Heller v. Shapiro

242 N.W. 174, 208 Wis. 310, 87 A.L.R. 1201, 1932 Wisc. LEXIS 317
CourtWisconsin Supreme Court
DecidedJune 20, 1932
StatusPublished
Cited by60 cases

This text of 242 N.W. 174 (Heller v. Shapiro) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heller v. Shapiro, 242 N.W. 174, 208 Wis. 310, 87 A.L.R. 1201, 1932 Wisc. LEXIS 317 (Wis. 1932).

Opinion

The following opinion was filed April 5, 1932:

FowRer, J.

The action is brought for declaratory relief under sec. 269.56, Stats. The relief is for declaration of the relative rights of all parties to the action and particularly as to the plaintiffs’ rights respecting subrogation when they pay off a mortgage if they do pay it.

The two plaintiffs were conducting, a business and wanted a loan. Rose Heller, wife of defendant Hugo Heller, a brother of plaintiffs, owned a parcel of real estate referred to as the Linnwood avenue property, on which were, mortgages and tax liens amounting to $6,712.91. Adelaide Heller, a sister of plaintiffs, owned another parcel, referred to as the Hackett property, against which was a mortgage of $3,500. To raise the money wanted the plaintiffs got Hugo and his wife and Adelaide to execute a joint mortgage for $18,000 on the two parcels to the defendant Integrity Savings Building and Loan Association, which advanced the money upon the mortgage. The mortgage requires payments of $200 a month, which payments the plaintiffs guaranteed and which they have been making to date. It was agreed between plaintiffs and the owners of the two properties when the joint mortgage was executed that $9,000 of the money received should stand as between them against each property. Out of the $9,000 so agreed as standing against the Linnwood avenue property; subsisting mortgage and tax liens aggregating $6,712.97 were paid, thus leaving .$2,287.03 as the amount received by plaintiffs from the owners. It was agreed between the plaintiffs and the owners that when the plaintiffs had paid [312]*312the amount received by them the owners would pay the remainder. However, the owners of the property are presently unable to make any of these payments and the plaintiffs will probably be compelled to make all of them under their guaranty. The plaintiffs have already made the payment they were to make under the agreement with the owners of the Linnwood avenue property. The defendant Shapiro loaned $6,000 to the owners of the Linnwood avenue property, taking as security a mortgage, subject to the Building and Loan Company’s mortgage. He foreclosed this mortgage, judgment was entered, the redemption period expired, and he was about to sell the property under his judgment. To prevent this sale the plaintiffs brought this suit, asking that the sale be enjoined pending its prosecution, that the court declare them subrogated to the rights of the Building and Loan Company under its mortgage, and that they be declared to have a lien superior to the lien of Shapiro’s mortgage to the amount of the liens paid off by the money secured upon that mortgage. They brought in several mechanic’s lien claimants whose liens arose after Shapiro commenced his foreclosure action. The case went to trial to the court without objection by any party to sufficiency of the complaint as basis for declaratory relief. Testimony was taken at considerable length and the court made findings and entered judgment. The judgment declared that "if, as, and when” the plaintiffs pay the Building and Loan Company’s mortgage they will be subrogated to the rights of the holder of that mortgage and that in such event their rights will be superior to Shapiro’s under his mortgage to the amount of the liens paid off by the proceeds of that mortgage. The rights of the mechanic’s lien claimants, none of whom appeared in the case, were declared subsequent to Shapiro’s rights under his mortgage.

