Gilcrist v. Wright

101 N.W.2d 158, 169 Neb. 799, 1960 Neb. LEXIS 151
CourtNebraska Supreme Court
DecidedFebruary 19, 1960
Docket34734
StatusPublished
Cited by1 cases

This text of 101 N.W.2d 158 (Gilcrist v. Wright) 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
Gilcrist v. Wright, 101 N.W.2d 158, 169 Neb. 799, 1960 Neb. LEXIS 151 (Neb. 1960).

Opinion

Yeager, J.

The determination of the matter for consideration in the proceeding now before the court requires a statement of historical background which is found in the transcript of an earlier proceeding in this court of which the present one is part and parcel, and the opinion and mandate of this court in that proceeding. The opinion in that proceeding appears as Gilcrist v. Wright, 167 Neb. 767, 94 N. W. 2d 476.

The action was by Frank Gilcrist, plaintiff, against Andy Wright and Iola B. Wright, Mary Fruits and James Fruits, William A. Ehlers and Margaret C. Ehlers, Fred Minor and Thelma Minor, and Earnest Wiggins, defendants. The purpose of the action was to foreclose a claimed mechanic’s lien upon Lot 4, Block 3, Hulst Addition to the city of Omaha, Douglas County, Nebraska. The defendants were made parties because they had or claimed some interest in the property. William A. Evans and Allen D. Evans filed in the action a petition of intervention in which they claimed a mechanic’s lien. They asked foreclosure thereof. By an order of court others were made parties to the action. One of these parties, Robert W. Fitzpatrick, by answer and cross-petition set forth a claim of a mechanic’s lien. He also asked foreclosure.

*801 The case was tried to the court after which the court found and decreed that Earnest Wiggins, had a lien of $1,300 without interest; that Frank Gilcrist had a lien of second priority for $860 plus interest; that Robert W. Fitzpatrick had a lien of third priority for $249 plus interest; and that William A. Evans and Allen D. Evans had a lien of fourth priority for $635 plus interest. The declared lien of Wiggins was not based on a mechanic’s lien but on an assignment of a part of a mortgage which at the time of the assignment was held by James Fruits, the total of which mortgage was $4,750. The assigned portion of the mortgage was $1,770. The fixation of $1,300 by the decree instead of $1,770 was based on the theory that the transaction was usurious in consequence of which $1,300 only was enforceable.

From the decree in the former proceeding an appeal was taken and an opinion rendered. Gilcrist v. Wright, supra. By that opinion the decree of the district court was reversed and the cause remanded with directions. It is not contended here that there was not a compliance with the directions contained in the opinion.

Insofar as the matter is pertinent here the only direction was that it should be decreed that Earnest Wiggins had a mortgage lien in the amount of $1,770 with interest, with a priority date of November 17, 1955, and that the three mechanics’ liens should have equal priority and that they were inferior to the lien of Earnest Wiggins. In other pertinent respects the decree of the district court was not disturbed. This direction was complied with by the district court.

On November 11, 1955, Andy Wright and Iola B. Wright, the then title holders to the real estate, gave a mortgage to James Fruits in the amount of $4,750. It was $1,770 of this amount which was assigned to Earnest Wiggins. The assignment was dated November 17, 1955. Thereafter, on September 19, 1956, Andy Wright and Iola B. Wright conveyed title to the property to Mary Fruits, the wife of James-Fruits. On October 1, 1956, *802 Mary Fruits and James Fruits executed a mortgage to Fred Minor and Thelma Minor in the amount of $5,000. On the same day this mortgage was assigned to William A. Ehlers.

This mortgage is not a matter of any controlling significance in this proceeding. It was, however, in the former proceeding. It is mentioned so that it will be understood that what is said herein about mortgage has no reference to this one, but to the one of which the assigned $1,770 is a part, or the $4,750 mortgage, which furnishes the basis for this proceeding. The title to this property was conveyed to Margaret C. Ehlers and William A. Ehlers as joint tenants on January 4, 1957. They are the owners of the fee title thereto.

This leads to the subject of the present proceeding, which is the legal status of the difference between the face of the $4,750 mortgage and the $1,770 portion thereof which was adjudicated to be a first mortgage lien in favor of Earnest Wiggins. The amount involved is of course $2,980.

William A. Ehlers and Margaret C. Ehlers, who are appellants herein, filed a motion in the district court in which they asked leave to file a supplemental petition. In the motion it was asserted in substance that the court •found that the $4,750 mortgage was a valid and subsisting mortgage lien subject to a partial assignment of $1,770, leaving undisposed of a balance in the amount of $2,980 which has not been claimed in the pleadings by any party, and that no judicial determination of its true ownership and status has been made. It is further stated, again substantially, that this balance is a valid and subsisting mortgage lien and that it is necessary that proper pleadings be filed, a trial had, and determination of the rights of all parties made to the end that good and sufficient title may be obtained by a purchaser at a judicial sale of the property. The motion was overruled. A motion for rehearing on the motion *803 was filed, which was overruled. From these orders an appeal has been taken by the appellants.

The proper answer to the question of whether or not the district court erred in refusing to allow the filing of a .supplemental petition for the purposes outlined in the motion must flow from what is to be found to have transpired in the former proceeding. The questions suggested were, presented, we think, by pleadings filed in that proceeding and the adjudication thereon rendered.

As pointed out, the appellants contend in their motion that the court found that there was a valid and subsisting mortgage lien for $4,750, the right to $1,770 of which was determined and the right to $2,980 of which was left undetermined. The record fails to sustain this contention. The decree in this respect goes no further than to say that the $1,770 was a first mortgage lien. No direct reference was made in any adjudication as to the difference between the face of the mortgage and the $1,770.

This being true it becomes necessary to refer to the pleadings and the decree or decrees to ascertain whether or not there has been an adjudication of the status of that portion of the mortgage.

By cross-petition Earnest Wiggins pleaded the existence of the mortgage and assignment of $1,770 of that mortgage to him.

The appellant William A. Ehlers responded to the cross-petition of Earnest Wiggins by answer and cross-petition. In his answer he pleaded: “* * * that said

purported mortgage and purported assignment * * *, are null and void, and without force and effect as against this answering defendant, or as a lien against the said real estate, * * * to-wit:

“That the mortgage * * * is not a lien or mortgage on the real estate therein described.”

This answer and cross-petition of appellant William A. Ehlers was adopted by the appellant Margaret C. *804 Ehlers as her answer and cross-petition by reference and declaration.

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108 N.W.2d 228 (Nebraska Supreme Court, 1961)

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Bluebook (online)
101 N.W.2d 158, 169 Neb. 799, 1960 Neb. LEXIS 151, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilcrist-v-wright-neb-1960.