Grace v. Hendricks

140 So. 790, 103 Fla. 1158
CourtSupreme Court of Florida
DecidedJanuary 11, 1932
StatusPublished
Cited by12 cases

This text of 140 So. 790 (Grace v. Hendricks) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grace v. Hendricks, 140 So. 790, 103 Fla. 1158 (Fla. 1932).

Opinions

Davis, J.

The Circuit Court of the Fifteenth Circuit, sitting as Court of Equity in Broward County, rendered a money deeree against the appellant, John P. Grace, for $97,280.77. This was the amount of the mortgage debt involved in a foreclosure suit' brought by the appellees for the foreclosure of a mortgage made by the appellant to the appellee»....The appeal here is from an order of the Chancellor refusing to vacate ana-sci ^de„the money decree which had been entered against appellant on cviy 19, 1928.

The bill for foreclosure was filed April 5, 1927. John P. Grace, Ella B. S. Grace, his wife, and the City of Fort Lauderdale were named defendants. The bill of complaint was in the usual form applicable to foreclosure cases, and prayed for foreclosure against the appellants and the City of Fort Lauderdale, of their interests in the real estate *1160 described in the bill and its attached mortgage. The interest of the municipality in this property was not particularly set up, but it was alleged that whatever it was,, that it' was inferior to the mortgage lien being foreclosed.

"Various proceedings were had in the course of settling the pleadings. Demurrers to the bill were overruled and the separate answer of the appellant was in part stricken. An answer was filed by the City of Fort Lauder-dale, to which exceptions were disallowed. Finally, testimony was taken in the case, and a final decree was entered finding that complainants were due the amount of $88,107.63 for their mortgage debt, together with an attorney’s fee of $8500.00. Sale of the mortgaged property described in the decree was ordered, but the sale was later ¡stayed upon motion by the City of Fort Lauderdale. Thereafter the City of Fort Lauderdale was given permission to amend its answer, and amendment to the answer was filed pursuant to such permission. Thereupon complainant filed motion for vacation of the order staying the foreclosure sale, and for entry of a deficiency decree.

The last' mentioned motion of complainants set up that following the entry of the final decree of foreclosure, the special master had advertised the property for sale on February 6, 1928; that prior to the sale, however, the court had made its order in favor of the City of Fort Lauderdale ordering the sale to be stayed and permitting an amended answer to be.filerL-that -btercatier, while the stay or dp*- rn lull force and effect, and on May 11, iu28, the City of Fort Lauderdale, in a separate condemnation proceeding brought by it against John P. Grace, the mortgagor, and L. C. Hendricks and J. V. Audet, the mortgagees, had obtained judgment appropriating to the City of Fort Lauderdale, under the power of eminent domain, a portion of the premises described in the final decree of foreclosure and ordered to be sold to satisfy the complainant’s debt; that from this condemnation proceed *1161 ing the complainant's in the foreclosure suit had received $3000.00 to apply on the debt mentioned in the final decree of foreclosure; that while the stay in effect, a superior mortgage lien against a part of the premises involved in ■the final decree of foreclosure in this case, was foreclosed in a separate suit, and the property sold under the final decree entered in such separate suit; that the property as ■sold under the decree in such separate suit, only brought' $20,000.00, which amount was insufficient to pay the superior mortgage therein foreclosed; that by reason of the condemnation suit in favor of the City of Fort Lauder-dale, and by reason of the foreclosure proceeding in favor ■of Dupuis-Blais Company to foreclose the aforementioned mortgage, which was senior to that of movants, that complainant's’ mortgage lien no longer existed in this case, because the mortgaged premises covered, by it had been entirely exhausted by the other proceedings: that the .amount defendant John P. Grace, was still due the complainants totalled $96,211.75; that the court still had jurisdiction of said defendant, John P. Grace, because he had ■entered his personal appearance in the cause and pleaded to the merits therein; that by reason thereof, the complain.ant prayed that' the stay order against the foreclosure .sale be set aside, and that a deficiency decree against' John P. Grace be entered for the said sum of $96,211.75.

