Farmers State Bank of Rudd v. Carragher

191 Iowa 832
CourtSupreme Court of Iowa
DecidedJune 25, 1921
StatusPublished

This text of 191 Iowa 832 (Farmers State Bank of Rudd v. Carragher) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers State Bank of Rudd v. Carragher, 191 Iowa 832 (iowa 1921).

Opinion

Arthur, J.

On October 9, 1917, the plaintiff bank made a warranty deed to Mary McCoy to Lots 7, 8, and 9 in Block 6 [833]*833in the town of Rudd, Iowa. On November 20, 1917, Mary McCoy and husband made to defendant C. E. Carragher a warranty deed for said premises. On December 3, 1918, defendant C. E. Carragher and his wife, Matye S. Carragher, executed to the plaintiff a mortgage for $2,500 on said lots, which is the mortgage sued on in this action. The execution of the note and mortgage was admitted, and that the note was due, and the amount of the debt is not denied.

Defendants pleaded a counterclaim, alleging that, on February 29, 1896, Charles Nienstedt, the then owner of the lot on which plaintiff’s mortgage rests, and other lots, executed a mortgage for $2,646 thereon to one A. Nienstedt, which was placed of record. This mortgage was given to secure a note for $1,000, due on October 1, 1893, one note for $346, due October' 1, 1894, and one note for $1,300, due October 1, 1895. On October 19, 1903, A. Nienstedt satisfied said mortgage as to Lots 7 and 8. On December 14, 1916, A. Nienstedt having died, his heirs, by their attorney, filed in the recorder’s office a notice informing appellee that they held an unsatisfied mortgage, on Lots 7 and 8 only, for the amount of $2,646 and interest. On June 28, 1917, said mortgage was assigned of record to Charles Nienstedt, Jr., one of the heirs of mortgagee, A. Nienstedt, by the remaining heirs of A. Nienstedt, together with the notes secured by the mortgage.

Plaintiff pleaded to the counterclaim, alleging that the Nienstedt mortgage and the record thereof showed that the mortgage and the note which it was given to secure, were barred by the statute of limitations, and that the mortgage was not a lien on the premises covered by plaintiff’s mortgage.

On the application of the defendants, the court, on April 9, 1920, entered an order that Charles Nienstedt, Jr., be brought in and made a party defendant on notice, said order being as follows:

“The court finds from the record and the pleadings in the case that the rights of the respective parties cannot be determined without prejudice to the rights of other parties, viz., Charles Nienstedt, Jr., and that, in order to determine the controversy as presented by pleadings between the parties before the court, the presence of the said Charles Nienstedt, Jr., will [834]*834be required; and he is therefore ordered to be brought in and made a party defendant, by the plaintiff herein; and it is further ordered that the said Charles Nienstedt, Jr., be given at least 10 days’ notice of the time and place of hearing of this cause of action, and the pendency thereof, as presented by the plaintiff’s petition and the answer and counterclaim of the defendants, and that said matter be set down for hearing May 3, 1920, at 9 o’clock A. M. That a notice in the usual form be served upon the said Charles Nienstedt, Jr., in the manner and form as provided for the commencement of a civil action, at least 10 days prior to said date of hearing, viz., May 3, 1920. To all of which both parties except.”

On May 3, 1920, a further order was made as to notice on Charles Nienstedt, as follows:

“It appearing that the plaintiff has been unable as yet to get service upon Charles Nienstedt, Jr., the date of hearing is postponed until not less than 10 days after notice has been served upon said Nienstedt.”

. Plaintiff amended its petition, and alleged that Charles Nienstedt, Jr., had been duly brought in and made a party therein; and that any interest that Charles Nienstedt, Jr., might have, or claim to have, in the premises on which plaintiff’s mortgage was sought to be foreclosed, was barred by the statute of limitations; and that it was in no manner renewed, as by law provided; and that any claimed renewal between Charles Nien-stedt, Jr., and the original maker of said mortgage and his heirs at law was insufficient to affect plaintiff’s vested rights.

A notice was issued, in accordance with the order for such notice, to Charles Nienstedt, Jr., notifying him of the foreclosure -proceedings and of the defense by counterclaim, which notice was served on the 20th day of May, 1920, on Charles Nienstedt, Jr., notifying him to appear and assert any claims he might have to the premises involved by virtue of the mortgage held by him, within 10 days from the service of the notice upon him, and that plaintiff would take default and decree unless he appeared thereto. In the meantime, plaintiff had filed an affidavit, showing nonresidence of Charles Nienstedt, Jr., within the state of Iowa. The notice was served on Charles Nienstedt, Jr., in McHenry County, Illinois, by one Roy I. [835]*835Stewart, and the return of service sworn to before Gr. E. Still, county clerk of McHenry County, Illinois. On June 23, 1920, cause came on for hearing. Default was entered against Charles J. Nienstedt, Jr. On the trial of the ease, plaintiff introduced in evidence its note and mortgage. Also, there was introduced in evidence the old mortgage given by Charles Nienstedt and wife for $2,646, given to A. Nienstedt, upon the lots covered by plaintiff’s mortgage and other lots, showing that the mortgage was given to secure notes of $1,000, due October 1, 1893, $346, due October 1, 1894, and $1,300, due October 1, 1895, set up in defendants’ answer and counterclaim, which mortgage was dated February 29, 1896. Also, there was introduced in evidence the assignment of the old mortgage pleaded in defendants’ answer or counterclaim, from the heirs of A. Nienstedt other than Charles Nienstedt, Jr., to said Charles Nienstedt, Jr. Also, there was introduced in evidence the notice dated December 4, 1916, by Charles Nienstedt, Sr., to the plaintiff bank, informing it that:

“The attorney for the heirs of the estate of August Nien-stedt instruct me to inform you that a certain deed in favor of the Farmers State Bank of Rudd, Iowa, was filed with the recorder of Floyd County on November 18, 1915, conveying Lots 7 and 8 in Block 6, Rudd, Iowa. This is to inform and advise you that the above-mentioned heirs and estate hold an unsatisfied mortgage against the above-named Lots 7 and 8 for $2,646 and interest, which mortgage said attorneys are instructed by their client to foreclose, and due notice is hereby given to you to that effect.”

There was also introduced in evidence a release of Lots 7 and 8 from the old Nienstedt mortgage, signed by A. Nienstedt, the original holder.

Upon this record, decree of foreclosure was entered in favor of plaintiff, the trial count finding that the property was free and clear of any and all liens of incumbrance because of the Nienstedt mortgage pleaded in the counterclaim.

Appellants’ position, as we understand it, is that the order directing that Charles Nienstedt, Jr., be made a party defendant, and prescribing the service to be made upon him, was an adjudication that he was a necessary party; that the notice [836]*836prescribed and the service made, Nienstedt being a resident of Illinois at the time of service upon him, was insufficient notice, and not effective to give the court jurisdiction of Nienstedt; and that, therefore, the court did not obtain jurisdiction of the subject-matter involved in the action, and especially of the matter pleaded in defendants’ counterclaim. Appellants do not attack plaintiff’s cause of action on any ground that it was not proven.

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Bluebook (online)
191 Iowa 832, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-state-bank-of-rudd-v-carragher-iowa-1921.