, therefore, binding-upon her.

Many Courts have failed to clearly draw the distinction between estoppel on the one hand and ratification or adoption on the other. The distinction is real, for upon the same facts one may exist and the other not. So, too, ratification and adoption are often used as synonymous terms and yet it is said to be “easier to conceive of the adoption of a forged signature * * * with consequent liability, than to think of the ratification of such a signature.” 48 A. L. R. 1374.

The question before us is, whether a judgment entered by confession on a forged warrant of attorney,' without other service of process on the defendant, can' be subsequently validated by the adoption of the forged signature by the party charged.

[377]*377The objection, of course, is that if the signature to the warrant of attorney be forged and if there be no other service of process on the defendant the Court never had jurisdiction over the party defendant and was utterly powerless to enter a valid judgment and the judgment as to such party was void.

The question as to whether or not there can be an adoption of the judgment in question so as to give it validity and vitality is largely a question as to whether, the forgery of warrant of attorney being shown, the judgment is void or voidable. These words are not interchangeable. That which is merely voidable may, under certain circumstances, be affirmed and adopted, but it has been held that a judgment that is absolutely void cannot be vitalized by subsequent act of the parties. Laughton v. Nadeau (C. C.), 75 F. 789; Owens v. Cocroft, 14 Ga. App. 322, 80 S. E. 906; Camp v. Wood, 10 Watts (Pa.) 118.

The effect of a void judgment was considered in Frankel v. Satterfield, 9 Houst. 201, 19 A. 898, 900. This case was an alias sci. fa. to revive a judgment. Judgment had been originally improperly entered as a personal judgment in a suit brought by foreign attachment where no property had been attached and no service had upon the defendant. An earlier sci. fa. had been issued to revive the judgment and had been personally served upon the defendant and no defense made to the sci. fa. and the judgment was revived. The alias sci. fa. likewise was personally served upon the defendant. The Court held the judgment void for want of original jurisdiction apparent upon the record and stated that because the want of jurisdiction appeared upon the record the judgment “* * * never had lawful existence. By it no rights are divested. From it no rights can be obtained. Being worthless in itself, all proceedings founded upon it are equally worthless. It neither binds nor bars any one. All acts performed under it, and all claims flowing out of it, are void. It cannot be the basis of an execution, or the foundation of a valid title [378]*378to property purchased at a sale thereunder. No action on' the part of . the plaintiff, no inaction on the- part of the defendant, can invest it with any of the elements of power or of vitality. It is unavailing for any purpose.”

The Court further said:

“The default of the defendant to plead to the scire facias and show the want of jurisdiction apparent of record against the original judgment, cannot be held to be such an admission to the contrary, or such a waiver, as will cure that fatal infirmity in the judgment at the time of its rendition, for the character and status of said judgment were fixed at that time. If void then, it could have no existence or force thereafter. As was said by the court in Pennoyer v. Neff, 95 U. S. 714 [24 L. Ed. 565]: ‘The judgment, if void when rendered, will always remain void. * * * The validity of every judgment depends upon the jurisdiction of the court before it is rendered, not upon what may occur subsequently.’ ”

The question of the validity of a judgment entered upon a note or bond and the validity of the warrant of attorney upon which such judgment was entered has arisen a number of times in the case of persons under age. Such was the case of Waples v. Hastings, 3 Harr. 403. It is not necessary for us in the present case to approve the doctrine there laid down that a bond of an infant is void and not voidable as some of the older cases hold. In this respect there seems to have been considerable progress in the law; but in Waples v. Hastings

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

Related

Baio v. Commercial Union Insurance
410 A.2d 502 (Supreme Court of Delaware, 1979)
Smulski v. H. Feinberg Furniture Co.
193 A. 585 (Superior Court of Delaware, 1937)
Miles v. Layton
193 A. 567 (Supreme Court of Delaware, 1937)
King v. Cordrey
177 A. 303 (Superior Court of Delaware, 1935)
Tweed v. Lockton
167 A. 703 (Superior Court of Delaware, 1932)

Cite This Page — Counsel Stack

Bluebook (online)
165 A. 341, 35 Del. 371, 5 W.W. Harr. 371, 1933 Del. LEXIS 18, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-loan-system-inc-v-nordquist-delsuperct-1933.