Hamilton v. Carter

41 P. 911, 12 Wash. 510, 1895 Wash. LEXIS 200
CourtWashington Supreme Court
DecidedAugust 16, 1895
DocketNo. 1607
StatusPublished
Cited by3 cases

This text of 41 P. 911 (Hamilton v. Carter) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hamilton v. Carter, 41 P. 911, 12 Wash. 510, 1895 Wash. LEXIS 200 (Wash. 1895).

Opinion

The opinion of the court was delivered by

Anders, J.

The firm of Ninemire & Morgan recovered a judgment in the superior court of Chehalis county againts one J.. F. Hiatt, and caused an execution to be issued thereon and placed in the hands of the defendant Carter, who was then sheriff of said county. In pursuance of the writ, one Geissler, who was deputy sheriff, seized, advertised and, on November 9, 1891, sold certain personal property belonging to the defendant Hiatt, to the respondent Hamilton, for the sum of $425. At, and prior to, the execution sale, defendant Holloway held a chattel mortgage on the property sold, which he had caused to be foreclosed, the decree of foreclosure having been rendered two days prior to the sale.

It appears from the complaint herein that Hamilton was apprised of the existence of this mortgage when [512]*512he hid in the property, and the sheriff and his deputy were also aware of it. But it seems that both Hamilton and Holloway understood that the mortgage would be satisfied out of the proceeds of the sale. On November 30th the deputy sheriff paid the money received from Hamilton, and returned the execution with his doings thereon, to the clerk of the court. On December 5th following, the court ordered the clerk to pay this money to the execution plaintiffs in part satisfaction of their judgment. Whether Hamilton or Holloway was cognizant of this order does not appear from the evidence. In April, 1892, Holloway caused an order of sale to be issued upon his judgment and decree of foreclosure, apd delivered to the sheriff. The sheriff, in pursuance thereof, was about to sell the mortgaged property, when Hamilton instituted this action against him and Holloway to enjoin the proceeding.

It is alleged in the' complaint, among other' things, in substance, that at the execution sale the sheriff refused to accept, any bid less than $425, the amount supposed to be necessary to satisfy the mortgage lien, and that plaintiff was induced to bid and pay that sum foT' the property by the representation of the sheriff that it would be applied in satisfaction of said mortgage lien; that Holloway was present and heard said representation and assented thereto; that afterwards, and for the purpose of injuring and defrauding plaintiff, the sheriff refused to apply the money so paid to the satisfaction of said mortgage, but returned upon the execution that he sold all the right, title and interest of Hiatt in and to the property, subject to a mortgage in favor of A. B. Holloway for the sum of $300 and costs; that the return was so made to injure and defraud plaintiff, and was false; that since the plain[513]*513tiff paid over to the said sheriff the said sum of $425, the defendant Holloway has caused an order of sale to issue out of the superior court, commanding the said sheriff to sell all of the property so sold to plaintiff, and that, in pursuance of said order of sale, the sheriff threatens and is about to sell the whole of said property, to the plaintiff’s lasting injury and damage in the sum of $500; and that unless the sheriff and his co-defendant be restrained from further action under said order of sale, the plaintiff will suffer great and irreparable injury.

The defendants demurred to the complaint upon the grounds, among others, that it failed to state facts sufficient to constitute a cause of action, and that there was a defect of parties defendant. The court overruled the demurrer, and the defendants excepted. Carter then answered, denying the representations alleged in the complaint, and affirmatively averred that, prior to the . date of the sale, Holloway had a mortgage lien upon said property, and that the goods were purchased by Hamilton at said sale subject to the lien of said mortgage, and that Hamilton had bought other property from Hiatt, the mortgagor, subject to the same mortgage, and had agreed with Hiatt to pay Holloway sufficient of the purchase price to satisfy said mortgage. Holloway separately answered and likewise denied the alleged representations of the sheriff, and alleged that Hamilton bought this and other property without his procurement or consent and subject to his mortgage, and that before the sale he told Hamilton not to buy the property unless he paid the mortgage, and that Hamilton bought other property from Hiatt, agreeing to pay the mortgage with part of the purchase price, but had failed so to do; and further alleging that if the injunction be granted he, Holloway, [514]*514would never recover any money due him from Hiatt under said decree, and prayed judgment against plaintiff for dissolution of the preliminary injunction, dismissal of the complaint and for damages and costs of the action. The plaintiff's reply was a general denial of the affirmative allegations of both answers.

Upon these pleadings and issues the cause was tried by the court. Findings of fact and conclusions of law' were made and filed, and a decree rendered thereon perpetually enjoining both Carter and Holloway from enforcing the decree and order of sale; that Carter amend the return upon the execution to show that at the sale the property was sold for $425, and this sum was received by him as sheriff to apply to the discharge of the decree in the Holloway cause, and that said sum be a trust fund with which to satisfy in full the decree in favor of Holloway, and that within ten days Carter pay said sum into court with legal interest from date of sale to satisfy said decree, and in case of failure that execution issue therefor in favor of Holloway, and that plaintiff and defendant Holloway severally recover their costs from Carter, and that execution issue therefor. The defendant Carter gave written notice of appeal from the judgment and decree of the court and every part thereof, and afterwards Holloway joined in his appeal.

After a careful consideration of the facts in this case and the law applicable thereto, we are Unable to discover any grounds upon which the judgment and decree can be sustained. The complaint seems to have been framed on the theory that the plaintiff purchased at <the execution sale the entire and exclusive property in the goods, instead of the mere interest of the execution defendant. But this theory is contrary to law and therefore entirely indefensible. The statute [515]*515provides that the interest of the mortgagor may be seized and sold, subject, however, to the mortgage. Gen. Stat., §1659. And generally, when a purchaser at an execution sale buys property which he knows is subject to a legal or equitable claim of a third person, the title he acquires is without prejudice to such claim. In speaking of the rights of purchasers in cases like this, Mr. Freeman lays down the law as follows:

But a purchaser at a sale under a judgment is, to the same extent as if he were purchaser at a private or voluntary sale, protected from claims previously acquired by third persons from the judgment debtor, of which he has no actual nor constructive notice. But if, at the time of the sale, the purchaser has actual notice of any legal or equitable right in a third person, or if, in the absence of such notice, the instrument evidencing such right is properly of record, or if possession is held under it, then the title acquired by the purchaser cannot prejudice the interests of such third person.” 2 Freeman, Executions (2d ed.), §336.

The court below must have deemed this an exceptional case, for its conclusion is at variance with the rule above stated.

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Cite This Page — Counsel Stack

Bluebook (online)
41 P. 911, 12 Wash. 510, 1895 Wash. LEXIS 200, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hamilton-v-carter-wash-1895.