Kingman Plow Co. v. Knowlton

119 N.W. 754, 143 Iowa 25
CourtSupreme Court of Iowa
DecidedFebruary 17, 1909
StatusPublished
Cited by4 cases

This text of 119 N.W. 754 (Kingman Plow Co. v. Knowlton) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kingman Plow Co. v. Knowlton, 119 N.W. 754, 143 Iowa 25 (iowa 1909).

Opinion

Deemer, J.

The facts are complicated and the issues obscure, and we shall have some difficulty in stating the case with any degree of clearness. There is little dispute regarding the controlling facts, and the questions are largely of law. E. S. Knowlton owned one hundred and eighty acres of land in- Mahaska County, Iowa. On the 24th day of March, 1904, he executed a mortgage upon the land to his wife, Sylvia TI. Knowlton, purporting to secure a note for the sum of $5,800. Knowlton was heavily in debt and practically insolvent when this mortgage was made, and for the purposes of the case, the Knowltons not having appealed, we must find that the mortgage was without consideration and fraudulent and void as to all creditors who were and are in position to challenge the same. Between April 1, and November 9, 1904, various judgments were rendered against E. S. Knowlton. Among these judgment creditors was one E. J. Enger, whose judgment was obtained April 1, 1904. Execution was issued on this judgment March 27, 1905, levy made upon the one hundred and eighty acres of land April 4, and a sale had May 13, 1905. The property was bid in by Warren C. Johnson for an amount sufficient to satisfy the judgment upon which the sale was had, and judgments held by Hunt, Helm, Eerris & Co., Fairbanks-Morse & Co., Temple Pump Co., and the Pattee Plow Co. Thereafter defendant Irving C. Johnson purchased the judgments of the Oskaloosa Savings Bank and of the Frankel [29]*29State Bank, both rendered April 18, 1904, and upon the strength of these two judgments he (Irving C. Johnson) redeemed from the execution sale to Warren O. Johnson, and the satisfaction of these two judgments, together with the five which were satisfied by the execution sale, amounted to $4,700. Irving C. Johnson also procured an assignment of xhe original sheriff’s certificate of „sale, and upon the strength of his redemption and of the assignment of the certificate took a sheriff’s deed to the property in due course on May 26, 1906, having invested in the property between $4,700 and $4,800. Neither Warren C., nor Irving C. Johnson were creditors of Knowlton, and Warren CL Johnson bid openly at a regularly advertised public sale, and there is no claim of any fraud upon his part, or upon the part of Irving O. Johnson. Irving C. Johnson regularly redeemed under the two judgments purchased by him, and as, no redemption was made by any of the subsequent judgment creditors or by" the owner, Knowlton, the sheriff’s deed issued as before stated. The statutory period of redemption expired some time prior to May 26, 1906, the date of issuance of the sheriff’s deed. It appears from the evidence that before the issuance of the execution on the, Enger judgment, the attorneys for all the judgment creditors met in the office of Irving C. Johnson and discussed the validity of the Knowlton mortgage, and it was agreed among them that it could probably be defeated, and all were advised as to the likelihood that the mortgage upon the land could be set aside. We must assume for the purposes of the case that the mortgage was and is invalid as to all creditors who were entitled to challenge the same. Instead of redeeming from the execution sale as they had the right to do, the creditors commenced this proceeding, or came into it after the action was brought, and asked relief against the Knowlton mortgage, and as the case turns [30]*30largely upon the nature of the pleadings and issues tendered, it will be necessary to refer to them at some length.

On January 11, 1906, the Kingman Plow Company commenced this action, alleging its purchase of a judgment held by the E. Bement’s Sons against Knowlton for the sum of $160, and the recovery of a judgment on its own behalf for $1,017.74, and the issuance of executions on each of said judgments, which were returned “no property found.” This action was commenced about one month before the statutory period for redemption from the execution sale had expired. The execution sale and redemption satisfied the first seven judgments rendered in order of time against. Knowlton, and the eighth is held by D. P. Thorpe, one of the defendants and cross-appellants. The first judgment mentioned in the Kingman petition filed in this case is the ninth in order of time, and the second is the twenty-fifth in order of time. The petition makes the following judgment creditors parties defendant: The New Sharon Creamery Company, the Hunt, Helm, Eerris Company, Eairbanks-Morse & Co., Temple Pump Company, Pattee Plow Company, Oskaloosa Savings Bank and Erankel State Bank,, whose judgments were each and all satisfied by the proceedings under the execution sale, and the Interlocking Fence Company, the Havana Metal Wheel Company, the Oskaloosa National Bank, the Moline Plow Company, Schuttler & Hotz, the Brown Buggy Company, the Home State Bank, and Kingman & Co. Knowlton and his wife were also made parties defendant, as also was Warren C. Johnson. It was alleged that on and prior to March 24, .1904, Knowlton was largely indebted to various persons, firms and corporations to an amount exceeding $35,000, and that the mortgage made by him to his wife for $5,800, to which reference has heretofore been made, was without consideration, and was made with intent to hinder, delay and defraud his creditors; that Sylvia H. Knowlton then claimed to own the note and mortgage, and that she would [31]*31sell and put the same beyond the reach of the creditors of E. S. Knowlton unless she was enjoined from so doing.

We now copy the following paragraphs from the petition :

Plaintiff says that Sylvia PL Knowlton participated in said fraud and had knowledge thereof; and to enable the said defendant E. S. Knowlton to accomplish said fraud, the said Sylvia PL Knowlton claimed, and is now claiming, that she made the said defendant a loan for the amount of said mortgage, when in truth and in fact the said defendant E. S. Knowlton never borrowed any money from said Sylvia H. Knowlton. The plaintiff says that said defendant has no property other than the mortgage herein described out of which the plaintiff’s claim can be made. Plaintiff is credibly informed, and alleges the truth to be, that the mortgage and note herein described was never delivered by the said E. S. Knowlton to said Sylvia H. Knowlton, and the same • was recorded by the said E. S. Knowlton, and has at all times been in the possession and under the control of said E. S. Knowlton. The plaintiff says that, notwithstanding the fact that Sylvia PL Knowlton claims to be the owner of said note and mortgage, and that this plaintiff has a lien on said note and mortgage, or so much thereof as shall be needed for the-payment and satisfaction of the judgments herein described, with interests and costs and accruing costs, and in equity said note and mortgage is liable and subject to sale under execution, or ah order of sale that may be made by the decree herein for the satisfaction • and payment of said judgments with interests, costs, and accruing costs. The plaintiff says that the mortgage from said E. S. Knowlton to ~ Sylvia PI. Knowlton, his wife, a copy of which is hereinbefore referred to and marked Exhibit C, was without consideration, notwithstanding the recital in said mortgage; that the grantee in said mortgage gave no consideration therefor, and the same was voluntary and without any consideration whatever, and the same is void. Plaintiff says that said D. P. Thorpe, and I). P. Thorpe, agent, claims a lien for some $2,200 or $2,300 against the defendant, said E. S. Knowlton, but this plaintiff is informed, and he alleges the truth to be, that some $4,000 [32]

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Bluebook (online)
119 N.W. 754, 143 Iowa 25, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kingman-plow-co-v-knowlton-iowa-1909.