London & San Francisco Bank, Ltd. v. Dexter Horton & Co.

126 F. 593, 61 C.C.A. 515, 1903 U.S. App. LEXIS 4346
CourtCourt of Appeals for the Ninth Circuit
DecidedOctober 19, 1903
DocketNo. 831
StatusPublished
Cited by24 cases

This text of 126 F. 593 (London & San Francisco Bank, Ltd. v. Dexter Horton & Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
London & San Francisco Bank, Ltd. v. Dexter Horton & Co., 126 F. 593, 61 C.C.A. 515, 1903 U.S. App. LEXIS 4346 (9th Cir. 1903).

Opinions

MORROW, Circuit Judge,

after the foregoing statement of facts, delivered the opinion of the court.

The appellee acquired its title to the land in controversy during the pendency of the foreclosure suit, but it claims that it is not bound by the judgment in that suit, because it was not made a party to it, and was not made subject to it by lis pendens. The law of the state of Washington relating to lis pendens, applicable to this case, is as follows:

“In an action affecting the title to real property the plaintiff, at the time of filing the complaint, or at any time afterwards, or whenever a writ of attachment of property shall be issued, or at any time afterwards, the plaintiff or a defendant when he sets up an affirmative cause of action in his answer and demands substantive relief at the time of filing his answer, or at any time afterwards, if the same be intended to affect real property, may file with the auditor of each county in which the property is situated a notice of the pendency of the action, containing the names of the parties, the object of the action, and a description of the real property in that county affected thereby. From the time of the filing only shall the pendency of the action be constructive notice to a purchaser or encumbrancer of the property affected thereby, and every person whose conveyance or encumbrance is subsequently executed or subsequently recorded shall be deemed a subsequent purchaser or encumbrancer, and shall be bound by all proceedings taken after the filing of such notice to the same extent as if he were a party to the action.” Section 4887, Ballinger’s Ann. Codes & St. Wash.

The appellants supposed that a lis pendens was filed at the time of the commencement of the foreclosure suit, but it was only able to show the fact that a lis pendens was filed at a later date, namely, in Kitsap county, where a portion of the lands are situated, on November 23, 1894, and in Mason county, where the remainder of the lands are located, on April 15, 1895. The appellee admits that it had [599]*599knowledge of the mortgage and the commencement and pendency of the foreclosure suit after the filing of the supersedeas bond on writ of error in the case of Dexter Horton & Co., Bankers, v. W. P. Sayward, on September 26, 1894. What effect did this notice have upon the rights of the appellee? The mortgage in suit was executed February 8, 1878, and was filed for record and recorded in the proper office on February 21, 1878. The appellee commenced its suit against Sayward on June 6, 1892, and had the lands attached' on June 8, 1892. Judgment was recovered in the suit July 23, 1894. The lands were levied upon and sold June 26, 1896, the appellee becoming the purchaser at its own sale. The marshal’s deed to the property was issued to the appellee, as purchaser, on December 7. 1898. The foreclosure suit had resulted in a judgment February 17, 1896, or more than five months prior to the time the appellee became a purchaser at its own sale of the property. The appellee was not a purchaser for value at its own sale, and acquired no other interest than that possessed by Sayward, the judgment debtor. Hacker v. White, 22 Wash. 415, 60 Pac. 1114, 79 Am. St. Rep. 945. Nor was the appellee a purchaser without notice, since it had constructive notice of the mortgage, and actual notice of the foreclosure suit in 1894. It was therefore bound by the judgment. Sampson v. Ohleyer, 22 Cal. 200, 211; Wise v. Griffith, 78 Cal. 152, 20 Pac. 675. The statute relates to the filing of a notice of the pendency of an action, not to a judgment, and it has no relation to a title acquired after judgment. It has never been the law that a notice was necessary to render a judgment effective as against a party claiming title as a subsequent purchaser. The judgment is a matter of public record, and binds all parties dealing with the property affected by the judgment. Sheridan v. Andrews, 49 N. Y. 478; Black on Judgments, § 550_

