Holmes v. Bybee

34 Ind. 262
CourtIndiana Supreme Court
DecidedNovember 15, 1870
StatusPublished
Cited by26 cases

This text of 34 Ind. 262 (Holmes v. Bybee) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holmes v. Bybee, 34 Ind. 262 (Ind. 1870).

Opinions

Worden, J.

Complaint by the appellees against the appellants, to enjoin the sale of certain real estate on execution.

Demurrer to the complaint overruled, and exception. Final judgment for the plaintiffs below.

The following are the facts stated in the complaint. On the 8th of July, 1866, Jacoh Bybee, then, the owner of the [263]*263land mentioned in the complaint and lying in said county of Kosciusko, executed a mortgage thereon to Washington Bybee, one of the appellees, to secure the payment of the sum of five thousand two hundred and ninety-three dollars and thirty-six cents. On the 2d day of November, 1866, Washington Bybee commenced a suit in the Kosciusko Circuit Court, to foreclose said mortgage, and at the May term of said court) 1867, he obtained a décree of foreclosure. An execution was issued upon the decree, and the premises were sold by virtue thereof, on the 15th of June, 1867, the said Washington becoming the purchaser, at the sum of five thousand seven hundred and fifty dollars. At the expiration of a year from the time of the sale, the property 'not having been redeemed, a deed was executed by the sheriff for the premises, to said Washington Bybee, who afterwards conveyed a portion of the premises to the other appellee, George W. Harlan.

At the September term of the Kosciusko Circuit Court, 1866, the appellants, Holmes and Pfeifer, recovered a judgment in that court against Jacob Bybee, for the sum of thirteen hundred and eighty-one dollars and seventy cents, and in November, 1868, caused an execution to be issued thereon and levied upon the property thus mortgaged and sold under the decree. The complaint seeks to enjoin the sale under the execution, as it would cast a cloud upon the plaintiffs’ title. Holmes and Pfeifer were not made parties to the foreclosure suit, and the only question presented is, whether, on the facts stated, the sale was properly enjoined.

The question naturally suggests itself, what is there in the facts stated, that precludes Holmes and Pfeifer from levying their execution upon the land in question, and selling it, subject, however, *Po whatever rights Washington Bybee acquired] by his purchase?

We will consider the case, .first, without any reference to the redemption law of June 4th, 1861, and then determine how that act affects it, if at all.

The judgment of the appellants was a lien on. the land for [264]*264the space of ten years from the time it was reridered. 2 G. & H. 264, sec. 527. An equity of redemption may be levied upon and sold on execution. Id. 263, sec. 526. Lands levied on may be sold subject to liens and incumbrances. Id. 244, sec. 452.

There can be no doubt that, if Washington Bybee’s mortgage had not been foreclosed, and the land sold, Holmes and Pfeifer might have levied their execution upon the land and have sold it, subject, of course, to the mortgage.

Are their rights changed by the foreclosure ? It has been held in two cases, at least, in this court, that the rights of a junior mortgagee are in no way affected by the foreclosure of a senior mortgage, where the junior mortgagee was not made a party to the proceedings. Proctor v. Baker, 15 Ind. 178; Murdock v. Ford, 17 Ind. 52. We have no doubt of the soundness of this doctrine. It is argued, however, that the doctrine is not applied to a junior judgment creditor, because his is a general lien on all the defendant’s real estate in the county, and not a specific lien upon any particular property. A judgment creditor has a lien as absolute on all the real estate of the defendant in the county as the mortgage creditor has upon the particular property mortgaged; and no good reason has been given why he should not be made a party to a bill to foreclose a prior mortgage, as well as a junior mortgagee. We think a junior judgment creditor and a junior mortgage creditor stand, in this respect, upon essentially the same ground

And this is in accordance with the authorities. Says Chancellor Kent, “ When the mortgagee proceeds by bill to foreclose, he must make all incumbrancers, existing at the filing of the bill (and which, of course, includes the junior, as well as the prior incumbrancers) parties, ip. order to prevent a multiplicity of suits, and that the proceeds of the mortgaged estate may be duly distributed ; and the incumbrancers who are not parties will not be bound by the decree. The reason of the rule requiring all the incumbrancers, subsequent as well as prior to the plaintiff, to be made parties, is to give [265]*265security and stability to the purchaser’s title; for he takes a title only as against the parties to the suit, and it cannot and ought not to be set up against the subsisting equity of those incumbrancers who are not parties.” 4 Kent Com. (11th ed.) 210, 211. See, also, Brainard v. Cooper, 10 N. Y. 356, and authorities there cited. Indeed, it may be stated, as a principle of universal jurisprudence, that no person is bound by the proceedings or judgment of any court to which he is not a party. We have seen, by the statement of the case, that the appellants’ judgment was rendered before the commencement of the foreclosure suit. Had their judgment been rendered after the comméncement of that suit, they might have been deemed incumbrancers pendente lite, and bound by the judgment. Harlock v. Barnhizer, 30 Ind. 370. But as their lien accrued before the foreclosure suit wqs commenced, and as they were not parties thereto, the mortgage stands, as to them, precisely as if it had not been foreclosed, and as if there had been no sale made under the foreclosure. It is urged by counsel for the appellees, that the appellants, if not barred entirely, were bound to redeem the property before they could sell upon their execution. This argument .would be worthy of consideration, if, as to the appellants, there had been any foreclosure and sale; but as there has not, they have the plain statutory right of levying upon and selling the equity of redemption. Again, the question is put by way of argument, what will the appellants sell if they proceed with their execution, inasmuch as the equity of redemption has already been sold ? This question assumes that, as against the appellants, the equity of redemption has been sold, while we think, quite clearly, it has not. As against Jacob Bybee, the mortgagor, who, we suppose, was a party, the equity of redemption has been sold undoubtedly; but it does not therefore follow, that as against the appellants it has been sold, any more than it would follow, if the appellants had been made parties, and the mortgagor had not, that the equity of redemption would have been sold as against the mortgagor.

[266]*266Had Jacob Bybee not been made a party, no one would contend that his equity of redemption would have been divested by the proceedings. As against Jacob Bybee, the appellees have the title; but as against the appellants, they have nothing but the mortgage.

We are of opinion that unless the case is affected by the redemption law before mentioned, the appellants have the right to levy their execution upon the land in question, and sell the same, subject, of course, to the mortgage, in the same manner as if the mortgage had not been foreclosed. The statute in question we have set out in full, for convenience of future reference. It is found in 2 G. & H. 251.

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Bluebook (online)
34 Ind. 262, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holmes-v-bybee-ind-1870.