Lobee v. Williams

226 A.D. 211, 234 N.Y.S. 649, 1929 N.Y. App. Div. LEXIS 8686
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 15, 1929
StatusPublished
Cited by1 cases

This text of 226 A.D. 211 (Lobee v. Williams) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lobee v. Williams, 226 A.D. 211, 234 N.Y.S. 649, 1929 N.Y. App. Div. LEXIS 8686 (N.Y. Ct. App. 1929).

Opinions

Crosby, J.

The complaint alleges that one Mrs. Conners on February 21, 1925, gave a mortgage upon property then owned by her to one Marschner, who thereafter, and on March 5, 1925, assigned said mortgage to one Maisel; that Mrs. Conners, on May 4, 1925, deeded the property to plaintiffs, who, by the terms of the deed, assumed and agreed to pay said mortgage debt; that on September 16, 1925, plaintiffs conveyed the property to defendant who, by the terms of her deed, assumed and agreed to pay said debt; that thereafter defendant defaulted in the payment of the mortgage according to its terms, and that Maisel foreclosed the mortgage and obtained a judgment of foreclosure and sale; that the property sold for less than enough to pay said debt; and that on June 24, 1926, a deficiency judgment for $1,695.10 was recovered by Maisel against both the plaintiffs and the defendant; that on November 3, 1926, defendant procured from Maisel a satisfaction of the judgment as to herself only; and that on December 3, 1926, plaintiffs were compelled to pay to Maisel $450 in order to secure a satisfaction of the judgment as to them; and plaintiffs ask judgment against defendant for $450 plus $100 expenses incurred.

The answer alleges that said deed from plaintiffs to defendant was never delivered to her and that the said clause in said deed whereby the defendant is alleged to have assumed and agreed to pay said bond and mortgage debt mentioned in the complaint, was inserted without the knowledge of the defendant, and was not at any time accepted or assented to by the defendant and the defendant was not aware of the existence of said assumption clause. That defendant never assumed and agreed to pay said bond and mortgage debt and never authorized anyone to bind her in that respect,” and demands that the complaint be dismissed.

[213]*213The trial proceeded with a jury to the close of the plaintiffs’ evidence, when, at the suggestion of the trial court, the parties stipulated to submit the case to the court without a jury. The jury was, therefore, discharged and the court made findings of fact and conclusions of law and granted judgment to the plaintiffs. This is an appeal from that judgment.

The plaintiffs swore three witnesses, one a clerk from the county clerk’s office, who identified the judgment roll in the foreclosure action; one the plaintiff, Mr. Lobee, who testified that he paid $450 to Maisel to secure a satisfaction of the deficiency judgment; and one the plaintiffs’ attorney who testified that he performed services for plaintiffs worth $100 in advising them through a supplementary proceeding and in securing for them a satisfaction of the deficiency judgment on payment of the $450.

Defendant made objection and took exceptions to all this evidence.

Defendant then took the stand and gave evidence fully supporting the allegations of her answer hereinbefore set forth. This evidence was entirely undisputed.

At the request of defendant, the court made the following findings, among others:

“First. That the defendant prior to the foreclosure action did not have any transactions with the plaintiffs herein, and that the deed purporting to have been given by plaintiffs to defendant, recorded in liber 1856 of Deeds at page 18, in Erie County Clerk’s office, was never delivered to her.
“ Second. That the said defendant prior to the foreclosure action had no knowledge of the existence of said deed and did not know the contents thereof.
“ Third. That the said defendant prior to the foreclosure action had no knowledge of the clause in said deed whereby it is claimed she assumed and agreed to pay the mortgage therein referred to, and she never accepted or assented to same.
Fourth. That defendant never assumed and agreed to pay said mortgage debt and never authorized anyone to bind her in that respect.”

The sixth request of defendant was modified and found in the following form: “ I find that the plaintiffs in this action, Frank A. Lobee and Abbie Lobee did not in said foreclosure action brought by Louis Maisel serve an answer on the defendant herein, Edith L. Williams, and did not in said action require a determination of the other rights of the plaintiffs and defendant herein as between themselves, except as the judgment in the foreclosure action was a determination of the rights of the plaintiffs and the defendant herein as between themselves.” (Italics mine.)

[214]*214The theory upon which the learned trial court granted judgment to plaintiffs is indicated by the exception (in italics above) which the court attached to the last quoted request. This, also, was the theory upon which plaintiffs tried their case.

That this theory is correct may be seriously questioned. In support of that theory it may be urged that although the Maisel deficiency judgment did not, in so many words, adjudicate the rights of the plaintiffs and defendant inter se, still all the parties were in court and Maisel’s judgment could not have been obtained against, the defendant herein upon any other theory than that defendant, by an assumption clause in her deed, had become the primary debtor. It is, therefore, urged that the Maisel judgment, against both plaintiffs and defendant herein, is res adjudícala as between the plaintiffs on the one hand and the defendant on the other in the present suit. It is further urged that since, in the Maisel action, defendant might have urged the very defense she pleaded and proved in this action, she ought not to be permitted to raise a defense against the present plaintiffs that she did not raise against Maisel.

There is much force in these arguments. But both argument and authority can be urged to show that the Maisel judgment, which, by its terms, only adjudicated that both plaintiffs and defendant were indebted to Maisel, is not an adjudication that defendant is primarily liable and must protect plaintiffs from the results of the judgment. While that result is easily reached by inference, still res adjudicata is not a doctrine that ought to be invoked by inference. In a case somewhat similar to the instant case the Court of Appeals, in its opinion, said: “ That the court had power to have determined the ultimate rights of the parties as between themselves is true; but where such are not material to' the actual issues before the court, or to the relief to be administered, they must, at least, in some manner be brought to the notice of the court, and actually determined, or involved in the judgment rendered, before that judgment can operate upon them. The rule that a judgment is conclusive not only as to the questions litigated but those which might have been litigated, means such as were within the issues before the court and so might have been determined.” (Fairchild v. Lynch, 99 N. Y. 359.)

In the Maisel action the plaintiffs herein could easily have served an answer upon their then codefendant (the present defendant) and asserted the primary liability of the defendant and had the matter determined in that action. The defendant in this action pleaded and proved by undisputed testimony a perfect defense (Blass v. Terry, 156 N. Y. 122, 126); and the trial court made find[215]

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Bluebook (online)
226 A.D. 211, 234 N.Y.S. 649, 1929 N.Y. App. Div. LEXIS 8686, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lobee-v-williams-nyappdiv-1929.