Loofbourow v. Hicks

55 L.R.A. 874, 66 P. 602, 24 Utah 49, 1901 Utah LEXIS 64
CourtUtah Supreme Court
DecidedNovember 13, 1901
DocketNo. 1306
StatusPublished
Cited by3 cases

This text of 55 L.R.A. 874 (Loofbourow v. Hicks) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loofbourow v. Hicks, 55 L.R.A. 874, 66 P. 602, 24 Utah 49, 1901 Utah LEXIS 64 (Utah 1901).

Opinion

MINER, O. J.

The respondent, Joanna W. Hicks, who resided in the State of Ohio with her daughter, the co-respondent, Eloy R. Hicks, through her agent and attorney in 1 that state employed the appellants, a firm of attorneys in Salt lake City, in the year 1897, to foreclose a mortgage held by her against Mr. Edwards of Salt Lake City, amounting to $1,400, the payment of which was secured upon real estate situate in the latter city. Proceedings were instituted by the appellants in accordance with instructions, and a decree of foreclosure and a sale of the property duly obtained for the sum due on the mortgage, including costs, and the further sum of $150, allowed and decreed to be paid as attorney’s fees for the plaintiffs in such foreclosure proceedings. It was provided in such decree that the proceeds of the sale thereof should be applied (1) to the payment of the costs of sale; (2) to the payment of the costs of the foreclosure proceedings; (8) to the payment of the attorney’s fees as allowed by the decree; and (4) to the payment of the amount due the plaintiff on the judgment. The order of sale was duly obtained, and the mortgaged property was sold by the sheriff. By direction of Joanna W. Hicks and Mr. Badger, her attorney, in. Ohio, in pursuance of an arrangement made between them, the property was bid in by the appellants in the name of Eloy R. Hidra, and she has since, through said Badger, received the rents thereof. Joanna W. Hicks sent the appellants money sufficient to pay the costs, except the attorney’s fees, and by direction of Mr. Badger, who evidently acted for said respondents, the re[55]*55mainder of the purchase price bid for the land was credited upon the judgment, the same as if the property bad been purchased by the mortgagee; but no money was paid upon said purchase price. During the pendency of the suit to foreclose in 1897, after the entry of the decree, but before sale, and without the knowledge of the-appellants, until about the time of the bearing of this case, Eloy E. Hicks claims that she purchased the decree from her mother and paid therefor the sum of $800. Miss Hicks testifies that she bought the decree from her mother in 1897, and that it was arranged between them that the property should be bid in to her on the sale. Mr. Badger, the attorney in Ohio who was acting for the respondents, attended to their business correspondence in this matter, directed the sale to be made to Eloy at the price bid, and also directed the deed to be recorded and mailed to him, which was thereafter done. Said attorney also promised in the meantime to send appellants a draft for their fees. These fees were never paid, except $25 as advanced by the plaintiffs. Joanna W. Hicks is shown to have some property in Ohio, but none in Utah. Eloy E. Hicks has no property, except the land in question. Respondents were shown to have been absent in Europe for some time since the sale. This action was brought to enforce a lien for said $125, attorney’s fees; appellants asking that such fees so allowed by the decree be adjudged a lien upon the mortgaged premises, prior to any lien or claim of the respondents or either of them, and for special execution and other relief. Eloy E. Hicks interposed a general demurrer to the complaint, to the effect that it did not state a cause of action which entitled plaintiffs to any relief. This demurrer was overruled, and the respondent, Eloy E. Hicks, filed her answer, to the effect that she purchased the property in 1897 for the sum of $800, and bad no notice or knowledge of the appellants’ lien, but asserted no claim of waiver or laches on the part of the appellants. Joanna "W". Hicks was in default. The trial court made its findings and decree in favor [56]*56of the respondent, Floy F. Hicks, and the appellants appealed to this court.

1. Tbe court found, among other things, that tbe plaintiffs bad by their laches and delay waived their right to have said sale vacated and set aside, and also waived any lien in their favor on the property described in the complaint. This finding was excepted to. It is clear that said finding was not based upon any defense set up in the answer. If the respondent wished to aváil herself of this defense, she should- have pleaded it in her answer, so as to inform the appellants of the nature of her defense and give them an opportunity to meet it. The finding made was merely a legal conclusion, 2 not within the issues raised by the answer, and was therefore nugatory, and can not be considered as supporting the judgment. Seymour v. McKinstry, 106 N. Y. 230, 12 N. E. 348, 14 N. E. 94; Phinney v. Insurance Co. (C. C.), 67 Fed. 493; Maynard v. Insurance Ass’n, 14 Utah 458, 47 Pac. 1030; Weaver v. Barden, 49 N. Y. 286; Reed v. Insurance Co., 21 Utah 295, 61 Pac. 21; Muldoon v. Brown, 21 Utah 121, 59 Pac. 720; Hamilton v. Dooly, 15 Utah 280, 49 Pac. 769. By the terms of the decree it was adjudged that the proceeds of the sale of the property should be applied — Third, to the payment of the attorney’s fees allowed at $150; fourth, to the fpayment of the judgment, etc. After the decree was obtained, and before the sale, Mr. Badger, the attorney in Ohio, wrote the appellants to bid in the property in the name of Floy F. Hicks who resided in Ohio with her mother, Joanna W. Hicks, and take possession of the property in her name, and rent the same, and that he would send them a draft for their attorney’s fees, and that whoever had charge of the property should report to him in regard to the rent. It also appears from the deposition of Floy F. Hicks that she received the rents therefor from her agent. The attorney’s fees awarded by the decree have not been paid, and the requirements of the decree have not been complied with. ’ Through [57]*57the agency of Mr. Badger, who evidently was acting for both respondents, the land was bid in for Eloy E. Backs. Badger had actual notice, and the respondents are chargeable with notice, of the provisions of the decree that $150 attorney’s fees, at least, were by its terms to be paid to the attorneys managing the foreclosure. Through this same agency, the title was bid in to Eloy on a promise to pay the fees. Several months passed in which negotiations were pending for a settlement. Such negotiations were prolonged largely on account of the absence of the respondents in Europe, so that a final refusal to pay was not made until within a reasonable time prior to the commencement of this suit. Being chargeable with notice of the terms of the decree, which she purchased from her mother, in consideration of which she had promised to have the title taken in her name, and by claiming title and receiving rents thereof, Eloy E. Hicks necessarily ratified all acts necessary to procure it, and can not now claim the benefits derived from it and at the same time repudiate the burdens attached to it, of which she or her attorney had notice. Under the circumstances, to allow Eloy E. Hicks, in the manner stated, to deprive the appellants of the compensation decreed to them, .would be ungrateful and unjust to them. The transaction, as shown in the record, strongly tends to show that the respondents attempted, by fraudulent means to deprive the appellants of their rights under the decree by having the property struck off to Eloy.

2. It is true, as held in McClure v. Little, 15 Utah 379, 49 Pac. 298, 62 Am. St. Rep. 938, that attorney’s fees, when allowed, go to the mortgagee and become a part of the judgment; but this is not true in the sense that the mortgagee or purchaser of a decree of foreclosure, allowing attorney’s fees, may hold such fees for his own and cheat the attorney to whom they should be paid.

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Cite This Page — Counsel Stack

Bluebook (online)
55 L.R.A. 874, 66 P. 602, 24 Utah 49, 1901 Utah LEXIS 64, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loofbourow-v-hicks-utah-1901.