_ But, assuming that the appellee became an incumbrancer at the date of the levy of the attachment on June 8, 1892, and that at that time it had no notice of the foreclosure suit, what effect did this have upon the rights of the mortgagee to the attached property? It is alleged in the bill of complaint that the mortgage was executed on February 8, 1878, and duly acknowledged and certified, under the laws of the then territory of Washington, after its execution,, so as to entitle it to be recorded, and was thereafter, to wit, on February 21, 1878, duly recorded in the proper office in the territory of Washington. This allegation is not denied in the answer, and therefore stands admitted. The appellee was therefore charged with notice of the existence of the mortgage, and the mortgagee did not lose the lien of the mortgage by reason of the fact that the appellee was not also charged with notice of the pendency of the foreclosure suit. What the mortgagee did fail to accomplish by the foreclosure suit, in the absence of lis pendens, was the foreclosure of the appellee’s equity of redemption acquired by its judgment on July 23, 1894. This result is always recognized in cases where the mortgagor has suffered judgment liens to attach to mortgaged property. A case in point is Stout v. Dye, 103 U. S. 66, 26 L. Ed. 428. In that case Dye, on November 10, 1873, executed a mortgage upon certain real [600]*600estate in favor of a bank. The mortgage was recorded on the same day. The bank commenced suit to foreclose the mortgage on January 15, 1876. John W. and Jacob O. Stout brought suit on December 29, 1875, against the mortgagor and his partner, to recover a judgment for a debt. The first day of the next term of the court, was January 4, 1876. On January 31, 1876, the Stouts recovered a judgment, and on the same day caused an execution to be issued, which on February 1, 1876, was levied upon the lands covered by the mortgage. The effect of the judgment, under the law of the state of Ohio, where the case arose, was to bind the lands of the debtor for the satisfaction of the judgment from the first day of the term of the court at which it was rendered. This was January 4, 1876, or 11 days before the commencement of the suit to foreclose the mortgage. On February 23, 1876, the holder of the judgment brought suit in the Circuit Court of the United States against the mortgagee to set aside the mortgage as illegal, or, if that could not be done, to have certain alleged' payments of usurious interest applied to reduce the debt. The bank answered the suit of the Stouts, setting up the foregoing facts, which being proved by the agreed statement of the parties, the bill was dismissed. From that decree an appeal was taken to the Supreme Court of the United States. One of the questions in the case was the relation of.the lien of the judgment, obtained prior to the commencement of the foreclosure suit, to the lien of the prior mortgage in which a judgment of foreclosure was subsequently entered. The court, in discussing this question, said:

“That the suit of the hank was one to foreclose a mortgage and that it was actually pending when the judgment lien of the Stouts was acquired, are conceded facts. When the suit was begun, Lye, the mortgagor, represented the entire equity of redemption. He had parted with no portion of it voluntarily; and if the Stouts had failed to get their judgment during the January term, 1876, of the Circuit Court, no one would claim they were not bound by the decree of foreclosure, although not parties to the suit.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Dunham v. Tabb
621 P.2d 179 (Court of Appeals of Washington, 1980)
Stecko v. Salak
174 A. 611 (Superior Court of Pennsylvania, 1934)
Tide Water Oil Co. v. Commissioner
29 B.T.A. 1208 (Board of Tax Appeals, 1934)
D. O. Haynes & Co. v. Druggists' Circular
32 F.2d 215 (Second Circuit, 1929)
McGirl v. Brewer
285 P. 208 (Oregon Supreme Court, 1929)
Lyon v. Water Commissioners
224 A.D. 568 (Appellate Division of the Supreme Court of New York, 1928)
Maxwell v. Ricks
285 F. 656 (W.D. Washington, 1923)
De La Nux v. Houghtailing
269 F. 751 (Ninth Circuit, 1921)
Sharp v. Sharp
180 P. 580 (Utah Supreme Court, 1919)
Santa Marina Co. v. Canadian Bank of Commerce
242 F. 142 (N.D. California, 1916)
Magoon v. Lord-Young Engineering Co.
22 Haw. 327 (Hawaii Supreme Court, 1914)
Union Steamboat Co. v. Chaffin's Adm'rs
204 F. 412 (Seventh Circuit, 1913)
American Savings Bank & Trust Co. v. Helgesen
122 P. 26 (Washington Supreme Court, 1912)
Telling v. Sullivan
14 Ohio C.C. (n.s.) 1 (Cuyahoga Circuit Court, 1911)
Telling v. Sullivan
22 Ohio C.C. Dec. 312 (Ohio Circuit Courts, 1911)
United States Casualty Co. v. Charleston, S. C., Mining & Manufacturing Co.
183 F. 238 (U.S. Circuit Court for the District of South Carolina, 1910)
Lewis Pub. Co. v. Wyman
182 F. 13 (Eighth Circuit, 1910)
Broatch v. Boysen
175 F. 702 (Eighth Circuit, 1910)
Wilson v. Plutus Mining Co.
174 F. 317 (Eighth Circuit, 1909)

Cite This Page — Counsel Stack

Bluebook (online)
126 F. 593, 61 C.C.A. 515, 1903 U.S. App. LEXIS 4346, Counsel Stack Legal Research, https://law.counselstack.com/opinion/london-san-francisco-bank-ltd-v-dexter-horton-co-ca9-1903.