Knapp v. Andrus

180 P. 908, 56 Mont. 37, 1919 Mont. LEXIS 6
Montana Supreme Court·Decided April 28, 1919·No. No. 3,992·Published·Cited by 11 cases

Opinion

MR. JUSTICE COOPER

delivered the opinion of the court.

Prank M. Andrus and wife, of Dillon, Beaverhead 'county, [1] Montana, on the twenty-fourth day of April, 1909, executed a written contract and deposited the same in escrow with the First National Bank of Dillon (accompanied by a warranty deed in the usual form), by the terms of which they agreed to sell to Flora Craver Armstrong a farm consisting of 2,395 acres, for a total consideration of $29.937.50. This writing.provided for a cash payment of $2,000, and annual payments on the first day [39] of January of each succeeding year until fully paid, with interest at 8' per cent per annum, “as follows, to-wit: Interest at said rate is to be paid on each $2,000 payment on the first day of January of each year, and interest is to be paid at said rate on the balance due and upon each new principal, upon the 24th of April of each year.” In case of failure to make the payments of principal or interest, the first parties at their option might declare the contract of purchase forfeited and retake possession of premises, applying the payments theretofore made as and for rent; the second party to surrender peaceable possession to said first parties; the defendant bank, upon demand, to redeliver the deed so executed to the first parties, their heirs and assigns, together with the contract to sell. Upon completion of the payments so agreed upon, as well as the payment of the taxes for the year 1909 and succeeding years, the deed so placed in escrow was to be delivered by the defendant bank to the purchaser, Flora Craver Armstrong. Time was to be of the essence of the agreement. The contract to sell was placed of record with the county recorder of Beaverhead county on December 22, 1911. On November 12, 1915, the respondent, W. B. Knapp, instituted a suit against the defendant Frank M. Andrus, attached all of the real estate standing in his name in said county, including the property described in the escrow agreement, and on January 29, 1916, recovered a judgment against him in the sum of $1,270 and costs. On June 15, 1916, Flora Craver Armstrong made final payment on her contract of purchase, and obtained from the bank the deed and other papers covering the transaction, the Dank having delivered the prior payments to the first parties, as provided in the escrow agreement. On July 6, 1916, an execution, directed to the sheriff of Beaverhead county, was issued, and, after service on the bank and defendant Andrus, returned wholly unsatisfied. No complaint is made concerning the disposition of any of the money received under the contract, except $1,500 of the final installment, the bank disclaiming any interest in it, except to pay it to the proper party. On January 20, 1916, a date between the levy of the attachment and the entry of [40] judgment against Frank M. Andrus, a paper purporting to be an assignment of all of the right, title and interest of Frank M. AndruS in the contract was made and delivered by him to the defendant Mulany, the consideration of which was an indebtedness owing from Andrus to Mulany. Any balance that might remain in the hands of Mulany, after paying his own indebtedness in full, was to be paid over by Mulany to the wife of Frank M. Andrus.

This appeal is from an order made by the court below in a proceeding supplemental to execution on December 2, 1916, directing that the judgment and execution above referred to be satisfied and discharged out of a balance of $1,500 held by the bank, being part of the last installment paid under the escrow agreement by Flora Craver Armstrong.

The contention of appellants is that it was error on the part of the court below to hold that at the time of the levy of the writ of attachment the defendant Frank M. Andrus had an attachable interest in the property involved in the escrow agreement, and requiring satisfaction of that judgment out of the fund still in the hands of the bank under that agreement.

The respondent insists that under the escrow agreement the title to the realty remained in Andrus until the payments were complete and the deed delivered to the grantee therein, and that the attachment, served according to the requirements of the statute, fixed itself upon the title and created a lien in favor of the attaching plaintiff.

Section 6661 of the Revised Codes authorizes the issue and levy of writs of attachment in cases such as these; section 6662, subdivisions 1 and 2 as amended (Laws 1911, Chap. 85, p. 153), prescribes the manner of the levy of the writ and to what kind of property it applies. Section 6687 says that all liens by attachment accrue at the time the property of the defendant shall be attached by the officer charged with the execution of the writ. In Holter Hardware Co. v. Ontario Min. Co., 24 Mont. 184, 193, 61 Pac. 3, 6, this court said: ‘ ‘ The levy of the writ of attachment created the lien. The property was thereby seized and held. *= s # An attachment having been levied within the life of [41] the writ, a lien is created, which may be enforced by execution sale without further levy.” (See, also, Ritter v. Scannell, 11 Cal. 238, 70 Am. Dec. 775.) “All interests of the judgment debtor in real estate, whether recorded in his name or not, are subject to attachment and execution. (Rev. Codes, secs. 6662, 6821).” (Koopman v. Mansolf, 51 Mont., at page 57, 149 Pac. 494.) Beyond question, then, the attachment lien was effective, unless title passed immediately upon the deposit of the contract and deed with the escrow.

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Knapp v. Andrus, 180 P. 908, 56 Mont. 37, 1919 Mont. LEXIS 6 (Mo. 1919).

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