Ferch v. Hiller

297 N.W. 102, 210 Minn. 3, 1941 Minn. LEXIS 702
Supreme Court of Minnesota·Decided March 28, 1941·No. No. 32,611.·Published·Cited by 7 cases

Opinion

Peterson, Justice.

This litigation involves the ownership of the proceeds of the sale of certain land. Plaintiff claims as the purchaser under a contract for deed from one Hodge. Defendant Otto E. Hiller as *5 the administrator of the estate of David L. Hiller asserts title in fee simple under deeds of conveyance from prior owners. Defendant Degnan is the assignee of the defendant Lundquist, whose claims are dependent on those of plaintiff. The parties transferred their rights in the land to the fund.

One Allen Avas the common source of title. In 1920 he mortgaged the premises to one Bicknell for $640. In 1921 he conveyed the land to Hodge subject to the Bicknell mortgage. On March 1, 1926, Hodge sold the premises to plaintiff subject to the Bicknell mortgage under the contract for deed for $1,500, payable $100 in cash and the balance of $1,400 on or before May 1, 1926. The contract provided that upon performance thereof the vendor would convey the premises to the vendee by a warranty deed.

On October 25, 1926, Hodge conveyed the premises to David L. Hiller by special warranty deed subject to the Bicknell mortgage and the Ferch contract for deed.

Otto E. Hiller, a relative of David L. Hiller, became the oivner of the Bicknell mortgage in October, 1928. He foreclosed the mortgage and bid in the premises at the mortgage foreclosure sale on January 25, 1929. One Sherwood redeemed as a lienor. Otto E. Hiller acquired the lienor’s interest as such redemptioner. Title vested in Otto E. Hiller under the foreclosure on January 25, 1930.

On November 6, 1929, David L. Hiller recovered a judgment by default in the municipal court of Minneapolis against Ferch for the restitution of the premises based on findings folloAving the allegations of the complaint that he acquired title under the deed from Hodge, Avhich Avas subject to the Bicknell mortgage and the Ferch contract for deed; that the Ferch contract for deed had been duly cancelled because of his default thereunder; that Ferch’s entry was under the contract for deed but was without any right for the reason that the contract had been cancelled. Thereafter, Ferch moved the court for an order vacating and setting aside the judgment of November, 1929, upon the ground that the court was without jurisdiction for failure to serve the summons upon him. *6 On January 28, 1930, the court denied the motion. In May, 1930, after he had acquired title, Otto E. Hiller brought an unlawful detainer action in the municipal court of Minneapolis against Ferch to recover possession of the premises, claiming that Ferch had reentered the premises by force, and recovered a judgment against him for restitution of the premises.

On September 30, 1930, Otto E. Hiller recovered judgment against Ferch and others that he was the owner in fee and entitled to immediate possession of said premises, and that Ferch and the other defendants had no estate or interest therein or lien thereon. This judgment was referred to as the Dickinson judgment, the case having been tried before Judge Dickinson.

In January, 1930, plaintiff brought an action against David L. Hiller, Otto E. Hiller, and Hodge in which he sought to have the record of the cancellation of the contract for deed and the mortgage foreclosure vacated and set aside and to specifically enforce the contract for deed. A copy of the complaint in that action was made part of Ferch’s answer in the case tried before Judge Dickinson, in which all the issues between the parties were fully litigated. The action in which Ferch was plaintiff was never brought on for trial for the reason, as appears from the record, that there was nothing for him to try after the Dickinson judgment was rendered.

On December 10, 1930, Otto E. Hiller by quitclaim deed conveyed the premises to David L. Hiller, who remained in continuous possession of the same until his death on December 11, 1937.

After David L. Hiller received the deed from Otto, he commenced a proceeding to register the title to the premises under the Torrens system. Plaintiff interposed an answer asserting his rights under the contract for deed. After a hearing before the examiner of titles, the latter made a report to the court that the premises should be registered in the name of David L. Hiller, subject to the Ferch contract for deed. Ferch then served a notice for confirmation of the examiner’s report. Hiller moved to dis *7 miss the proceeding. Both motions were heard together. The court denied Ferch’s motion to confirm the examiner’s report and granted Hiller’s motion to dismiss. We affirmed both orders in Hiller v. Smith, 191 Minn. 272, 253 N. W. 773.

In the present action Otto Hiller showed three separate cancellations by David Hiller of plaintiff’s contract for deed. There was evidence to show that none of the cancellations became effective because of due tender of the amount required to reinstate the contract. Defendant Otto Hiller also set up the statute of limitations as a defense. The court below found that the contract had been duly cancelled and that the action was barred by the statute of limitations and ordered judgment for defendant Otto Hiller. The appeal is from the order denying plaintiff’s alternative motion for amended findings of fact and conclusions of law or a new trial, which, as we have often said, brings up for review only that part of the order relating to the denial of a new trial.

Briefly, plaintiff’s contentions are that the finding that the Ferch contract for deed was duly cancelled is not sustained by the evidence ; that the action was not barred by the statute of limitations; and that the finding of the examiner of titles in the registration of title proceeding was res judicata that the Ferch contract for deed was still in effect. Plaintiff also contends that the conveyance by Otto to David “reinstated” all the rights which plaintiff had under the contract for deed prior to the mortgage foreclosure “and that David Hiller thereupon became obligated to perform the contract by making a conveyance” to him.

A judgment of restitution is conclusive not only of the right of possession but the facts upon which such right rested. Where the plaintiff claims title and right of possession as the owner and the defendant claims right of possession under a contract for deed which the owner claims was duly cancelled, a judgment of restitution based upon findings that the plaintiff is such owner and that defendant’s contract has been duly cancelled is res judicata of those questions as between the parties. Herreid v. Deaver, 193 *8 Minn. 638, 259 N. W. 189. Hence the judgment of restitution of the municipal court in the unlawful detainer action determined as between David L. Hiller and plaintiff that the latter’s contract for deed was duly cancelled.

It is not clear whether Ferch’s motion to vacate and set aside the. restitution judgment was based upon the ground of failure to serve the summons upon him or insufficient service thereof. It makes no difference whether it was the one or the other. An order denying a motion by a defendant to vacate and set aside service of process upon him is res judicata on the question of jurisdiction and is not subject to collateral attack. Baldwin v. Iowa State T. M. Assn.

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Ferch v. Hiller, 297 N.W. 102, 210 Minn. 3, 1941 Minn. LEXIS 702 (Mich. 1941).

297 N.W. 102 (Ferch v. Hiller) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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