Curtis v. Gooding

99 Ind. 45, 1884 Ind. LEXIS 615
CourtIndiana Supreme Court
DecidedDecember 16, 1884
DocketNo. 11,461
StatusPublished
Cited by48 cases

This text of 99 Ind. 45 (Curtis v. Gooding) 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
Curtis v. Gooding, 99 Ind. 45, 1884 Ind. LEXIS 615 (Ind. 1884).

Opinion

Elliott, J. —

The appellee’s complaint alleges that a mortgage of real estate was executed to her by John C. Curtis; that she instituted a suit to foreclose the mortgage, and obtained a judgment and decree; that on the decree the land [46]*46was sold; that after the sale she discovered that the land had been conveyed by the mortgagor to James B. Curtis and his wife, Carrie Curtis, and that the latter was not a party to the foreclosure suit', that upon discovering that the land had been so conveyed she paid all the costs of the former suit, and instituted the present one.

It is well settled that if the owner of the equity of redemption is not made a party to the suit, the decree of foreclosure is void. It is not necessary to make the mortgagor a party, although it is proper and is the better practice, but it is indispensably necessary that the person to whom he has conveyed should be a party. As one of the owners of the land was not a party, the decree was void as to her, and the appellee was justified in treating it, so far as she was affected, as a nullity, and if it be a mere nullity, it can not stand in the way of a second suit.

A valid decree will merge a mortgage as a cause of action, though it does not destroy the priority and duration of the lien. In order that the decree shall have the effect to merge the cause of action, it must be a valid one, since to rule otherwise would be to declare that a null thing may destroy or take up a valid thing, and this would be absurd. While it is true, as contended, that a decree works a merger of the cause of action, it is by no means true that a void decree does bring about such a result, for a void decree is in legal effect no decree.

The first paragraph of the complaint does show that the judgment and mortgage are both unpaid, and counsel’s argument on this point rests on a false basis and must fall.

It is a mistake to suppose that courts possess only such powers as are expressly conferred upon them by statute. All courts of superior general jurisdiction possess judicial powers independent of legislation. Nealis v. Dicks, 72 Ind. 374; Cavanaugh v. Smith, 84 Ind. 380; Sanders v. State, 85 Ind. 318 (44 Am. R. 29); Little v. State, 90 Ind. 338 (46 Am. R. 224); Earle v. Earle, 91 Ind. 27. Among these general powers [47]*47is that of vacating judgments entered by mistake, of relieving against- judgments procured by fraud, and of annulling void sales and entries of satisfaction of judgments and decrees. It is no answer to such a suit as the present to affirm that it is not expressly provided for by statute; it is enough if it appears to be one calling into exercise an inherent power resident in all such courts. The adj udged cases recognize and enforce the principle that a judgment which has no force may be treated as a nullity, and a new suit instituted ; they, indeed, go farther, for they hold that the proper course to pursue is to disregard the invalid judgment entirely, and proceed upon the original cause of action. Conyers v. Mericles, 75 Ind. 443 ; Davenport v. Sovil, 6 Ohio St. 459 ; State Bank v. Abbott, 20 Wis. 599; Strang v. Beach, 11 Ohio St. 283. This rule, of course, does not apply where the judgment, although erroneous, is not void.

Where an owner of an equity of redemption is not a party to the foreclosure suit, the decree really adjudges nothing as to him, for it is a familiar rule that no one is bound by a decree rendered in a suit to which he was not a party. As the decree is of no force as against one not a party, it is, as to him, a mere nullity, whatever may be its effect upon others, who were served with process. Where an owner of an equity of redemption is not a party, the decree can not merge the mortgage, nor can a sale upon it work a satisfaction as to the person owning the equity of redemption and not a party to the suit. In commencing 'a second suit to foreclose such an equity, the mortgagee does not twice vex a party for the same cause of action, for there was never any suit upon the cause of action urged in the second suit. The purpose of the second suit is not to obtain a second decree against the same party for the same thing, but its purpose is to secure the foreclosure of an equity of redemption not touched by the first suit. It is perfectly obvious, therefore, that the second suit is not the same as the first, and that it is an essentially different suit prosecuted against a different person, and prosecuted for the purpose of reaching a different interest. Such a case bears [48]*48no resemblance -whatever to the case of Hanna v. Scott, 84 Ind. 71.

It would be a reproach to the law, if a party to a suit were precluded from bringing a subsequent suit to foreclose an equity of redemption not affected by the first suit, for the reason that its owner was not a party. The law is not subject to this reproach, for it is quite well settled that a suit may be maintained to bar the equity of one who was not a party to the original suit. The penalty that the plaintiff must suffer is the payment of costs, but lie is not compelled to lose his lien ■or his debt. Shirk v. Andrews, 92 Ind. 509.

It is true that a decree is valid as to the parties served with process. Waltz v. Borroway, 25 Ind. 380; Dwiggins v. Cook, 71 Ind. 579; Hanna v. Scott, supra., But from this premise it can not be inferred that it is valid as to persons not served, for no man who has not had his day in court is bound by the decree rendered in the suit. The question here is not whether the decree was valid as to those served, but whether it was valid as to those not served. That the decree in the first case was not valid as to the owner of the equity not made a party, is so plain that no more than a bare statement of the proposition is needed. If it was not valid, then it is idle to assert that there was a former adjudication.

We do not deem it necessary to discuss the point made by counsel, that, as Curtis and wife were tenants by entireties, the decree was a nullity not only as to the wife, but also as to the husband, for it is enough for the present to hold, as we do, that as to the owner of an equity of redemption not a party to the original cause, the appellee, upon the facts stated in the complaint, had a right to maintain a suit. The prime ■object of such a suit is to secure a foreclosure of an equity of redemption not touched by the first decree, and it is not material in this case to inquire whether that equity dwelt in a joint tenant or a tenant in common.

Where land is held by husband and wife as tenants by entireties, and the wife is not made a party to the original suit [49]*49to foreclose, it is proper, if, indeed, not absolutely necessary, to make the husband a party to the second suit brought to reach the wife’s interest.

In a suit to foreclose an equity of redemption not reached by a suit upon the same mortgage, it is not necessary to make persons parties whose rights were fully adjudicated by the first decree, for all that the second decree can properly do is to foreclose the equity of the person not a party to the original suit.

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Bluebook (online)
99 Ind. 45, 1884 Ind. LEXIS 615, Counsel Stack Legal Research, https://law.counselstack.com/opinion/curtis-v-gooding-ind-1884.