Epworth Orphanage of the South Carolina Conference v. Strange

155 S.E. 594, 158 S.C. 379, 1930 S.C. LEXIS 224
CourtSupreme Court of South Carolina
DecidedOctober 24, 1930
Docket13008
StatusPublished
Cited by3 cases

This text of 155 S.E. 594 (Epworth Orphanage of the South Carolina Conference v. Strange) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Epworth Orphanage of the South Carolina Conference v. Strange, 155 S.E. 594, 158 S.C. 379, 1930 S.C. LEXIS 224 (S.C. 1930).

Opinion

The opinion of the Court was delivered by

Mr. Justice StabeEr.

On January 29, 1920, the defendant Strange purchased from the plaintiff, Epworth Orphanage, a tract of land for $3,038.90, paying part in cash and securing the balance of the purchase money by a mortgage of the land. On September 7, 1922, no part of this indebtedness having been paid, Mrs. Strange, who owned other real estate, conveyed to her daughter, Olivia S. Palmer, defendant in this case, two tracts of land, one of which contained 259 acres; and at the same time she conveyed to her daughter, Alma S. Farmer, two other lots *381 or tracts. On March 17, 1923, Mrs. Palmer borrowed from the Federal Land Bank of Columbia, $2,200.00, securing the debt by a mortgage of the 259-acre tract. On August 3, 1923, the orphanage, having learned of the conveyances of Mrs. Strange to her daughters, instituted proceedings for the foreclosure of its mortgage. The land was sold, and a deficiency judgment of $1,044.16 was entered up against Mrs. Strange. Thereafter execution was issued and a nulla bona return made. On May 3, 1924, the plaintiff began this action against Mrs. Strange and Mrs. Palmer, and at the same time another against Mrs. Strange and Mrs. Farmer, for the purpose of having the deeds declared fraudulent and void as to plaintiff and canceled of record. Mrs. Strange and Mrs. Palmer filed answers denying all allegations of fraud or fraudulent intent.

The land bank was not made a party when suit was instituted, but thereafter was brought in, on motion of counsel for the defendants, by order of Judge Townsend dated May 8, 1924. The complaint was then amended by adding the bank as a party and inserting a paragraph as follows:

“10. That the plaintiff is informed and believes that the 'Federal Land Bank of Columbia has or claims some interest in or to some of the lands herein described and is made a party defendant that it may come in and set up any rights it may have therein.”

Service was made on the defendant bank on June 4, 1924. It did not answer the complaint, but, after some correspondence between its attorney and plaintiff’s attorneys, an agreement was made in writing that the bank would not file an answer in the cases or participate in the proceedings, and that plaintiff’s attorneys would take no decree or order in the cases that would in any manner affect the indebtedness to the bank or the mortgage securing same, but that such mortgage should remain a valid first lien on the lands described therein. It does not appear that the attorneys for the defendants Strange and Palmer, knew anything of this agree *382 ment at the time. The cases were later referred to a special referee, who found that the deeds were not fraudulent and recommended that the complaints be dismissed. On exceptions, Judge T. J. Mauldin confirmed the report as to both law and fact, whereupon the plaintiff appealed to this Court, which, on January 30, 1929, reversed the decree and gave judgment as follows:

“The judgment of this Court is that the judgment of the Circuit Court be reversed, and that the case be remanded to that Court with directions to enter a decree granting the prayer of the complaint in each case and making such administrative orders as may be necessary to carry it into effect.” 148 S. C., 500, 146 S. E., 414, 416.

The land bank is not referred to in the report of the referee, the decree of Judge Mauldin, or the opinion of the Supreme Court. In the record for appeal to this Court, no mention was made of the bank or of any lien it might have.

Following the decision of this Court, the plaintiff prepared a proposed decree, formally consented to by the land bank, which directed that the deeds be set aside, the property sold, and the funds derived from the sale applied upon the orphanage debt; it also provided that the mortgage executed' by the defendant Palmer to the bank be adjudged and decreed a first lien on the premises therein described, and that the mortgage and the debt secured thereby should not in any manner be affected by the terms of the decree.

Judge Featherstone, to whom application was made, declined to sign the proposed decree, for the reason that, as stated by him, under the judgment of the Supreme Court he could only pass such administrative orders as might be necessary to carry that judgment into effect. Under this view, he made a decree, dated April 24, 1929, adjudging the deeds to be fraudulent and void, and directing that they be canceled of record in the office'of the Clerk of Court of Common pleas for Allendale County. He also embodied in the order a statement that, as there was no mention of the *383 Federal Land Bank in the decree of Judge Mauldin, or in the decision of the Supreme Court, he did not see that he had anything to do with the bank or any lien claimed by it.

On April 29, 1929, the bank, having been advised of what had been done, presented to’Judge J. Henry Johnson its petition, praying that the decree of Judge Featherstone be modified so that the lien of its mortgage might be protected; and that, should that prayer be denied, the decree, in so far as it affected the lien of the mortgage, be set aside upon the ground that it was obtained against the defendant bank by surprise and through its mistake and excusable neglect, and the bank be allowed to file its answer and present its defense and to have its day in Court for the presentation of its rights in the premises. Certain supporting papers, in the form of affidavits, letters, and the agreement between the attorneys heretofore referred to, were filed with the petition. Judge Johnson adjudged himself disqualified to act on the petition for the reason that at one time, while a practicing attorney, he was employed by the plaintiff to represent it in the collection of the debt owing it by Mrs. Strange, and required the defendants to show cause before Judge M. M. Mann of the First Circuit, at St. Matthews, on May 2, 1929, why the prayer of the petition should not be granted.

The defendant Strange both demurred and made return to the petition, alleging that the Court was without jurisdiction or authority to review and correct the final judgment, rendered in open Court, from which no party to the cause had appealed; and that the land bank had already had its day in Court, and the things set up in the petition were res adjudicata so far as she was concerned. Mrs Palmer also made return to the petition, pleading practically the same defenses.

After a hearing on the rule, Judge Mann, on May 25, 1929, passed an order sustaining the contention of the repondents that he had no jurisdiction at chambers to grant the relief prayed for, and referring the matter to the pre *384 siding Judge at the next ensuing term of the Court of Common Pleas for Allendale County.

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Related

Robbins v. Dinkins
35 S.E.2d 697 (Supreme Court of South Carolina, 1945)
Federal Land Bank of Columbia v. Palmer
171 S.E. 481 (Supreme Court of South Carolina, 1933)

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Bluebook (online)
155 S.E. 594, 158 S.C. 379, 1930 S.C. LEXIS 224, Counsel Stack Legal Research, https://law.counselstack.com/opinion/epworth-orphanage-of-the-south-carolina-conference-v-strange-sc-1930.