Fowler v. Humphrey Inv. Co.

1930 OK 98, 286 P. 867, 142 Okla. 221, 1930 Okla. LEXIS 104
CourtSupreme Court of Oklahoma
DecidedMarch 4, 1930
Docket19096
StatusPublished
Cited by8 cases

This text of 1930 OK 98 (Fowler v. Humphrey Inv. Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fowler v. Humphrey Inv. Co., 1930 OK 98, 286 P. 867, 142 Okla. 221, 1930 Okla. LEXIS 104 (Okla. 1930).

Opinion

TEEHEE, C.

On July 13, 1926, plaintiffs ill error, Margaret C. Fowler, in her own right and as the guardian of Jessie L., Edwin V., and Margaret F. Fowler, her minor children, brought suit to vacate a judgment in foreclosure of a junior or second real estate mortgage, and all proceedings had thereunder, obtained and had against them by defendant in error, Humphrey Investment Company, in the district court of Tulsa county. The case was filed as an original action in that court, that is to say. upon the filing thereof the case was docketed by a number different from that of the foreclosure action.

Fuder the allegations of plaintiffs’ petition, the action was brought on the theory that the mortgage as to the minors was void from its inception, in that its execution was not authorized by the county court of jurisdiction, and that, as the mortgage on the property of the adult plaintiff was so joined and interwoven with the transaction and thus inseparable, the judgment in the foreclosure action and all the proceedings had thereunder were void as to both the adult plaintiff and to plaintiff minors; and, that defendant, having knowledge of the fact that the mortgage sued on was executed by the guardian without previous authority having been obtained by the county court in the manner as provided by law, by its foreclosure action in the district court, perpetrated a fraud upon the court by falsely and fraudulently alleging therein that the guardian executed and delivered the notes and mortgage sued on to the mortgagee under and by virtue of an order of the county court of Tulsa county pursuant to law, for which reason, also, the court’s judgment in foreclosure and the proceedings had thereunder were void.

In the action certain damages were also sought for the wrongful detention of the property purchased by defendant under the foreclosure proceedings.

In its answer defendant0proceeded on the theory that the mortgage sued on was a part and parcel of a first mortgage for $2,-000 authorized by the county court to which it was subject; and alleged that plaintiffs were parties defendant to the foreclosure action, and contested the same; that the judgment in foreclosure and all proceedings had thereunder were permitted to become final by plaintiffs; and that, as the judgment. in foreclosure was rendered by a court of general jurisdiction, and the same appearing not to be void on its face, it was not subject to collateral attack and was now res judicata of the questions sought to be raised by plaintiffs in this action; and further pleaded estoppel by conduct in that plaintiffs had accepted the surplus proceeds arising from the foreclosure sales.

At the hearing the facts established were substantially as follows: About May 1. 1919, W. E. Fowler died intestate and seized of an estate consisting of 40 acres of land subject to a mortgage of $400. He left surviving him his widow, Margaret 0. Fowler, and his children, the three plaintiff minors. In the estate the surviving spouse inherited an undivided one-third interest and the three children each an undivided two-ninths interest, although both parties refer to the quantity of each interest in the 'estate as being an undivided one-fourth, which clearly is erroneous since it is shown by the record that W. E. Fowler died ’intestate, and, therefore, the property descended to them under the law of succession, -which fixes tlieir interest therein in the proportions of one-third to the survjviuir ■snowse and the other two-thirds in equal parts to the three chn dren, this being twoKninths to' each child as indicated. The mother was appointed as the guardian of the minors. In June, 1919, the adult plaintiff acquired an adjoining 40-acre tract, and in July. 1919, she mortgaged that property to one Joseph T. Barnes for $1,456.50. On October 14, 1920, the guardian filed her petition in the county court of Tulsa county for authority to purchase for her wards the 40 acres acquired by her, and to mortgage the 80-acre tract for $2,000 to pay the purchase price, which was not stated, and to satisfy the $400 mortgage on the original 40. On the same date, she was authorized by the county-court to make the purchase, and to execute a mortgage in the sum of $2,000 upon tne 80-acre tract for the purposes set out in the petition. No transfer of the additional *223 property was made by tlie adult plaintiff to tlie minors. On the same date, for herself, and as guardian oi' the minors, the adult plaintiff executed a note for $2,000, and a mortgage on the 80 acres in security thereof to defendant, Humphrey Investment Company. Likewise, on the same date, she executed three $00 commission, n)»tes to the investment company, the first being due December 1, 1921, and the others, one and two years thereafter, respectively, and, in security thereof, she executed the second mortgage involved in this action which was also security for the payment of monies thereafter advanced by the mortgagee m payment of the interest to mature on the $2,000 mortgage to which it was subject, if the mortgagors should suffer default therein, and all other liens that may attach to the property to the time of foreclosure of the second mortgage.

Upon default in the payment of the first interest due under both the first and second mortgages, tilio : investment company paid the interest on the first mortgage indebtedness, this having been assigned to a third party, and thereupon elected to mature the second mortgage indebtedness.

On August 17, 1922, the mortgagee brought suit in foreclosure of the second mortgage against plaintiffs, and joined therein Joseph T. Barnes, who had entered into a contract of guaranty with the investment company to the effect that if the company would make the loan of $2,000 referred to and thereout pay his mortgage indebtedness of $1,456.50 against the adult plaintiff, he would guarantee the payment of the principal and interest thereof upon maturity in the event of default by the mortgagors.

Upon hearing of that case on December IS, 1923, the court found the issues for the mortgagee, and thereupon entered judgment against the mortgagors, the plaintiffs here, and the said Barnes for $466.85, with an attorney’s fee for $50, and the cost of the action, and for foreclosure of the second mortgage, which in its details followed the usual form of judgments in foreclosure actions.

On September 10, 1924, the mortgaged premises were sold by the sheriff, under an order of sale pursuant to the judgment, to L. L. Humphrey, the president of the investment company, for the sum of $50, subject to the first mortgage, which sale, without opposition by plaintiffs, was confirmed by the court on October 11, 1924, and thereupon the sheriff, on October 14, 1924, conveyed the premises by deed to the purchaser.

In the meantime, on February 12, 1923, the adult plaintiff acquired certain real property situated in the town of Owasso, Tulsa county. Defendant by proper proceedings levied upon this town property, wlii h was sold on December 1!), 1925, to L. L. Humphrey for more than enough to satisfy the deficiency judgment against plaintiffs, the surplus being paid into the registry of the court, and later, on July 27, 1927, drawn down by plaintiffs’ attorney.

The court found from the evidence, pleadings, and the law of the case, that plaintiffs’ petition to vacate the judgment in foreclosure and proceedings had thereunder should lie denied, and thereupon rendered judgment for the defendant.

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Bluebook (online)
1930 OK 98, 286 P. 867, 142 Okla. 221, 1930 Okla. LEXIS 104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fowler-v-humphrey-inv-co-okla-1930.