Levenson v. Wolfson

12 Ohio Law. Abs. 501
CourtOhio Court of Appeals
DecidedApril 27, 1932
StatusPublished

This text of 12 Ohio Law. Abs. 501 (Levenson v. Wolfson) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Levenson v. Wolfson, 12 Ohio Law. Abs. 501 (Ohio Ct. App. 1932).

Opinion

[502]*502The Supreme Court has also considered such a proceeding coming to it from a Court of Appeals, wherein it was heard on appeal. Stewart v Kellough, 104 Oh St, 347 at page 350, 135 NE, 608. No question of the right to appeal was raised as far as the report of the case shows.

The main contention of the movement is predicated upon the assertion that such a proceeding is an action in rem, and that, as equity acts only in personam, such proceeding cannot be a chancery case.

As to the character of the proceeding, we are met at the outset by a statement of the Supreme Court in Stewart v Kellough, supra, at page 358 of the opinion in 104 Oh St, 135 NE, 611, "The proceeding under the Torrens Law (§8572-1 et seq, GC) was a proceeding in rem. It is so designated in the act itself.”

We presume that the reference to self-designation refers to the language used in §8572-22 GC, where it is provided that the “decree of confirmation and registration shall be entered, which shall have the effect of a decree in rem.”

Section 81 of the Act of April 27, 1896 (92 Ohio Laws, 220), reads: “The decree of the court ordering registration, shall be in the nature of a decree in rem.”, etc. Yet the Supreme Court in State of Ohio ex v Guilbert, Aud., 56 Oh St, 575, 47 NE, 551, 38 L.R.A., 519, 60 Am. St. Rep., 756, held as to the act as then written that in spite of such self-designation, which is noted on page 609 of the opinion, it was emphatically not a proceeding in rem. Before quoting the language of the opinion, in which the entire act was carefully considered, it may be well to remark that such changes as have occurred in the new act under the constitutional amendment would not be calculated to make the proceeding one in rem, if it were not so under the sweeping provisions of the old act applying to service of notice and scope of the decree.

Quoting from the opinion of the court in State ex v Guilbert, at pages 618 and 619 of 56 Oh St, 47 NE, 556:

“Is it such notice as the law of the land requires to be given to persons claiming interests in property of the pendency of a judicial proceeding, in which such interests are to be the subject of adjudication and in which, unless they appear, a decree will be entered precluding their further assertion? It is said that it is, because the proceeding to register land under the act is in rem. Whether it is in rem or in personam is determined by its nature and purpose. To say that the legislature may prescribe such notice as is appropriate to proceedings in rem, and thus invest the proceeding with that character, is to affirm its power to annul the constitutional requirement. In this aspect of the case, and considering the effect of registration upon interests adverse to those of the applicant, the proceeding to register does not, in any substantial respect, differ from a suit quia timet to settle title. It bears the least possible analogy to a proceeding in rem. The res is not taken into the possession of an officer of the court. No charge or lien is asserted against it.

“It is not to be sold with a view to the distribution of its proceeds, and it partakes, therefore, less of the nature of a proceeding in rem than does the foreclosure of a mortgage. The land is not a thing of shifting situs like a ship, against which obligations may accrue today in one jurisdiction and tomorrow in another. The status of the land is not changed by registration. The substantial thing determined by registration is that the person who makes the application has a right of property in the land to the exclusion of all other persons. The judicial force of the proceeding is wholly expended in a conclusive determination of the rights of per-sons in the land. Except when the land is occupied by one who claims adversely to the application, the questions determined in registration are such as both before and since the adoption of the constitution have been determined by courts of equity; and their decrees much more distinctly than the judgments of courts of law operate upon persons.”

We see no reason why this language is not still applicable to the act as it now exists.

[503]*503The case of Carino v Insular Government of the Philippine Islands, 212 U. S., 449, 456, 29 S. Ct., 334, 53 L. Ed., 594, has been cited as an authority upon the point, but an examination of the opinion of the court shows that, while the court designated as a proceeding in rem an action which it stated was similar, the Ohio statute was not considered, and that the court was influenced by the decision in the case of Tyler v Judges of the Court of Registration, 175 Mass., 71, 55 NE, 812, 51 L. R. A., 433, wheré the Massachusetts court held constitutional an act somewhat similar to the Ohio act held unconstitutional in State v Guilbert, supra. The Massachusetts court stated, at page 77 of the opinion (55 NE, 81.4): “If, in fact, the proceeding is of that sort, and is to bar all the world, it is a proceeding in rem.” The Massachusetts court also commented upon State v Guilbert, supra, refusing to follow the reasoning of our Supreme Court, and arriving at an opposite conclusion.

The United States Supreme Court, 212 U. S., 449, 456, 29 S. Ct., 334, 335, in speaking of the act then under consideration, say: “It is nearer to law than to equity, and is an assertion of legal title; but we think it unnecessary to put it into either pigeon hole.”

While courts differ upon this construction of the proceeding, even if the proceeding should be considered as a proceeding in rem or quasi rem, this we do not feel is conclusive in excluding it from equity jurisdiction. Ruling Case Law, discussing the maxim, “Equity Acts in personam,” says in volume 10, at page 387: “But, as has been already seen, important as was this doctrine in the earlier stages of the development of equity jurisprudence, its operation has been greatly modified, and in most cases affecting the title to lands, entirely abrogated by statutes which have been passed in England and the United States. The power of the court to act in personam, however, has not been abrogated thereby, and it may still enforce its decrees in such a manner, as, for example, where the subject-matter of the controversy is situated in a foreign country and the parties to be affected are subject to the jurisdiction of the court.”

As has been said by nearly all authorities it is very much the same sort of a proceeding as an action to quiet title. While the method of notice to those interested is different from that of the ordinary summons, and the scope of the decree is broad in its effect, the essential purpose of the proceeding is to quiet the title to the land in the applicant. An action to quiet title has been held to be an action in rem. Dennison Brick & Tile Co. v Chicago Trust Co., 286 F., 818. This is a decision by the Sixth Circuit United States Court of Appeals, and construes the effect of the Ohio statutes providing for the quieting of titles. We quote from the opinion of the court, page 821:

“The substantial ground on which statutes providing for substituted service on nonresident defendants, in actions affecting real estate within the jurisdiction of the court, has been sustained is that such actions are in rem, or of that nature.

“In respect of classification as to proceedings in rem we can see no valid distinction in principle, on -the one hand, between a proceeding to enforce a lien or foreclose a mortgage, and, on the other hand, to remove a lien or set aside a mortgage. Statutes of the latter character, equally with those of the former, act directly upon the res, the status of the title.

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Bluebook (online)
12 Ohio Law. Abs. 501, Counsel Stack Legal Research, https://law.counselstack.com/opinion/levenson-v-wolfson-ohioctapp-1932.