[313]*313While the point was nowhere raised by the appellant in the course of the litigation, we consider that the case is not one for declaratory relief, and that the trial court should not have entertained jurisdiction of it. We construe the declaratory relief statute, sec. 269.56, as only justifying a declaration of rights upon an existing state of facts, not one upon a state of facts that may or may not arise in the future. So far as the statute has heretofore been invoked in cases that have reached this court, an existing state of facts has been the basis of the declaration or adjudication. Rosenberg v. Whitefish Bay, 199 Wis. 214, 225 N. W. 838; Northwestern Nat. Ins. Co. v. Freedy, 201 Wis. 51, 227 N. W. 952; Milwaukee v. Chicago & N. W. R. Co. 201 Wis. 512, 230 N. W. 626; S. S. Kresge Co. v. Railroad Comm. 204 Wis. 479, 235 N. W. 4, 236 N. W. 667.

The statute under which the suit is brought is the Uniform Declaratory Judgments Act, and many cases have arisen under it in other states. These decisions have been digested in 9 Uniform Laws Anno. 121 et seq. Many other cases under a like English statute are cited and stated in a note in 12 A. L. R. 69. From these decisions we gather that the statute deals with present rights only; that courts will not declare rights until they have become fixed under an existing state of facts (In re Sterrett’s Estate, 300 Pa. St. 116, 150 Atl. 159; Nashville Trust Co. v. Dake, 162 Tenn. 356, 36 S. W. (2d) 905; Denver v. Denver Land Co. 85 Colo. 198, 274 Pac. 743; Ladner v. Siegel, 294 Pa. St. 368, 144 Atl. 274; Wagner v. Somerset County, 96 Pa. Super. Ct. 434); they will not determine future rights in anticipation of an event that may never happen (Petition of Kariher, 284 Pa. St. 455, 131 Atl. 265); they will not give advisory opinions or pass upon uncertain or contingent situations (Ladner v. Siegel, supra; Reese v. Adamson, 297 [314]*314Pa. St. 13, 146 Atl. 262; In re Pittsburgh’s Consol. City Charter, 297 Pa. St. 502, 147 Atl. 525); or pass upon rights which are future, contingent, or uncertain (Tanner v. Boynton L. Co. 98 N. J. Eq. 85, 129 Atl. 617); or entertain a declaratory relief action where ordinary remedies exist for granting the relief prayed for (Kariher’s Petition, supra; Leafgreen v. La Bar, 293 Pa. St. 263, 142 Atl. 224; Kimmell’s Appeal, 96 Pa. Super. Ct. 488; List’s Estate, 283 Pa. St. 255, 129 Atl. 64; McCalmont v. McCalmont, 93 Pa. Super. Ct. 303); or take jurisdiction to declare rights which it is feared a defendant may assert. See English cases cited in 12 A. L. R. 73. Parties are not entitled to a declaratory relief judgment on remote questions, or to aid them in another transaction (Hodges v. Hamblen County, 152 Tenn. 395, 277 S. W. 901); nor should they be delayed in the prosecution of a cause of action until the determination of a case brought for declaratory relief (McFarland v. Crenshaw, 160 Tenn. 170, 22 S. W. (2d) 229). The act was not intended to be used to elucidate or modify or declare rights under an existing decree of a court. Ladner v. Siegel, supra; Williamsport v. Williamsport Water Co. 300 Pa. St. 439, 150 Atl. 652. While sec. 9 of the act recognizes that issues of fact may be litigated in the action, the action more properly lies upon undisputed facts, and courts have a wide discretion which should be exercised with utmost caution, else the courts will be resorted to for advice as to what will be the consequence of the plaintiff’s doing some contemplated act or not doing some act which he is under obligation to do. “It has been said by good authority that ‘a declaration may properly be refused if it can be made only after a judicial investigation of disputed facts.’ ” Newsum v. Interstate Realty Co. 152 Tenn. 302, 278 S. W. 56, citing 3 Freeman on Judgments (5th ed.) p. 2789, where the decisions under the English statute are considered.

[315]*315There are many reasons under the rules above stated why this suit should not have been entertained.

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Bluebook (online)
242 N.W. 174, 208 Wis. 310, 87 A.L.R. 1201, 1932 Wisc. LEXIS 317, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heller-v-shapiro-wis-1932.