Harris v. Sheffield Nat. Bank

194 So. 164, 239 Ala. 92, 1940 Ala. LEXIS 39
CourtSupreme Court of Alabama
DecidedFebruary 22, 1940
Docket8 Div. 25.
StatusPublished

This text of 194 So. 164 (Harris v. Sheffield Nat. Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris v. Sheffield Nat. Bank, 194 So. 164, 239 Ala. 92, 1940 Ala. LEXIS 39 (Ala. 1940).

Opinion

KNIGHT, Justice.

The bill in this cause was filed by - the Sheffield National Bank, a national banking corporation organized under the National Banking Laws of the United States, 12 U.S.C.A. § 21 et seq., against Mary T. Harris and others, seeking to enjoin the foreclosure of a certain mortgage, executed by Elbert H. Fowler to Thurmond Harris on January 2, 1926, to secure the payment of five promissory notes, each in the principal sum of Seventy-nine Hundred Dollars; and praying for an accounting to ascertain the amount due to the complainant and the said Mary T. Harris on the mortgage indebtedness ; for the foreclosure of said mortgage under the orders and decrees of the court, and for allowance of solicitor’s fees to complainant’s attorneys.

It appears from the bill that the said Elbert H. Fowler, to secure his indebtedness to the said Thurmond Harris in the principal sum of $39,500, which was evidenced by his five promissory notes, each in the sum of $7,900, and each bearing interest from their dates, at six per cent per annum, and due and payable in one, two, three, four and five years, respectively, executed to the said Thurmond Harris on January 2, 1926, a mortgage conveying to said Harris the lands described in the bill.

It also appears from the bill that three of said notes, those maturing January 2, 1927, January 1928, and January 2, 1929, had been paid, and that payments had been made on the 4th note in the aggregate amount of $3,500, and that interest on said note had been paid to January 2, 1930.

It further appears that the complainant was at the time of the filing of the bill, and for a long time prior thereto, the owner of the fifth note above described.

It is further alleged in the bill that the respondent Mary T. Harris, claiming to be the transferee and owner of the said mortgage, was proceeding to foreclose the same under the power of sale therein contained, and that she had advertised the property for sale under the mortgage. A copy of the foreclosure advertisement was made an exhibit to the bill.

It is also averred that the said respondent Mary T. Harris has very little unencumbered property, and that an execution against her on a judgment for complainant’s proportionate share of the proceeds arising from a fair sale of said mortgaged property could not be collected. There are *94 other allegations in theibill, but we do not deem a detailed statement of the same necessary to a proper understanding of the case.

There was a general demurrer to the bill filed jointly by the respondents, Mary T. Harris and Thurmond Harris, taking the point that it was without equity. This demurrer was overruled by the court, and each of said respondents filed their answers to the bill. In her answer, Mrs. Harris denied that the complainant was the owner of the said fifth note, or of any of them, asserted that said note, as well as the fourth note, were her property; that the said fifth note, while it was her property in fact and truth, was pledged, or attempted to be pledged, to the said complainant to secure an indebtedness due to the complainant by her husband, and that such pledging, or attempted pledging of her property to secure the payment of her husband’s debt was illegal and void under the law.

At a later period in the litigation, the said respondent Mary T. Harris filed a further and additional answer, and made it a cross bill against the complainant, praying that it be decreed that said complainant “acquired no title, right or interest in and to note numbered five of Elbert H. Fowler, transferred, assigned and delivered to the Sheffield National Bank by the respondents J. C. Harris (husband of complainant) and Thurmond Harris,” and that the court decree that cross complainant, by the prior transfer of said'note, was entitled to be first paid out of the proceeds of the sale of the mortgaged property. In the alternative, that if she was mistaken in the relief prayed for, “then she prays that if she is entitled to a priority by reason of her assignment, then that the court order said mortgage foreclosed and determine the order of payment of the various assignees and owners of said notes out of the proceeds of said sale.”

The answer of respondent Thurmond Harris followed closely the line of defense asserted by the said Mary T. Harris, but. he filed no cross bill.

On submission of the cause, on pleading and proof, as noted by the register, the court decreed that the complainant was entitled to the relief prayed. The decree recites: “The court finds from the evidence, that of the series of five notes executed by Elbert H. Fowler to Thurmond Harris on the 2nd day of January, 1926, and secured by the mortgage which is made exhibit ‘A’ to the bill of complaint, notes numbered 1, 2 and 3 were paid by the maker, Elbert H. Fowler, in his life time; that a balance remains unpaid on note no. 4 of said series, but that the ownership of said note No. 4 has not been satisfactorily established, and that note No. 5 of said series of notes is and was at the commencement of the suit the property of complainant.”

This decree perpetually enjoined the said Mary T. Harris from foreclosing or attempting to foreclose the; said mortgage from Elbert H. Fowler to Thurmond Harris, dated January 2, 1926. The decree then ordered the register to sell the property ini foreclosure of the mortgage, after giving the notice required by and specified in the decree. The decree ordered and directed the register to make report of the sale to the court, said report to “show the total sale price, the amount of the proceeds arising from the sale found by her to be due to the owner of such note No. 4, and the amount of the proceeds found to be due to the owner of such note No. 5.” Then the decree contains this further direction: “It is further ordered, adjudged and decreed by the court that it be, and it hereby is referred to the register of this court to ascertain and report to the court the respective amounts now due on notes numbered four and five of the series of notes executed by Elbert H. Fowler to Thurmond Harris, all dated January 2nd, 1926, and secured by the mortgage made Exhibit ‘A’ to the bill; and to ascertain by legal evidence, such evidence, to include said Note No. 4, and to report to the court the present ownership of said Note No. 4, together with the evidence upon which such report is based.” The decree also directed the register to ascertain and report what would be a reasonable attorney’s fee to be allowed solicitors for complainant for instituting and maintaining this suit. This decree was rendered in the cause on February 28, 1939, and filed March 2, 1939.

This decree, in so far as it granted complainant the relief prayed, enjoined perpetually the respondent from foreclosing said mortgage, and found that the complainant was the owner of said Note No. S, was a final decree, and as such was appeal-able. Any and all equities settled by that decree cannot now be considered, as no appeal was taken from that decree within the period allowed by law for appeals from final decrees. Garry v. Jenkins, 109 Ala. 471, 20 So. 8; Wynn, Admr., v. Tallapoosa County Bank, 168 Ala. 469, 53 So. 228; Harris *95 v. Johnson, 176 Ala. 445, 58 So. 426; Coker v. Coker, 208 Ala. 239, 94 So. 308; United States S. & L. Co. v. Leftwich, 132 Ala. 131, 31 So. 474; Foley v. Leva, 101 Ala. 395, 13 So. 747; O’Rear v. O’Rear, 227 Ala. 403, 150 So. 502; Williams et al. v.

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Bluebook (online)
194 So. 164, 239 Ala. 92, 1940 Ala. LEXIS 39, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-v-sheffield-nat-bank-ala-1940.