Jesse Et Ux. v. Birchell Et Ux.

257 P.2d 255, 198 Or. 393, 37 A.L.R. 2d 952, 1953 Ore. LEXIS 221
CourtOregon Supreme Court
DecidedMay 7, 1953
StatusPublished
Cited by8 cases

This text of 257 P.2d 255 (Jesse Et Ux. v. Birchell Et Ux.) 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
Jesse Et Ux. v. Birchell Et Ux., 257 P.2d 255, 198 Or. 393, 37 A.L.R. 2d 952, 1953 Ore. LEXIS 221 (Or. 1953).

Opinion

TOOZE, J.

This is a suit to foreclose a real estate mortgage,, instituted by Fred F. Jesse and Dorothy A. Jesse, lute wife, as plaintiffs, against Jack W. Birchell and Ardis O. Birchell, his wife, Frances M. Scroggin and Alladeen Scroggin Byrldt, as joint executrices of the estate of T. J. Scroggin, deceased, Frances M. Scroggin, Alladeen Scroggin Byrkit, and Gr. Palmer Byrkit, her husband, as defendants. A decree was entered foreclosing the mortgage. Defendants Frances M. Scroggin and Alladeen Scroggin Byrkit, as joint executrices. *395 of the estate of T. J. Seroggin, deceased, Frances M. Seroggin, Alladeen Seroggin Byrldt, and Gr. Palmer Byrkit appeal.

Prior to and on June 26, 1948, B. E. Archer and Elsie Archer, his wife, were the owners of the tract of real property located in Polk county, Oregon, involved in this suit. On June 28, 1948, the Archers sold and conveyed said premises to plaintiffs Fred F. Jesse and Dorothy A. Jesse, his wife. As a part of the purchase price for said land, plaintiffs executed and delivered to the Archers their promissory note for the sum of $10,900, payable to B. E. Archer or Elsie Archer. On the same day, for the purpose of securing the payment of said promissory note, plaintiffs executed and delivered to the Archers their certain indenture of mortgage covering said premises.

On June 15, 1949, plaintiffs sold and conveyed said property to defendants Jack W. Birchell and Ardis O. Birchell, his wife, subject to the aforesaid mortgage indebtedness to the Archers, which indebtedness the said Birchells assumed and agreed to pay.

The defendants Birchell, on June 29, 1949, executed and delivered to plaintiffs their certain indenture of mortgage covering said premises, to secure the payment of a promissory note executed by them in the principal sum of $2,700, dated June 29, 1949, and payable to the order of plaintiffs. This mortgage forms the basis of the foreclosure suit now under consideration.

On April 19, 1950, Elsie M. Follett (Archer) commenced suit to foreclose the first mortgage lien on said premises. The plaintiffs in the instant suit, Fred F. Jesse and Dorothy A. Jesse, together with Jack W. Birchell and Ardis O. Birchell, his wife, the owners *396 of the property, and United States National Bank of Portland (Oregon), were named as parties defendant in said suit. The plaintiffs herein, as defendants in that suit, filed a demurrer to the complaint. The demurrer was overruled, and said defendants did not plead further. However, a stipulation was entered into between the plaintiff Follett and said defendants, by which it was agreed that the plaintiff would not take a deficiency judgment against the defendants Jesse, inasmuch as the mortgage- involved was a purchase price mortgage.

On August 16,1950, while the above suit was pending, the defendants Birchell sold and conveyed the property to one T. J. Scroggin, now deceased, subject to the Archer mortgage indebtedness, which Scroggin assumed and agreed to pay.

On August 28, 1950, Elsie M. Follett assigned the mortgage (that involved in the foreclosure suit) to Otto W. Heider, and on November 21, 1950, Heider assigned it to the said T. J. Scroggin.

On September 19, 1950, all the parties to the foreclosure suit entered into a written stipulation for the dismissal thereof, and, based upon that stipulation, an order was entered by the court on. October 3, 1950, dismissing the proceeding.

In the meantime and on July 12,1950, the plaintiffs in the instant suit commenced an action at law against the defendants Birchell to recover on the $2,700 promissory note above mentioned. In that action plaintiffs prepared and filed their affidavit for attachment, together with an undertaking on attachment. A writ of attachment was issued and delivered to the sheriff of Yamhill county for execution. The sheriff served a garnishee notice upon Sheridan Grain Company, but *397 “found nothing”. No property of defendants in that action was attached. The defendants Birchell filed a demurrer to the complaint. No action was taken on the demurrer, and no answer was filed. On September 20,1950, plaintiffs filed their motion to quash the writ of attachment and to dismiss the action without prejudice. On October 3, 1950, an order of the court dated September 29, 1950, was entered, quashing the writ of attachment and discharging the undertaldng; on the same day a further order was entered dismissing the action “without prejudice against the commencement or prosecution of any other suit or action based upon the cause alleged in the complaint.” In short, plaintiffs took an order of voluntary nonsuit.

It is evident that plaintiff’s mortgage, as a second mortgage lien upon the property in question, had little, if any, value as security, so long as the Archer mortgage lien, as a first and prior lien, was in full force and effect. In their affidavit for attachment in the law action, among other things, plaintiffs alleged as to the indebtedness due from the Birchells: “that payment of the same has been secured by a mortgage upon real property, but such security has been rendered nugatory by the act of said defendants.”

At the time the instant suit was commenced by plaintiffs, their mortgage lien, if a valid subsisting lien in the light of the foregoing facts, was a first lien upon the premises and, therefore, a valuable lien. In the absence of pleadings and evidence to the contrary, the presumption is that when the Archer mortgage (first mortgage) was assigned to T. J. Scroggin, the then owner of the premises, the two interests merged, and that mortgage ceased to be a subsisting lien. 59 CJS 523, Mortgages, § 367.

*398 There is no dispute between the parties as to the facts. By their affirmative answer, the appealing defendants sét forth but one defense to plaintiffs’ complaint for foreclosure. After alleging the proceedings in the law action brought by plaintiffs against the Birchells to recover on said promissory note, the answering defendants allege:

“* * * and on or about the 10th day of August, 1950, the said Fred F. Jesse filed of record in said law action his affidavit for an attachment, stating among other things in said affidavit that the said note had been secured by a mortgage upon real property, but such security had been rendered nugatory by the act of the defendants and that the sum for which this attachment is asked is an actual, bona fide debt.”

The defendants then allege the issuance of the writ of attachment and the facts respecting the purchase of the real property by T. J. Scroggin, now deceased. They then aver:

“* * * That by reason thereof defendants allege that plaintiffs herein, by virtue of the affidavit and writ of attachment issued out of this Court in the aforesaid law action of Jesse and wife v. Birchell and wife, Polk County Circuit Court Case No. 11587, made an election of one of two inconsistent remedies and should be barred from now claiming that they did not waive the lien of their note by cause [sic] a writ of attachment to be issued after waiving the lien on the real property described in paragraph VI of plaintiffs’ complaint.” (Italics ours.)

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Bluebook (online)
257 P.2d 255, 198 Or. 393, 37 A.L.R. 2d 952, 1953 Ore. LEXIS 221, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jesse-et-ux-v-birchell-et-ux-or-1953.