Lackender v. Morrison

2 N.W.2d 286, 231 Iowa 899
CourtSupreme Court of Iowa
DecidedFebruary 17, 1942
DocketNo. 45794.
StatusPublished
Cited by7 cases

This text of 2 N.W.2d 286 (Lackender v. Morrison) 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
Lackender v. Morrison, 2 N.W.2d 286, 231 Iowa 899 (iowa 1942).

Opinion

Garfield, J.

In March 1931, C. B. Russell and wife, Margaret, gave to an Iowa City bank their note for $5,000, together with a mortgage upon lot 7, block 27, in Iowa City, property owned by C. B. Russell. This mortgage was foreclosed and the property sold on special execution on April 16, 1936. The period of redemption was extended to June 7, 1937. On this last date the Russells negotiated a settlement with the receiver of the mortgagee bank, who held the sheriff’s certificate of purchase, under which the receiver accepted $3,000 in full for the rights of the mortgagee and certificate holder under the foreclosure and sale. $2,500 of this $3,000 was advanced to the Russells by one Ida Healy. The remaining $500 was raised *901 by Margaret Russell. The sheriff’s certificate was assigned by the receiver to Attorney D. C. Nolan, who acted merely as an intermediary, and thereupon sheriff’s deed was issued to him. Nolan deeded the west half of said lot 7, which was the homestead of the Bussells, to Ida Healy, who- in turn gave a written option to (1 B. Russell under which he could purchase the property from her for $2,700 if paid within 90 days. A written lease for the 90-day period was also signed by Ida Healy and C. B. Russell.

Russell failed to exercise the option to purchase and on November 4, 1937, Ida Healy instituted Cause No. 27903 against the Bussells, claiming to be the absolute owner of the property deeded her by Nolan and asking for the removal of the Bussells therefrom. Jess Lackender, plaintiff-appellee in the action now before us, was substituted as plaintiff for Ida Healy in cause 27903, by virtue of a deed to him from Ida Healy. In June 1938, C. B. Bussell died intestate and his administrator was substituted for him as defendant in the suit originally brought by Ida Healy. Cause 27903 was tried and went to final judgment and decree on April 26, 1940, in which it was adjudicated that neither Ida Healy nor her grantee Lackender was the absolute owner of the property deeded by Nolan, but held the title merely as security for the payment of the $2,500 and interest loaned by Ida Healy to C. B. Bussell on June 7, 1937, to enable Bussell to' make settlement of the foreclosure judgment and sale. No appeal was taken from this judgment.

On May 27, 1940, Lackender brought the present suit to foreclose the lien so adjudicated on April 26th, making defendants the administrator of C. B. Bussell, deceased, also Margaret Bussell and John Joseph Bussell, son and heir at law of C. B. Bussell. The principal controversy is over the proper construction of the judgment of April 26, 1940, in cause 27903. Each side claims it as a favorable adjudication. The trial court found for plaintiff and foreclosed the lien which had been established in the previous judgment. Defendants have appealed.

I. The basis for the principal contention made by appellants is the following recital in the preliminary findings of the judgment entry in cause 27903:

*902 “That said west half of Lot 7 was at all times involved in this action the homestead of C. B. Russell, where he resided until his death in June, 1938, and where his widow, defendant Margaret Russell, still resides.”

Appellants argue that this finding amounts to an adjudication that the homestead rights of Margaret Russell are superior to the rights of appellee under his title for security and that since Margaret Russell did not sign either the written option agreement or lease with Ida Healy on June 7, 1937, her homestead rights have never been terminated. The judgment proper or decretal part of the decree which follows the above finding provides substantially as follows:

“It is, therefore, ordered, adjudged and decreed: That Jesse Lackender now holds naked title as security for the repayment of $2,500, plus legal interest from June 7, 1937, which said sum was on said date loaned by Ida Healy to C. B. Russell; that the quit claim deed from D. C. Nolan and wife to Ida Healy was delivered to the grantee to hold as security for the payment of the $2,500, plus interest. That said deed was and is in fact a mortgage. That Ida Healy never had any right, title or interest in said real estate except that of a mortgagee, and that Jesse Lackender, her grantee, has no greater right, title or interest therein.”

We think these provisions plainly adjudicate that appellee held title as security for the $2,500 advanced by his grantor to C. B. Russell, and that appellants’ defense of former adjudication cannot be sustained. Had the court intended to hold that appellee’s rights were subject to the homestead rights of Margaret Russell, it would be easy for the decree to have so provided. Appellants claim too much for the bare recital in the preliminary findings that the property constituted the homestead of the Russells. If the finding is inconsistent with the judgment proper or decretal part of the decree, the latter must control. Leach v. State Savings Bank, 202 Iowa 265, 272, 209 N. W. 422; 30 Am. Jur. 931, section 184. As having some bearing, see In re Estate of Evans, 228 Iowa 908, 918, 291 N. W. 460.

The principal issue in cause 27903 was whether appellee’s *903 title was absolute, as claimed by Mm, or for security only, as contended by the defendants in that cause. While the court held against appellee on his claim of absolute title, its decree unmistakably adjudicated his right to a lien on the property for the money advanced to Russell. This issue was tendered by the defendants in their answers and cross-petitions in No. 27903. Appellee did not seek, nor was there involved in the former case, the enforcement of his lien and there was certainly no adjudication of Ms right to foreclose the lien. See Band v. Reinke, 230 Iowa 515, 518, 298 N. W. 865, 867; Hamilton v. Henderson, 211 Iowa 29, 230 N. W. 347.

II. It is next contended that appellee elected his remedy in cause 27903 by claiming therein to be the absolute owner of the property and that he is now precluded from maintaining the present suit in which he seeks to enforce his rights as a lienholder. The contention is without merit. The doctrine which appellants invoke has no application here. This court has frequently held that an instrument purporting to be a deed is in fact a mortgage. Guttenfelder v. Iebsen, 230 Iowa 1080, 300 N. W. 299, and cases cited. To prevent the enforcement of such an instrument as a mortgage because of a prior claim by the grantee that the conveyance was absolute would be a strange doctrine. When the previous cause was instituted, appellee’s right to a lien, the enforcement of which is now sought, had never been adjudicated. The most that can be said is that in the previous suit appellee attempted to avail himself of a remedy to which he was not entitled. This, however, did not prevent him from later invoking a remedy to which he became entitled by the adjudication in the previous action. There were not two remedies open to appellee when he became a party to the previous suit. Green v. Phoenix Ins. Co., 218 Iowa 1131, 1136, 253 N. W. 36, and cases cited; 28 C. J. S., Election of Remedies, 1080, section 12. In 18 Am. Jur. 146, 147, section 24, it is said:

“If, in truth, the suitor has no such remedy as he invokes, his action in pursuing it does not constitute an election.”

III.

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Bluebook (online)
2 N.W.2d 286, 231 Iowa 899, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lackender-v-morrison-iowa-1942.