Federal Farm Mortgage Corp. v. Adams

5 N.W.2d 384, 142 Neb. 202, 1942 Neb. LEXIS 28
CourtNebraska Supreme Court
DecidedAugust 14, 1942
DocketNo. 31405
StatusPublished
Cited by8 cases

This text of 5 N.W.2d 384 (Federal Farm Mortgage Corp. v. Adams) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Farm Mortgage Corp. v. Adams, 5 N.W.2d 384, 142 Neb. 202, 1942 Neb. LEXIS 28 (Neb. 1942).

Opinion

Eberly, J.

This is an appeal from a final order of the district court for Furnas county finding generally in favor of plaintiff and decreeing the foreclosure of a real estate mortgage and the sale of the premises therein described to satisfy the amount adjudged due thereon, and finding against the defendants Ralph E. Adams et al. It appears without dispute that on and prior to the 11th day of October, 1934, the fee simple title of the premises here in litigation was vested in George W. Space alone. Elizabeth M. Space was then, and thereafter remained, his wife. So far as the record discloses, she possessed no interest in the premises referred to save and except what was acquired by her by reason of her marital relations with George W. Space. On or about October 11, 1934, George W. Space and Elizabeth M. Space, made and delivered to the Land Bank Commissioner their promissory note in writing payable to him, in the sum of $6,000. On the same day the parties last named, to secure the payment of such obligation, executed and delivered to the Land Bank [204]*204Commissioner their mortgage deed, containing the usual and customary conditions, which was on the 19th day of October, 1934, duly recorded in the office of the county clerk of Furnas county as required by law, and thereby mortgaged to the Land Bank Commissioner the property described in such mortgage deed. The money evidenced by the foregoing obligation was duly paid over to and received by George W. Space, who personally executed the “Remittance Statement” as “borrower,” and acknowledged the “receipt of the proceeds of the loan as set forth therein.” Certain bankruptcy proceedings were entered into by George W. Space, which are not of importance in the present proceeding. He and his wife, Elizabeth M. Space, conveyed the mortgaged premises here in suit to Ralph E. Adams by warranty deed executed October 2, 1939, and duly recorded in Furnas county on October 7, 1939. George W. Space departed this life on February 23, 1941, and neither he nor his wife is a party to this appeal.

The default in the payments stipulated for in the note and mortgage and the breach of the mortgage conditions is not denied by the defendants.

It is alleged in the petition filed in this cause that upon the default in the terms and conditions of the mortgage by George W. Space, plaintiff elected to and did declare the whole of the balance of the principal of such indebtedness represented by such note and mortgage to be due and payable as of December 27, 1938, and instituted an action on such note against George' W. Space in the district court for Kearney county, Nebraska. Due service of summons was had upon such defendant, and upon appearance duly made by such defendant, a judgment was duly and regularly entered in favor of the plaintiff and against such George W. Space in the sum of $6,621.70, with interest at 6 per cent, per annum from the 5th day of February, 1940. The petition further alleges that on the 27th day of December, 1940, execution in due form was duly issued out of the district court for Kearney .county, Nebraska, “and on the same day the sheriff of Kearney county, Nebraska, made, his return [205]*205on said writ of execution showing that after diligent search he was unable to find goods or chattels, lands or tenements of the said George W. Space in Kearney county, Nebraska, on which to levy, and said sheriff returned said writ to the court wholly unsatisfied.”

In the discussion of appellants’ contentions it must be remembered that appellant Adams is not the debtor or mortgagor in any sense of the word. He acquired title to the mortgaged premises without assuming the mortgage indebtedness, and prior to the entry of judgment in appellee’s action against the maker of the note involved in these proceedings. He appears throughout this litigation as attorney at law representing Space, and is thereby chargeable with notice of all proceedings had.

Taking up appellants’ contentions in reverse order, we are wholly unable to agree with their statement that because of the terms of section 20-2145, Comp. St. 1929, “the bringing of an action on the note alone and the obtaining of a judgment (at law) thereon, is a waiver of right to foreclose,” and “is bar to foreclosure.” Such are not the words, nor the legal effect, of the statute cited in support of this proposition, nor do the interpretations thereof made by this court furnish any support for appellants’ contention. At most, the existence of this judgment at law operates in favor of the judgment debtor as a temporary suspension of the right to contemporaneously maintain an equitable action to enforce the mortgage securing the same, until the prescribed execution has been issued and duly returned by the officer receiving the same as unsatisfied, in whole or in part, and that the defendant has no. property whereof to satisfy such execution, etc. Compliance with these statutory terms operates as a termination of the suspension as to the mortgage debtor.

“ ‘Statutes should be so construed as to give effect to the intention of the legislature, and if a statute is plain and unambiguous, there is no room for construction or interpretation.’ Shellenberger v. Ransom, 41 Neb. 631, 59 N. W. 935.” Federal Farm Mtg. Corporation v. Thiele, 137 Neb. 626, [206]*206290 N. W. 471. See, also, Zug v. Forgan, 3 Neb. (Unof.) 149, 90 N. W. 1129; Montpelier Savings Bank & Trust Co. v. Follett, 68 Neb. 416, 94 N. W. 635.

But we are not here concerned with a mortgage debtor,but one who is a total stranger to the original consideration upon which the transaction rests, and who is plainly in no manner bound for the repayment thereof.

In the early case of Simmons Hardware Co. v. Brokaw, 7 Neb. 405, Maxwell, C. J., in the delivery of the opinion by this court, employs the following language: “In the case at bar, however, the contest is entirely between lien-holders. The prior mortgagee files a petition to foreclose its mortgage, making the senior mortgagee a defendant, and alleging that the maker of the notes is insolvent, and that the senior mortgagee has obtained a judgment at law on his note, and upon that ground alone seeks to divest him of his lien. * * * The failure of the defendant in error to issue an execution on his judgment did not divest him of his lien, and the plaintiff in error, in its petition, by alleging insolvency of the debtor, shows that nothing could have been collected even if an execution had been issued.”

In the Brokaw case this court sustained a judgment of foreclosure and sale in favor of this senior mortgagee who had not had an execution issued and returned on his judgment in the mortgage suit.

The case of Chaffee v. Sehestedt, 4 Neb. (Unof.) 740, 96 N. W. 161, was a suit in equity to foreclose a mechanic’s lien. Mortgagors and mortgagee were made parties thereto. The mortgagee by cross-petition set up' its mortgage and asked for a foreclosure thereof which was granted by the terms of the decree entered. The lien-holders appealed and challenged the mortgagee’s recovery because no evidence was introduced on part of mortgagee to show that no action at law had been commenced to recover the mortgage debt. The mortg-agors did not challenge the recovery. In this case the doctrine was reiterated, “that the provisions requiring the return of an execution unsatisfied before proceedings to foreclosure could be maintained were enacted for the benefit [207]

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Bluebook (online)
5 N.W.2d 384, 142 Neb. 202, 1942 Neb. LEXIS 28, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-farm-mortgage-corp-v-adams-neb-1942.