The paper so filed was styled a “motion”. Pursuant to such “motion”, the chancellor entered a so-called deficiency decree against' John P. Grace in the sum of $97,280.77 damages, together with $40.58 costs. The date of this decree was July 19, 1928, and on March 21, 1929, appellant, the judgment debtor named in it, filed his motion to "vacate it.

As grounds for the motion to vacate, appellant set up that he had no knowledge of the entry of the decree and was unrepresented at the time of hearing the application -.therefor; that no notice was served upon appellant of such *1162 application or motion, although notice was given to the attorneys who had appeared for appellant in preceding steps in the cause, but that such attorneys did not appear for, nor represent, the appellant in regard to the application for said deficiency judgment; that the so-called deficiency decree was void and entered by the Chancellor without authority, because at the time of its entry, there was of record in the cause the unrevoked stay order, which had been previously entered by the court staying the foreclosure sale on February 6, 1928.

Another ground of the appellant’s objection was that a court of equity in a foreclosure case is without authority to enter a common law judgment against the mortgagor for the total amount of the mortgage debt, until the mortgaged property has first been sold under the final decree of foreclosure and the amount of the deficiency ascertained thereby; that the mortgaged property could, and would have been, regularly sold on February 6, 1928, as advertised by the special master under the final decree, but that the stay order entered by the chancellor on motion of the City of Fort Lauderdale, had prevented that being done, and that the subsequent proceedings had made the sale of the mortgaged property under the final decree of foreclosure impossible.

It was further set up by the appellant, that all the proceedings complained of leading up to the so-called deficiency decree had been taken while appellant was unrepresented in fact; also, that what had been done had been done without any knowledge or notice to him in fact; that in consequence of this, it was not until long after the decree for $97,321.35 was entered; that he actually learned of the fact of the entry of such decree; that the property upon which the mortgage had been foreclosed against the appellant'; had been recovered by the original owner for the paltry sum of $20,000.00 under the mortgage which *1163 was foreclosed as superior to the one on which the $97,-•321.35 deficiency decree was entered; and that the complainants themselves had obtained moneys from the condemnation proceedings by the City of Port Lauderdale, and other sources out of the property, aggregating more than $12,000.00.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

JULIO LAGO v. MERCANTIL COMMERCEBANK, N.A., etc.
District Court of Appeal of Florida, 2021
David L. Griffin v. LaSalle Bank, N.A., etc.
Supreme Court of Florida, 2020
Bonita Real Estate Partners, LLC v. SLF IV Lending, L.P.
222 So. 3d 647 (District Court of Appeal of Florida, 2017)
Toler v. BANK OF AMERICA, NAT. ASS'N
78 So. 3d 699 (District Court of Appeal of Florida, 2012)
Sterling Factors v. US Bank Nat. Ass'n
968 So. 2d 658 (District Court of Appeal of Florida, 2007)
Chrestensen v. Eurogest, Inc.
906 So. 2d 343 (District Court of Appeal of Florida, 2005)
Nobani v. Barcelona Development Corp.
655 So. 2d 250 (District Court of Appeal of Florida, 1995)
Bradberry v. Atlantic Bank of St. Augustine
336 So. 2d 1248 (District Court of Appeal of Florida, 1976)
Mandell v. Fortenberry
290 So. 2d 3 (Supreme Court of Florida, 1974)
Bartlett & Sons Co. v. Pan-American Studios, Inc.
198 So. 195 (Supreme Court of Florida, 1940)
Childs v. Boots
152 So. 212 (Supreme Court of Florida, 1933)
McIntosh, Liquidator v. Waits
148 So. 519 (Supreme Court of Florida, 1933)

Cite This Page — Counsel Stack

Bluebook (online)
140 So. 790, 103 Fla. 1158, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grace-v-hendricks-fla-1932.