Fly v. Cline

193 P. 615, 49 Cal. App. 414, 1920 Cal. App. LEXIS 265
CourtCalifornia Court of Appeal
DecidedSeptember 29, 1920
DocketCiv. No. 3214.
StatusPublished
Cited by20 cases

This text of 193 P. 615 (Fly v. Cline) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fly v. Cline, 193 P. 615, 49 Cal. App. 414, 1920 Cal. App. LEXIS 265 (Cal. Ct. App. 1920).

Opinion

FINLAYSON, P. J.

Several actions in the superior court were consolidated and tried as one. The trial resulted in a judgment adverse to Milton A. Fly, the appellant. The controversy presents the question as to whether appellant had the right to redeem the property, a lot in the city of Los Angeles, from a redemption previously made by the Hammond Lumber Company.

The facts necessary to an understanding of the questions presented by the appeal are these:

On February 26, 1913, Della Ingerson, the then owner of the premises, mortgaged the property to the Security Trust & Savings Bank to secure her promissory note for $2,500.

Desiring to erect an apartment house on the premises, Mrs. Ingerson, on April 28, 1913, entered into the following written agreement with appellant:

“Los Angeles, Cal., April 28th, 1913.
“Memorandum of agreement made and entered into by and between Mrs: Della Ingerson, party of the first part, and Milton A. Fly, party of the second part, both of Los Angeles, California. The party of the first part agrees to give to the party of the second part a contract for the construction of one brick apartment house to be located at 230 South Beaudry avenue, fourth lot north of Third Street, east side of Beaudry avenue, Los Angeles, California, being Lot 15, Block 8 of the Woolen Mill Tract. Said apartment house to have about fifty-four apartments of two and three rooms each and the cost not to exceed $45,000. The party of the first part hereby authorizes the party of the second part .to order blue print plans and specifications for the party of the first part, and also to arrange for a building loan at 5Yz% or 6%, the lot to be clear of incumbrance. This agreement signed in duplicate this 28th day of April, 1913.
“Mbs. Della Ingerson.
“Milton A. Fly.”

About three months later plans for an apartment house, to cost about $65,000, were prepared by an architect.

*417 On November 6, 1913, Mrs. Ingerson executed a second mortgage on the property to Watson B. Burt, as mortgagee, to secure her promissory note, of even date, for $45,000. This mortgage, hereafter referred to as the Burt mortgage, was recorded November 27, 1913, and later was assigned to the Hammond- Lumber Company.

On December 29, 1913, Mrs. Ingerson entered into a building contract with the Dutro-Wren Construction Company, as contractor, for the construction of an apartment house upon the premises. By this contract, which was a formal written building contract, the contractor, the DutroWren Construction Company, agreed to construct on the lot, pursuant to the previously prepared plans, a three-story, class C, brick apartment house, and Mrs. Ingerson agreed to pay therefor the sum of $65,000. Fly was not a party to nor mentioned in this building contract. Work under this contract was commenced by the Dutro-Wren Construction Company about January 19, 1914, and was continued by the -contractor until October 13, 1914, on which day work on the apartment house ceased, and was not resumed until more than thirty days thereafter.

On March 2, 1914,'Mrs. Ingerson executed a grant deed to the premises to her attorney, George H. Woodruff. This deed to Woodruff was recorded in the office of the county recorder on the day of its execution. On December 9, 1914, Woodruff and wife executed to Ada Webster, the daughter of Mrs. Ingerson, a quitclaim deed to the premises. This deed was recorded December 10, 1914. One of the claims made by appellant is that Mrs. Ingerson’s deed to Woodruff and the latter’s deed to Mrs. Webster were made to hinder, delay, and defraud Mrs. Ingerson’s creditors; or, if not made for that purpose, then that the deed to Woodruff was given as security, to secure any indebtedness that thereafter might become due him from his client, Mrs. Ingerson, and that, therefore, it was but a mortgage.

On February 24, 1916, Mrs. Webster, who, on the face of the records in the county recorder’s office, was the then absolute owner of the property, conveyed it, for a valuable consideration, to W. H. Elliott, by grant deed recorded February 25, 1916; and Elliott and wife, for a valuable consideration, by a grant deed bearing date February 25, 1916, conveyed the property to the Hammond Lumber Company, *418 which, corporation now claims to be the owner of the premises.

On December 5, 1914, Fly, claiming that he had performed work in the construction of the apartment house under his memorandum agreement with Mrs. Ingerson of date April 28, 1913, a copy of which is set forth supra, filed in the office of the county recorder a mechanic’s lien claim for $4,414.38. On December 29, 1914, he commenced an action in the superior court to foreclose his alleged mechanic’s lien. He made Mrs. Ingerson and her immediate, grantee, Woodruff, parties defendant; but Mrs. Webster, though then appearing of record as the sole owner, was not made a party to the action. Because Mrs. Webster was not made a party to Fly’s action to foreclose his alleged mechanic’s lien, the decree in that action is not res adjudicata as to her or as to either of her successors in title—Elliott and the Hammond Lumber Company. On February 1, 1917, a foreclosure decree was entered in that action, whereby the court declared that Fly had a mechanic’s lien on the property for $4,414.38, and decreed that the lien be enforced by sale of the premises.

On June 1, 1915, the Security Trust & Savings Bank, the holder of the first mortgage—the mortgage for $2,500—■ commenced a foreclosure action in the superior court, making parties defendant Mrs. Ingerson, the Dutro-Wren Construction Company, the Hammond Lumber Company, Ada Webster, and a number of mechanic’s lien claimants. This foreclosure suit resulted in a decree whereby it was adjudged, among other things, that $3,068.75 was due the plaintiff in that action, the Security Trust & Savings Bank, on the $2,500 mortgage that Mrs. Ingerson had executed to it February 26, 1913; that $45,000, with interest, was due the Hammond Lumber Company on the Burt’ mortgage that had been assigned to it; that the premises be sold, and that the proceeds of the sale, after payment of sheriff’s fees, etc., be applied, first to the payment of the amount due the Security Trust & Savings Bank on the mortgage held by it, and then, if there should be any surplus, to the payment of the Hammond Lumber Company’s claim for $45,000, and interest, due on the Burt mortgage. By this decree the court made no attempt to pass upon the validity of Fly’s claim of lien. That is a matter that was not passed upon or determined.

*419 On March 22, 1916, at the sheriff’s sale under the foreclosure decree in the action thus brought by the Security Trust & Savings Bank to foreclose the mortgage held by it, the property was sold by the sheriff to the judgment creditor, the Security Trust & Savings Bank, for $3,195.19, which, after paying the sheriff’s fees and the amount due the judgment creditor, left no surplus whatever. Thereupon a certificate of sale was executed and delivered to the purchaser.

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Bluebook (online)
193 P. 615, 49 Cal. App. 414, 1920 Cal. App. LEXIS 265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fly-v-cline-calctapp-1920.