Holden v. Shutt

29 N.E.2d 167, 65 Ohio App. 37, 18 Ohio Op. 271, 1939 Ohio App. LEXIS 270
CourtOhio Court of Appeals
DecidedNovember 29, 1939
StatusPublished
Cited by1 cases

This text of 29 N.E.2d 167 (Holden v. Shutt) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holden v. Shutt, 29 N.E.2d 167, 65 Ohio App. 37, 18 Ohio Op. 271, 1939 Ohio App. LEXIS 270 (Ohio Ct. App. 1939).

Opinions

Doyle, J.

This is an appeal on questions of law from the Court of Common Pleas of Summit county. It is urged that the trial court erred, to the prejudice of the appellants, in confirming a sheriff’s sale of real estate following a decree of foreclosure.

Action was commenced in the Court of Common Pleas on December 20, 1934, by the appellants for personal judgment on a promissory note, and for the foreclosure of a real estate mortgage securing the same. On December 21, 1934, judgment was awarded appellants on the note; on June 14, 1935, a decree of foreclosure was entered and an order of sale issued; and on August 23, 1935, the premises were offered for sale by the sheriff and were “bid in” by the appellants.

Thereafter, on November 27, 1935, the appellants wrote Nettie B. Shutt, the owner of the property and a defendant in the foreclosure action, by registered mail, the following: “This is to notify you that on Monday morning, December 2, 1935, at 11:30 a. m., we will apply to the Hon. Prank H. Harvey, at his court room, or to such other judge of the Common Pleas Court to whom said hearings may be assigned, for authority to proceed with the above foreclosure. If you have any defense, please be present, in order that you may be heard.”

Pursuant to this letter, a hearing was held before one of the judges of the Court of Common Pleas. A fair inference to be drawn from the record is that, in such hearing, the appellants orally moved the court to confirm the sale of the premises, and that the owner of the premises asked for a continuance of the proceedings, and that she be granted the immunities of Section 11588, General Code, known as the Best Mortgage Moratorium Act.

*39 The court, following this hearing, continued the ease “until the further order of the court,” on condition that certain payments he made to the appellants. It is apparent that the court was of the opinion that the owner was entitled to the benefits of the provisions of the mortgage moratorium act and proceeded accordingly.

The original pleadings and the transcript of journal entries disclose no further action until October 6,1938, at which time the plaintiffs (appellants) moved the court for an order directing “that the order of sale formerly issued * * * be set aside; that the sale of the premises * * * be set aside; and that the sheriff be ordered to return the order of sale,” for the reason that the property had been permitted by the defendants (appellees), who had been in possession, to “run down and deteriorate,” and further that, due to the condition of the real estate market, the property was no longer worth the amount for which it had been sold more than three years before.

Following a hearing on this motion, the court overruled the same and stated in the journal entry that it was overruled “without prejudice to the right of the plaintiffs to renew their motion at any time when said Best act may have expired or become inoperative as to said property.”

It appears that, during the pendency of the foregoing proceedings, Nettie B. Shutt, the owner of the premises, deceased, and that the court made John Shutt and Hazel Ehring, executors of the estate of the deceased, parties to the action.

On November 3, 1938, the aforenamed executors filed a motion in the court, asking for an order of confirmation of the sheriff’s sale made in 1935. This motion was apparently heard and reheard, and on January 4, 1939, the court ordered on its journal that the motion be overruled.

On March 20, 1939, the plaintiffs again filed a mo *40 tion for an order setting aside the sheriff’s sale and that the “sheriff be ordered to return the order of sale.” It was asserted that the premises had decreased in value from the time of sale, and that the payments made were not enough to pay the current interest and taxes; and further, that the defendants had entirely stopped payments of any amount.

On May 13, 1939, the court, in passing upon plaintiffs’ motion of March 20, 1939, supra, and a motion of the defendant executors for a confirmation of the sale, overruled the plaintiffs’ motion to set aside the sale, and sustained the motion of the defendant executors to confirm the sale, and ordered its confirmation.

From that order, appeal has been perfected to this court on questions of law.

Evidence was introduced by the plaintiffs in the trial court in opposition to the defendant executors’ motion to confirm the sale. It is in all respects uncontradicted. In substance it discloses that the plaintiffs were the only bidders at the sale, and stood ready and willing to complete their purchase of the property and pay the amount bid for it, “but were prevented from so doing by the interposition of the defendant Nettie ■ B. Shutt, who was the owner of the equity of redemption” in the property; that the said plaintiffs attempted unsuccessfully to secure a confirmation of the sale; that at the date of the sale the property was reasonably worth two-thirds of its appraised value, to wit, $4,235 (which amount was the plaintiffs’ bid), but, due to lack of repair, -deterioration, and wear and tear, while in the possession of the defendants, and also- to a change in the real estate market, the property is not •now worth “more than $3,000 to $3,500”; that Nettie B. Shutt, the owner, was never entitled to the benefits of the moratorium act, even if the application had been seasonably made, for the reason that she was not in distressed circumstances, as evidenced by the extent of her estate in the probate thereof, wherein it is re *41 corded that she died possessed of property valued at $16,517.68; that at the time the property was bid in, the general real estate market condition made the purchase a desirable one, but that between August, 1935, and December, 1938, the real estate market had fallen to such an extent that the property would be extremely undesirable at the present time; and further that it is probably entirely unsalable in its present condition, and would require the expenditure of a large sum of money to repair it for the market.

It is further disclosed that the defendants have deposited, with the court, money sufficient to satisfy the deficiency judgment, and that the payments as ordered by the court in 1935 were regularly made by the defendants to the plaintiffs throughout most of the term, and that they were in an amount slightly less than the sum necessary for the payment of interest and taxes.

Section 11588, General Code, effective February 4, 1935, provided:

“When a mortgage is foreclosed or a specific lien enforced, a sale of the property shall be ordered.

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Bluebook (online)
29 N.E.2d 167, 65 Ohio App. 37, 18 Ohio Op. 271, 1939 Ohio App. LEXIS 270, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holden-v-shutt-ohioctapp-1939.