Heatherly v. Hadley

4 Or. 1
CourtOregon Supreme Court
DecidedSeptember 15, 1869
StatusPublished
Cited by33 cases

This text of 4 Or. 1 (Heatherly v. Hadley) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heatherly v. Hadley, 4 Or. 1 (Or. 1869).

Opinion

By the Court,

The prominent points presented for our consideration by this appeal are embodied in the following opinion delivered in the Circuit Court upon rendering the decree appealed from:

The Court finds that (in the view the Court takes of the case as it is now presented) many of the findings of the referee become immaterial, for the referee holds that the decree of foreclosure was void for want of sufficient service on the plaintiff (then defendant) to give the Court jurisdiction. • ...

‘11 entertain a different view, and hold that the decree, in the absence of fraud or mistake in procuring it, is binding [7]*7and cannot be declared void in a collateral proceeding by mere inspection of the record.

“And as there is no sufficient evidence of fraud in the. procurement, the decree will have to stand and is binding on the land, and the sale under it operates as a transfer of the title. I think the objection to the regularity of the sale, on the ground of a want of notice, cannot avail to disturb the sale at this time, in the absence of evidence to show that there was fraud and collusion in making it, or injury to the plaintiff. And I also think that the weight of authority is in favor of the purchaser.

“The real issue,in this cause is as to whether there was fraud or not in procuring the decree of foreclosure which this suit is brought to set aside.

“I fully agree with the findings of the referee in that behalf, that there is no sufficient evidence of fraud. And as the plaintiff has failed in this issue, the plaintiff cannot open the decree to inquire into the various amounts that went into that decree to make up its aggregate; for this suit is hot brought to reform the decree in these respects; it is to declare the decree void and then go into the original account between the parties and strike a balance between them, to ascertain what is now due on the mortgage for which the land is liable, and as the Court cannot set aside the decree, it cannot go into these accounts. I think also, in a case of this kind, when an issue has been made on the facts of the regularity of the service, that declarations of the plaintiff that he was duly served and had due notice of the suit in which the decree was rendered, may be given in evidence to support the regularity of the service and to show jurisdiction.”

The two questions for determination are:

First. Is the attempt to impeach the original decree which is made by this plaintiff direct or collateral?

Second. If it be found to be direct, are the grounds for setting it aside sufficient?

In reply to the first question, we are unable to assent to the proposition that this is a collateral proceeding.

The statute abolishes bills of review, and the nomencla[8]*8ture of bills heretofore used, and provides that “a decree in equity may be impeached and set aside, or suspended, .or avoided, or carried into execution by an original suit.” (Civ. Code, § 377.) A bill of review, for which the Code now substitutes an original suit, was a bill filed to procure an alteration or reversal of a decree made in a former suit. It was requisite that a bill of review show either error in law appearing in the record, without resorting to extrinsic evidence, or some new matter that has arisen in time after the[decree, or some discovery after the decree. If the facts stated in the complaint, taken as true, show such errors in law appearing in the record of the former suit as justify the intervention of a Court of equity, this case is such as was formerly presented by a bill of review; or by a bill in the nature of a bill of review, according to whether or not the decree had been enrolled.

The gravamen of the complaint in this case is the wrong alleged to be done by the rendition of a decree for more money than was due; for interest i^iat was unlawful, and upon a false representation of the condition of the accounts; and that such decree was rendered -when, for want of sufficient service, the Court had no jurisdiction of the person of the defendant, the present plaintiff. The complaint also charges that the decree was obtained by fraud. Facts are stated in the complaint which, if true, would authorize a Court of equity to suspend or set aside the decree, and to order an account, and decree a resale of the premises.

The complaint, besides containing the general prayer, asks specifically, not only that the decree may be set aside, but that an account may be taken, and that the present plaintiff be allowed to redeem.

It will not be seriously contended that the Code, by dispensing with the classification of bills, has taken away the right of suitors-to present any cause of suit that formerly could be presented by any form of bill. Every complaint is to be judged by the facts stated in it, and not by its formal words; and the prayer for general relief authorizes the Court to administer such relief as is required by the [9]*9case made by tbe pleadings and evidence. (Story, Eq. PL B 40, 41.)

It is true, tbe complaint treats tbe original decree, and tbe sale made under it, as void for. want of service of summons; and it has been held that equity will not relieve against a void judgment or decree. If relief from a deed alleged to be void was the only point presented, it could be well questioned whether this suit could be maintained at all. It has, however, often been held that a void decree may be a cloud on title to real estate. (Johnson v. Johnson, 30 Ill. 2-15.) But beyond that, the bill charges fraud, mistake and the abuse of a trust, and the pleadings show a complicated and disputed account, with a lien upon land for a balance yet to be ascertained. To determine the character-of this proceeding and the jurisdiction, the complaint is taken as true. Several grounds of equity jurisdiction appear by the bill. There is no better established rule of equity practice than that, having obtained jurisdiction for one purpose, a Court of equity may hold it for all purposes connected with the transaction.

Appeal cases in equity are tobe “tried anew upon and in regard to all questions both of law and fact presented by the transcript.” (Civ. Code, § 533.)

If this Court finds that the original decree and sale are invalid, there is no reason why it cannot proceed to determine the state of the accounts, and if a sale is necessary, to decree a sale in case of non-payment. If the Circuit Court had found that the present plaintiff, James Heatherly, was not served with summons in the former suit, it would have been proper for that Court to ascertain the state of the accounts between the parties and make final determination of all matters presented by the pleadings. The facts necessary to a complete determination of the controversy are set out in the pleadings, and the Court was authorized by its general equity powers, as well as by the express directions of B, 241 and 397 of the Civil Code, to hear and pass upon them.

This point having been disposed of, we come, secondly, to the question whether the grounds upon which the original [10]*10decree is attacked or any of them are sufficient to justify its avoidance, and the entry of a decree consistent with the equities of the case as now presented.

Two prominent reasons are assigned by the appellants, in their complaint, why the decree which they attack should be set aside. They are:

First. Fraud in its procurement.

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Bluebook (online)
4 Or. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heatherly-v-hadley-or-1869.