English v. Aldrich

31 N.E. 456, 132 Ind. 500, 1892 Ind. LEXIS 103
CourtIndiana Supreme Court
DecidedMay 21, 1892
DocketNo. 15,536
StatusPublished
Cited by12 cases

This text of 31 N.E. 456 (English v. Aldrich) 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
English v. Aldrich, 31 N.E. 456, 132 Ind. 500, 1892 Ind. LEXIS 103 (Ind. 1892).

Opinion

Coffey, J.

— This was an action by the appellant against the appellees to foreclose a mortgage upon certain described lots in Woodruff Place, in Marion county. It appears by [501]*501the pleadings in the cause, as well as by the special findings of the court, that the mortgage which the appellant is seeking to foreclose was executed by James O. Woodruff to Daggy, Allen and McClain, on the 2d day of October, 1872, to secure certain promissory notes therein described, and that it covered lots 71 and 106, in Woodruff Place. The appellant became the owner of the notes by assignment. On the 4th day of August, 1873, Woodruff sold and conveyed lot 71 to Nicholas R. Ruckle, who assumed the payment of one of the notes held by the appellant, as part of the purchase-price of the lot, and executed to Woodruff a mortgage back on the lot to secure certain promissory notes of that date executed for the balance of the unpaid purchase-price. These last named notes were assigned by Woodruff to the appellees, John Beatty, John G. Mitchell and William Beatty. On the 24th day of August, 1876, Beatty, Mitchell and Beatty commenced their action in the Marion Superior Court against Ruckle, the appellant William H. English, and others, to foreclose the mortgage executed to secure the notes so assigned to them. The appellant was duly served with process. The allegations in the complaint so far as they related to the appellant were as follows : “ The defendants, * * * William H.'English (and others), have or claim to have some interest in or lien upon said mortgaged premises, accrued since the lien of said mortgage upon which this action is instituted.” The prayer of the complaint was as follows: Wherefore, the plaintiffs demand judgment as follows: First. That each and all of said defendants and all persons claiming under them, or through them, or either of them, may be foreclosed of all equity of redemption, or other interest in said mortgaged premises.”

After the service of process, the appellant placed the case in the hands of his attorneys, who called upon the attorneys for the plaintiffs in the case to ascertain why the appellant was made a party, and in response to an inquiry upon that subject they were informed that the appellant had a mere [502]*502nominal interest in the suit, consisting of a judgment for costs, which was a junior lien on the mortgaged premises, and that he was for that reason alone made a party. Relying on this statement and the allegations contained in the complaint, the appellant, by his attorneys, filed a general denial to the complaint. Subsequently the cause was called for trial in the absence of the appellant's counsel, and he was defaulted and the cause tried by the court. The court adjudged and decreed that the mortgage then sued on was the first and paramount lien on the mortgaged premises. The property was sold by the sheriff and bid in by the appellees in satisfaction of their mortgage. The court finds that the failure of the appellant to set up his prior mortgage was owing to the mutual mistake of the attorneys in the cause growing out of the belief that the judgment for costs above mentioned was the only lien against the property held by the appellant at that time.

The appellant remained in ignorance of the fact that the decree affected his prior lien until December, 1879, and upon the discovery of the facts he at once endeavored to adjust the matter with the appellees, but never succeeded, but before any positive refusal on their part to adjust the matter this suit was instituted.

On the 9th day of October, 1877, Tillman A. H. Johnson, having become the owner of lot 106 in Woodruff Place, executed a mortgage thereon to the Indianapolis Savings Bank to secure certain notes therein described, and, on the 19th day of December, 1878, said bank filed its complaint in the Marion Superior Court to foreclose said mortgage, making parties thereto the appellant and others.

In this complaint were the following allegations: It is also alleged that the several defendants hereto have, or claim to have, some interest in or lien upon said mortgaged premises, but if any such interest, lien or claim exists in behalf of them, or either or any of them, it is junior and subordinate to the lien of said mortgage.”

[503]*503The appellant was duly served with process, and thereupon referred the case to his counsel to look after and make his defence. Such counsel called at the office of the attorney who brought the suit, and was shown an abstract of title, upon which appeared a small judgment for costs in favor of the appellant, which was a junior lien upon said lot, and was informed by the clerk in charge of the office, that the appellant was made a party to the foreclosure suit in order to bar his equity of redemption under said judgment for costs, and for no other purpose.

Relying on said statement, and being ignorant that appellant had any other interest therein his counsel, as a matter of form, filed an answer therein consisting of the general denial and a plea of payment.

■ Judgment was subsequently rendered in said cause, wherein it was decreed, as against the appellant, that the mortgage held by the bank was senior and paramount to any lien held by the appellant.

Within sixty days after the rendition of the decree the property was sold by the sheriff on a certified copy thereof. The court also found that the failure to set up the senior mortgage held by the appellant, in that suit, was the result ,of'a mutual mistake between the attorneys of the appellant and the attorneys for the bank. The appellant remained ignorant of the terms of this decree, and of the facts in the case for several years after the decree was rendered, but when he did learn the same he at once endeavored to adjust the matter with the bank, failing in which he instituted this suit.

The court found as a conclusion of law upon the foregoing facts that the appellant was estopped and barred by the decrees above mentioned from foreclosing his mortgage lien on either lot seventy-one or lot one hundred and six.

The assignment of error calls in question the correctness of this conclusion.

It is contended by the appellant that, inasmuch as a court of equity possesses the inherent power to set aside or relieve [504]*504a party from a judgment taken against him by a fraud practiced upon the court, or by the mistake of the court without the fault of the party against whom the judgment is rendered, the court should exercise that power in this case, and relieve him from the injurious effects of the decrees here involved.

It is undoubtedly true that a court of equity does possess the inherent power, independent of any statutory provision, to annul and strike from its records a judgment procured and entered by the perpetration of a fraud upon the courc; and it is also true that many cases are to be found where such power has been exercised as to judgments rendered by mistake. Nealis v. Dicks, 72 Ind. 374; Freeman Judgments, sections 484, 516; Earl v. Earl, 91 Ind. 27; Cavanaugh v. Smith, 84 Ind. 380; Harman v. Moore, 112 Ind. 221; Nicholson v. Nicholson, 113 Ind. 131; Hogg v. Link, 90 Ind. 346; Weiss v. Guerineau, 109 Ind. 438; Millspaugh v. McBride, 7 Paige Ch. 509; Johnson v. Coleman, 23 Wis. 452; Keith v. McCaffrey, 145 Mass. 18; Edson v. Edson, 108 Mass. 590;

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Cite This Page — Counsel Stack

Bluebook (online)
31 N.E. 456, 132 Ind. 500, 1892 Ind. LEXIS 103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/english-v-aldrich-ind-1892.