Gulling v. Washoe County Bank

28 Nev. 450
CourtNevada Supreme Court
DecidedOctober 15, 1905
DocketNo. 1672
StatusPublished
Cited by1 cases

This text of 28 Nev. 450 (Gulling v. Washoe County Bank) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gulling v. Washoe County Bank, 28 Nev. 450 (Neb. 1905).

Opinion

By tbe Court,

Talbot, J.:

On March 1, 1893, James Pollock, bis wife, Delia, and Daniel Powell, who are admitted to have been tbe owners at that time, executed to B. U. Steinman and C. H. Cummings, as trustees, a trust deed for certain property near Reno to secure tbe payment of a promissory note of tbe [482]*482same date, given'by the Pollocks and Powell to Farmers’ and Mechanics’ Savings Bank of Sacramento, for $8,000 and interest. This deed directed the trustees, in ease of default in payment, to sell the property at Sacramento after giving notice, to apply the proceeds in satisfaction of the note and costs of sale, and to pay any excess to the grantors. On August 31,1895, the Pollocks and Powell executed to Martin Gulling a mortgage on the same premises for $2,082.60 and interest thereon from that date at 8 per cent per annum, which is sought to be foreclosed in this action, and which specified that it was given subject to the trust deed. On February 23, 1897, the Pollocks and Powell conveyed their interest in the property to Washoe County Bank for a stated consideration of $14,000, which comprised the amount of $8,800, estimated to be due the Farmers’ and Mechanics’ Bank of Sacramento on the note secured by the trust deed, and $5,200 due from the Pollocks and Powell to the Washoe County Bank on unsecured notes which were surrendered to them. On February 26, 1897, the Farmers’ and Mechanics’ Savings Bank commenced suit to recover the amount due on its note stated at $8,639.73, and for a foreclosure of the trust deed and sale to satisfy that amount against the Pollocks, Powell, Thomas E. Haydon, Henry Anderson, John Doe, Richard Roe, Michael Doe, B. U. Steinman, and C. H. Cummings. Neither Martin Gulling nor the Washoe County Bank were named as parties in the complaint, but both were served with summons under the fictitious designations of defendants who were alleged to have some title, claim, or interest, which was second and subordinate to the right of the Farmers’ and Mechanics’ Bank arising from the trust deed. On March 8,1897, Martin Gulling filed an answer in that action, in which the name of Washoe County Bank is not mentioned in the title, body, or prayer. It stated that its allegations were made "in obedience to summons therein issued and served upon him and answering the complaint therein.” In this answer he admitted the priority of the claim of the Farmers’ and Mechanics’ Savings Bank under the trust deed, thereby avoiding any real issue with the plaintiff, but he alleged the execution of the [483]*483mortgage to him by the Pollocks and Powell, and that other persons claimed an interest in the premises which was subsequent to his mortgage, and he asked for judgment against the mortgagors for principal, interest, and attorney’s fees, for the usual decree of sale, and that the proceeds be applied, first, to the satisfaction of any judgment which Farmers’ and Mechanics’ Bank might obtain, ánd, second, to the payment of any judgment he might recover, that he have execution for any deficiency against the Pollocks and Powell, and that they, Thomas E. Haydon, Henry Anderson, B. U. Stein-man, and C. H. Cummings, and all persons claiming under them subsequent to the execution of his mortgage, be barred and foreclosed of all right, claim, or equity of redemption. On March 20, 1897, twelve days after Gulling filed his answer, Steinman and Cummings,' acting as trustees, and after notice given, sold the property at the courthouse door at Sacramento to the Washoe County Bank for $9,100, the amount due the Farmers’ and Mechanics’ Bank on the note secured by the trust deed and the sum estimated for costs. Over four months later, and on July 31, 1897, Washoe County Bank filed its answer without naming Gulling in the title, and prefaced its averments with the recital that, " as required by summons served on said bank, and answering said summons and the complaint filed in said action,” it made its allegations setting out the execution of the trust deed, the sale thereunder, and the deeds from Steinman and Cummings, as trustees, and from the Pollocks and Powell to Washoe County Bank. These facts, and they controlled the court later in its decision in that case, do not purport to be stated against Gulling. But directly after their statement, as so alleged in answer to the complaint, follows an allegation in the nature of a conclusion of law, "that the equities of all the other defendants, including Gulling, were foreclosed and barred,” and a demand for a decree accordingly against them and the plaintiff. This answer does not in any part of it purport to allege as a cross-complaint, or in terms as against Gulling, the sale under the trust deed by the trustees to Washoe County Bank, nor does it appear to have been served upon him. He filed no demurrer, [484]*484answer, or reply to it, and the record indicates that he offered no evidence regarding it. The case came to trial on January 14, 1898. The plaintiff, Farmers’ and Mechanics’ Savings Bank, and the defendants, Washoe County Bank, Gulling, and Anderson, each appeared by counsel and defendant Hay-don in person.

It is stated in the findings that the plaintiff, having before the hearing made and filed a disclaimer of all interest in the action and an admission that Washoe County Bank had succeeded to the interest of plaintiff, thereupon rested, that Martin Gulling offered and submitted evidence and proofs and thereupon rested, and that Henry Anderson, Washoe County Bank, and "the defendants and each of them having submitted evidence and proofs in support of the issues made by them in their answers, the case was submitted to the court.” The fair inference from the language and from the fact that he was the first to submit proofs is that he introduced evidence to support the allegations of his answer which averred the execution and non-payment of his mortgage, but that he did not offer any in relation to other facts alleged in the answer of Washoe County Bank. The findings and decree in that action disposed of the claims of these other defendants, and found and declared that the sale and deed made by the trustees was in accordance with the terms of the trust deed and that by such sale and deed all the interest in the property was conveyed to Washoe County Bank clear of Gulling’s mortgage, and that the latter was entitled to a judgment against the Pollocks and Powell for the amount due on his note, but not to a decree of foreclosure. The findings recite that "defendant Gulling was made a party to the action and was duly served with process therein, and in due time filed his answer to plaintiff’s complaint,” but it does not appear that there was any other service upon him, or issue made that rendered him liable beyond the allegations and demands of the complaint, or that would cut off his rights by reason of the sale by the trustees, which did not take place until after he had filed his answer. The court found in both actions that $8,800, estimated to be the amount due Farmers’ and Mechanics’ Bank, [485]*485and notes held by Washoe County Bank against the Pollocks and Powell for $5,200, unsecured after the execution of the mortgage by them to Gulling, constituted the consideration expressed at $14,000 for the deed from them to Washoe County Bank, and that the property was worth about that sum at the date of the trustees’ sale and the time of trial. A blank space in the decree in the first action for judgment in the amount owing by the Pollocks and Powell to Gulling on his note and mortgage remains unfilled.

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

Related

Gulling v. Washoe County Bank
29 Nev. 257 (Nevada Supreme Court, 1907)

Cite This Page — Counsel Stack

Bluebook (online)
28 Nev. 450, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulling-v-washoe-county-bank-nev-1905.