Johnson v. Dakota National Bank

207 N.W. 217, 49 S.D. 381, 1926 S.D. LEXIS 46
CourtSouth Dakota Supreme Court
DecidedFebruary 8, 1926
DocketFile Nos. 5381, 5382
StatusPublished
Cited by2 cases

This text of 207 N.W. 217 (Johnson v. Dakota National Bank) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Dakota National Bank, 207 N.W. 217, 49 S.D. 381, 1926 S.D. LEXIS 46 (S.D. 1926).

Opinion

SHERWOOD, J.

This is an appeal from an order overruling a demurrer to a complaint, which alleged in substance:

That in an action brought by defendant versus plaintiff to foreclose a real estate mortgage on lots 7, 8, 9, 10, and 11 in block 41, Witherspoon’s addition to Yankton, these separate lots were sold en masse for the sum of $1,748.58. That the principal, [384]*384interest, and costs due on this mortgage at the time of sale were $1,163.32, and judgment was entered by default in said action for $1,163.32. That plaintiff, claiming to have paid ,$533.15 for certain taxes and assessments on the property directed, that the property be advertised for sale for the said $1,163.32 and said $533.15, together with interest. That it was so advertised and sold on the judgment, and bought in by plaintiff for $1,748.58. That no money was paid by mortgagee on foreclosure, but the whole amount of the bid was credited on what the bank claimed said mortgagors owed them, and a certificate was issued on said sale to said mortgagors for $1,748.58. That the sale for sums alleged to have been assessed for taxes and assessments was void, and deprived or tended to deprive plaintiffs of their right to object to the taxes,and assessments, and greatly augmented the amount required to redeem from sale, and made it impossible for plaintiffs to redeem from sale.

That the sale was void because made on masse instead of in separate tracts. That said property was at all times the homestead of the mortgagors. That the fair value of the property sold was as follows: Lot 7, $5,000; lot 8, $1,000; lot 9, $1,250; lot 10, $1,000; lot 11, $1,000, and the entire value of all said lots was $9,250, and that they were of that value at the time of the sale. That plaintiff was wholly without means or money to pay the judgment or redeem from, said sale, and ever since, has been without means or money to pay the same; but, if the sale had been made as required by law, in distinct lots, separately, plaintiff had sufficient means to redeem from the sale of some of the lots.

That at the time of the foreclosure of the above mortgage, from which redemption is now sought, said bank, through its president, F. C. Danforth, held a deed to the premises above described, and in addition to lot 6 in the same block, which deed was held as security for a promissory note dated July 23, 1918, for $2,157, and that this deed' was not held for security for any other sum whatever. That all said premises since 1906 had been and were at the time of the sale the homestead of the plaintiffs. That some time in the year 1919 an action was commenced) against these plaintiffs, alleging that said deed was given to secure the $2,157 note and other alleged notes of Olaf Johnson and certain items of paving and sewer assessments aggregating [385]*385$1,514.70, principal, besides accrued interest. That judgment was rendered by default on this complaint for $3,856.11 and accrued interest, amounting to $4,407.51 with co;sts. That special execution was issued on this judgment, and on October 18, 1919, said premises were sold for the total sum of $3,000 to plaintiff bank; plaintiff paying no money, but the amount being credited on the judgment after paying costs.

That in truth the deed was not given by mortgagors for any of the notes or obligations alleged in the complaint except the note for $2,157,1 and as far as the judgment was in excess of $2,157, interest, and costs of suit, it was an oppression against mortgagors, who are plaintiffs in this case, and greatly augmented the amount to ‘be paid by plaintiffs above the amount justly due. That thereafter proceedings were taken against property owned by Olaf Johnson in the state of Tennessee to collect such judgment by foreclosure, whereupon said Johnsons sold the Tennessee property and paid $1,425 of the proceeds of the sale of that property and the further sum of $185 on said judgment, all of which the bank still retains. That at the time of making such payments plaintiffs believed the judgment to be a binding obligation.

Such proceedings were later had on motion of defendant Inga Johnson, that on November 4, 1920, an order was entered by the court that the judgment entered on September 9, 1919, so far as it related to Inga Johnson, “be, and the same is hereby, vacated and she is permitted to defend said action upon the merits, the same as if said judgment had never been rendered against her.” The bank excepted to this order, and appealed to the Supreme Court, where said order was ¡affirmed. That the action, in which the judgment was set aside as to Inga Johnson and she was permitted to defend, was tried and findings entered in .which it was found that the amount due Dakota National Bank from plaintiffs, for which the premises described in the deed were security, was only the principal and interest of the promissory note for $2,157; the note being dated July 23, 1918, and being executed by both Inga and O'laf Johnson, together with paving and sewer assessments, amounting altogether with costs of suit to $3,280.28. Plaintiff, desiring to redeem from said judgment and sale, offered to redeem and tendered so much ‘of [386]*386said proceeds as is required to pay and satisfy said judgment and sale.

That the time of redemption has expired, and the bank is threatening to take a deed. The prayer to said complaint asked that plaintiffs be permitted to redeem from said judgment and sale within such time as may be fixed by the court, and prays an order enjoining the issue of a deed on such foreclosure sale and from, applying for such deed. A demurrer to this complaint was interposed on the sole ground that the complaint did not state facts sufficient to constitute a cause of action. This demurrer was overruled, and defendant has appealed.

It is appellant’s contention: That the facts alleged in the complaint do not state a cause of action (a) because the sale was valid; (b) because, since the action was not commenced within the period of redemption, it cannot be maintained upon the facts alleged in the complaint.

Respondents state their contention as follows:

“Respondents’ claim for relief in this case is based upon two reasons: (i) That the money paid upon the judgment rendered September 9, 1919, in the circuit court of Yankton county, was paid under'duress or compulsion; (2) that the judgment of September 9, 1919, and the sale had thereunder .were set aside as to both Olaf Johnson and Inga Johnson. * * * ‘That, if either of these contentions is correct, then the complaint states a cause of action.’ ”

Discussing appellant’s contention (a): Admitting all the well-pleaded facts set forth in this complaint, were these foreclosure sales void because the property sold consisted of separate* lots and was in each case sold en masse? We think not. The complaint shows that the five lots sold on the first mortgage were palintiffs’ homestead, and that these five lots, together with one other lot, were covered by and sold under the second mortgage, and that the six lots covered by the second- mortgage were also plaintiffs’ homestead.

It follows that the complaint shows affirmatively that at the time of each sale the tracts sold were contiguous and “habitually and in good faith used as a part of the same homestead.” Sections 457, 458, and 459, R. C. 1919. In other words ,the property sold at each sale consisted in fact of but one tract habitually used [387]*387together for about ten years for one purpose. “That is sufficient to sustain the foreclosure sale.” Hagan v. Pratt, 46 S. D. 267, 192 N. W.

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Bluebook (online)
207 N.W. 217, 49 S.D. 381, 1926 S.D. LEXIS 46, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-dakota-national-bank-sd-1926.