Fitzhugh v. Central Trust Co.

72 P.2d 959, 146 Kan. 585, 1937 Kan. LEXIS 26
CourtSupreme Court of Kansas
DecidedNovember 6, 1937
DocketNo. 33,417
StatusPublished
Cited by2 cases

This text of 72 P.2d 959 (Fitzhugh v. Central Trust Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fitzhugh v. Central Trust Co., 72 P.2d 959, 146 Kan. 585, 1937 Kan. LEXIS 26 (kan 1937).

Opinion

The opinion of the court was delivered by

Hutchison, J.:

The appeal in this case is from the ruling of the trial court sustaining a demurrer to the petition, and the j ournal entry of such ruling states two grounds upon which the demurrer was sustained: First, because the plaintiff had appeared and had her day in court in the action in which she complains of the judgment rendered therein; and second, for the reason that she does not plead nor allege in her petition that she has any legal defense to the indebtedness upon which the judgment was rendered and sale had.

The action was one in equity to vacate, set aside and hold for naught the proceedings in a certain foreclosure action commenced in Cowley county on March 9, 1934, by the Central Trust Company against Kathrine Fitzhugh and other owners of a large tract of land in that county, in which action there were other defendants, including the First National Bank, of Winfield, Kan., and to enjoin and [586]*586restrain the First National Bank and one M. F. Jarvis, its president, from selling or disposing of the real estate described in said foreclosure proceeding.

The petition in this action alleged that plaintiff was a nonresident of the state of Kansas when the foreclosure suit was commenced and was served therein only by publication, which she alleged to have been illegal and ineffective so as to make any judgment rendered thereon against her absolutely void. Plaintiff referred in detail to all the pleadings, documents and exhibits contained in the foreclosure action as a part of this action, including the petition, affidavit for publication, publication notice, cross petition of the First National Bank of Winfield, journal entry of judgment, sheriff’s sale notice, proof of publication thereof, nunc pro tunc order and decree of confirmation of sheriff’s sale. The petition alleged errors and defects in the sheriff’s sale notice, many allegations of fraud on the part of the defendant bank and its president, and particularly the attempted modification and change of the journal entry of judgment by the nunc pro tunc order made on the day of the sheriff’s sale.

In the counter abstract there are set out two motions, one to set aside the sheriff’s sale made on July 9, 1934, and the other a motion for new trial, both of- which were filed July 11, 1934, by attorneys who state below their names, which were signed to these papers, the names of four defendants, including this plaintiff. These two documents, apparently filed in her behalf, were doubtless the foundation for the first reason assigned by the trial court for sustaining the demurrer of the bank to plaintiff’s petition, which reason assigned was that she had already had her day in court. Her petition was verified, and in it she stated that she made no personal appearance in the foreclosure action and authorized no person to make an appearance for her and that she had no knowledge of the commencement of the foreclosure action until sometime after January 3,1935.

We think the first reason assigned by the trial court for sustaining the demurrer to the petition was questionable because for the purpose of the ruling upon the demurrer to the petition the allegations therein contained, which were verified by her, must be taken as true. The petition contained numerous allegations of fraud on the part of the First National Bank of Winfield and its president, but there was a serious scarcity of facts stated in the petition which would constitute the fraud alleged, and without a statement of facts and con[587]*587duct from which a court can conclude there was fraud, the allegations, which were more nearly in the form of conclusions, will not be effective.

The question as to whether or not the petition fails to state a legal defense, which was the second reason assigned by the trial court for sustaining the demurrer, will require a detailed statement of the principal features and facts alleged in the petition concerning the foreclosure case and the relation of the plaintiff herein to the judgment rendered in the foreclosure case.

It is alleged that the plaintiff was the owner of a one-fourth interest in the 5,000-acre tract described in the foreclosure action, that the Central Trust Company held a note for $2,000, dated February 19, 1932, and signed by the plaintiff in this action and others, and a mortgage given by them on this large tract of land to secure the same. The trust company commenced its action March 9, 1934, to foreclose this note and mortgage. It obtained personal service on some of the defendants, but only publication service on the plaintiff in this action. It included among the defendants, the First National Bank of Winfield, and personal service was had on it. The bank filed its answer and cross petition on May 11, 1934, in which it set up a mortgage given by the plaintiff in this action and others on the land above mentioned on December 10, 1932, which referred to future advances to be made to the mortgagors, and attached as exhibit B to its cross petition copies of five notes, all given to the First National Bank at subsequent dates and by individuals who were defendants in the case. The one given by the plaintiff in this case was dated February 22,1934, for $5,052.58, due on demand. All of these five notes amounted to about $80,000. The cross petition of the bank stated that none of these notes was due at the date it was filed, May 11, 1934, but the bank claimed to be entitled to a lien against the above-described lands and prayed for a lien and a right to redeem for the amount due it as a cross petitioner.

The mortgage provided that the failure to pay the taxes should cause the whole amount to become due and payable at once. When the judgment was rendered in favor of the trust company on May 24, 1934, for about $5,000, including taxes and interest, the court found the taxes were past due and unpaid by the owners. The amount was found due the trust company from the plaintiff in this action and the other defendants in the foreclosure action, and personal judgment was rendered against the defendants on whom per[588]*588sonal service had been had, and the mortgage was foreclosed, making it a first lien upon the land. The journal entry stated that the court found that the First National Bank of Winfield had a second lien upon the real estate, but that the bank did not desire to foreclose its mortgage at that time but desired that its right of redemption as a junior lienholder should be protected, and after specifying the lien of the trust company as a first lien, ordered, adjudged and decreed that the defendant bank have a second lien upon the real estate (all subject to a prior mortgage for $40,000, about which there was, and is, no controversy). The journal entry concluded with the usual order about sheriff’s sale and redemption, providing for the payment of costs, taxes, trust company’s lien and balance to be paid into court for further determination.

The sheriff advertised the property to be sold on July 9,1934, and on that day, before the sale, a nunc pro tunc order was made on request of the bank, finding the amount due the bank from the plaintiff in this action and rendering personal judgment against other defendants personally served for various amounts, enumerating the judgments as personal or in rem, respectively, and ordering the property sold to satisfy both liens. It was sold that afternoon as per sheriff’s sale notice to the defendant bank for $33,000, and the sale was later confirmed and deed ordered to be issued after the expiration of the eighteen-month period of redemption.

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Cite This Page — Counsel Stack

Bluebook (online)
72 P.2d 959, 146 Kan. 585, 1937 Kan. LEXIS 26, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fitzhugh-v-central-trust-co-kan-1937.