Gronstal v. Van Druff

261 N.W. 638, 219 Iowa 1385
CourtSupreme Court of Iowa
DecidedJune 21, 1935
DocketNo. 42899.
StatusPublished
Cited by3 cases

This text of 261 N.W. 638 (Gronstal v. Van Druff) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gronstal v. Van Druff, 261 N.W. 638, 219 Iowa 1385 (iowa 1935).

Opinion

Kintzinger, J.

The real estate in question, consisting of 620 acres, was originally owned by Marshall J. Williams, who executed a mortgage thereon for $37,000 to the Lincoln Joint Stock Land Bank of Lincoln, Nebraska. The mortgage authorized a foreclosure for any delinquent installment thereof, without prejudice to the mortgagee’s right to commence future actions for the balance. On default in payment of two early installments, foreclosure was commenced thereon, and a judgment and decree of foreclosure entered in favor of the Lincoln Joint Stock Land Bank for the amount of the delinquent installments. Special execution was issued and the land sold to the Lincoln Joint Stock Land Bank on September 3, 1930, for $2,987.30, and a sheriff’s certificate was issued therefor.

On September 12, 1930, an affidavit on behalf of the Lincoln Joint Stock Land Bank was filed with the clerk of the district courf *1387 of said county, showing payment of $582.74 for the last half of the 1929 taxes. This was entered by the clerk in the incumbrance and sale record books of said county.

On April 23, 1931, another affidavit was filed with the clerk, on behalf of the Lincoln Joint Stock Land Bank, mortgagee, showing payment of $521.25 for the first installment of the 1930 taxes. This was also entered in the incumbrance and sale record books of said county.

On default of subsequent installments, a second action was commenced on March 11, 1931, by the mortgagee against Williams, the mortgagor, to foreclose the mortgage for the entire amount due thereon.

On March 11, 1931, the Lincoln Joint Stock Land Bank, mortgagee, assigned its sheriff’s certificate of sale and the balance due on the entire mortgage in question to F. W. Van Druff, appellee herein, who was substituted party plaintiff in the second foreclosure action.

On September 2, 1931, being the last day for redemption from the sheriff’s sale in the first foreclosure action, B. A. Gronstal, appellant herein, purchased said property for himself and the attorneys representing him in this action for the sum of $100. On the same day he, on behalf of himself and co-owners, went to the clerk’s office and voluntarily paid the clerk the sum of $4,391.36 in redemption of the sale made under the first foreclosure. This amount included all costs and the two installments of taxes above referred to, amounting to $1,164.21. All of this redemption money remained in the clerk’s office until November 16, 1931, when it was turned over to appellee, F. W. Van Druff, the defendant herein, as assignee of the Lincoln Joint Stock Land Bank.

The present action is brought to recover the tax moneys paid to the clerk of the district court and by him delivered to the defendant herein. The lower court found against appellant herein, and dismissed his petition. Hence this appeal.

It is conceded that. Mr. Gronstal, the appellant, paid in the money to effect a redemption, voluntarily, with a full knowledge of all the facts, and without any mistake, fraud, or compulsion. On this matter appellant testified:

“I brought it down and paid it to the Clerk. Mr. Van Druff did not ask me to make redemption. The Clerk did not ask me to pay the money. In other words, I did it because I wanted to. Mr. *1388 Kistle, Mr. Roadifer, and Mr. Wright were interested with me financially when I purchased the real estate from Marshall J. Williams. They were acting also as my attorneys in the matter. At the time I made redemption and paid in the money to the Clerk on the 2nd, of September, 1931, I knew at that time that there was included in the money I paid in * * * redemption certain taxes that had been paid on the real estate and the Clerk figured those in for the amount to redeem. 1 knew those items of taxes were in the amount that I paid and were figured in. I did not tender any other amount than the amount I paid in. While the money remained in the' hands of the Clerk, I did not institute any action in court to determine the question of whether I should pay those taxes in as part of the redemption.”

The evidence shows without dispute that appellant knew that the amounts included for the taxes of 1929 and 1930 were paid by the Lincoln Joint Stock Land Bank. Appellant also knew that the amount of these taxes was included in the amount paid in redemption of the first foreclosure sale.

No claim is made in this action that said redemption money was paid through any mistake, fraud, or compulsion. It is not even claimed that the money was paid under protest. The evidence shows that this money was paid, not only voluntarily, but intentionally, without any compulsion, and for the very purpose of redeeming the real estate from the first foreclosure sale, and secure a clear title in the property to plaintiff.

Appellant, after acquiring title to the property, and while the second foreclosure action was pending, intervened in that action, joined in the defendant’s answer, and as a special defense alleged that the first foreclosure action constituted an adjudication and was a complete defense thereto, because the Lincoln Joint Stock' Land Bank could not split their cause of action. The lower court overruled that defense, and Gronstal appealed to this court, which sustained the lower court in Lincoln Joint Stock Land Bank v. Marshall J. Williams, 216 Iowa 659, 246 N. W. 841.

The evidence shows without conflict that, at the time this property was redeemed, appellant had acquired title thereto, and that the taxes so paid relieved his property of the lien thereon.

The second foreclosure suit was commenced in March, 1931. At that time there was no redemption from the first foreclosure sale. In the second foreclosure action, the Lincoln Joint Stock Land *1389 Bank also claimed the amount of taxes paid by it for the second half of 1929, amounting to $582.74. As these taxes were later paid by the redemption of the property, they could not be recovered again.

Appellant contends that because this amount was included in the judgment prayed for in the second action, it should not have been included in the amount required to redeem from the sale under the first foreclosure. The evidence shows, however, that the Lincoln Joint Stock Land Bank was the owner and holder of the sheriff’s certificate of sale when it paid the taxes of 1929, and that appellee was the owner and holder of said certificate when the redemption was made. Under these facts appellee was entitled to have said taxes included in the amount necessary to redeem from that sale. Sections 11797 and 11798 of the Code of 1931.

Code section 11797, provides that:

“The holder of a sheriff’s sale certificate * * * after the delinquency of any taxes * * * upon payment by him * shall have a lien upon said real estate for such expenditures v ” * of equal priority with the lien so held by him upon his filing with the clerk * * * a verified statement of said expenditures,” etc.

Code section 11798, provides that:

“When such advancements have been made by the holder of a sheriff’s sale certificate the sum so advanced shall be a part of the amount required to redeem from said sheriff’s sale.”

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Bluebook (online)
261 N.W. 638, 219 Iowa 1385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gronstal-v-van-druff-iowa-1935.