Ludy v. Zumwalt

259 P. 52, 85 Cal. App. 119, 1927 Cal. App. LEXIS 357
CourtCalifornia Court of Appeal
DecidedAugust 15, 1927
DocketDocket No. 3298.
StatusPublished
Cited by24 cases

This text of 259 P. 52 (Ludy v. Zumwalt) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ludy v. Zumwalt, 259 P. 52, 85 Cal. App. 119, 1927 Cal. App. LEXIS 357 (Cal. Ct. App. 1927).

Opinion

HART, J.

The plaintiff brought this suit to foreclose a a mortgage upon certain lands situated in Glenn County given by the defendants I. G. and Mattie B. Zumwalt to plaintiff to secure the payment to the latter of a promissory note, dated January 13, 1920, for the sum of $42,601.30.

The complaint is in the usual form in foreclosure proceedings. It. alleges, however, that the appellant Western Canal Company and certain other parties “have, or claim to have, or assert, some interest in or claim upon said mortgaged lands and premises, or some part thereof, the exact nature of which is unknown to plaintiff, and for said reason she *121 cannot allege or state the nature thereof, hut she alleges that all of said liens, claims or interests of any of said defendants are subsequent to and subject to the lien of plaintiff. ’ ’

The Zumwalts answered, denying that the note “is now due” and also the allegation of the complaint, which accords with a provision of the mortgage in that respect, that two per cent of the amount found due as principal and interest on said note “is a reasonable amount for attorney’s fee in the foreclosure of said mortgage,” and setting up “a separate defense” to the effect that, prior to the commencement of this action, and since the thirteenth day of January, 1924, the plaintiff in writing extended the time for the payment of said note to January 13, 1925. At the trial, however, the Zumwalts withdrew their denial that the note was due and their affirmative defense that plaintiff had extended the time for the payment thereof, leaving as the only issue as between the plaintiff and the Zumwalts the question, raised by their answer, whether the attorney’s fees claimed by the complaint and as provided for in the mortgage would constitute a reasonable sum to be awarded plaintiff for that purpose.

The appellant Canal Company, a corporation organized for the purpose, among others, of supplying water to owners of land conveniently adjacent to its water system for the purpose of irrigation, answered the complaint, and in its answer embodied, in effect, a cross-complaint, in which it set up a lien upon the lands in question, growing out of a contract with the Zumwalts, whereby it agreed to furnish the latter, at specified rates, for a number of successive years, sufficient water with which to irrigate the lands in controversy, alleged that said lien was prior and superior to the lien of plaintiff’s mortgage to foreclose which is the object of this action, and prayed that a decree be entered so adjudging.

The plaintiff answered the affirmative allegations of the so-called answer, and, after certain denials, and with more or less detail, recited the facts leading to the several transactions out of which the present controversy has developed and of which such consideration will hereinafter be given as will conduce to a proper understanding of the issues *122 tried and determined below and now submitted here for review.

The findings by the trial court are favorable to the plaintiff, and, consequently, negative the claim by the appellant of a lien upon said lands prior in point of time to that of the plaintiff. As a matter of law the court concluded (conclusions of law) that the plaintiff was entitled to judgment against the Zumwalts for the sum of $41,601, as principal and $1,554.62 and $1,383.24, accruing, respectively, as interest to the date of the verification of her complaint, and subsequent to such verification, to January 13, 1925; that plaintiff is entitled to judgment decreeing that her mortgage is a first lien and “prior to any lien or claim of any character or kind whatever of any defendants, including the Western Canal Company, upon the lands described in the complaint”; that the plaintiff is entitled to have her mortgage and lien foreclosed, and is entitled to a judgment of foreclosure of the same and of the sale of said lands described in the complaint; that she is entitled to a provision in said judgment that she has a first lien upon all of said land for the payment of the sums found by the court that she is entitled to; that Western Canal Company is entitled to a judgment against the Zumwalts for the sums of $2,159.81 and $6,723; and interest on said sums from, respectively, December 1, 1921, and from December 1, 1922; that appellant is entitled to have a provision inserted in said judgment that “it has a lien upon the said 866 acres of land (the land upon which plaintiff’s mortgage and the appellant’s lien subsist) in the foregoing findings mentioned for the payment of said sums for which it is entitled to judgment, which lien is second to and subordinate to the lien in plaintiff’s favor, as aforesaid.

Judgment was entered in harmony with the findings and conclusions of law.

The appeal is by Western Canal Company, upon the judgment-roll alone, from so much of said judgment as adjudges or decrees that its lien -upon said lands is secondary. and subordinate to the plaintiff’s mortgage lien thereon.

The facts, as disclosed by the findings, may be herein stated as they are set out in appellant’s opening brief, and which are among the facts specifically found by the court:

*123 “Plaintiff owned an undivided one-half interest in a nine hundred twenty-three acre tract of land in Glenn County. The other half interest was owned, in equal shares by eight other persons, her children. On September 22, 1919, in consideration of the payment of $5000.00 by defendant I. G. Zumwalt to said children, plaintiff and her children granted said Zumwalt an option for the purchase of said 923 acres. While said option was still alive, and on December 11, 1919, a contract was made between said Zumwalt and said appellant for the sale of water to irrigate all irrigable land in said tract, which proved to be 866 acres thereof, particularly described in the findings of fact and being all of said 923 acre tract ‘save the sloughs and small waste parts and portions thereof.’ On December 15, 1919, this water contract was recorded in book 6 of Contracts and Agreements, at page 435, in the office of the county recorder of said County of Glenn, and later recorded, on January 5, 1920, in book 44 of Mortgages, at page 188 thereof, in said office of said county recorder.
“At the time this contract was made, and at all times until after the commencement of this action, appellant was informed and believed that said I. G. Zumwalt owned all the property described in said contract, free and clear of any and all liens and encumbrances, except, of course, the lien of said contract for the payment of water bills, and had no actual information or actual knowledge to the contrary, and would not otherwise have furnished any water upon any.of the lands described in said agreement. By the terms of said contract appellant was granted a permanent lien upon said lands as security for the payment of all moneys due or to fall due thereunder, such lien to be a first and prior lien.
“On January 13, 1920, plaintiff and her said eight children conveyed by deed the said 923 acres to said Zumwalt, plaintiff being at that time the owner of an undivided one-half interest in, the said lands, and the eight children then owning each an undivided one-sixteenth interest therein.

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Bluebook (online)
259 P. 52, 85 Cal. App. 119, 1927 Cal. App. LEXIS 357, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ludy-v-zumwalt-calctapp-1927.